Putting in an offer

marlasinger

Ok, this is going to be another one of those 'What should I offer?' threads.

We have spotted a bungalow we would like to put an offer on.

It came on to the market at £142,500 in Sept 2009. In Nov 2009, the price was dropped to £139,950 and dropped again to £129,950 in March 2010.

Other bungalows on the street sold for £150-£160K back in 2007, and another one is currently on the market for £149K. The estate agent said that the feedback from viewers has been that they don't like the layout of the house, it doesn't 'flow', etc., which is why it has been on the market for so long. We've had two viewings, think it's ideal for us (though we can see the issues with the layout), though there are a few (mostly cosmetic) things that we would like to change about it.

Personally, we think it's a very good house for the money, and would be happy to pay asking price, but don't necessarily want to be a couple of chumps.

We would ideally like to pay £125K or less simply to avoid stamp duty. Should we offer £125K straight up, and say it is a final offer? Or should we go in lower (say £123K - which I would be quite embarrassed by, to be honest!), to leave room to negotiate up to the £125K, even though we really have no justification for offering such a low price, aside from that we want it cheaper.

Do people offer a lower asking price 'just because', or does it have to be justified.

I know if the vendor balks at a low offer, we can just make a higher offer, but was curious as to what others think. :T

thewinkshow

My first offer would be 115k

bandofbrothers

Go with your gut feeling.

Make your low'ish offer and wait for the feedback.

If the current owner declines then offer again !

From your thread its clear you have done your homework.

lellow_lorry

what have you to lose? if you start low you can negotiate up. After an offer you could ask what they are prepared to accept. Some people factor in say for e.g "within 5k and will sell" Others cannot accept any less than asking if dropped too far and could not afford to progress.offering 125k on opening offer will imply to the EA you got more in your pocket.

marlasinger

115K?? Really? That's so low compared to what similar houses have sold for, and what it has been listed at!

Thanks for the advice. I think we'll start at £120-123K, and go from there. As I said before, we think the house is worth the asking price, but we still want to save some dosh for later!!

bandofbrothers

Good for you.

Good luck and I hope the seller accepts and you and they get the ball moving quickly !

marlasinger

Well, we went in at £121K for a first offer, which was promptly rejected.

We're thinking to now offer £125K as a final offer, and if that is rejected, then basically sit tight for a while and maybe book some more viewings (with the same agent ).

I don't know - this whole house buying process seems to be a lot of game-playing. :mad:

maya+2

good luck, its always worth putting an offer in and I'd say yours is near enough the asking price to be considered by the vendor as a serious offer.

penguine

I wouldn't jump straight up to £125k from your first offer. Perhaps ask the estate agent what he thinks the sellers will accept and give it a day or two then come back with £123k. Especially if you don't think anyone else is interested.

At £129,950 both the EA and the sellers are going to know it won't sell above the stamp duty threshhold.

marlasinger

We ended up going in at £125K, and told them it was a final offer as weren't willing to pay stamp duty on top of other costs we would have to pay to modernise the place.

They accepted....Woohooo!! :beer:

azkaban420

Congrats marlasinger, now the fun begins

Az