in fortunate position, advice please

biglad

We are looking to buy a property that we currently rent but are unsure of how to go about it

the current landlord is considering selling and we have around £15k - 20k deposit to put down

the property next door is for sale for £80k and has recently had a new kitchen and bathroom which is something ours hasnt.

now the question is we are unsure how to go about offering a figure. we want to build a porch and put fence around garden which will prob cost about £5k in total. we dont want to buy the property if we cant do this and dont want to be priced out.

now the question is do we offer low expecting them to decline and offer a higher figure or just leave it up to them about the figure. also should we say about the £5k worth of wrok we need to do hoping they could take this into account when offering it us. and finally could we just say we will offer next door what we feel like paying and use this as a bargaining tool, as they have just had a baby and will prob be looking for a quick sale

so shall we go in with a stupid offer of say £70k and let them put it up slightly or just go in around £75k

sorry if all this seems stupid but just little unsure of what to do.

ps landlord will save on estate agent fees and internet advertising at least

thanks for your help

princessamy86

I would go in at £70,000 but I wouldn't do anything until you have been to see a mortgage advisor and got yourself an agreement in principle. That way, you can prove to you LL that you can get the money (don't bloomin show it to him though until he accepts your offer, you'll need to get it amended for the exact amount then he doesn't wish he asked you for more money). Be prepared to negotiate, then you can both feel like you've done well out of it: you will have got something for the price you wanted to pay, he will feel like he got an extra £5k. Has he had it valued? This IMO is the best place for him to start, a good dose of reality from a good estate agent will let him know that he cannot just think of a number and double it. I wouldn't use offering on next door's property as a threat, you are just likely to put his back. Be very very nice and polite and smiley, point out all the benefits (like having no void period or having a house sat there for months and months costing money) and if he needs time to think then back off a bit. Good luck though, I'd be interested to know how it turns out.

biglad

thanks for the reply

yea my girlfriend is going to be going incase i slip up saying the wrong thing lol

they havent had the place valued but have spoke to the estate agents as we wanted to move out when we were still in contract so they went to check, and they were informed how houses arent selling now

also LL has not said if they definitely want to sell however have stated they maybe better off with selling in the short term due to economic crisis

princessamy86

Well you can only ask the question!

biglad

very true

so you think go in with a low offer of 70k?

i seem to think if thats what they think we want to pay they dont think they can get much more but may then offer it us for 72k-73k if they really want the sale

princessamy86

It depends on what they think they can get for the house, I have lost count of the amount of times someone has refused our valuation and insisted that it goes on the market at £15k more. People always think theirs is much nicer inside/has bigger garden/is just generally the best house in the world! Definitely go in at £70k, they might just snatch your hand off, if they're umming and aahing then up it to maybe £72k. Or just ask them what they are looking to achieve, and if it's within budget just offer slightly below that figure. Be careful not to get carried away, leave a few hours at least before raising offers, and from my experience more than 3 counter offers can make you look a little like you haven't a clue what you're doing. Have your first figure and your final figure in your head, and make the mid figure exactly that, somewhere in between each value.

biglad

thanks for advice

we didnt know whether to just ask them straight out what they wanted and gague our price on that

we do have a maximum figure in mind but again more is telling us to just try a cheeky offer. Another thing to note in news today is saying its not going to be end of recessrion and house prices will drop, so ll will want best they can and we arent in it to gain for a good few years so could just be the icing on the cake if they accepted the lower price

we definitely have our prices we will go to and we not keep giving lots of offers but thats good advice thanks

thegibdog

biglad wrote: »

the property next door is for sale for £80k and has recently had a new kitchen and bathroom which is something ours hasnt.

so shall we go in with a stupid offer of say £70k and let them put it up slightly or just go in around £75k

I'm not sure why you say £70k is a stupid offer? It wouldn't be a stupid offer on a house up for sale for £80k and from what you've said your house is worth less than the one next door.

Patrick20

Why not make an offer for next door?

PasturesNew

The work you choose to do - and the cost of that - shouldn't be part of the equation.

To put that in perspective, what if you'd like to do a loft conversion, fit a pool and have gold taps ... should you knock the cost of all those off the price? No.

Fire_Fox

biglad wrote: »

We are looking to buy a property that we currently rent but are unsure of how to go about it

the current landlord is considering selling and we have around £15k - 20k deposit to put down

the property next door is for sale for £80k and has recently had a new kitchen and bathroom which is something ours hasnt.

now the question is we are unsure how to go about offering a figure. we want to build a porch and put fence around garden which will prob cost about £5k in total. we dont want to buy the property if we cant do this and dont want to be priced out.

now the question is do we offer low expecting them to decline and offer a higher figure or just leave it up to them about the figure. also should we say about the £5k worth of wrok we need to do hoping they could take this into account when offering it us. and finally could we just say we will offer next door what we feel like paying and use this as a bargaining tool, as they have just had a baby and will prob be looking for a quick sale

so shall we go in with a stupid offer of say £70k and let them put it up slightly or just go in around £75k

ps landlord will save on estate agent fees and internet advertising at least

So next door will sell for somewhere between £70K and £75K and the vendor will have to pay a fee out of that? Do you know what other houses in the street have sold for lately (there are websites for this)? Why would you offer £70K for the house you are living in?? The fact that you WANT to put a fence and porch on is not your landlord's problem, it might affect what you want to pay but it doesn't affect the property's value. Kitchen and bathroom absolutely do.

Get your mortgage offer in place and then put your offer in writing to your landlord - I'd go in at £60K or £65K. State the conditions (off the market, subject to survey and valuation), your strong position (no chain, finances in place) and your research into the value of the property (price and condition of next door/ others in street). This shows you are a serious buyer not just testing the water.