realistic or way out there?!

astonaut

House we like is on at 539,950. We seriously can't afford to pay over 500 as 1) higher stamp kicks in and 2) we are pushing ourselves anyway and want to be strict with ourselves in terms of budget and monthly outgoings.

SO... we are going to go in at 495000 (which will be rejected) and then go for 5000000 as last attempt. is this a really cheeky offer.

They are desperate to sell and we have cash buyer.

Any views shared would be really appreciated!

Thanks

Cannon_Fodder

Current asking prices are being missed by around -7% according to NAEA figures.

Which, spookily enough, is £40k - so it looks like they have added the £40k to be able to negotiate down to £500k stamp duty threshold.

I'd be doing a bit more research to check that the house is not overvalued, as they may be playing a game of making you think you have a bargain at £500k, to blind you from noticing it should only be worth £475k or some such.

If research satisfies that concern, go for it.

Who told you they are desperate to sell? Take with a large pinch of salt.

Estate_Agent

I think it's a good offer in the circumstances. it's within 5% of the asking price, so although economies of scale may be different, it makes sense. Otherwise it's not meant to be.

marc-h_2

It's not even 10% below asking price. Some people would suggest starting even lower. I don't think anybody should consider 10% less then asking price as cheeky. The seller might though?

astonaut

ok thanks guys - they emigrated to South Africa last Wednesday - the day before they left their sale fell through days before exchange! So they need it off their hands..... might put us in a bit of stronger position. Thanks For your help so far!

DVardysShadow

astonaut wrote: »

ok thanks guys - they emigrated to South Africa last Wednesday - the day before they left their sale fell through days before exchange! So they need it off their hands..... might put us in a bit of stronger position. Thanks For your help so far!

Start off a bit lower than 495, say 480. While 5k down will send a message that you wouldn't go above a stamp duty threshold at 175k, I am not so sure it does at 500. At 480, you can also make a point about Stamp Duty to the Agent when he says it is a disappointing offer, so he knows exactly where a deal can be pitched

mbga9pgf

Agree with the above. I personally would start at 450. If they meed to move, they are forced sellers. Research the home on https://www.ourproperty.co.uk see when it last sold and for what. If they bought it for 500, then its unlikely they willl take much less than this. If it isnt on ourproperty, it was bought for far less than what its on for now and they can take the hit in equity.

Make your offer conditional, with a time limit of say 2 weeks to let them sweat it out. Make it clear you are proceedable and will be looking to complete (if you are able to) within a month (use a high speed conveyancing service, available online).

I know sellers that would take significant haircuts just to get shut at the moment. Milk it for what its worth. You can always go in at a higher offer (say a month later to let them not-sleep-on-it ) if it is flatly refused.

astonaut

l looked it up on nethouse prices and it was bought by the vendor in 2006 for 477,000

mbga9pgf

Thats your base line then. Start at 470 would be my view and get haggled up. In your offer letter, it it helps your case, include a comparison of land reg or alternatively halifax/nationwide HP indicies to prove its only worth what they paid in 2006.

http://www.home.co.uk/

Will let you typa a postcode ( first part, for example SN1 or PR15) in and you can get a lot of details for the local area (see also on left hand nav bar) , time on the market in particular... if the local market is dead, I would squeeze them for less than they bought it for on the basis they need to move....


If you are proceed able, they will take you seriously.

Oh, let us all know how you get on.

poppysarah

If they reject 500k then offer 477 and ask what % floorspace they increased it by to make it worth so much more.


I assume you know how long it's been on the market and have an inkling of how keen they are to sell

mbga9pgf

If you dont know, download firefox browser and install property-bee (https://www.property-bee.com) If someone has been doing searches in your area in your price range, you will be able to see how long its been on the market.