max budget of 250K - what price house would you view up to?

Nenen

Essentially a very similar question, but a different angle to the usual, what would you offer' threads... we can afford to buy a house up to maximum of 250K. Assuming we may be able to negotiate a discount from asking price, what is the maximum advertised price properties you would go and view? I have seen a few advertised for 280-300K which I think look great for us but not sure it would really be worth us looking so far above our price range as refusals would probably make me feel increasingly disappointed.

And before anyone tells me to wait a while... I do know that this is not the ideal time to buy and in an ideal world would wait a few more months until it became more obvious what was happening to house prices. However, our LL has just given us notice to quit. He has given us 3 months, so we either have to go to all the hassle and expense of moving twice, plus take on a minimum 6 month let (we are currently on a rolling tenancy so only have to give one month's notice) or find somewhere to buy now. I haven't ruled out another rent but to be honest, after two years of renting, am getting increasingly keen to be in our own house again! Obviously we know this would be a long term move, home not investment, wouldn't overstretch ourselves, etc etc.

pawpurrs

I would view up to 285k

Pitchshifter

I think the price range you're looking for is perfectly reasonable. Look at as many houses as possible and make offers on any you like. Just depends how desperate the sellers are.
The only thing to bear in mind is that many of the properties within your actual budget (250k) will have already been reduced in price from the 280-300 range.

Be as aggressive a buyer as possible in terms of negotiationn in these times. The market needs your cash, and you hold the upper hand.

pinkshoes

It depends if the house is already priced to sell or not, how long it's been on the market, and how badly the vendor wants to sell.

If you've got a good size deposit, then now is potentially a good time to buy, as interest rates are low (and won't stay low forever), and people are willing to accept lower offers at the moment, particularly if they NEED to move...

I'd say look at houses up to £280k.

Nenen

Pitchshifter wrote: »

The only thing to bear in mind is that many of the properties within your actual budget (250k) will have already been reduced in price from the 280-300 range.

pinkshoes wrote: »

It depends if the house is already priced to sell or not, how long it's been on the market, and how badly the vendor wants to sell.
/QUOTE]

I have been thinking a lot about these points... I know this is one of those 'how long is a piece of string' questions, but I have been trying to decide if someone is more likely to accept a reduced offer on a property which has been on the market for a while and already heavily reduced. I think this probably implies they are keen to sell if they are reducing the advertised price but on the other hand it may have been overvalued in the first place or they may feel that, having already reduced it once (or three times in one case) they won't accept low offers. Oh, how I hate all this stuff!

Mini_Bear

is there a big difference in what you get for your ££ regarding a house currently priced at 250k and one at 285k?
i have found that sometimes the better value houses are actually cheaper (priced to sell) compared to the more expensive properties.
i would look at properties at the 275k mark and again find out how long they have been on market, is the property in a chain etc etc.
before even viewing properties i would tell the EA that your max budget ius 250k and not to show you properties who will not take 250k as a final offer.

Trust_2

I would look at the length of time they have been on the market
I would look at when the present owner purchased and the value paid
I would look at what others have sold in the area

Example house up for £300k been on the market for 12 months, no price reductions (Estate agent would tell you this)

So personally would see what is out and about for £300k

carolt

I'd do it the other way round - make it clear to the EA that you are ready to go, have nothing to sell and so are in an excellent position (I wouldn't mention the 'having to leave in 3 months' bit as it makes you look desperate) - and then put the ball in their court by saying you are interested in a large number of properties, priced from say 250-300K, but don't want to waste your time or theirs, so only wish to view those who are definitely open to lower offers ie around 250K.

Obviously, this backfires if you're also viewing properties asking at or under 250K, as the EA then knows that potentially you're happy to pay 250K and can afford it - but that said, with valuations coming in so low at the moment, you'd be unlikely to get a mortgage for those if you offered over asking price or even v close, unless it was already very discounted.

Good luck.

I'm in a similar boat, in terms of price area, but without the time pressure, so am happy to just sit it out. Remember, the stamp duty kick in at 250K means any property asking 250-285K will have problems selling for over 250K, so you have a good bargaining position. The ones nearer 300K may shift to 250K - it depends how overpriced they are relative to other properties.

Jonbvn

Anyting up to £300k. Due to stamp duty threshold, there tends to be a small market in the £250k to £275k price range. I.e. All the buyers offer below £250k to avoid SDLT.

Kylie

Mini_Bear wrote: »

before even viewing properties i would tell the EA that your max budget ius 250k and not to show you properties who will not take 250k as a final offer.

Would this not encourage the EA to spend up to your budget?

I.e. you say max is £250K. You look at a house for £265K and try to start neg. for £240 (for eg.). Now the EA tells seller you can go to £250K. What's to stop them disclosing your limit to seller?

boots_babe

I think your initial suggestion of 280-300k is perfectly reasonable BUT as others have said, it very much depends on each individual vendor's circumstances. This is where property bee comes in handy.

If a property is £300k but just came on the market last week, I'd say not much point going to view it. But if it's been on the market a few months with little or no price change, then definitely worth a go.