Looking at a property above budget.

mufi

How long has it been on the market? Have you anything to sell, or are you under offer?

We looked at properties around £400,000; offered £360,000 on one just after it had gone on the market early this year - it was (unsurprisingly) rejected, but that was what we felt it was worth.

Six months later, it's still unsold.

Charliezoo

mufi wrote: »

How long has it been on the market? Have you anything to sell, or are you under offer?

We looked at properties around £400,000; offered £360,000 on one just after it had gone on the market early this year - it was (unsurprisingly) rejected, but that was what we felt it was worth.

Six months later, it's still unsold.

We're in a good position - sold to FTBs in July and expect to exchange in the next week or so. AIP in place and decent deposit.

The house has been on with the current agent for a month but was on with another agent before but I have been unable to find out how long for.

mufi

Charliezoo wrote: »

The house has been on with the current agent for a month but was on with another agent before but I have been unable to find out how long for.

Have you tried asking the previous agent, or the vendor? It's a fair assumption that most properties are on with the original agent for some time before most people swop over, and that if the vendor has gone to the trouble of changing agent, he really wants to sell.

Under these (assumed) circumstances, you are in a very strong position to put in a low-ish offer...

neverdespairgirl

Don't ask, don't get!

AppleCore

neverdespairgirl wrote: »

Don't ask, don't get!

That's exactly what I thought. I wasn't even going to bother looking at a property that far above the budget but I figured it was worth a go. Its the kind of property that I have always assumed would be out of reach financially so I've got to have a pop at it really haven't I?

I will ask the vendor about why/when its was withdrawn from the previous EA, I'm not sure if I'll get a straight answer but at least if I find out I can adjust the offer accordingly

sonastin

myhouse wrote: »

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.

If you are willing to pay your max then you haven't really given too much away. If you start lower and the EA asks why not your max, you can tell him that its so that you have somewhere for him to negotiate you up to and he'll look good in the vendors eyes for negotiating a better offer, once the vendor has heard the low offer.

Vendor is happy because he gets more than originally offered.
EA is happy because he gets commission for the sale and the difference in his earnings is miniscule.
You are happy because you get the house you thought you'd never afford.

(OK so the vendor might still not be persuaded to take it, but there's no harm in trying. And the EA might not play the game but he doesn't gain anything by getting you up to your max without demonstrating this to the vendor...)

sjhunt69

We are in a similar situation, but the one piece of advice i read somewhere was, that if you are not embarrased by your first offer then you have gone in too high, so £340k sound a good opening offer.