house buying opinions/advice

flame23

Hello,

I'm just hoping to get your opinions/advice.

Basically we are first time buyers, with our finances in place and we're renting at the moment so we'd be ready to move whenever we want.

We have found a property that is on the market at £145k. It had apparently been reduced from £160k (although I never saw it on the market at the price). It has been up for sale for over a year and a half.

We love the house and put an offer in at £120k. (17% below the asking price). The vendor said no and that they were looking for the asking price.

We then offered £125k (around £13.8% below the asking price). Again, the EA said that the answer was a flat 'no' and that they would only be interested in considering more "sensible" offers. She asked if we'd consider offering £135k. We simply couldn't afford to do this.

Does anyone think we put in too 'cheeky' an offer at 13.8% below the asking price considering our possition and the current market?

poppysarah

You should just tell the EA prices have fell 17% in the last year and are set to fall further and that your initial offer will stand for 2 weeks.

What did they buy it for?

flame23

I can't seem to find what they paid for the houses listed anywhere. They bought it over 10 years ago though so assume it would have been for a lot less than our offer.

We obviously wouldn't want to offend the vendor but I think they are being slightly unrealistic given the current market.

We could possibly offer 130k at the very most but i still think that 125k isn't such a bad offer considering?!

Cidersid

Check it on home.co.uk they have price graph which will tell you when it went on the market and when or if was reduced??

QTPie

No, sounds like a fair offer to me.

At the end of the day, yo should only offer what you can comfortably afford and what you are comfortable paying for a property.

You could go back, say that you are afraid that £125k (i.e. your previous offer) is your "last and final offer" and maybe leave it on the table for two weeks (if you are still happy with paying that).

Some people will always be un-realistic about the value of their property: either they find someone willing to pay that or it stays on the market... Properties selling is about a meeting of the expectations of both the buyers and sellers: if that doesn't happen, then the property just wont sell.

QT

QTPie

If it is one of a few similar houses, then a neighbouring property may have sold in the past few years and you can see for how much for through something like www.houseprices.co.uk

Don't worry about offending, buying and selling houses is about business: providing you play fair, then that is what matters. House pricing is very subjective: MANY houses go on the market at very "optimistic" prices... a buyer has the right to make what they believe to be a "realistic" offer on a property.

As for offering £130k, then you have to do what is right for you and your family: depends how much you really want the house (and only you can tell that). They may well still reject it - hard to tell. Whatever you do now - assuming it is your last offer - make it VERY CLEAR that it is your "last and final offer".

Good luck
QT

flame23 wrote: »

I can't seem to find what they paid for the houses listed anywhere. They bought it over 10 years ago though so assume it would have been for a lot less than our offer.

We obviously wouldn't want to offend the vendor but I think they are being slightly unrealistic given the current market.

We could possibly offer 130k at the very most but i still think that 125k isn't such a bad offer considering?!

flame23

The houses on the street vary in size and style and so it is difficult to find a similar property on the street that has sold in recent years.

Thank you for all your advise guys. I guess we'll have to have a good think about how much we really want this house. I think the main thing, like I've said, is that we don't want to offend the vendor but we do really believe that this seems a fair offer and from what I gather from your replies, we aren't alone in thinking that.

The place does need a little bit of work too so if we offered 130k i'm not sure we'd be able to afford to do the work.

If prices really are set to fall even further this year it would seem a silly move on their part not to even consider our offer?!

Brad_Tid

a good home buyers reports site is:

w w w. homebuyers-reports.co.uk/Home

Very useful and informative!

puddy

if you assume that 160k was the right price for 18 months ago, then if you optimistically assume that the area and type of house you are looking at 'only' dropped 15% (most places around 20%, mine 33%!!!), then you could say that its 'worth' about 136k,,, BUT that is making the above, optimistic, assumtions. What if it was over the price to start with, you say it needs work, that the area and type of property has dropped much more than the figures above, then, yes, your offer would seem about 'right' statistically, but clealy not to the vendor who is happy to have an unsold house rather than a couple of grand less than he/she thought they were going to get.
thats their problem

Pee

Write a letter, saying that you are offering £125K subject to contract and that this offer is open for a fortnight or until date X and specifically ask the agents to pass the letter onto the seller.

If they say no, that is up to them.

chickmug

Pee wrote: »

Write a letter, saying that you are offering £125K subject to contract and that this offer is open for a fortnight or until date X and specifically ask the agents to pass the letter onto the seller.

If they say no, that is up to them.

I am smiling as I have read posts where EA's are accused of bullying the potential buyers. Is this not a case of would be buyer bullying the seller? After all the seller can do just what they want or not - it is their free will and must be respected.;)