Looking at a property above budget.

AppleCore

I'm taking a gamble by looking at a house 40k above budget. The EA knows what our budget is and says we may have a chance although I'm not too optimistic about it so I'm not getting my hopes up. It wouldn't surprise me if he's just trying to get viewers through the door.

What's the best way of putting an offer in on a house like this? I was thinking about going straight in with our max price and saying its our absolute final price. I think if we start any lower it may just look stupid.

BitterAndTwisted

It depends on the asking-price and what percentage of it the £40k is. Offering £40k less than the asking for a £150k house is tiny bit different than for a £400k one, n'est-ce pas?

BaconandEggs

Don't worry about looking stupid.
I'd worry more about an estate agent wasting my valuable time for their own benefit.

AppleCore

BitterAndTwisted wrote: »

It depends on the asking-price and what percentage of it the £40k is. Offering £40k less than the asking for a £150k house is tiny bit different than for a £400k one, n'est-ce pas?

Sorry, the AP is 390k and we can only afford 350k max.

AppleCore

BaconandEggs wrote: »

Don't worry about looking stupid.
I'd worry more about an estate agent wasting my valuable time for their own benefit.

This is true but its a lovely house and I thought it would be worth a gamble. Few houses come up in this area and I thought I'd take an opportunity to have a nose around and maybe try an offer.

Gwhiz

AppleCore wrote: »

Sorry, the AP is 390k and we can only afford 350k max.

So just over 10% discount...very reasonable. I'd go in lower tbh.

BaconandEggs

AppleCore wrote: »

This is true but its a lovely house and I thought it would be worth a gamble. Few houses come up in this area and I thought I'd take an opportunity to have a nose around and maybe try an offer.

In that case, give it a go. Don't be talked into overstretching yourselves though. It's you who's going to have to pay in the end.

AppleCore

Thanks for your help with this. 10% under doesn't seem too bad but I'm quite cautious about offering this low. We have been trying to buy a similar house nearby and have offered 5% under but the vendors still want more.

I'm not sure if it just the way prices are in this area (West Herts) but at least we'll be dealing with different people this time so might have better luck!

DPJames

Hey you don't know if you don't try. Me, i'd offer £340K then if regected come back with £350K and say it'll be your final offer, and give them a time frame aswell, something like the offer stands for a fortnight and then you'll withdraw and in the meantime you'll continue searching. If you're in a good position state that aswell. But don't go beyond your max budget because something else, usually much better, is always waiting just round the corner.

Please let us know how it goes though. Hope you get what you want.

AppleCore

DPJames wrote: »

Hey you don't know if you don't try. Me, i'd offer £340K then if regected come back with £350K and say it'll be your final offer, and give them a time frame aswell, something like the offer stands for a fortnight and then you'll withdraw and in the meantime you'll continue searching. If you're in a good position state that aswell. But don't go beyond your max budget because something else, usually much better, is always waiting just round the corner.

Please let us know how it goes though. Hope you get what you want.

Great advice, many thanks

myhouse_2

I'd go in a bit lower too, though you may have given the game away by telling the agent your max.
Start a tiny bit lower and then go to your maximum.