Please, I need an idea on offer. Is it sensible to put 20% less offer?

HomeBuy3780

Hi All,

I read here in number of threads that according to current climate, FTB can put 20% less offer.

Meaning I like a 3 bed semi property in surrey on the market for 319000.

Could i put an offer of 255200 (319000 - 63800) ???

Also how much up should I go for?

Many thanks for replies.

casper_uk

I would seriously wait and see what the FSA announce tomorrow in their report. If it's true that mortgages are going to be limited to 3x a persons salary then this will have a major impact on house prices and the 50% falls people laughed at a year ago will turn out to be correct.

poppysarah

Look up the streets previous sale prices on houseprices.co.uk
Is this house smaller/worst position on street/need refurb etc

If you're going to put a sensibly low offer in you want to be prepared.

I didn't put an offer in recently - but I did point out the neighbouring house was being sold for 46k less (than 129k) and that the last 3 houses were all under 100k - so their price was OTT. I don't think it was the right house for me to buy - so that was also a reason for me ... rather than putting in a low offer ...

Prob worth pointing out that HP fell 17% in a year too

HomeBuy3780

poppysarah wrote: »

Look up the streets previous sale prices on houseprices.co.uk
Is this house smaller/worst position on street/need refurb etc

If you're going to put a sensibly low offer in you want to be prepared.

I didn't put an offer in recently - but I did point out the neighbouring house was being sold for 46k less (than 129k) and that the last 3 houses were all under 100k - so their price was OTT. I don't think it was the right house for me to buy - so that was also a reason for me ... rather than putting in a low offer ...

Prob worth pointing out that HP fell 17% in a year too

So could I really tell agent, next door was sold in july 2008 for 250k?
Should I tell hem about house price fall, he already know this???

poppysarah

The EA I spoke to said "Our valuers must have got their figures from somewhere" ... and I didn't like to point out any suggestions for where they got them...

Yes. That's useful to know. The EA should know. Look on neighbouring streets too - see if there's been any good falls in price there too.

sharpe106

have a look around as others have said and check prices, when you offer they can only say no

domcastro

20% under offers are only ok if the house is 20% overpriced. Because of the current times, don't expect all houses to be overpriced

I saw a house for 265k - wouldn't even offer 200
I saw a house for 240 - thought it was worth 200k
I saw a house for 215k - bought it for 205 (5% under asking price)

themanbearpig

Dont buy yet if your a cash buyer, you will lose most of your money.
Wait for the recession to bite harder.