What to offer?

hilltop99

Hello - would really appreciate some advice. I don't want to put too much information on here as I am paranoid that it will be found by the sellers! I will private message anyone interested in helping who needs more info.

First time buyers (a couple)
Found a house on for 215,000
Has been since last year. Want it.
What would you offer? I thought 185,000 at least as a starting off point as house prices have dropped since 2007 by 20% (I was told, please don't quote me) and next door went Oct 07 for 215,000.

Please anyone with advice reply - even with demeanor and things to say on the phone as I am (as you can tell) very new to this and a little nervous.

Cheers! Suzanne

Blacksheep1979

20% of 215k is 43k so that would take you down to 182k - trouble is if they've not shifted the price in a year they're probably stubborn gits. Is there anything that has sold nearby recently? If not I'd be coming in at around the stamp duty threshold probably to give wiggle room.

hilltop99

Thanks for your reply BlackSheep.

20% wasn't the rate of house prices falling for the area - just the friends and family 'financial climate' small talk. House has been on since oct 08.
Sold prices vary a lot because of the varying type of property on this road. Another similar property that we viewed on the same road is on for 212,000. A lot worse in terms of condition, garden, general upkeep.

What I'm mainly worried about is being in a weak position at all. Do I want to go in at 40,000 under the asking price (175,000) and expect to get a rejection as a platform for negotiations? Do they come back with a proposed offer? Is it really obvious that we're interested if we act quickly after a rejected offer and then aren't we in a weak position? I don't know how it all works really - does it depend on the seller? Sorry if these are seemingly obvious questions.

EA said 'will accept offers' when we had a first viewing. Does this mean a more conservative 185 or even 190 is likely to be accepted or will they always push a first offer for more?


Any other thoughts from anyone at all would be greatly appreciated.

Many thanks.

Benji_Brown

I would first check to see whether the proeprty has reduced the asking price in this year period. If not, you can bet that the estate agent will have asked them to do so and if they havn't I presume that they are sticking out for around this price.

Secondly, ask you agent whether they have had any offers on the property. They probably won't tell you exactly what the offers were but they will be able to tell you whether they were close to the asking price. If they have turned down close offers, you know that there is not much point in offering £175,000.

My opinion is that if you like the house, offer what you think it is worth. I would have thought that you will get immediate an immediate rejection from offering £175,000 as it is very far below the asking price. It doesn't matter what has happened to the market over the past year, if a vendor believes that their house is worth a certain amount, you are going to struggle to change their opinion.

I don't think that you will be taken seriously offering around 20% less than the asking price, even if you are a first time buyer.

Whatever happens, good luck!