House valued less than offer..

RedTomato

The vendor might really not be able to drop. They might have bought with a 125% interest only mortgage or a 100% mortgage and borrowed more for the improvements and, as such, their mortgage company would not let them sell with a shortfall. Lots of people stuck in such a predicament at the moment, which is part of the reason why there is a lack of supply on the market.

If you make up any extra money you are bailing them out for their overstretching of themselves. You say that you think this is worth it for 5 years but is it really? You mention renting = throwing money away but do you know how much money houses can leech in maintenance in a year?

You also say that you are only looking at fixing for 2 years. As interest rates will almost certainly be higher in 2 years than they are now, have you taken into account that your mortgage might easily be around 1.5 times higher in 2 years if you end up paying, saying 6 - 7% rather than 4.29%? Sorry if it sounds like I'm patronising but just not wanting you to get in trouble like your potential vendors seemingly have.

I'd say, keep looking, you will find someone with enough equity in their place to sell at valuation price .....and please do budget for higher interest rates in 2 years.

Nitramak62

After reading this thread all I can say is thank god I live in scotland.

We use the "homebuyer survey" which has to be provided at sellers expense before their house can even be advertised on the market.

It included a energy report, any repairs needed & a surveyors valuation taking into account cost of any repairs. This prevents the seller, or estate agent, over-valuing the propertry as the viewer gets to see the true market value before they make an offer.

bargain_hunter25

Thanks again for all your help. There have been further developments today, even though we were told yesterday that the house was going back on the market..

The vendor now says the house can go for £130,000 but only if we buy various fixtures and fittings seperately for £3000 which I dont think they are worth. The trouble is, we don't really want the majority of these things. Some items are:

Carpets in one bedroom and on the stairs (dont really like them anyway)
Integrated Oven, gas hob, extractor fan (would like to keep this)
light fittings (would like to keep these)
curtain rails (would lke to keep these)

various other things such as:

garden shed
garden lights
door handles...
fitted wardrobes (more like some plywood just bodged together)
curtains in bedroom (dont really like)

No doubt this is just another tactic to get more cash out of us, we are finding it difficult to warrant forking out for things we would of just planned to replace to our own style such as carpets, curtains etc.

We said £2000 for the list would be a more accurate price however this offer was rejected.

We will probably go to view the house again before we can proceed or not to look at the conditon of the various appliances (something we havnt really looked into much) to see how new they are and find out oven models etc so we can look at prices.

Is this just another part of house buying? Negotiating seperately on items in the house such as ovens? I thought these would be a fixture but then again there is no legal obligation for the vendor to leave anything in the house.

Bullfighter

bargain_hunter25 wrote: »

Thanks again for all your help. There have been further developments today, even though we were told yesterday that the house was going back on the market..

The vendor now says the house can go for £130,000 but only if we buy various fixtures and fittings seperately for £3000 which I dont think they are worth. The trouble is, we don't really want the majority of these things. Some items are:

Carpets in one bedroom and on the stairs (dont really like them anyway)
Integrated Oven, gas hob, extractor fan (would like to keep this)
light fittings (would like to keep these)
curtain rails (would lke to keep these)

various other things such as:

garden shed
garden lights
door handles...
fitted wardrobes (more like some plywood just bodged together)
curtains in bedroom (dont really like)
.

Christ. £3k for door handles and carpet. They are having a laugh.

Why don't you ask them how much they will want to leave the turf on the lawn? :rotfl:

I'm going to slap you. You will thank me for it.

kriss_boy

Am I the only one confused with these types of threads?

Surely your offer is based on what the property is worth to you, not what you think the property is worth or what the vendors are willing to sell it for...

Why dont people do their research instead of wasting peoples times.

Katie-Kat-Kins

Call their bluff, tell them that £130 is your final offer and they can take it or leave it.

You will find another house that you can afford, and they will be unlikely to find someone who will pay more. All the stuff they want you to pay for is rubbish that they don't even want to take with them, they are just trying to fudge it so that they get the asking price. Maybe they have negative equity but that is their problem not yours.

Either they will work something out or they will not be moving house.

Do not keep fuelling unsustainable house prices.

Bullfighter

Katie-Kat-Kins wrote: »

Call their bluff, tell them that £130 is your final offer and they can take it or leave it.

You will find another house that you can afford, and they will be unlikely to find someone who will pay more. All the stuff they want you to pay for is rubbish that they don't even want to take with them, they are just trying to fudge it so that they get the asking price. Maybe they have negative equity but that is their problem not yours.

Either they will work something out or they will not be moving house.

Do not keep fuelling unsustainable house prices.

Oh, and if you do make a low offer, remember to tell them that you don't in fact want the carpets in one bedroom and on the stairs and that you expect them to be removed professionally and disposed of. Serves them right.... Charging for carpets..... !!!!!!

sonastin

Go back with "oh I thought you would be leaving the oven, extractor (whatever was on the list that you DO want to keep. If you are planning to take them I'll have to reduce my offer by £3k". Play 'em at their own game!

Yorkie1

Was the integrated oven / extractor included in the sale particulars? I'd be pretty miffed if an integrated applicance was removed.

bargain_hunter25

Yorkie1 wrote: »

Was the integrated oven / extractor included in the sale particulars? I'd be pretty miffed if an integrated applicance was removed.

Yes, the integrated oven etc was included on the house description on the EA's website. We would of thought this was something that counted towards the actual sale price of £130k not an additional extra.. The present "deal" is its either 3k and sale price of £130k or no deal. We think this vendor is having a laugh with what they are trying to get us to pay 3k for. Will probably call their bluff and back off.