How much to offer?

Brighty

Hi guys, sorry for the waffle but i thought as much info as possible would help.

Have found a house both myself and my wife really like and want to put in an offer, the problem is the asking price is way over the top. House has been up for sale for at least 6 months, was up for 160k dropped to 150k about 2 months ago, i think it may have been up for more than 160 previously too. Last sale was for 60k in sept 2001 which according to nationwide equals a value now of 125k (if sept is Q2, values for now are Q2 2009) or 113k based on Q3 2001. The property is a 2 bed mid terrace cottage in a rural location nr Darlington + a loft conversion (not listed by EA). Other than fitting oil fired central heating their have been no improvements in the last 8 years, in drastic need of redecoration, seller stated loft conversion was existing when she bought it. 2 doors down is a 3 bed semi which sold for 150k in Mar '06 = 136k now, no other sales available (only a row of 10 houses on a country lane)

Sellar said she has found a bungalow she likes, which looking on rightmove, must be 1 of 2 in that village both vacant possesion. We are currently renting so no chain our end. Seeing a mortgage broker next week hopefully so hope to have all that sorted soon. Highest i am willing to go is 125k as their are fantastic views front and back and a fishing lake in the wood out back too:j.

So where do you think i should start with an opening offer bearing in mind the 150k asking price? Don't want to insult and alienate the sellar, but she's not getting 150k for it, it's in a nice spot, but it was 8 years ago when she paid 60k.

Any advice much appreciated

Brighty

trumpton

It sounds like not many properties come up in that village, which makes it harder to apply a calculation as to how much it 'should' now be worth. I think that might account for the price and you have to think how long you are prepared to wait for another house to come up there. What she paid 8 years ago isn't really relevant, you have to think what it's worth to you now.

She is in a similar position if she wants one of the vacant properties in the same village though, so you could start low and then make your best and final offer later.

Brighty

Cheers for the reply.

It's a row of 10 cottages on a country lane between 2 villages with nothing else nearby rather than in a village itself, The buyers bungalow is 2 villages further down the Tees. I understand that the purchase price 8 years ago is a little irrelavent, but the fact that the much bigger 3 bed semi 2 doors down went for 150 in 2006 means this 2 bed mid terrace can't be worth 150 now.

Brighty

DesG

I would have a frank chat with the agent and take it from there.

Cheers, Des.

dollydosh

hi
if the house is on the market with rightmove you can check all the past price movements with property bee, it will also tell you how long a property has been on the market.
a very useful tool for any househunter

Grovester_2

Brighty wrote: »

Cheers for the reply.

It's a row of 10 cottages on a country lane between 2 villages with nothing else nearby rather than in a village itself, The buyers bungalow is 2 villages further down the Tees. I understand that the purchase price 8 years ago is a little irrelavent, but the fact that the much bigger 3 bed semi 2 doors down went for 150 in 2006 means this 2 bed mid terrace can't be worth 150 now.

Brighty

Why can't it? Because 1 house sold 3 years ago for less, do you have pictures, floorplans etc for the one sold in 2006 and the one you are looking at?

Not every single house has dropped the same value, you need to look at other factors as well as the sold prices.

What month in 2006 did the other one sell for, as it could have gone up 15% then down 15% in the crash, meaning 150 is about right.

Brighty

It sold for 150k on 22nd March 2006 which according to the nationwide calculator = 136k now. I have not seen the floorplan of this house but as it is a 3 bed semi as opposed to a 2 bed mid terrace about 1.5 times the width and the same depth i assume it is a bit bigger inside and therefore worth more, but i suppose there's a chance it was in a right state when when they bought it for 150k.

I shall download firefox and property bee tonight and have a look, cheers for that.

Brighty

Brighty

Well according to property bee, the house started out at 165k in July 2008, dropped to 160 in July 2009 and is now 150. Not sure how accurate that is because i'm sure it was 160 when we first viewed it in April. interesting that it's been up for over a year though

Brighty

hethmar

£25k drop is a lot of money - she may need that to buy the next place.

If you can only go to £125k then may be you should be upfront now with the agent - remember she will have no doubt heard prices are starting to rise again.

Grovester_2

Another thing i've used Nationwide's calculator before and on none of my purchases/sales has it been correct in it's valution. For example it stated I should get nearly 120k for my first flat yet it was on the market for 4 months at 95k. My house sold for 160k yet on nationwide the value was 140k.

It's a useful tool but, can't be used on it's own.