Offer and negotiation help

fiffio

Hi all, long time reader short time poster here!

Have seen a house we really like, it has been on the market for 2-3 months and is currently on at fixed price 105k. The price was reduced due to some decor in need to refreshing (purely superficial carpets and wallpaper etc) and i think it was previously on for offers over 110k. The home buyers report states the value to be 110k.

The house is currently not being used and the previous owner has passed away very shortly adfter moving into a home so not part of a chain. The house has been put on the market by his son and or daughter.

The EA made a comment around everything being negotiable when we went to view it which has led us to beleive there may be some additional movement in the price below the fixed price.

can anyone advise as to what type of offer we should be looking to put in, dont want to antagonise the seller but also beleive we can knock a couple of grand of the value and it is right at the top of our budget including fees and charges.

any hints and tips appreciated.....can i speak frankly with the EA about it or is it best not to? obviously I'm not showing him ourt cards quite yet!

Thanks in advance

Place_of_Design

Call the estate agent and have a frank discussuion

All things are negotiable, and no amount of posturing will change this. The price a house is worth is what someone is prepared to pay, not what a surveyor, estate agent or surveyor says it is worth

To flesh this out. We were given prices by valuers ranging by £50000 for the house we are in now. Thats a variation of 21% on actual selling price

To further flesh this out..
The housing market has improved a few% over the last 4 months

The thing that makes all the difference is the motivation of the seller
If they are paying £1000 a month on a mortgage they cant afford, then a quick sale will save them money all be it at a reduced price
If they are skint, and have just inherited the house, then the same applies
If they are comfy and just inherited the house, they will hold out

nollag2006

Probably worth looking / posting here:
http://forums.moneysavingexpert.com/showthread.html?t=1907059

fiffio

house seems to be defo inherited and has recently had quite alot of money spend on it (new part is great and to hihg standard but old part needs done up...go figure!)

I don't think the sellers ahve any real need to sell, 2 previous offers were accepted but have fallen through according to EA but never know whether to beleive them as said there are others interested etc.....

more looking for what the first offer should be, was thinking around 102k.

DVardysShadow

fiffio wrote: »

...
more looking for what the first offer should be, was thinking around 102k.

It is on for 105, so if you open at 102, then you are likely to end up paying 104, I would think - simply because you are so close to asking, you will be seen as ripe for squeezing.

You need to think of

• The amount you want to get it for
• The maximum you are prepared to pay for it

before you think of your first offer,

If you are prepared to pay 105, but want it for 100, then open with 95

Place_of_Design

offer £95000 they can only say no, you can always offer them more in a couple of days
Its worth selling up your position - especially if you are a cash buyer with no chain etc.. make it attractive for them - you are an easy customer

DVardysShadow

Place_of_Design wrote: »

offer £95000 they can only say no, you can always offer them more in a couple of days
Its worth selling up your position - especially if you are a cash buyer with no chain etc.. make it attractive for them - you are an easy customer

If they say No, then ask straight away how much they would sell for - they take your time to think it through. Don't just take a No and go back later with another offer without having asked the question.

Place_of_Design

the frank discussion with the estate agent will assist you a lot

also. get a "third party" to have the discussion and suggest a price

If you get the timing right, this wont comprimise your position or show your hand