Questions about offers - making and accepting them

robbiecaratiger

Don't worry about going in too low. It's your perrogative. The house you're aiming to buy is only worth what you are willing to pay for it.

Remember, the one near you is on at £275k. Doesn't mean the Agent valued it at that. They could have valued it at say £255k - It's the homeowner who says "Market my property for me at x price". What they achieve is another matter entirely. Don't beat yourself up about that.

On your new house, I'd be looking to go in around the £380k mark. It depends on how much you want it - how badly. How much was it sold for last time it was sold? All knowledge is power.

If you google "net house prices" you can find out (assuming its been bought/sold within the last decade. If you aren't sure, PM me & I'll have a gander for you

skintchick

THanks robbie - I had a look and nothing in that street has gone for more than 360k (in 2007) and the most recent sale, in December, was for 310. Now I am even more confused what to offer!

robbiecaratiger

Offer nothing at present

When you "sell" at £245k you're in a VERY strong position as a buyer. VERY strong. It's the dream situation.

Make a note of what has sold in that street & for how much. Then, go down the street & look at the houses in question & weigh it all up from there.

Don't be afraid to ask the Agent what flexibility there is in the asking price. I'm now more inclined to go in even lower than originally intended.

Me, I'd look at both prospective houses & do the homework before hand seeing what the houses in question & in the street have sold for. If in doubt, go low - you can always raise from there.

Don't be swayed by the Agent, they WANt the sale. It's your money. You have the power. You call the shots. Make it lcear to them that their house is not the only one you're interested in - even if, in reality it is. Remember, the seller will be asking the Agent how much they think the Agent can extract out of you, so play a tightfisted game.

skintchick

I should add that the agent knows me very well, knows what I paid for my house and also knows I have no mortgage on it. Probably he knows too much!

I'll arrange a second vewing for OH to see it (he trusts me though!) and we will go from there. Luckily I can imply I also love the one I'm seeing tomorrow and maybe tone my enthusiasm down a bit (I'm a heart on sleeve kinda gal).

robbiecaratiger

But does he know how much you can go up to? That's the issue. Also, you have to be strong enough not to get too carried away in bidding higher than you originally planned.

"If" you make an offer, & it gets rejected, wait 48 hours before making another offer. Make em sweat - it's likely the second offer will be taken more seriously.

You might like the other house even more, and if that's a different Agent then they know nothing about your finances.

You're in a very good position now that you've effectively sold your own house. Making an offer on a property before you've sold your own is worthless - not worth a dime. Once you've sold, its worth the earth

Framps

skintchick - are you the only person in the running for the house?

If not then that the house you're aiming to buy is only worth what you [or another potential purchaser] are willing to pay for it.

Personally I don't think your position is particularly strong - you are not a cash buyer and whilst you may have agreed a price on your house there are many reasons as to why the sale could fall through. At 400k there are unlikely to be any FTBs so that is one thing to be happy about.

You could play games and you could get the house for a cheap/er price. You could play games and you could lose the house. Your offer should depend on how much you think it's worth, how much you want it and whether you have any competition.

In terms of making an offer on a house you love - what you don't want is to put an offer in of say £380k and have that rejected and find someone else paid 390k, which is what you were prepared to pay for it but decided to game it for a relatively pointless 2 or 3% discount.

robbiecaratiger

I agree with some of what you say Framps. But I'd still maintain that the OP is in a strong position.

She's here, and she's sold and she's interested. And how many CASH buyers are there at £400k ? Precious few I'd say.

Fire_Fox

The OP hasn't sold, in fact she has not even accepted an offer!! She has only sold once exchange takes place and there is a lot can go wrong before then. You are only a cash buyer if you don't need a mortgage and you are chain-free, the money is far from in the bank.

robbiecaratiger

When the OP phones the Agent to tell them that the 245k is an acceptable offer to them, then a few days later the "Sold Subject to Contract" sign will be on outside their house, so they've "effectively" sold.

Technically of course you're right, but I still maintain the OP is effectively in a position of strength

aaronm_2

245k is actually an acceptable price.