How much should I offer??

Gwhiz

JoannaA wrote: »

Actually its not rubbish in the part of the world in which I live- I see the prices and sales that are actually taking place, not what the agents are saying- I am not an estate agent- the market is much better than it was six months ago.

I would say that people are coming back into the market slowly. No way that the market is MUCH better than 6 months (or 4 even as we are talking Feb to June) ago though!!

mahdlo

JoannaA wrote: »

Actually its not rubbish in the part of the world in which I live- I see the prices and sales that are actually taking place, not what the agents are saying- I am not an estate agent- the market is much better than it was six months ago.

the market may be but won't the recent hikes in 90% ltv rates send it back the other way?

there certainly seem to be more sales but as a result of vendors getting more realistic about true market values in my opinion, therefore, sold prices don't seem to be on the way up.

hopefully this will start to be reflected in asking prices at some point.

Jazzie99

Hintza wrote: »

Can you not do a serach through nethouseprices and get a better figure. Also expand your search to cover more homes in that area.

Decide how much it is all going to cost to renovate then work out your final offer add on your lucky odd number say £1,111 or something to your offer.

Do you really want the house or are you happy to continue hunting this should also have a bearing on your final offer.

I have used nethouseprices etc..... house next door sold in perfect condition in Oct08 for £380k. House across the street in similar state to the one I'm interested in sold for £330k in Feb 09. It seriously needs everything doing.... new windows, plastering walls, new skirting boards, doors, new kitchen, new bathroom. I really want it but I'm thinking with my head and budget ... not with my heart. By the way, i have a deposit of £110,000.

Viper_7

Simple, it's only worth what you are willing to pay for it.

If you want it - offer 400k. If you think it's not worth that, offer less, but someone else may way it more than you and consider it to be "worth" more.
Sure back up why you only think it is "worth" £340k based on necessary improvements , but the vendors obviously didn't think they needed those improvements and will probably dismiss it, and will hang out until someone offers what they want. After all are they in a rush to move out? or just waiting for the closest offer to their asking price.

Jazzie99

Viper_7 wrote: »

Simple, it's only worth what you are willing to pay for it.

If you want it - offer 400k. If you think it's not worth that, offer less, but someone else may way it more than you and consider it to be "worth" more.
Sure back up why you only think it is "worth" £340k based on necessary improvements , but the vendors obviously didn't think they needed those improvements and will probably dismiss it, and will hang out until someone offers what they want. After all are they in a rush to move out? or just waiting for the closest offer to their asking price.

Serious question.....Why would u spend £400k on it, then do £50k worth of work on it, knowing that done up, it'll only be worth £380-£390k???

Anyway, like i've said all along its all about knowing what your budget is and sticking to it. I could add another £20K but i dont want to be a slave to my mortgage! Vendors are moving out of area and have found somewhere!

Viper_7

Jazzie99 wrote: »

Serious question.....Why would u spend £400k on it, then do £50k worth of work on it, knowing that done up, it'll only be worth £380-£390k???

Anyway, like i've said all along its all about knowing what your budget is and sticking to it. I could add another £20K but i dont want to be a slave to my mortgage! Vendors are moving out of area and have found somewhere!

Depends what it is worth to you. worth doesn't necessarily mean you want to make money from it.
If they have found somewhere - then either 1. they have a bridging loan and will want to sell this place fast! or they can afford it and will hang about for the best price. If 1, that's great for you. If 2, then a lower offer may get you nowhere.

Totally agree, you don't want to be a slave to your mortgage, but goes back to my original point it's only worth as much as those willing to pay for it.

If you put in the lower offer and they say no..and then you move up,they will keep saying no, as they have you by the short and curlies. Would be useful to see how they have financed their new place!

But yes, list all the faults and perhaps get estimates to show how much it would take to fix. hopefully one of these faults is serious enough to really dent the price.

hundredk

Jazzie99 wrote: »

Well I did my sums and put in an offer yesterday of £310k (£30k less than what I said originally!) Anyway, EA came back today and said "to make it fair to all bidders we are asking everyone to put their FINAL offer in writing by Friday"....... I take it that means my offer hasnt been rejected and that everyone else was more or less around that mark ???
Anyway, I'm putting the same offer in writing - I know my budget so wont go above that!

Apparently, 24 people viewed it at the open day - very popular estate ... I'm not holding my breath but you never know.

If it's sealed bids you obviously have to decide what it's worth to you and make your bid. However, assuming all other viewers that wish to make an offer are doing the same as you and trying to establish cost of renovation to bring the property in line with others are currently valued at, it is likely that bids may fall within a similar range. For this reason if you decide your bid is say £310k then make the sealed bid (say) £310,051 to anticipate pipping other bids of £310k and other clever bids of £310,050.

northerner79

Jazzie, they may ask for best and final offers but then get the top 3 bidders into a 'dutch auction' to hype the price up. Keep out of these and put what you consider a fair offer in if you want the property.

Jazzie99

Hi All,
Well the house went for 'around the £370k mark'...!!!!!
Our final offer was a bit too low - oh well, it was worth a try !!!!

It was near the central line, london/essex border and near an ofsted Outstanding school... just proves that these factors really do influence house prices.

Blacksheep1979

JoannaA wrote: »

Actually its not rubbish in the part of the world in which I live- I see the prices and sales that are actually taking place, not what the agents are saying- I am not an estate agent- the market is much better than it was six months ago.

I offered some evidence in my statement - where's yours other than you say it's the case? Honestly, unless you're in one of a very few select areas if you go onto the land registry site and check the figures I think you'll find they agree with me.