Advice on putting in a low offer-updated, rejected :(

AppleCore

I've seen a house I like up for £369,950. Its a 3 bed semi and I think it may be overpriced as a larger detached version across the road was recently up for £349,995 which we unfortunately missed out on.

I called the agent and she said that the owners were going through a messy divorce and wanted rid of the house asap. She also said that the owners had been told that the price was optimistic and had been told to consider a price drop.

We could only afford about £330,000 max but think that this may be taking the p***. I told the agent that the asking price is far higher than we could afford but she seemed quite positive that the vendors might take a low offer.

We are going to view it on Saturday but we're pretty certain its going to be what we're looking for. We're in a good position ourselves having just sold to FTB who want to move in asap and have a mortgage ready.

How much should we go in at? I don't want to offend them with a silly offer but we really can't go over £330,000.

Cannon_Fodder

It appears that £20k of their asking price might be considered the optimistic element, in view of what you say about the nearby detached property, perhaps even more - it depends what it went for.

Therefore, if this one had originally been priced at £349k, then offering £330k would be around 5% off. Which in today's market is pretty reasonable.

If you cannot go over £330k, you cannot. Offer £327k to leave you leeway to make a "final offer" at £330k.

ItMightBeUsefulOneDay

A house is only worth what someone (that's you) is prepared to pay for it.

The vendors price could be a complete dream world price; use it only as a guide. A huge advantage here is the one of the 3 Ds for house selling. A messy divorce means they must sell or be forced to live under the same room for months on end. Point out that you're ready to go NOW and want to move NOW. This means they're forced into a choice - accept the lower offer and get the whole thing done, go separate ways, move on and whatever else NOW or..... wait for months / years for the next person to offer.

You've got a walkway price (£330k). Keep this in mind and offer BELOW this to start off with. You will need some room to be "talked up" so the seller feels they've got the most money possible.

gbcasual

You can either go in at '330K, my maximum and only offer' or something like 325K with room to move.

Don't worry about offending the sellers, some out there would be glad of any offer at all

PasturesNew

Go in at £299k.

Have you looked to see what zoopla guesstimates for it? How does it compare with other similarly sized/appointed houses in the same area?

AppleCore

PasturesNew wrote: »

Go in at £299k.

Have you looked to see what zoopla guesstimates for it? How does it compare with other similarly sized/appointed houses in the same area?

Really? £299k seems extremely low! Wouldn't they just tell me to b****r off?

Zoopla seems to think the asking price is about right but then it also says the house the property is attached to next door is worth 10k less but that house has an identical spec!

verytricky69

well the house we wanted was on for £349 and we offered 'best and final' of £315 and they accepted after a few weeks. We prob could have upped it a bit but glad we didnt.

How long has it been on the market for? If its only just come on then they may be more likely to want to hold off for a higher bid (which is v risky in this market!)

AppleCore

verytricky69 wrote: »

well the house we wanted was on for £349 and we offered 'best and final' of £315 and they accepted after a few weeks. We prob could have upped it a bit but glad we didnt.

How long has it been on the market for? If its only just come on then they may be more likely to want to hold off for a higher bid (which is v risky in this market!)

You got a great deal there, verytricky69. That's given me alot of hope

Its only been on the market for a month unfortunately.

The agent said that the wife has moved out and taken the kids with her and its just the husband living there. I gather the wife is pressurising to get the place sold so she can move on with her life which is understandable. Sad situation but it may mean we can negotiate a quick move and a low price.

verytricky69

A month is better than just on the market at least. Have you asked the agent if they've had any other offers yet? Dont be afraid to go in low. Don't let the EA know you have any leeway if you go in at £325, make sure you make you good situation apparent and say how you are aware that the market may be on a down turn. Best of luck with it all- let us know how it goes.

paul1964_2

AppleCore wrote: »

Really? £299k seems extremely low! Wouldn't they just tell me to b****r off?

Zoopla seems to think the asking price is about right but then it also says the house the property is attached to next door is worth 10k less but that house has an identical spec!

If a larger detached house was up for £350k, £299k seems a reasonable offer for a smaller semi. Some vendors appear to be adding 10+% to their asking price because they know they are going to be knocked down. Zoopla seems to be pretty inconsistent.

Work out what you think it is really worth (using nearby Land Registry sold prices rather than wishful asking prices) and start with a bid 10% lower.

DVardysShadow

Watch out for quick sales from divorcing couples. If there is any spite in play, they can and will play games on each other at the buyer's expense.

When making the offer, you should read the riot act to the agent and say that you will not tolerate this happening - and be prepared to walk away or drop your offer if you find this is happening.