What to offer?

kettlefish

Sorry for the lack of info, as I said I'm completely new to this!

Thanks for all your helpful replies.

The houses further down the road, the lower numbers, are more in the chalet bungalow style, and generally 2-bed with small gardens. The house we like is number 15. The even numbers are almost all bungalows. I have read somewhere that the 2004 prices are about what we're back to, they have had uPVC throughout since buying it but not much else other than decorating and keeping it in working order, looking nice...... House next door is a 4-bed for £169,950.

With that in mind we will look round the other house on the same road, and two on the cul-de-sacs opposite, really just to clear things up a little, but will probably end up offering around £140-£145k.

Thanks again for all your helpful responses

kettlefish

Fingers crossed they don't use MSE! Never thought of that.:eek:

Gorgeous_George

Good luck kettlefish.

I think it's always nice to get a bargain or to sell something for a profit. It's also nice to treat people how you would wish to be treated.

That said, your cash is a strong hand and my advice would be to start the offer at £135K working up in £1K or £2k increments to a maximum of £140K.

It will be worth less this time next year.

At £600 I'd rent. I certainly would not pay £130K for a house to let at £600.

Good luck.

GG

PasturesNew

Of no use whatsoever .... Number 15 sold for £47,000 in August 1995.

I just thought I'd mention it.

Gorgeous_George

Where did you find that PN?

GG

PasturesNew

Gorgeous_George wrote: »

Where did you find that PN?

GG

Might have to register, but here:
http://www.ourproperty.co.uk/showroad.html?type=road&road=ENOCH+STONE+DRIVE&district=DERBY&country=england&locality=CHADDESDEN&postcodes=a%3A1%3A%7Bi%3A0%3Bs%3A8%3A%22DE21+6ZG%22%3B%7D&date=all&order=addrdown&redirect=showroad.html%3Ftype%3Droad%26road%3DENOCH%2BSTONE%2BDRIVE%26district%3DDERBY%26country%3Dengland%26locality%3DCHADDESDEN%26postcodes%3Da%253A1%253A%257Bi%253A0%253Bs%253A8%253A%2522DE21%2B6ZG%2522%253B%257D%26date%3Dpre2000%26order%3Ddateup

AMG2B

Hi - me again! I think this looks like a really nice house and would probably go in with an offer of 135 - 140k given your cash status etc and hope to get it under 145k. Best of luck

themanbearpig

beingjdc wrote: »

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.

I don't agree with the 'as its a house to buy as a home, its ok to overpay' message, that seems to be banded around here, replacing one of the many cliched HIP quotes that were said in its time.

Buying now is fine if you really want to contribute a higher proportion of your future earnings to mortgage interest, and have less to enjoy. Or in this case, you really want to waste £x0,000's of your inheritance. In a year, prices are going to fall by at the very least 10% of the market price, not the advertised price (as they kept higher than actual market). So if its actually worth £140k today, expect a loss of at least £14k this year, then what about the 2010? and 2011? How will you feel if they drop by 20% this year, and you lose £30k of your inheritance?

If I was in your position with cash in the bank, I wouldn't buy now, because you are essentially agreeing to pay nearly an entire life-times worth of rent/mortgage repayments for an asset which is overvalued, and almost certain to fall much much further, and and recovery is very uncertain.