not sure what to offer

pukkapie

I want to buy a property that has an asking price of £110,000. I am keen to buy this as I am planning to rent the other rooms out and would pay the asking price, but obviously I would prefer to pay less. The property has been on the market for 4 weeks and has had a few viewings with 2-3 people coming back for a second viewing. The old lady who lives there says she plans to hold out for £110,000 and is confident of getting this due to the interest in the house.

I would like to offer around £102,000 and negotiate for say £106,000. However I am worried that someone may come in with a higher offer or the full amount and I will end up not getting the property.

What should I do as I definately want to buy it.

DVardysShadow

If you are not prepared to lose it, then prepare to pay full asking price. If you want to pay less but still have a good chance of bagging it, then accept a risk of losing it.

IHS88

Hi pukkapie

Wait for the second viewers to have a look round then call the agent to see if any offers have been made.

If no offers have been made, offer £102k to negotiate at £106k.

If offers have bee made after the second viewing and you really want it, you may have to offer asking price to secure it.

Don't lose out on a house you love just for the sake of a couple of thousand. If you're renting out a room, you should recover the extra few thousand in 6 months or so.

Best of luck.

Jomo

Lets hope the other viewers aren't as interested in the property as you are, otherwise it may go for more than the asking price!

Thrugelmir

If are buying on the basis of letting the other rooms. Then the price to offer should be based on the business economics. Of you making a profit and having sufficent margin for void periods etc.

If you miss this one another house will come along soon enough.

homehunter

Make the £102000 and see what happens Of course she's going to say that she'll hold out for the full £110k - but what's the chance of the other interested party (ies) offering the full whack as their first offer? You can but try. It might make her think.

What else have you got that makes your offer more attractive? FTBs? Mortgage in place? I'm sure the 'experts' on these forums will suggest other ideas

Good luck

pukkapie

i put in an offer of £102,000, which got rejected as have 2 higher offers. I've put in an improved offer below the asking price. Is this a wise move? should I offer the asking price straight away if my new offer inevitabley gets rejected?

mlz1413

I think househunter has a really good point can you offer something that makes you stand out like FTB / Cash buyer ?

Also remember if you are renting rooms you can only receive £4250 per year under the rent a room scheme.

soulsaver

mlz1413 wrote: »

I think househunter has a really good point can you offer something that makes you stand out like FTB / Cash buyer ?

Also remember if you are renting rooms you can only receive £4250 per year under the rent a room scheme.

Got a link? Can't you get more but have to pay on the excess?

mlz1413

This is the direct.gov menu page for the scheme:
http://www.direct.gov.uk/en/AdvancedSearch/Searchresults/index.htm?fullText=rent+a+room+scheme

should help you decide what is best for your circumstances.