Making an Offer Strategy

Ian_W

Oh what a tangled web we weave
When first we practice to deceive. - Sir Walter Scott (Marmion, 1808)

Glad you decided not to go with that strategy Matty, if it had unravelled your credibility would have been zilch. I wouldn't entertain spending on legals etc to sell to someone who had no credibility on the basis of - what next? 11th hour gazundering?

Have you actually viewed the house yourselves? Often particulars & web entries don't meet your expectations (either way) when you view.

PJackson_2

It's very difficult. I think you will find there are loads and loads of people sticking to the £175k limit on their offers due to stamp duty. I think the threshold increase has actually meant a lot of vendors have had issues with their valuations - I was only speaking to an agent who said this the other day - even houses valued at around £190k - it can become a sticking point. Unofficially, there can be some cash negotiation on 'fixtures and fittings' over the £175k but it's obviously not legal and some solicitors will just not 'go there' as a result....

Realistically though, IF the threshold reverts back at the end of the year it may not be an issue for you anyway? Do you know the position of the vendor - do they have somewhere to go - this is a must to find out really. You'd have to be quite quick to purchase before Christmas now even as a FTB as there are only around 5 working weeks (solicitors) left of the year! And, if they are buying themselves then it's probably a no go to push it through.

My Mum sold her house to a cash buyer in July! Surprisingly I'd say there are more cash buyers (or ones with significant deposits) around now due to the strict lending criterias. In fact I'd say quite a few potential buyers are 'serious' as opposed to possibly 'playing' like in the past due to the credit issues.

I think you are in a good position being a FTB and you have to push that to the hilt with the EA. Presume you have your mortgage sorted/solicitor chosen and ready to act etc - again all good things to show you are keen.

I'm not sure £175k is a good figure - who knows?? What did they buy it for? I can't really help on that - but tbh who cares about credibility if you have the dosh and want the property - anyone who has any sense wants a bargain or to feel they are getting a good deal. Believe me, I'm sure EAs see some corker offers that they must laugh out loud at!

Having said that, if I honestly had a house up for £200k and someone offered me £25k less then I wouldn't accept. I know you said it's hard for you to value due to location etc....

Matty0682

Ian_W wrote: »

Oh what a tangled web we weave
When first we practice to deceive. - Sir Walter Scott (Marmion, 1808)


Have you actually viewed the house yourselves? Often particulars & web entries don't meet your expectations (either way) when you view.

Very good quote for Sir Scottt there

Yes, viewed the house and it's exactly what we want. MIP all sorted, so just need to decide on a figure to start.

When you make a offer, say a low offer, should u give the agent justification?

Matty0682

PJackson wrote: »

It's very difficult. I think you will find there are loads and loads of people sticking to the £175k limit on their offers due to stamp duty. I think the threshold increase has actually meant a lot of vendors have had issues with their valuations - I was only speaking to an agent who said this the other day - even houses valued at around £190k - it can become a sticking point. Unofficially, there can be some cash negotiation on 'fixtures and fittings' over the £175k but it's obviously not legal and some solicitors will just not 'go there' as a result....

Realistically though, IF the threshold reverts back at the end of the year it may not be an issue for you anyway? Do you know the position of the vendor - do they have somewhere to go - this is a must to find out really. You'd have to be quite quick to purchase before Christmas now even as a FTB as there are only around 5 working weeks (solicitors) left of the year! And, if they are buying themselves then it's probably a no go to push it through.

My Mum sold her house to a cash buyer in July! Surprisingly I'd say there are more cash buyers (or ones with significant deposits) around now due to the strict lending criterias. In fact I'd say quite a few potential buyers are 'serious' as opposed to possibly 'playing' like in the past due to the credit issues.

I think you are in a good position being a FTB and you have to push that to the hilt with the EA. Presume you have your mortgage sorted/solicitor chosen and ready to act etc - again all good things to show you are keen.

I'm not sure £175k is a good figure - who knows?? What did they buy it for? I can't really help on that - but tbh who cares about credibility if you have the dosh and want the property - anyone who has any sense wants a bargain or to feel they are getting a good deal. Believe me, I'm sure EAs see some corker offers that they must laugh out loud at!

Having said that, if I honestly had a house up for £200k and someone offered me £25k less then I wouldn't accept. I know you said it's hard for you to value due to location etc....

Yeah, I wouldn’t do down the furniture & fittings route, but as you said, the stamp duty holiday is ending this year. So I guess the magic £175k is irrelevant (unless you can complete in g weeks)
Yeah we have mortgage in principle, but need to sort solicitor (I thought this is usually sorted once offer is accepted?)
I’m thinking the same as you.....if I had a house on the market for 200k, i wouldn’t accept 175k within the third week being on the market. Yes, valuation is difficult
As we really like it, I’m thinking about going in @ £185k, going up to 192k max

PJackson_2

Sounds good to me.

Re solicitor - I don't think you actually have to engage one but just know who you want to use - can save time then ringing around if an offer is accepted. Of course the agent might recommend one - there seem to be pros and cons to this though!

Hope you get on OK - keep us posted

PS - There is some talk that the stamp duty threshold holiday may be extended into the NY - I'm actually hoping not from a selfish pov as hoping to market our house early in the year and I know stamp duty would become an issue :rolleyes:;)

HellsGranny

If the house is, as you say, rural and unique, you may well end up in a bidding war anyway, as many folk like the unusual rural properties.

Be honest is my advice, especially if it's only been on the market a few weeks, the current owner may want to let things run.

Cheers, HG

Ian_W

Any idea what the sellers situation is? For example, if they've found somewhere they want they may be more receptive to an offer than if they're still looking.

Matty0682

HellsGranny wrote: »

If the house is, as you say, rural and unique, you may well end up in a bidding war anyway, as many folk like the unusual rural properties.

Be honest is my advice, especially if it's only been on the market a few weeks, the current owner may want to let things run.

Cheers, HG

Yes, agent told us there was some interest. We have seen the property twice now, so the agents know we like it. They also said one couple were putting their house on the market with the view of buying this one (I'm not sure whether this is an agent sales ploy??). If this other couple wanted the house, wouldn't they simply make an official offer and explain they will be part of a chain?

The fact they have put it on the market b4 xmas emphasises they may want to let it run into spring. But not many chain-free people like us will be at their door-step

Matty0682

Ian_W wrote: »

Any idea what the sellers situation is? For example, if they've found somewhere they want they may be more receptive to an offer than if they're still looking.

Seller told us they are not in any rush to move.....they have another house to move into. So no urgency unfortunately for us

Zombies

no chance at 175
195 you might

agents wont do you any favours