was this a fair offer?

lellow_lorry

I put an offer in this morning on a property this morning making clear it was full and final. it is on for 350k. Immaculate to show room standard. I based my offer on the most a property acheived on the estate of the same build was 335k late 2007 at the peak. I offered 335k as I am basically a first time buyer(gone into rented) and based on we have not returned yet to 2007 values...so although immaculate i felt 335k was good. and is over 95% asking price........it was turned down within the hour asking for over 340k. I am reluctant to raise as I feel a surveyor is already likely to get twitchy on this.and i did say full and final. Do EA's ignore this to wait for a higher offer?

Thrugelmir

You made a final offer. The seller expects more. Look elsewhere though keep an eye on this property in the meantime. Looking for property through the same agent will keep you in close contact with the situation.

Fire_Fox

Remind the agent that your offer was full and final, you feel it was a good offer given the market conditions and your strong position as a buyer. Tell them the offer remains on the table but you will be looking at other properties, then view other properties through the same agent. You are not a first time buyer, unless it is your first time buying! You are in a chain free position.

eco-friendly_2

Leave your mobile at home today, get back early though to go through your missed calls!

sebtomato

There are several house price calculators you can find on the web, telling you the estimated value of a property now, from a past price.

I visited a flat with an asking price of £289K. I found that they had bought that particular flat in April 2007 for £265K.

However, prices in greater London have dropped by 6% since April 2007 (10% for the UK), using the Nationwide calculator (http://www.nationwide.co.uk/hpi/Default.asp?calculate=true). Another calculator gives a value of £240K for that postcode, taking into account also the type of property.

I made an offer for £255K (so £35K below asking) as they had done a bit of work on the property, and it is in very good condition, and it was rejected, although their counter-offer has been dropping everyday by £5 or £10K, and they are keen to sell, property is empty and I am a first time buyer...

I am pretty sure my offer would still win compared with an offer of £10K more for someone in a chain, having to sell something first.

I have been slow to return the EA calls, and I have not increased my offer. I told the EA that I was visiting 10 properties a week (true), and therefore the chances of me increasing the offer or even buying were getting slimmer by the day (true). My next offer will be £249, to save £5K on stamp duty.

One thing is sure: they are loads of flats coming on the market currently, and not many buyers. All the ones I have visited were "put on the market just before Christmas" (BS given by all EAs), but none have received offers or sold yet. All seem to have an asking price of 10% more than what the seller really expects, and many sellers who bought their flat in 2006 or 2007 don't seem to have realised (yet) that they overpaid, and it's worth less now.

tucbiscuit

very fair offer I'd say, hold your nerve and you may get it

one possible problem if getting as mortgage with a high lona to value could be the valuation as my limited experience tells me that valuers may not value a property as high as a 2007 price regardless of interior quality, not trying to rain on your parade, just a consideration

DVardysShadow

I would not normally start with a final offer, primarily because sellers always expect that bit more.

Nosht

Remember that it is still a buyer's market.


Regards,


N.

delmar39

I agree with the DVardysShadow. Our buyer put in three final final offers so some people do see it as a game. By starting with a final offer the seller may just think you're holding back by say £5k. Don't worry about valuations that's not your job. If a chartered surveyor valued it to begin with then the valuation won't be a problem. If your LTV is good and mortgage lowish then the mortgage company won't get twitchy. They only need to get their mortgage back if you can't afford to pay.

So, what can you afford to offer? Can you not stretch to £339,950? However, if they won't over £340k and are serious about this then unless you offer over £340k then you may not get it. They're not asking for the asking price so if you can stretch to £340,500 then go for it. They'd be silly to decline in this market, but guess depends on whether they are in a rush to sell. Some people are just plain stubborn!

pie81

It is impossible to say whether it's a fair offer without knowing where you are, what else is on the market, etc.

In most parts of the country prices are not back to 2007 levels and it is a buyer's market, BUT this does not hold true everywhere, for example in several areas of London prices are back to 2007 levels and there are lots of buyers chasing few properties.

As mentioned above, most agents will expect to do a bit of negotiation from your initial offer and so it's wise not to start with your highest figure. Having said it's final I would be inclined to stick with it.

Milliewilly

pie81 wrote: »

It is impossible to say whether it's a fair offer without knowing where you are, what else is on the market, etc.

In most parts of the country prices are not back to 2007 levels and it is a buyer's market, BUT this does not hold true everywhere, for example in several areas of London prices are back to 2007 levels and there are lots of buyers chasing few properties.

As mentioned above, most agents will expect to do a bit of negotiation from your initial offer and so it's wise not to start with your highest figure. Having said it's final I would be inclined to stick with it.

This is true for some parts of the country - I have had 3 cash offers rejected since September 2 of which have been asking price.

If you can proceed quickly then I would hang on unless there are others after the property and you really want it. How long has it been up for sale? £350K is a lot for a first time buyer! As others have said the Surveyor could scupper your plans anyway unless you have a large deposit.