FTB: Fixed Price??

picklepick

Hello all

Me and my h2b are going to view a house next week which has a price of £90k. This is a fixed price. We're FTB's and I'm a little confused as to how this works?! Does that mean that if we made an offer on a fixed price house we'd be laughed out of the estate agents?

We're also going to look at a house with a price of 'Offers over £99,950'
Again, if we made an offer of lower value would this be immediately refused or is it normal to offer below no matter what the estate agents price? I don't want people to think that we aren't serious buyers.

We're in a good position, we aren't in a chain and could move asap if that would make a difference.

Thanks

asharon

every situation is different but what they might be trying to discourage are the people making silly offers because of the current climate.

At then end of the day a house is only worth what you think it is worth so forget looking silly or not and make an offer you think is fair and they might say yes and they might say no or come back with a counter offer. But even if it is a no you can always rais eyour offer.

Just push how good your situation is and see would be my advice.

picklepick

thank you asharon thats some good advice.
hopefully we'll both like it now then!

Doozergirl

You can offer what you like, there is no rule but the prices are a guide as to what the vendor will accept, moreso I think when they start doing quite odd things like fixed prices and offers over.

My own concern with people who put up guide prices like this - especially the 'offers over' sort - is that they have too high hopes for the value of their property and the EA has simply persuaded them to go offers overs a slightly more sensible price. The other side of that coin is that it's brand new to the market, a potential bargain and it won't even be available any more by the time you come to view.

It's important to view as many places as you can so that you can get your own feel for the current market and whether asking prices are sensible.

princeofpounds

It doesn't really mean all that much except that the seller thinks it is worth a given price (or due to a mortgage needs to achieve a given price) and they don't want to get involved in negotiation.

Go view it, but come to an independent idea of it's worth. If you like it but the price is wrong just tell that to the agent. If the price is not really so fixed they will encourage you to submit an offer.

Also, goole for the psychological effect of anchoring.asking prices are sometimes reasonable, sometimes a fiction, but asking prices often hold a mental sway despite the fact they indicate nothing except perhaps the sellers intentions.

picklepick

Thanks for all the replies. We most definitely will be viewing as many properties as possible. The fixed price house is priced well below average for the road its on, it does require some cosmetic updating, the scale of which we won't be sure of until we view it. I have a feeling we won't have an offer accepted below its asking price but we'll defintiely offer a lower price, if we feel it needs an awful lot of updating.

nollag2006

Good luck with that

"Offers in Excess Of" really annoy me. I'd offer well below the OIEO figure just to annoy them !! Many unscrupulous vendors were doing this coming up to the height of the boom.

Why can't people be straight up and state a clear asking price?

THa'ts my rant over for the day

Running_Horse

Having watched the local market, fixed price often means they have already reduced it as low as they can afford to move. Would there be any point offering lower than that? Try talking to the agent to guage if there is any wriggle room; ultimately they want a sale and don't care what it sells for.

You have a psychological wish to get a bargain, but if it is already priced well and you can afford it, then are you ready to lose it to someone else? No point getting 10% off another house overpriced by 20% if this house is the right price to begin with.