Advice needed - How low can I go?

Cat695

hearts wrote: »

A waste of everybodys time.

Yes your probably right as the woman that sits in the cabin doing her nails is so busy taking offers on unsold houses.....mmmmm

Bf109

Robert_Sterling wrote: »

However what the house might have been worth 3 years ago is not much hellp as to what you should pay today.

Yes, you should be looking at what they sold for 5 years ago.

puddy

Hi, I have a similar query, Im not used to trying to work out how you calculate what prices should be now. the house i am looking at, is on for 185 (and 175 with another estate agent but i only saw this after arrangeing a viewing for tomorrow with the first EA).

has been on the market for about a year. i dont believe there has been any price drop in that time.

we have our property under offer with a first time buyer (fingers crossed). if we offered on this, what sort of price should we look at, considering that a similar property sold for 150k in july 07. is that considered the top of the market? are we looking at 15% off that? in december 07, another property (but a terrace rather than end of terrace) sold for 180k, the one im looking at is a end of terrace, so would command a higher price yes??

my boyfirend says if we offered, he wouldnt offer anymore than 150k but i feel a bit embarrased about that, it would be 35k off the asking price

gemini24

I'm with your boyfriend on that one - I may even go in a bit lower at first. Buying a property is not an exact science. Heart and head come in to play. As you are considering a new build and developers still have year end targets etc to consider, you may be lucky as completion would likely take place before 31 March.

You can always go up but can't come down!!

puddy

gemini24 wrote: »

I'm with your boyfriend on that one - I may even go in a bit lower at first. Buying a property is not an exact science. Heart and head come in to play. As you are considering a new build and developers still have year end targets etc to consider, you may be lucky as completion would likely take place before 31 March.

You can always go up but can't come down!!

thanks for that, the property isnt a new build though, its owned by an old couple hence why i feel a bit bad about knocking off so much, plus the fact that if its as nice as i think it is, i would really want it. boyfriend even mentioned 140 at one stage today

Cat695

Jenner you need to understand that this is going to probably be the BIGGEST finacial decision of your life

So take no prisoners...DO NOT let your heart rule your head

do you think that they would refuse your offer if you paid to much....!

gemini24

This is really going to sound heartless but often older people will accept less as they often don't have a mortgage or if they do it is very small (I feel bad even typing this but its the truth). Go for a low offer, they can always say no and you can always go higher. A problem you may come up against though is if they are being advised by younger family members who believe they are in the sellers' will!!

ukjoel

Not sure if it helps but currently the average sale price is 88% of the asking price.

During the heady heights of the property boom it was 96% of asking price.

Think these figures came from the UK stats office so presume they are accurate ish.

At present a fairly large amount of property sold are distressed or pressured sales which I think accounts for the 88% stats. I am sure that some properties are only achieving 75%-80% of asking price (or less) but a fair few others are still achieving 90% plus.

As always it comes down to how sensibly priced the house is originally, location and demand.

puddy

yes, i know, i think you're both right actually, its something about old people, i dont want to fee that im taking advantage of vulnerable people, however, even on the basic calculation of the 180 price in dec 07, if you take off 15% (which isnt very much as i dropped a third off mine), then you reach 153, then if i knock off about 5k or whatever, for new bathroom and redec then you're looking at 148 at the very most. mmmm lots to think about

puddy

ukjoel wrote: »

Not sure if it helps but currently the average sale price is 88% of the asking price.

During the heady heights of the property boom it was 96% of asking price.

Think these figures came from the UK stats office so presume they are accurate ish.

At present a fairly large amount of property sold are distressed or pressured sales which I think accounts for the 88% stats. I am sure that some properties are only achieving 75%-80% of asking price (or less) but a fair few others are still achieving 90% plus.

As always it comes down to how sensibly priced the house is originally, location and demand.

ah very useful indeed because if i calculate 88% of the lowest price they have this on the market for, which is 175, it works out at 154, near to my other calculation, therefore, i have concluded that this must be fairly accurate