Cash Offer on house

*Dory*

Hoping for some advise as it's been 16 years since we bought our 1 and only house as FTB's.
I really like this house
http://www.rightmove.co.uk/property-for-sale/property-17764097.html?backToListURL=%2Fuser%2Fshortlist.html%3Ftype%3DBUYING%26index%3D10
It has been for sale since May last year and has been reduced by £48k recently. It has also been up for rent for approx 2 months and is currently empty.
Would it be really cheeky to offer £200k? We would be cash buyers as we have just inherited some money and are renting our present house out (tenant lined up just waiting for us to move out)
£200k is our maximum limit

poppysarah

Try it and see.
The worst that'll happen is they say no.

mybrainhurts

There is a bit of a consensus that deals are being done at peak minus 25% which is 225 odd in this case. but offer 200 - i'd guess they will reject now but might come back later.

*Dory*

I'll just have hope to they are desperate to sell I suppose and they like the fact that we don't have to sell or get a mortgage.

Doozergirl

*Dory* wrote: »

I'll just have hope to they are desperate to sell I suppose and they like the fact that we don't have to sell or get a mortgage.

They might like it a bit. They won't like it enough to give you another 50k off.

You put in your offer and hope but with no room at all for negotiation even then I wouldn't hold out much hope. If you want a cheap house then 95% of the time you have to make offers on cheap houses to be successful. There has to be some kind of agreement on the ballpark figure which I doubt you will have with this vendor. The fact that they are prepared to let the property would indicate that they aren't desperate to sell.

Fact is, it's on for 250k, if they are happy with 200k then the asking price would be nearer 200k.

geordiepaul2001

mybrainhurts wrote: »

There is a bit of a consensus that deals are being done at peak minus 25% which is 225 odd in this case. but offer 200 - i'd guess they will reject now but might come back later.

How do you find out what the peak price was?
I can think of checking previous selling prices but that wouldn't be a true reflection unless it last sold in 2007.

mybrainhurts

geordiepaul2001 wrote: »

How do you find out what the peak price was?
I can think of checking previous selling prices but that wouldn't be a true reflection unless it last sold in 2007.

I am guessing that the price it first went on at was what the vendors believed peak to have been. No evidence at all, but I would bet a very modest sum that I'm right.

mybrainhurts

The fact that they are prepared to let the property would indicate that they aren't desperate to sell.

On the contrary, it suggests to me that they are desperate to find any solution which stops them haemorrhaging money on the mortgage. I am looking at rental properties and that is always obviously the case with houses on both for sale and to let.

An interesting approach for the OP would be to rent it, then make an offer to buy.

Doozergirl

mybrainhurts wrote: »

On the contrary, it suggests to me that they are desperate to find any solution which stops them haemorrhaging money on the mortgage. I am looking at rental properties and that is always obviously the case with houses on both for sale and to let.

Then it's either/or perhaps but I still don't think that a distressed or particularly motivated seller would offer the property to let - it's more likely going to be someone that can afford to 'hang on to it until the market picks up again'. The sales that were taking place through the second half of last year and would almost certainly have been as a result of death, debt, divorce or someone keen to sell because they'd found their own bargain. They needed to sell.

If you were genuinely desperate to sell, you'd drop the price. If you couldn't get the price you wanted and were unprepared to drop the price you might be more likely to let the property and wait. Yes the 'obvious' reason might be that they aren't happy spending out on the mortgage every month but it doesn't 'obviously' mean that they are keen to take a low offer.

mybrainhurts

Doozergirl wrote: »

Then it's either/or perhaps but I still don't think that a distressed or particularly motivated seller would offer the property to let - it's more likely going to be someone that can afford to 'hang on to it until the market picks up again'. The sales that were taking place through the second half of last year and would almost certainly have been as a result of death, debt, divorce or someone keen to sell because they'd found their own bargain. They needed to sell.

If you were genuinely desperate to sell, you'd drop the price. If you couldn't get the price you wanted and were unprepared to drop the price you might be more likely to let the property and wait. Yes the 'obvious' reason might be that they aren't happy spending out on the mortgage every month but it doesn't 'obviously' mean that they are keen to take a low offer.

I didn't say it was obvious they would take a low offer, I said it was obvious that offering the house to let was a sign of desperation rather than of lack of motivation. This is the outcome of the vendor simultaneously thinking "I absolutely must sell the house" and "I absolutely will not sell the house for less than £x".

Doozergirl

mybrainhurts wrote: »

I didn't say it was obvious they would take a low offer, I said it was obvious that offering the house to let was a sign of desperation rather than of lack of motivation. This is the outcome of the vendor simultaneously thinking "I absolutely must sell the house" and "I absolutely will not sell the house for less than £x".

I didn't say that you said they would obviously take a low offer either and in fact I agreed that it was obvious that they didn't want to pay the mortgage.

I don't agree that it is obvious they are desperate. You don't have to be desperate to make a decision like that but if you're not going to sell at the price you want, it would be sensible to let it instead when you realise it isn't forthcoming.

To be honest, it looks like it was rented beforehand anyway; empty, part furnished. No one has sofas like that out of choice! It looks a lot like a repo but they wouldn't be offering it to let if it were.