Over Priced?? Your thoughts Please :)

Skyler

We are a couple of weeks away from completing the sale of our business. We've been looking for houses for a few weeks and we're trying to find something which we could be in for a very long time (a definite buy till you die!!).

Now our price limit is £210k we will have a 70% LTV. We've found a property that ticks all our boxes however it's over our budget. The house is up for sale for £250k it was purchased in Jan 2007 for £230k. As far as I can gather the improvements made to the property were carried out before the current owners moved in, so basically they would have paid the premium for the 'extras' when they bought it.

I've checked on the Nationwide property index and on Zoopla and both are coming back with current values of between £200k and £210k. Now I'm under no illusion that they would accept an offer of £200k but would it be too cheeky to put an offer in of £210k?

When I spoke to the EA they confirmed that the property has been on the market for over 6 months and although there had been some interest nothing had come of it as the potential buyers had property which they couldn't sell.

What are your thoughts? Would an offer of £210k be too cheeky?

ShelleyC_2

Be brave start at £200 and have 210 as your max.

Good luck!

ShelleyC_2

PS I do mean 200K

Think a mere £200.00 would be cheeky :rotfl:

Skyler

ShelleyC wrote: »

PS I do mean 200K

Think a mere £200.00 would be cheeky :rotfl:

LOL!!

Would you really start that low?

themanbearpig

The vendors must be completely deluded to be asking £20k over peak price in the current market, and I think you need to question whether its worth your time dealing with such idiots.

You need to stop worrying about making offers below asking. I don't know why or how people have been conditioned to think that its bad to give low offers, especially on overpriced houses.

The vendors feeling should not even cross your mind, because buying a house is a business proposition. You will never even meet these people. But saying this, its always worth using a little bit of psychology in selecting a price, and go with strange amounts, like £211850, instead of £210000.

cherry76

I just bought a house on the market for 6 months. asking price at 315k,zoopla estimate comes at 318k.Seller bought the house 3 yrs ago at 300k and selling it at the same price and they did a lot of improvement. Depends of circumstances whether they will accept 210k. I have been lucky they are desperate to move but I still the house is too expensive but it is an expensive area where I am buying.

Skyler

themanbearpig wrote: »

You need to stop worrying about making offers below asking. I don't know why or how people have been conditioned to think that its bad to give low offers, especially on overpriced houses.

The vendors feeling should not even cross your mind, because buying a house is a business proposition.

I'm not worried as such, I'm quite happy to go in with a low offer as I personally don't want to buy an overpriced house. If I'm honest I'm quite happy to go into rented and see what our money will buy in the future if we can't get the house that we would like now.

Gwhiz

ShelleyC wrote: »

Be brave start at £200 and have 210 as your max.

Good luck!

That would be my start point as well. We're 20-25% off peak right now so lets assume that property reached £260 at peak then £200K is around a 23% discount.

Skyler

Gwhiz wrote: »

That would be my start point as well. We're 20-25% off peak right now so lets assume that property reached £260 at peak then £200K is around a 23% discount.

It was purchased by the current owner in January 2007 for £230k, I was going off there being a 15% drop in prices since then.

When was the peak of the housing boom?

In all honesty I can't see them selling for less than what they paid for it, well not unless they absolutely have too.

But then again, saying that why leave their house on the market? Why not just take it off if they don't really need to sell and re-market it when they wouldn't lose as much?

seeff

Might as well start low as you are only going to increase from the first value! You don't know what the vendor is going to say until you make that call to the estate agent.

If you are planning to stay in the house a long time it's more important you get the right house rather than saving £10k (if you can afford it, and it's better to do both if you can!). Without wishing to get into future predicting, remember to look at the big picture before you 'rent to wait and see'. House prices might fall further but overall you might be worse off if mortgages rates creep up. And you might not find the right house again for quite some time...

Still £200k seems fair start point - but another way to check is to have a look what the house (or similar) sold for in 2003-2005 then add on a bit for the additional work as todays value. I'd take Zoopla etc with a pinch of salt - they 'average' prices over areas to calculate trends but realistically every house and every sale is different. Best to do your own thinking...

Skyler

The house next door which is a detached with a double garage but a different style house, sold in 2005 for £200k.

There's so much to consider isn't there, we don't particularly want to come off the property ladder to wait and see what happens but we don't want to feel like we 'have' to buy somewhere either.

If we went into rented we would have our deposit to invest until we needed it and we could also put savings towards it to increase our deposit. The thing I don't want to do is buy a house 'for now' and try and sell in 3 years time, lose some of our deposit and be in a worse position if banks aren't lending the same salary ratios as they are now. I'm sure I read somewhere that the FSA are considering limiting borrowing to 3 times annual salary.

My brain is starting to hurt with all this, I need a crystal ball lol!!