Advice on what to do next (Negotiating)

lightspeed

Hi, I was just after some quick advice/opinions on my current buying situation.

Myself and my partner are FTB's and have been looking at various properties in our local area. We recently came to the conclusion that buying a decent sized house in a desirable area was a priority despite the fact that it would probably stretch us further finanicially than first planned.

Anyway, we have seen a house that fits the criteria which is priced at £159,950 and have consequently put a bid in (albeit, a cheeky one) for £146,200. We waited several days only to be told that the vendor has left the country for Austrailia and has told her solicitor that she wont accept anything below the lower end of £150,000.

We dwelled on the idea and quite quickly increased the offer to £150,000 (may be a bit too hasty). Today this of was again rejected and the EA stated that the vendor will not accept anything lower than £155,000.

Do i now assume that this is an amount set in stone or meet them half way. Our financial situation will allow it but we are gradually eating into our substantial deposit that would be needed to update this property (i.e. new bathroom, kitchen and decor throughout).

Any advice would be helpful

Thanks in advance.

Red_Elle

You're in a great position as a FTB and it sounds to me that maybe you came back with £150k a little too quickly, they assume you are really interested and she is trying to get more money.

Personally I would ask the agent for particulars on other houses in the area and/or say that you won't go any higher and have decided to offer on another property unless the buyer reconsiders, as you want to get moving quickly.

However, there is a biggish risk that she genuinely wants more and you'll lose the place, but then surely she wouldn't have said she wanted lower end of £150k in the first place.

ftbworried

How long has the property been on the market and why are they selling?

lightspeed

Its been on the market for just over a month and its the daughter of the owner (who has died) who is selling. So far the EA has said that there have been quite a few viewings and a "steady" interest but no offers.

To me this is not suprising, as mentioned before, although the house is in a desirable location it is in desperate need of updating and it certainly needs a new bathroom and kitchen. We are under no illusion that the house will take quite some time to update and we will use whatever spare cash we have to do it. Because of this we are reluctant to pay over the odds when so much work needs doing (it looks like its been had the same decor and appliances for 70 years).

I cant help but feel that the EA and/or the vendor are trying to push us up further and further.

ftbworried

I'd hang in there with that offer of 150k. I think that it is a more than reasonable offer considering the state of repair of the house. There is no requirement for his daughter to NEED more money for the house- since it was never hers. IMO she's just being greedy.

Properties in need of updating that do not have enough profit margin in them to make it desirable for a developer often go unsold for long periods of time. I'd let her stew with this one. Remember if this guy has done little decorating in the last 70 years then reason has it that it might have a lot of building repars to do as well, and this should be reflected in an offer. Remember to get a decent survey with a property like this.

NastyMatt

I am in roughly the same position as you lightspeed, I have seen a house I want and it needs a lot of work doing to it.

I got my Dad in to give me a quote (he owns a building company) and I put an offer in at the value it will be less the work to be done. So it's not like I am making a profit.

The vendor said no. I then upped my offer by about 1.5%, they have not said no yet but I have the feeling they will as the EA has quoted some rough figures of what he thinks they are hanging out for.

But this second offer is final. Why? As I see it I have already moved on the price, anymore will be seriously eating into my renovation money.

Secondly, I am a cash buyer... I have my mortgage agreed, no chain and I will move this through in record time They could ask for no more. If the vendor wants these benefits then they need to rethink their price.

As I see it the 2-3 months extra they may wait on some one in a chain my money could have been sitting in their bank account making them the difference on my valuation and theirs.

I'll pass on some advice my mortgage broker gave me, next time you speak to the EA only mention what you are giving them. They are giving you nothing!!

"150 is my final. It's on the table if the vendor wants a quick no hassle sale. I have the cash waiting, I am in no chain and if they agree I can get this moving today. They'd be stupid to miss this ideal opportunity for the sake of £5k".

Good luck.