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Made "cheeky offer" today, and now I'm pacing the floor!
Cissi
Posts: 1,131 Forumite
We made an offer this morning of exactly 2/3 of asking price - what would you reckon our chances are of it being accepted 
Mind you, I think it's the asking price that's more than cheeky: it's a house that's been on the market for 18 months and the asking price hasn't come down by a penny in that time. According to the Land Registry, only one house in the road has ever sold for anything like it (slightly less, in fact) and that was in early 2008 (sale agreed autumn 2007 so at the very peak). Both houses were put up for sale at around the same time, the one that sold was priced slightly lower and went at asking price. Nothing else has ever gone for more than 73% :eek: of the current asking price - and the house we're looking at is by no means one of the largest houses in the road, nor is it in good condition - needs complete refurbishment including kitchen etc. The whole road, however, is considered extremely desirable (don't want to share more details at the moment). A number of houses have been up for sale in the last year or so; all at similar price levels and all have ended up withdrawn or rented out instead, except for one where the vendors accepted an offer in December. No idea of the details but this one had only just come on the market, so it may have been near asking price, which was higher than the one we're interested in - bigger house though.
We both really like this house and love the location. We're prepared to pay the 2004 price for it even though we feel that it will fall further yet - but I'm pretty sure the gap between our offer and the vendors' expectations is still too wide. A 33% reduction would be a lot for them to swallow, even if we have plenty of data to back up our offer. Sold prices in the area are falling faster than the national average - but vendors don't seem to have accepted this yet, which means that nothing is selling
Here is the ironic bit: the EA led us to believe that it's owned by a couple who have raised their family in it and now want to downsize. Among other things he said that "they've owned it for a long time and don't have much of a mortgage on it, so they can afford to wait for the right buyer." BUT, interestingly, rightmove shows that it was last sold in 2004. Guess how much they paid for it? Exactly the amount that we had already decided to offer! What are the chances that they'll accept the same price that they gave for it 5 years ago :rolleyes:
At least the EA didn't treat it as a ridiculous offer, on the contrary he seemed to take DH seriously, asking him to confirm that we're truly cash buyers and that we could move quickly. Of course, this has had me pacing up and down all day, reading all the threads on here while waiting for a reply :rotfl:
Mind you, I think it's the asking price that's more than cheeky: it's a house that's been on the market for 18 months and the asking price hasn't come down by a penny in that time. According to the Land Registry, only one house in the road has ever sold for anything like it (slightly less, in fact) and that was in early 2008 (sale agreed autumn 2007 so at the very peak). Both houses were put up for sale at around the same time, the one that sold was priced slightly lower and went at asking price. Nothing else has ever gone for more than 73% :eek: of the current asking price - and the house we're looking at is by no means one of the largest houses in the road, nor is it in good condition - needs complete refurbishment including kitchen etc. The whole road, however, is considered extremely desirable (don't want to share more details at the moment). A number of houses have been up for sale in the last year or so; all at similar price levels and all have ended up withdrawn or rented out instead, except for one where the vendors accepted an offer in December. No idea of the details but this one had only just come on the market, so it may have been near asking price, which was higher than the one we're interested in - bigger house though.We both really like this house and love the location. We're prepared to pay the 2004 price for it even though we feel that it will fall further yet - but I'm pretty sure the gap between our offer and the vendors' expectations is still too wide. A 33% reduction would be a lot for them to swallow, even if we have plenty of data to back up our offer. Sold prices in the area are falling faster than the national average - but vendors don't seem to have accepted this yet, which means that nothing is selling
Here is the ironic bit: the EA led us to believe that it's owned by a couple who have raised their family in it and now want to downsize. Among other things he said that "they've owned it for a long time and don't have much of a mortgage on it, so they can afford to wait for the right buyer." BUT, interestingly, rightmove shows that it was last sold in 2004. Guess how much they paid for it? Exactly the amount that we had already decided to offer! What are the chances that they'll accept the same price that they gave for it 5 years ago :rolleyes:
At least the EA didn't treat it as a ridiculous offer, on the contrary he seemed to take DH seriously, asking him to confirm that we're truly cash buyers and that we could move quickly. Of course, this has had me pacing up and down all day, reading all the threads on here while waiting for a reply :rotfl:
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Comments
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good luck...if u dont ask u dont getonwards and upwards0
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It'll be Wednesday before they get back to you.
Don't up your offer if they reject it. Be brave!0 -
If your not embarrassed, its not low enough!!! :-)0
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I dont understand why any decent agent would say they have been in there for ages when everyone now knows how to check these details. Only serves to make the agent look ridiculous.
I would say its a strong offer especially given your buying position, if i were that agent id say to the vendors decline that initial offer and hold out for an extra 3-5k then accept!
Good luck.0 -
18 months on the market is a long time especially in the current climate. They will probably have to drop their asking price and consider all offers. If they are serious about selling.0
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Its really suspicious if it did not sell after 18 months that would take it back to the peak of the boom when almost all houses were selling like hot cakes. It may have just been "over-valued" by estate agents/ vendors or it could have structural problems, I would query this.0
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Thanks everyone, that's what I need to hear!
Poppysarah, that's exactly what DH says. Don't worry, he'll keep me grounded.
Mbga, DH says that too - as well as "if they accept, it's too much" :rotfl:besonders1 wrote: »Its really suspicious if it did not sell after 18 months that would take it back to the peak of the boom when almost all houses were selling like hot cakes. It may have just been "over-valued" by estate agents/ vendors or it could have structural problems, I would query this.
I think you've hit the nail on the head: it was way over-valued from the start. People in houses of this size in the area got greedy thinking they'd made a fortune, but the market also seemed to slow down earlier than in other places. Unfortunately (for us buyers!) one or two vendors got lucky, which means that others think they'll still get as much for theirs :rolleyes: Of course we'll look into structural problems (should they accept our offer) but I don't think it's ever even been under offer subject to survey, so I honestly don't think that's been the problem, just the price 0 -
similar situation as you OP, (i have a thread hanging around here too) offered 350k on a 380k house offer turned down today, EA sai as its not on rightmove yet and they have only just had the details then they are looking nearer the 360k mark. I will offer 358k tomorrow.
good luck, fingers crossed it all works out for you.Listen to what people say, but watch what people what people do!!0 -
just to point out that video has some launguage towards the end that others may find a little too colourful shall i say.:pListen to what people say, but watch what people what people do!!0 -
TBH if they have not dropped the price in 18 months they are being unrealistic and may well not accept your offer - but here's hoping!Grocery challenge July £250
45 asd*/0
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