How low is too low on an offer?

jamtart6

hello! thanks for all the comments

huntersc - i was joking about the wallpaper! we try to buy as objectively as possible, but there is bound to be a bit of emotion in it! There were 2 other couples there with us, so I dont think the imaginary buyer is a scenario. From what the EA was saying I think it is a reposession (really sad when you see the kids bedroom wallpaper and wonder where they are!)

We both loved it and are going to put offer in a sensible but not too sensible offer and see what they come back with so we have room to negotiate.

I've played with the mortgage calculator and if the rates pop up to 12% we could still afford it and live comfortably, and currently if one of us lost our job, and the rates went up to that we could probably survive it, albeit on beans on toast. So worst case scenario seems to be doable too.

I do appreciate all your comments, they have been very useful

huntersc

Well good luck with it, just please do not get into a bidding war. That would be the worst thing for you. If you're intent on buying this place and other people are interested then don't immediately start offering more, the most important thing (especially as it's a repo) is that you're in a strong position to buy. The EA wants rid and wants an assured sale, they don't want someone to offer and then pull out in 3 weeks so it all has to start again.

the person that gets the property in this market is not necessarily the one offering the most money, it's the one with the best all round offer. If you have everything in place, perhaps even going so far as having a statement with your savings account showing deposit when making the offer then the EA knows you're serious and will take any offer you make seriously. (Make sure you only have enough to cover 15% of the offer you're making, if you have more and they see it then they'll know you have more room to maneuver)

Ultimately the EA just wants to sell the place, £5k here £10k there doesn't make much difference to their commission. Bear that in mind.

P.s if you want to be really naughty, drop the price £5k - £10k on the day of exchange. Normally this would be very very bad but, in this case, it's a repo so the only people getting hurt is the bank, and we all hate banks don't we?

Incisor

jamtart6 wrote: »

... Another couple are going to see it just before us too

To Agent: "That's £5k off what I was thinking of offering"

and the estate agent said there has been a lot of interest (she would say that I'm sure)

To Agent again: "and that's another £5k"

jamtart6

good advice incisor, they don't half talk the talk!! But I did physically see 2 other couples when I was there this morning.

We can get a mortgage based on my partners income alone which was our main concern as I am starting a new job in Jan and they dont take into account your wages until youve been there 3 months usually. Plus it means we arent overstretching ourselves (we could have borrowed 3 times as much on our joint income which just scares me to be quite frank! no wonder the country is in the state it is in if they are lending that much money to people!!)

huntersc - wise words about the deposit and not letting on how much we have. We have a decent deposit which is great for us but the estate agents mortgage advisor has summoned me (apparently the vendor which is now the bank, wants to ensure we 'qualify' for our mortage) which our independent advisor says is a load of rubbish. I obviously want to see someone else to check our independent bloke isnt ripping us off, but dont think its in our best interest to get roped into the estate agents mortgage advisors who could go through our finances with a fine toothed comb.

Do appreciate all of your reasonable advice

SCRUFFYMONKEY

Depends on the person selling! We have just been told that the vendors of a property we were after will only consider offers £9000 under asking price or above!! Some people just have their head stuck in the sand! That is the main cause of the standstill in our area. People are being told by estate agents that they can get X amount for their property and then they refuse to accept offers under. Madness!

looby-loo_2

We looked at a beautiful bungalow about a year ago, two bed £525,000, now £425.000

North_Sea_Bubble

The female nesting instinct. The most powerful force known to 'Man'.
May the force be with you.

Incisor

jamtart6 wrote: »

...they don't half talk the talk!! But I did physically see 2 other couples when I was there this morning.

Agent's dream. They do try and crowd the viewings together so that viewers get a glimpse of the opposition.

jamtart6

Incisor wrote: »

Agent's dream. They do try and crowd the viewings together so that viewers get a glimpse of the opposition.

..and then told us one couple werent interested and another had lots to see. I am not easily fed stories!! I know what the old estate agents are like. Like car salesmen! The people we buy our cars from call my Mum "the woman who WE pay to take the car" because she drives a tough bargain!

jamtart6

North_Sea_Bubble wrote: »

The female nesting instinct. The most powerful force known to 'Man'.
May the force be with you.

:rotfl:Sounds like I should be on a David Attenborough programme!