First and final offer

SmartGirl_2

Are there any stats available on Sales to Asking Price Ratio? And what is a resonable first offer, i.e. is 80-90% of asking price reasonable?

I had a look at several 4 bed townhouses for sale in the same development, all owned by the same organisation. Several of them have asking price of £365k. What would be a reasonable offer? I am FTB with morgage AIP and they are keen to sell and move out. Also they bought these properties newly built several years ago, so they must have paid less than half of the current asking price. I am thinking about first offer of £300k and final offer of no more than £330k. Am I mad and how would this affect my reputation with estate agent?

dwsjarcmcd

Do you care about your reputation with the Estate Agents? I wouldn't. Go for it!

plane_boy2000

Have you tried sounding out the agent? Tell them you are interested but not at that price - most agents will give some indication as to weather a low offer would be well received or not. Given that they have several for sale there may be more scope for a reduction, plus as its not an individual seller they are less "emotionaly attached" and less likely to be insulted by a low offer - for them its business not personal.

There is no set ratio for an offer as so many factors depend like time on the market, area etc so give it a go and see what happens.

MortgageMamma

You would be lucky to have someone give you 35k equity in your property! but as the other posts say, you never know your luck but no harm in trying/ don't worry about your reputation with the estate agents - they want to sell you houses and whatever they think of you really doesn't matter in the grand scale of things

SmartGirl_2

Sounds like there is no harm in trying. I'll give it a shot and see how it goes.

MortgageMamma

Good luck, make sure you update the thread. have you read andrew smiths thread which is stickied to the top - first time buyers guide/property negotiatons

F_T_Buyer

http://www.hometrack.co.uk/

Hometrack mention Sales to Asking Price ratio, it is currently at 95%. So start bidding way below this.

Wig

Have you looked at recent sale prices of the surrounding area?

on houseprices.co.uk it's free

SmartGirl_2

Wig wrote:

Have you looked at recent sale prices of the surrounding area?

on houseprices.co.uk it's free

Yeah, i checked them out, but it is not of much use as the last townhouse on this develpment was sold for £240k in 2001 (and now the asking price is £365k). 3/4 bed properties in this area have a very big price range, i.e. from £300k up to £500k!