How to know what to offer?

Leory

Hi,

I Have viewed a house twice that we really like, but are unsure of the price and what to offer. any help would be great!

it is a 3 bedroom mid terrace up for 120,000.
the house was bought as a reposession 2 years ago for around 85000 and has had a lot of work done to it.

other houses in the street havent sold for anywhere near this price (closest is 112000 in 2007)

How would i know if the price is over-inflated?

ps i can PM the details if required.

Sphynx

The only advice I can give is that I would never offer the asking price first time of asking. Put in an offer based on what you think the property is worth, taking into account the amount other properties have sold for in the area but also the work that has been done.

Hopefully someone with more knowledge than me will be able to help. Welcome to MSE!

surreybased

Hi,

If similar houses sold for £112k in 2007 then £120k feels on the high side (but it might have had an extension) but it's your choice what you pay...however if you're getting a mortgage with a reasonable LTV then the mortgage valuation might cause you a problem.i.e surveyor valves it lower.

A surveyor will look at what houses have sold for and then make a comparision. The land registry data will help you understand what's happened to your area as far as house prices over the last 2 years.
Do you know the area well? Have you seen many similar houses? How does it stack up for you?
My advice would be - don't rush the purchase, you may love the house but don't overpay, make sure you know the area. I remember being a FTB and I think we overpaid, just keen to get a house..should have looked around for more comparisions.

Good Luck

Leory

Thanks for the replies. The house is structularly the same as the others, only with an updated open plan interior.

The mortgage valuation is playing on my mind too. I presume we would still pay for the valuation even if it doesnt match the selling price?

on first glance at other selling prices it does look high so probably is.

how much sway does being a FTB have to sellers?

Leory

Thanks, but i am buying a house and although i might need :spam: in my cupboard i dont need brand bags or boots cheers:rotfl: