Sensible offer on a house

Me1980

I hope this is the right forum for this sort of question, i'm still a bit new to this site. I've been lurking for a bit though....

Right, DH and I have seen a house we love. We would like to make an offer but we're not sure what level to go in at. As a bit of background the house is on the market for £1.2 it has been on and off and on the market since the end of 2008. I can find price history since August 2009 and it hasn't been reduced in price since then, before that I don't know.

If we bought it at the asking price we wouldn't be able to do any work to it. It's been done recently just not to our taste, we would like to redecorate, new carpets/curtains and new bathrooms + kitchen. (Actually when you write it out it sounds like a lot, but the building is very sound and it is definitely our forever home).

The problem is we can't haggle, were just too British :rotfl:
Saying that, like everyone we like a bargain.

We were thinking about an offer of £1.05, we've sold our house and can move quickly or slowly depending on them. Will this get laughed at? Are first offers automatically turned down to make you go higher?

seabright

It's been on the market a long time and the price hasn't been reduced, so I'd definatly make the offer of £1.05.

However,given the length of time it's been on the market and the lack of price reductions, be prepared for:
1. The fact that the seller may have a very over inflated view of it's value and has already ignored agents advise to reduce
2. The fact that the seller doesn't really want to sell.

Have you looked at what nearby/similar houses have sold for (as opposed to what they are being marketed for)?

partlydave

You dont really have to haggle, just make your offer to the EA and see what happens. They'll probably turn down the 1st offer, depends how desperate they are to sell. Sounds like it doesnt need thousands spending on it, so be prepared to make a higher offer.

Me1980

We've been told they would like to exchange at the end of the summer, so I'm hoping they have found somewhere and therefore need to sell with some urgency.
I do agree with point 1 though, it's something i have certainly thought, though my husband thinks i have a cynical view...

Unfortunately not many houses nearby have come up recently and certainly none of a similar size so we can't really tell what its true value is.

Me1980

p.s. sorry to be so vague about dates/area etc i am trying to preserve the sellers anonymity.

silvercar

Only you can judge if its worth that. Compare it to others that are on the market, does the price seem reasonable? At that price range I guess there is not much actually onthe market. I would befriend an estate agent and ask their opinion on price. For a suitable fee they may be prepared to negotiate for you.

PasturesNew

Me1980 wrote: »

I can find price history since August 2009 and it hasn't been reduced in price since then, before that I don't know.

Get the postcode, go onto rightmove and at the top choose House Prices, House Comparison Report. Type in the postcode and it will probably show you previous prices/dates it was on the market. Newish feature.

Fire_Fox

Me1980 wrote: »

If we bought it at the asking price we wouldn't be able to do any work to it. It's been done recently just not to our taste, we would like to redecorate, new carpets/curtains and new bathrooms + kitchen. (Actually when you write it out it sounds like a lot, but the building is very sound and it is definitely our forever home).

The problem is we can't haggle, were just too British :rotfl:
Saying that, like everyone we like a bargain.

We were thinking about an offer of £1.05, we've sold our house and can move quickly or slowly depending on them. Will this get laughed at? Are first offers automatically turned down to make you go higher?

What you want to do to the house is irrelevant to it's market value, what needs doing is not. Research land registry sold prices for the street and check that you are ready to proceed (?MIP, solicitor intructed?). Decide what is an offer based on this thread:
http://forums.moneysavingexpert.com/showthread.html?t=1907059
Don't haggle place your offer in writing, citing your strong position and your knowledge of the current market. Sit back and wait. If your offer is refused go away and think for a few days and place your second offer. Do not get drawn into or swayed by verbal discussions with the estate agent, it is their job to fluster you into paying more than you want to.

silvercar

I once didn't offer on a house because I knew the sellers and the asking price was out of my price range. It sold very,very quickly so I presumed they had got near asking price. When the sale price appeared on websites after sale, I was disappointed that I hadn't made an offer; they'd taken a 10% drop straight away and this was in 2006 when houses were selling.

spider31

I would always offer 10% less and see what happens, but let you EA do this. You are paying them to-do this.

Once you have an offer on your house you are in a better position. so... it best to sometime wait until you are in a good position.

Try to have a good reason for the offer, eg you have seen some work that needs doing. You cannot afford more due you keeping you LTV below 65%.

If you say you cannot afford more due to LTV then I think that’s more understandable.