Cheeky Offers

Elle_Coco

I'm a FTB looking to buy my first home with my other half. We know the area we want and have a budget of around £180k, we're based in the North West.

Now as its our first home there are a number of reasonable ones we have seen for around £150-£200k mark that are 100+ year old period terraced houses, very loved and perfect for FTBs.

The problem with searching is stumbling across your "dream home". We've seen a beautiful renovated detached period property in the same area which is on the market for £249k. This is the kind of house we would be going for next rung up the ladder. But there is no way we will get a mortgage for any more than £180k for the immediate future [until I qualify as a lawyer].

The question is, what would you do?

1) Be patient, go with a smaller and "less dreamy" house because its too far above budget
2) Go in with a £180k offer. Its a developer that has refurbed it, its currently empty, has sat on the market since September with no offers and I think it was purchased in 2007 for £147k. Is the developer holding out for a crazy buyer? £180k is just over 25% off the asking price.

Please feel free to ponder with me :rotfl:

princessamy86

Try it! They can only say no and then at least you'll know you tried- as Matt said, they may be desperate enough to accept it!

QTPie

I always think "nothing ventured, nothing gained".

Firstly, any idea what the house is really worth? You say that it was bought in 2007 (so at the height of the market) for £147k. What have they done to it in that time to justify such a price rise in a falling market? Have they extended it? Completely gutted the place and rewired it etc? Has it really been done well (if you have a builder/surveyor friend/relative, would be worth getting them to take a good look over it)?

Could you buy a similar property and do it up yourselves for less? Maybe it wouldn't be worth the hassle...

Anyway I am saying that sometimes redevloped properties can cosmetically look "wow", may or may not be done well and are often over-priced (you are paying for that wow factor). That may or may not be the case and, even if it is, you still may be happy to buy it for £180k (if that offer was accepted).

If it is, then maybe go with a "£180k, first, last and maximum offer". You like the house, BUT that is all that you have (so no room for further negotiation). Emphasise that you having nothing to sell: that you have the deposit lined up and a mortgage promise/offer (make sure that you do have that though - be sure that you can get that mortgage before you go making an offer). Say that your offer is genuine and, subject to a satisfactory survey, that you will not mess about.

Try not to get too hung up on it, though, just in case your offer doesn't get accepted.

Let us know what you do
QT

stolt

nothing ventured, nothing gained as they say. However having been in a similar situation this week i not sure alot of vendors are willing to accept such drops yet. I offered 405k on a 450k house that has been on at that price since 2007, rejected then offered 410k, rejected and then finally offered 417k onyl to be rejected. My wife has her heart set on the house so it would be good to get in there and make your offer quickly so as not to build your hopes up too much. It might be that they reject your offer and in a few weeks or months come back to you, its what i'm hoping our vendors will do.

milliejo

you lose nothing by making an offer but I would recommend that you dont rely on being able to get a job when you qualify and budget accordingly as I think things are going to get very bad this year in the legal profession. none of our last 2 batches of trainees have been kept on when they qualified

zone

I think it will depend on how much work has been done on the property and the cost to the developer. Obviously they are selling to make a profit. So if you offer £180k on a house marketed at £250k thats a big drop. But if they havent got any other offers on the table and they can still make a smaller profit from the sale, then its possible. Or they may decide to hold out for the £200k+ offer to come along.

But i agree with the above posts, if you have viewed the property make the offer you are happy with.