Have you ever offered a crazy price on house & been accepted?

Pennylane

clutton wrote: »

""I know the person who owned it and they did one of those Equity Release plans, so a very large chunk of it belongs to this firm, with just a small part left to family"

do you want to leave the family with even less - especially if this is someone you know......

Not really my problem. I knew the owners not their relatives. Equity Release was decided upon because cash was needed and relatives were comfortably off anyway.

property.advert

If someone is selling it on behalf of an estate (the owner has presumably died if on an equity release thing) then they will be under a duty to achieve the best possible price or they could be sued by the receiving relatives (as per the will). If it is still occupied then the mortgage holder is unlikely to want to sell out as they are making a killing. Internal interest rates on such transactions are about 7-8% with hefty commissions for all around !

In any case, you'd need to know how much was owed on it. At a very rough guess, factor in 8% rolled up with no repayments on a maximum of 40% of value at the time.

So, 100k house, releases 40k, 10 years ago. 8% interest. Debt is 40k*1.08^10=86,357.

There will be buy out clauses but in the above example, the finance company will want over 90k. Change maths to fit your example.

Mrs_pbradley936

We once bought a house that we first viewed with my sister-in-law. She was looking to move but this house was so filthy so would not consider it. It was still for sale months later and my husband offered £20K less than the asking price - they accepted it!!

We went in there and threw away all the carpets and cooker/hob. Decorated it and replaced the carpet, cooker and hob. It cost us about £3k and our time and labour but we then rented it out and it paid for itself.

dirtmother

We have, and been accepted - because it was a sale where who bought it mattered to the vendor. Sadly in the end we had to pull out once we'd got all the quotations in for the work we needed doing (so not quite crazy enough for us price and they could wait)

We had another which wasn't accepted (house is still for sale now but had only just gone on - and our offer was top of our budget)

Not such a crazy offer on the one we are buying but one which is pretty obvious from the stamp duty levels.

We had a silly offer on ours - we didn't take umbrage as again it was affected by stamp duty. Only a week after we went on the market and couldn't afford to accept really - plus various statements had been made about reason for offer which were plainly ridiculous. A better idea would have been "We love your house but this is what we can afford" rather than making it obvious they didn't appreciate the house for its particular features (unlike umpteen other viewers)

trumpton

I must admit, if someone made a ridiculously low offer on a house I was selling it would make me think they weren't serious buyers and it would put me off dealing with them again. I think there is some truth in what an earlier poster said about really low offers paving the way for others to have their slightly better offer accepted.

Pennylane

Trumpton. The house is empty ... see my OP.

housebuyer_abc

Pennylane wrote: »

A house near us has been on the market for some time. I've been in it several times & I don't think the Estate Agent is doing a very good job of advertising it because it's really nice.

It is now being advertised with "open to offers" and there is no upward chain. I am tempted to go and put in a crazy price ... has anybody done this and struck lucky? I know the person who owned it and they did one of those Equity Release plans, so a very large chunk of it belongs to this firm, with just a small part left to family.

A few years ago a friend put in an offer on a reposessed house and got a real bargain. She worked in finance and she always used to say that as long as banks/building societies got their money back they were satisfied. Although this may well be different now.

Any thoughts greatly appreciated. Thanks.

I once put in an a crazy offer of 400K on a 150K house, I was amazed when it was accepted as it was so obviously not in any way near what the house was worth :rotfl:

PipPip

Our home was originally advertised for 450k and they accepted 425k from another buyer. Buyer pulled out at the last minute and seller got desperate as they were downsizing to a newbuild that was ready to go, so they dropped price to 395k. We turned up and made a silly offer of 335k as I could sense a good deal might be had. They rejected of course but eventually we did a deal at 350k - this was in Q1 2006 before the market weakened. Admittedly it was a bit embarassing when I asked my brother who is an architect to check the place out and it turned out he knew house and the owners very well as he was their sons best mate when a child. Ah well, all is fair in business and all that.

Woodywoodside_2

On our last house it was up for £475, we paid £400, a year later we sold it for £650 and that was in the boom.
I always say start low you can always go up but you can't go down.

Nothing ventured nothing gained.