Another cheeky offer thread

shirlgirl2004

We have found a buyer for our house and she is a cash buyer. We are now looking to find a place quite quickly. There isn't a lot in the price range we're looking at. There is a 4 bed house in need of modernisation (stuck in the 80s needs new windows, bathrooms, kitchen, general decor) which to my taste & standard would cost about £100k. It isn't marketed as needing modernisation though. It went on the market for £685k in September 08 and then dropped to £650 in March. It is really difficult to price because there is almost nothing available in the same area of the same size. The owners bought in October 04 for £485k and converted the integral garage to a room (still with a step into it) and then built a double garage.

The village is very desirable although it is on a fairly busy road for a village. Bearing in mind there's a 3 bed detached with similar garden on a slightly busier road recently gone on the market for £475k. The only recent sold I have a price for is a smaller 4 bed detached which sold for £600k in 07 but is really ugly and quite a bit smaller. Is expecting to get it for £550k too optimistic? We can afford more but the OH doesn't really like the house and I don't like it as it is but I can see the potential. It's a bit like the house that we're in now in that it was quite awful but £100k later and it's a beautiful house. Should I offer £540k and then give a final offer of £550?

Help if you can please because OH and I can't agree on our next move.

Cannon_Fodder

Is the OH's aversion "cosmestic" or fundamental?

Personally, spending over half a million pounds and ending up "unhappy" with it, is not very MSE.

Having said which; £485k, add £50k for garage conversion and new garage = £535k.

Would need area to bring that up to peak prices accurately, but taking a rough 10%pa, gives about £700k by Oct 07...less 20% since crash, gives £560k.

Less the maintenance expenditure...£100k you say?

(What were they doing, converting a room etc, but not bringing it out of the 80s...? Mad.)

= £460k. Max.

!

shirlgirl2004

Thanks for the reply. I offered £545k and then £555 as a final offer. It isn't worth anymore to us. We've left the offer on the table until we find something else we like. I warned him it wouldn't be long as we are pushing to find something suitable. Initially he said they'd drop to £600k but after the second offer said they might drop to £580-590k but I said after spending £100k it would leave us with a very expensive house. We'll walk away. Unfortunately the area has only dropped about 17% since peak because it is very sought after and big houses with large gardens near to the village centre are few and far between.

We've now upped our budget and moved further from the village. We've found 2 fairly different properties both on for £700k give or take a few pounds.

One has been on since July 08 and has dropped £55k. They have a low offer but it leaves them unable to buy the house they want. Don't know what they paid for it as I can't find it on ourproperty.co.uk Lovely area and has 3 acre garden. House is beautiful but has a few smallish jobs to do.

The other only came on in April. They bought for £332k in April 2000 and have rebuilt an indoor swimming pool and changing rooms (total 35ftsq) and added a 2 story extension of approx 18 x 20" (includes plumbing for utility room and ensuite). It doesn't really need anything doing to it but the area is not desireable although not bad by any means. Nationwide calculator says it would be worth £564k without the improvements. Sounds like it isn't overpriced but I don't know how much swimming pools cost to build .

1echidna

The problem with buying when there is what could be called a "cheeky" high asking price is that the vendor is likely to engage in a process of letting a buyer coming in with a realistic offer stew whilst trying to force the offer price up. Not good when one is trying to buy quickly. Personally I feel much more comfortable dealing with a vendor who prices realistically, not least because the transaction is more likely to stick without shenanegans down the line. If it was solely an investment decision with no time pressure I guess my attitude might be different.

shirlgirl2004

There aren't many properties on in the area, size & price range we're looking at so we're looking at all of them. It is also more difficult to know how realistic the asking price is when you don't know the area. We live 20 or so miles away and the market is very different.

1echidna

For us Property Bee was a great tool (the historical data shows a lot of vendors with time on their side trying to buck the market). It became very obvious when we found realistically priced property despite us having to familiarise ourselves with the area very quickly and having very specific requirements. We found somewhere but could stay with a relative and were fully prepared to put our stuff into store and wait if necessary. Probably would have been a sound investment decision with (in all probability) a falling housing market. Good luck and I hope you find your ideal property soon.

shirlgirl2004

Yes we are using Property Bee but I found one that I'm interested in that is listed as being on since April 09. On Mouseprice it says it's been on since April 08 and has already dropped £100k. I assume it's because it hasn't come up on a search before with someone using PB. I think it's well priced but not wanting to overstretch ourselves our max is £50k under the asking price of £700k (bear in mind it has dropped £100k albeit PROBABLY from a high price ).

ciano125

If you dont ask, you wont get. Simples. Go and offer what you can afford to pay for it, if they say so, so what? They might come back to you in a few months and ask if you're still interested.

shirlgirl2004

I hope to be moved in a few months not still looking at houses!:eek:

QTPie

shirlgirl2004 wrote: »

I hope to be moved in a few months not still looking at houses!:eek:

Hi, I think it may take patience to get what you are after, but it really depends on the area and the patience of the sellers (how urgent they are to sell)...

I am looking for large family homes for a similar budget in a city and I am really struggling... Similar to your area, there REALLY is not much housing stock in that sector on the market at the moment. Sellers take advantage of this and anything "good" is coming on at "aspirational" prices (i.e. peak prices or "peak prices plus a bit").

There was a lovely house that should (theoretically) have been within our budget (although had an asking price of £800k): an identical house, a few doors down, with a larger plot sold at £757k in August 2007. So SHOULD have been looking at a realistic selling price today of mid-600s... (the estate agent selling it admitted that houses have dropped 15% in this area). We did go and view and I gave feedback that loved the house, but wasn't prepared (missed out the "able" too) to pay much beyond mid-£600ks for it. I didn't make an offer (EA told me that there was an offer on the table - not very near the asking price, but more than I was talking about). House went under offer 3 weeks after going on the market... how much for, who knows

I would love to be in a new home before Christmas (we are chain-free, in rented, at the moment...)

We are going through a bounce at the moment, people ARE panic buying, sellers have more confidence (and, perhaps, rightly so for a few months...). By September/October onwards, I think that things will quieten down more, people will begin to realise that it was a bounce and that prices still have further to fall and sellers might (fingers crossed) become a bit more willing negotiate. Of course, what stock will be available to buy, by then, is another matter :rolleyes:

I would say offer what you think is fair, but think it through very thoroughly beforehand. Be aware that there may well be another 5-20% fall. Not really an iassue if you have a large deposit, want to live in the house longer term and are buying a "home" rather than an investment... Whether sellers will be aimeable to such an offer at this stage, I am less sure about, but you don't know until you try.

VERY good luck and let us know how you get on .

QT

shirlgirl2004

Yes we are looking for a home and have a very large deposit so our home losing value is unimportant to us. You're right about the really good houses going quickly for silly money so we're looking.

I called about the house that had been on since July 08. It had dropped from 750 to 695 and I offered 630. The EA told me that they had a low offer which meant the vendor would be unable to buy the property she wants. The EA obviously wouldn't tell me what the offer is but said the vendor would like 665. I told her we could never manage that (well we could but we wouldn't ) and she said that just because that's what the vendor wants doen't means that's what she'll get so it sounds hopefull for getting it for maybe 650.

After getting refused for the other property I called about the one that had come on since April. I have since found out through Mouseprice that it was actually marketed in April 08 at 800 so has taken a 100k drop already. I offered 630 and they haven't got back to me but I didn't speak to the agent that is dealing with the house so couldn't get any info on whether they are likely to accept. Realistically I doubt we'd get it for under 660.

We will buy either of the properties at the right price so I'll offer between the 2 houses until we get an offer accepted assuming we don't get too near to 700. We want to have a decent budget to alter the house to suit us.

Both of the sellers are divorcing so having to sell.