on the market now & priced at over top selling price of last year

Greenwellies_2

maryotuam wrote: »

why not offer £185k ? You have nothing to lose if there are no other buyers around and it's a falling market. Dont forget that the housing boom was a bubble, an abnormal phenomena! They will obviously refuse but you can let them sweat for a couple of weeks and offer to move up in £5 increments to £190k. If they don't drop at all, walk away. In 6 months time when houses have continued to drop they will probably get in touch with you if they have had no more offers.

I do want the house, so I don't want to offend them, and I have a FTB for my house, so I can't wait around for 6 months.

I'm going to view the HIP on Friday, so I'll have an idea of how long it's been on the market for, and then I might get an idea if they are flexible / determined to move!

GW

SouthCoast

Have a look at similar properties in the area using Property-Bee as it will tell you what has been happening to asking prices.

I dislike Zoopla.

Greenwellies_2

SouthCoast wrote: »

Have a look at similar properties in the area using Property-Bee as it will tell you what has been happening to asking prices.

I dislike Zoopla.

Thanks for that, I hadn't heard of it, it's interesting reading

GW

pinkshoes

Have you seen many other properties you like? How long has this cottage been on the market? If it's been on for a LONG time, it may be worth putting in an offer of say £190k, but if it's just come onto the market, then perhaps go a bit higher if you really want it. It will also depend on how badly the owner wants to sell!

Zoopla is a bit rubbish really, and just uses general averages, and anyone with half a brain knows how much property prices can vary from street to street! It says my neighbour should be paying £650 to £750 a month rent for their flat, but in reality they pay £875!!

Alias_Omega

Zoopla, doesnt even stock our house.

We paid £38,700 for a 3 bedroom, end terrace.

Greenwellies_2

According to property bee, this place has been on the market since june last year, with only a 10k drop in price.

I wonder why they've not lowered their price any further? Maybe they can't afford to.

I'm now wondering where to start the negotiations, and whether to approach the agent or vendor 1st.

This is the only property we really like, so we were assuming we'd get it for 210, but as I said earlier, I'm worried that the mortgage valuation will come in low.

I done a search in the area and saw that there were properties that had dropped their asking price by 70k!, yet this one has only dropped by 10k, but is nothing like the others, so it's hard for me to decide what's a real price for it.

Thanks

GW

TDS_2

Why are you worried that that mortgage valuation will be lower than the amount you are willing to pay?! Surely this is a good thing for you as a buyer since it gives you strong grounds to reduce the sale price. If the valuation is significantly lower than the asking price (and agreed price) then the vendor will be forced to accept a lower price (or not sell) as all buyers will find themselves in the same boat.

dougk_2

TDS wrote: »

then the vendor will be forced to accept a lower price

I understand the problem:
The vendor is not forced to do anything.

The OP is happy to pay 210k, mortgage valuation comes back as £170k. Vendor refuses to reduce as they can't afford to - either NE or need the funds to buy elsewhere. OP then loses the chance of buying the property, and with it has the cost of the valuation/survey and potentially the mortgage costs (eg if fixed mortgage reservation fee etc).

GDB2222

Greenwellies wrote: »

Yes, but I worry that I'll pay out for surveys etc, and the mortgage co will say no it's overpriced..

GW

Whatever the other people here say about "it's worth what you want to pay for it", I would guess that the bank will value it at around £180k based on the figures for the house next door. So, assuming 90% LTV, you'll need to come up with any balance over £162k. Is that affordable?

A similar valuation problem will apply for your purchasers if you ever want to sell it, so it may be hard to sell or you may not get back what you pay for it.

The asking price is just that. If I were offering my (unique) house for sale for the first time, I might try it on with a high asking price and see what happened. Alternatively, the sellers may need to achieve a certain figure.

TDS_2

dougk wrote: »

The vendor is not forced to do anything.

I agree. They may indeed refuse to sell at the lower valuation.

dougk wrote: »

The OP is happy to pay 210k, mortgage valuation comes back as £170k...OP then loses the chance of buying the property...

The OP misses out on paying £40k more than the property is worth (by the estimate of the mortgage company)?!

dougk wrote: »

...and with it has the cost of the valuation/survey and potentially the mortgage costs (eg if fixed mortgage reservation fee etc).

Agreed. Though paying £1k to save you from paying £40k over the odds is money well spent.

I do understand the point you're making, but the mortgage company are on the same side as the OP. They don't want to buy (cos it is them footing the bill, after all) an overpriced asset. I don't see why the OP would be willing to pay £40k over the odds. Is the house that unique? Maybe it is.