What to offer?

kettlefish

My fiance and I are sort-of-first-time-buyers, in that we have no experience of buying houses. However, we have the cash sat in the bank as he inherited his parents' home when they sadly died, and we have sold this. Basically we'd be ready to proceed straight away and shouldn't have any hiccups. A lovely house we went round today is on the market for £157,950, could stretch to around £145k -ish, but the vendor did let slip that they have seen the house they want and, as it's a new build, there's no upward chain. They want to sell/proceed immediately. With this in mind, what would be a suitable offer for this kind of house? As I said we've never done this before and I don't want to take the p*ss, especially as I presume their home is "Priced to Sell", but nor do we want to pay more than necessary.

http://www.rightmove.co.uk/property-for-sale/property-11427795.html?pageNumber=1&backToListURL=%2Fproperty-for-sale%2Ffind.html%3FsearchType%3DSALE%26locationIdentifier%3DREGION%255E5935%26radius%3D0.0%26displayPropertyType%3D%26minBedrooms%3D3%26maxBedrooms%3D3%26minPrice%3D150000%26maxPrice%3D160000%26maxDaysSinceAdded%3D%26_includeSSTC%3Don%26x%3D106%26y%3D2%26sortByPriceDescending%3D%26primaryDisplayPropertyType%3D%26secondaryDisplayPropertyType%3D%26oldDisplayPropertyType%3D%26oldPrimaryDisplayPropertyType%3D%26oldSecondaryDisplayPropertyType%3D%26newHome%3D%26retirement%3D%26auction%3Dfalse%26partBuyPartRent%3Dfalse&locationIdentifier=REGION^5935&maxBeds=3&radius=0.0&maxPrice=160000&minPrice=150000&minBeds=3Me

AMG2B

Hi Kettlefish - have you got a link to RightMove as this often helps people estimate what they think you could get the house for. I'd be tempted to offer between 140k - 145k though as an opening offer - although I'm sure lots of people would suggest lower!

kettlefish

Thanks. That is what my parents have suggested too, but I have added a RightMove link to see what other people think. It is in a very nice estate in a suburb we both really love.

lethal0r

http://www.houseprices.co.uk/e.php?q=ENOCH+STONE+DRIVE%2C+CHADDESDEN

this suggests 2004 prices are around £140k. halifax data tells us that we are already back to 2004 prices & im sure nationwide data will say the same when its released.

Gorgeous_George

Looking at nethouseprices, No. 3 sold for £125K on 11 October 2007. This was the peak of the housing bubble.

No 1 sold for £157,500 in June 2006 (this house may be on a larger plot).

No 10 and No 15 sold for £142K and £139K in 2004 while No 16 sold for £82K in 2000.

Which of the above houses is most like the one you are interested in?

GG

hethmar

No. 1 went for £157,500 in June 2006. May be there was something odd about no. 3?

When were these houses built? If No. 1s price is more typical - Id put in £130k and negotiate up to £137k

Gorgeous_George

hethmar wrote: »

No. 1 went for £157,500 in June 2006. May be there was something odd about no. 3?

When were these houses built?

I agree and I was editting my post as you were typing your reply.

Once we know which house is most like the one for sale, we will be able to make an informed decision as to the offer. Basing an offer on the asking price is stupid.

GG

Gorgeous_George

lethal0r wrote: »

http://www.houseprices.co.uk/e.php?q=ENOCH+STONE+DRIVE%2C+CHADDESDEN

this suggests 2004 prices are around £140k. halifax data tells us that we are already back to 2004 prices & im sure nationwide data will say the same when its released.

Crossed posts but great minds and all that.

The buyer (especially one with cash) has the upperhand in the current market. Any savings can probably be passed on to the builder selling his newbuild.

I'd love to be negotiating this deal (on behalf of the buyer). (That's not an offer!).

GG

Gorgeous_George

It's No 15 I believe (after a little detective work) so we know it sold for £139K on 6 August 2004. We don't know if that was too much (at the time), a bargain or a fair deal. We don't know if the property is better now than back then. It is older of course.

If they had a 100% morgage in 2004 they will still owe £128K or thereabouts. Maybe an offer of £130K would be enough. Perhaps they need £30K for a deposit hence the price tag - any less might scupper the move.

What are the neighbours like? Why are the present owners moving? why doesn't the OP buy the house that the current owners are looking to buy?

If the vendors use MSE they know that you could stretch to £145K-ish:rotfl:

GG

lethal0r

Gorgeous_George wrote: »

Crossed posts but great minds and all that.

haha yes! ive not used nethouseprices.com before I will have a look at it.

beingjdc

If you're staying a long time, then it's worth what it's worth to you as a home.

For a more formal calculation, similar properties seem to be about £600 a month to rent, and long-term fixed mortgages are around 5%.

On that basis, a house like that is "worth" £144k. Subtract a bit for costs you have when owning but not when renting (eg buildings insurance) and you're back at the 2004 price previously mentioned.

Funny old world, eh.