How much would you offer for this house

noff

I have seen a house on the market for £380K, it was sold to the present owner at the peak of the market (Oct 2007) for £395K.

Using todays nationwide figures this house should be valued at approx £313600.(20.6% off peak)

House prices are expected to fall by approx a further 20% so I feel that a fair offer would be £250000.

I am a cash buyer and could proceed virtually immediately and I do know that the owner has emigrated.

However I do think that an offer of £250K on a house marketed at £380K would be laughed at.

Any thoughts?

QTPie

noff wrote: »

I have seen a house on the market for £380K, it was sold to the present owner at the peak of the market (Oct 2007) for £395K.

Using todays nationwide figures this house should be valued at approx £313600.(20.6% off peak)

House prices are expected to fall by approx a further 20% so I feel that a fair offer would be £250000.

I am a cash buyer and could proceed virtually immediately and I do know that the owner has emigrated.

However I do think that an offer of £250K on a house marketed at £380K would be laughed at.

I am afraid that I would think so too... You never know.

As a seller, I would be prepared to be realistic (i.e. if a house is acknowledged to only be worth £313k, then I would strongly consider that), BUT I would not be prepared to finance what MIGHT happen int he market... especially to the tune of a further 20% and especially during the current market "blip" (rightly or wrongly, this has given some sellers more confidence at the moment). Why should a seller sell a house to you at the price that it MIGHT be worth at the bottom of the market?

I would think that you would be unsuccessful at £320k (I would think that most sellers are looking, rightly or wrongly, for offers within about 10% of the asking price), let alone £250k, but you NEVER know...

How long has the property been on the market? Do you know if the current owners have done much to it since they bought it (extended it, modernised it, new kitchens and bathrooms etc.)

Of course the property may well stay on the market at that price at some time: it will either go unsold or the seller may gradually reduce their price to something more reasonable... I doubt that they will make the leap from £380k to £250k any time soon though.

If you make an offer that lower, then you risk loosing any credibility. But it depends whether you are serious about the house. Only you can decide what it is worth to you and how much you are prepared to pay...

Good luck
QT

sophiesofa

Depends if they've added value or just left it exactly as it was. Also just because the market is predicted to fal another 20% doesn't mean you pay 20% less, you'd have to wait a few months or a year until that had come off. I don't think you can offer less than 300k but i suppose there's no harm in trying especially if they need to sell. A lot of homeowners who can't sell are renting them out instead so they may not feel they have to sell straight away.

confused31_2

noff wrote: »

I have seen a house on the market for £380K, it was sold to the present owner at the peak of the market (Oct 2007) for £395K.

Using todays nationwide figures this house should be valued at approx £313600.(20.6% off peak)

House prices are expected to fall by approx a further 20% so I feel that a fair offer would be £250000.

I am a cash buyer and could proceed virtually immediately and I do know that the owner has emigrated.

However I do think that an offer of £250K on a house marketed at £380K would be laughed at.

Any thoughts?

try you never know, i think you are being a bit optomistic, but if the say no noone has been hurt.

zone

What type of property is it and does it need any major work?

Put your offer of £250k to the vendor and let them know that you can proceed right away. Your offer is unlikely to be accepted if its on the market at £380k. But you never know they may suddenly decide to sell..