Are the owners pushing it???

KARDJK

Me and my other half have found a lovely house that we want to buy. We've had two viewings, second being very objective and with the help of a third opinion and we've decided it is a good move. We are first time buyers so quite new to all of this and just looking for a bit of advice.

The house is on the market at 205,000. If we wanted to, at a stretch we could afford this. We have done our research and noted that the owners bought it just over a year ago (right in the slump of the market) for 173,000. They have done a bit of redecorating which makes it nice and obviously will add some value but there is no way they have spent enough on it to make it 30k more! e.g. no new bathroom or kitchen which could do with updating - they've basically painted and carpeted throughout.

We made an initial offer of 177500 which we thought was quite fair based on the above. Obviously they were never going to accept the first offer but they have come back to us saying they would negotiate but to something closer to 200k. We love the house but really think it is not worth anywhere near that.

Going on other house prices in the area it could quite honestly go for anything between the two i.e. our offer and their position.

Any suggestions as to what our next offer(s) should be and what maximum we should stick to?

Any tips on how to negotiate to get what we want?

Thanks!

maninthestreet

Another issue to consider is why are they moving house just over a year after buying? Is there some problem with the house or the area that has prompted them to sell?

KARDJK

We asked that! Slightly complicated situation but basically they have a baby and want another one and want an extra bedroom as they've realised where they are isn't big enough.

We know the area well (as some friends live there) and it is very safe and friendly. We have also been able to see a copy of their homebuyers report from when they bought it and no issues in there and it's a fairly new property so can't imagine anything major has come up since then. Certainly nothing obvious anyway!

poppysarah

Are you planning on having lots of babies there? (If it's too small for two kids then it's too small for most people's clutter)

KARDJK

No we're not after babies for a while yet and it is 3 bedrooms so would be normally big enough certainly for young children. Their situation is a little different as they have a nanny to stay with them due to working hours so that's why it isn't big enough for them.

Cannon_Fodder

Are they developers, who turn over properties regularly?

Less concern on the area, if they are. More concern on the quality/value of what they have done.

Some developers expect £30k+ profit for shoddy workmanship and superficial improvements.

£185k ?, on the basis of upto £10k worth of redecorating/carpets and the balance being a bit towards the market movement - if in a upwardly moving area.

Rightmove link ?

edited; crossed posts. Not developers then. People who can afford a nanny, living in a £200k house. Weird. And like they didn't know they had a Nanny, intention to extend the family...

I drop my maximum to £180k on the basis they should plan things better. You shouldn't have to pay for that.

poppysarah

I'd swallow that story with a big pinch of salt.

Seriously check out the area - have a walk round on a weekend evening...
Speak to neighbours.

KARDJK

As I say, we know the area quite well. We have friends in the same street but further down the road and probably go over there twice a month. They've been there 5 years and never had problems.

Cannon: I don't believe they are developers. The way they were talking about their work I can't imagine they would have time to develop - seem like the fairly average family. They have done it out very nicely - wouldn't have to do any work to it and is all very neutral. With our first offer they reckoned that they spent more than the difference on updating if that gives a better picture. I was thinking along the lines of 185-190 for a maximum but not sure if with a nice house you can make them come down by that much?!

The EA's response as to why the offer was rejected was that the owners were "lucky" to get it so cheap. Not sure if they are clutching at straws there to try to persuade us to go higher. Or am I reading into this too much?

KARDJK

Think they only got the nanny after they moved as the woman was pregnant when they moved in and didn't know what would happen about her going back to work etc.

kinglewis

Always worth trying to find out how many viewings / offers they have had. If they don't have many offers you are in a stronger position to stick with your £185k. If they are receiving a few offers you might be right to think that 190k - 195k is what they will hold out for.

End of the day there is no exact science depends how much you want it. Your surveyor will knock the price down if you have paid too much. (In theory) then you can renegotiate with a piece of paper stating what it is worth.

Thrugelmir

If its over priced then it won't sell. Back off and look at other property. If its still on the market in a couple of months then make a revised offer.