making an offer on flat- help

lindahh4

Hello
I viewed a property for 2nd time & took along a surveyor to give me a defects report due to current state of flat & my concerns . The flat is on market for £110,000. The surveyor told me that it wasn't worth this & that i would need to spend £30,000 on it. I know the flat has been on the market over 2 years although the price has dropped several times. £110,000 was my total budget. I have considered making an offer for £80,000 but i'm worried that i will insult them & get shot down by Estate agent. i know its only an offer & i would be prepared to go to £90,000 ish but hate the fact that i have to play a bidding game. I have mortgage agreed in principle & a good deposit & i'm chain free. I don't know how to deal with estate agent & would be grateful for advice. Many thanks

Fire_Fox

If you can't handle negotiating in person, write a formal letter stating your offer. Include your strong position as a buyer, the sold prices of other flats in the vicinity, comparing their size and condition, the contact details of your conveyancer and any questions you might have. Also include a bullet point list of essential works - bear in mind if the flat is in very bad shape the mortgage company may withhold some money until the works are completed. Can you afford this?

G_M

i'm worried that i will insult them & get shot down by Estate agent

This is an ESTATE AGENT you're talking about! It's his job to get the highest price possible irrespective of what the flat is worth. Do NOT be intimidated by the agent, the vendor, or the process.

And do NOT pay more than it is worth. This is probobly the most expensive thing in your life - a lot of money, so keep your head together and be prepared to walk away. If the surveyor says it needs 30K spending I'd be very careful not to pay too much. Offer £75 (110K - the 30K - a bit more) and explain why. There are always other properties if the vendors say no.

chickmug

G_M wrote: »

This is an ESTATE AGENT you're talking about! It's his job to get the highest price possible irrespective of what the flat is worth. Do NOT be intimidated by the agent, the vendor, or the process.

And do NOT pay more than it is worth. This is probobly the most expensive thing in your life - a lot of money, so keep your head together and be prepared to walk away. If the surveyor says it needs 30K spending I'd be very careful not to pay too much. Offer £75 (110K - the 30K - a bit more) and explain why. There are always other properties if the vendors say no.

All very true.

From my point of view there have been very very very few people who I have dealt with who I felt were good negotiators. In fact so few I am struggling to recall any. Even the tougest of people seem to let emotions get in the way and it is surprising how many people fall apart when offering and no sooner the offer is suggested to be low (by the EA) they instantly offer even more before the seller has been contacted.

We were sometimes contacted by house finding companies some were OK but more not and nerv knew how to tackle the issue for their client.

My opinion, if you want to end up with the best price as a buyer, is: -

1) Do NOT from any emotional attachment to the seller or the agent.
2) Do not waffle when making the offer so thus NOT giving away your hand.
3) Always go in very very low. Experience shows me, time after time, those that start very very low end up paying less than those who try and make a fairer offer.
4) So go in low and if you do a deal great but if not have the courage to walk away as there will usually be another seller who is so desperate that you will get there, with a bargain, but have patience.

Remember the agent will try and charm you or bully you so keep very very focussed.

lindahh4

Thank you for responding. I know that "part of the game" is to expect to have to make 2-3 offers, so i want to go in with offer & not have to increase too much. It always seems strange to me that a person would say to EA that i can only afford X...this is my limit....& then a few hours later be able to increase that by another £5000. I don't want to lose the flat but don't want to live in flat that i now can't renovate because i offered too much

chickmug

lindahh4 wrote: »

Thank you for responding. I know that "part of the game" is to expect to have to make 2-3 offers, so i want to go in with offer & not have to increase too much. It always seems strange to me that a person would say to EA that i can only afford X...this is my limit....& then a few hours later be able to increase that by another £5000. I don't want to lose the flat but don't want to live in flat that i now can't renovate because i offered too much

In agency work you come across all types of scenarios.

One is-

"This is my final offer as I can't afford a penny more".

And guess what they do find that penny or very many pennies more. So I guess agents get immune to these types of 'throw away' comments. But to get the right price you MUST take heed of my earlier posts comments. It's a silly game but it is the way

silvercar

Does the price reflect the work that needs doing? If so your offer is unlikely to be accepted.

One thing that concerns me is that your total budget is £110k. If you buy for £80k and then the work costs more, as it usually does, will you be able to fund it?

G_M

I think you're getting consistant advice:

If you buy for £80k and then the work costs more, as it usually does, will you be able to fund it?

go in low and if you do a deal great but if not have the courage to walk away

Offer £75 (110K - the 30K - a bit more)

hethmar

There will always be another property round the corner that you will like just as much. The point is, dont get in debt that you cant easily handle and do realise that things always cost more than you think to repair and that it will take a lot of time and disruption.

The other thing is, will your mortgage cover a property requiring all these repairs before it is liveable?

lindahh4

Thank you all for advice. I made an offer (75K) yesterday. Not heard anything back from EA. I have 20% deposit & will be able to afford work if total work doesn't exceed 110. I have been cautious with choice of property (was offered much larger mortgage but only want a small flat & mortgage so have taken half of what they offered me). The EA huffed as I made offer & muttered that it was so much less than asking price. I know I will be knocked back & am considering my options. Don't want to be drawn into bidding & not sure how to give a final offer (scarey to think that they say no...& i walk away...). :rolleyes:

Gwhiz

If your total budget is £110K WHY would you even entertain buying a property where you know you'll have to spend more?

Just stick to your guns and wait it out.