would you offer the asking price?

Made_Without

The scenario:
- Property has been on market for 5 days
- Owner has done up the place since purchasing it 2 years ago
They are only asking for 5k more than when they purchased it.

-if i offer under 10% less - its in at the 1% stamp duty level

So a lot to save - however, worried someone may offer more - closer to the asking price...

Does anyone offer full full amount in the current climate?

I would hate to lose the place but with people on this forum talking about 15-20% off asking prices...going it at under 10% seems reasonable.

Advice please - would like to make an offer on Monday

Thanks
C*F

kinglewis

I can see why you would offer the amount you would!!

Surely it's worth a go.. you will be able to gauge the view of the EA to see if you are being realistic.

But.. I think you really want this house.. and if you do.. you will need to be within 5k-10k for them to accept. imho

Sellers just want to think they have sold for a reasonable price.

Made_Without

such a dilemma - part of me is happy to offer asking price
but then there is the other part of my brain telling me there is always a mark up

Why can't house buying be simpler - does my head in!!!

C*F

kinglewis

To be honest you will always hear about 'dream' purchases of 15-20% off the asking price.

Realitically most people buy for close to the asking price.

If you have done your research you will know what it is worth.

In my area.. where I am looking at the moment.. houses sell quickly as it is a good area and properties are of good quality. I have missed a few because I have tried to be cheeky and tried to play the game.

I am starting to think you get what you pay for. As with anything!

Made_Without

Wise words

so then go in at asking price - i mean it gets to the point otherwise where I'd be playing with uncertainty for a couple of k

then sit with my fingers crossed that the predictions of a further downfall are unfounded.

I kind of am hoping that I can get reassured that people are still offering asking prices today - not just in the boom times

C8F

marcg

I seriously doubt any property sells at £125-135 or £250-270k. If it's not worth enough to get it well over the threshold I think most people will offer £1 below the threshold.

kinglewis

I was after a house for £265k expecting them to accept £250k to keep me under the 3% threshold.

It went for £259,000. I was gutted! (and couldn't believe it!)

frank.hopper

I would hate to lose the place but with people on this forum talking about 15-20% off asking prices

True! but the seller only bought it 2 years ago, and 'done it up' what IF they have a large loan on the property? They couldn't sell even if they wanted to.

hugheskevi

In this situation I think it likely that the property may well get a few offers at just below stamp duty, but perhaps not above that. In any event, the vendor may well want to wait a while to see what he gets offered unless he is in hurry to sell.

Given that there are likely to be a few offers at below stamp duty it is worth judging how much of an attractive buyer you are (finance in place, no chain, etc) If you are an attractive buyer, that is worth making clear in the offer as that may well me what determines the sale if there are no offers above stamp duty.

I was in a similar situation. House marketed at £265,000. I offered £249,995 which the vendor decided to neither accept or reject - said they wanted to see what other offers they got, and offered to pay stamp duty for me if I put in a higher offer (so that I could effectively put the stamp duty into a mortgage if I was cash-constrained).

The estate agent tried to get me to offer more, which I politely declined. A week later the vendor accepted the offer.

Good luck!

CloudCuckooLand

Since they bought it, it has lost 15%. (approx, check region stats)

Have they spent 15% on it?

I would start 5% under, minimum. You can always go up, you can't go down.

Made_Without

@kinglewis That sucks I hope you've had better luck since!

@frank.hopper - the vendor showed me around and seemed like a lovely person - I would hate for them to lose out but equally, I need to look after my interests too.

@hugheskvi - mortgage in place (actual finance checks done etc not just in principle), therefore would be calling bank to arrange for survey on acceptance, FTB so no chain.

I'm just worried that as it's so recently on the market, they will want to wait to see what else is offered.

@cloudcuckooland - if i start 5% under, I might as well try the 7.5% under to be on the lower stanp duty threshold.

Thanks for the comments and suggestions.