help! what to offer....

pettelly

We've seen a house we want in North London. It's in an area we'd really like to live in but most properties there are out of our price range or not suitable. This area has not been affected as badly as other parts of London since it's a very pleasant and popular area. The reason the price is lower than average is because there is a downstairs bathroom (and the house is a bit on the small size).

The vendors are asking 385k. They purchased the house for 300k in q2 2003. According to the Nationwide calculator, the house is worth 343k. According to Zoopla 360k. The end of terrace house next door sold for 390k in q3 2007 and the identical house next door on the other side sold for 319k in q1 2007. The house is in immaculate condition and very well kept so that might explain part of the difference. The estate agent hinted that it's over-priced and that the vendors want at least 350k. We have no chain and a mortgage arranged - so we think we're pretty attractive to vendors and want to use our position to leverage a better price.

Soooo....we were thinking of offering 345k. Is that too low? We do like the house but think that it's overpriced. Houses in this area are going very fast if they're correctly priced and people are getting their asking prices or close to it. I don't want to lose the house but certainly don't think it's worth the asking price. Does this sound like a reasonable offer?

Thanks!!

patch3228

pettelly wrote: »

The vendors are asking 385k. They purchased the house for 300k in q2 2003. According to the Nationwide calculator, the house is worth 343k. According to Zoopla 360k. The end of terrace house next door sold for 390k in q3 2007 and the identical house next door on the other side sold for 319k in q1 2007.

Is that not a bit worrying that an identical house has sold for ~ £25K less what you are thinking of offering as a starting price PLUS this was quite close to when prices were falling of peak?

Also, I understand you feel with that area of London; the prices are holding up ... but a sweeping statement may be property prices are back to 2004/2005 prices (at a guess) and so that may be worth bearing in mind.

themanbearpig

15% off peak, so around £270k based on the depriciation from peak price (Q1 2007) of the identical house.

You're in a good position, don't worry about offending vendors. They need you more than you need them.

Alex_LS

Not that we've actually bought yet, but we saw a property that's been on the market since Jan at 285K, owner allegedly in no hurry to move. Bought in Q3 2004 for £220K.

We offered £225K at the end of March (Zoopla had £225K-£235K, Nationwide a similar figure). Got knocked back. Offered £235K and got told the owner's looking closer to the asking price. Told the agent that was our final offer.

Property's just been reduced to £265K, got a call back from the agent to let us know and to say she had a feeling the owner may accept £250K 'for the right buyer'; i.e. no chain etc. Unless the agent's indicating the owner's rock-bottom price (poor negotiation technique?) then it could go even lower.

Basically, I second the sentiment that you don't need to worry about offending anyone. As long as you make a serious offer (serious in intent, that is) then the agent will probably keep you in mind even if your first offer is flat-out refused.

pettelly

Thanks everyone. That's really helpful. Good houses in that area are being snapped up as soon as they come on the market but the downstairs bathroom means it's not as attractive as others as well as it being overpriced.

EA said house next door for 319k was a hovel and had to be completely done up. 390k house other side has been extended so is bigger. So taking all this info, I think £340k is fair starting offer, hoping to end up at the 350k mark. I'm not so worried about offending - it's nothing to do with the hosue itself, which is lovely, but just the prices in the market. Hope the sellers see it that way as well!