What offer would you make?

Fay

We viewed 8 houses yesterday and really liked one and could see potential with it. It's a 3 bedroom detached house in Warwick that is up for £375,000. We knew from net house prices that the house was brought last March for 275k and the vendor openly told us this and that she has spent 50k on it (we don't think it is that much to be honest) and that she wants at least 355 to 360 from it.

Basically we can't afford that much and wouldn't want to pay that either, so what would people offer? We were thinking of going in at 330-too cheeky?

The compromises with this property for us compared to others we have seen: 3 smallish bedrooms (could do a loft conversion to add a 4th, but obviously will cost), bathroom is tiny with a seperate toilet and to do the stairs for the loft the bathroom would need to be made bigger and the toilet moved into it, north facing garden that is smaller than what we have seen else where, extension looks like it might need a new roof in the next few years (not done by current vendor)-actually apply that to the house.

All advice gratefully received!

kirwell81

How long has it been on the market for? What areas was the alleged 50k spent on? i.e has this actually added value to the house (conservatory, new kitchen, double glazing etc) or has it just been done up cosmetically with expensive taste? I don't know the area but £375 for a 3 bed sounds excessive (and I live in Edinburgh!)

Fay

Thanks for replying, its only been on the market 2 weeks. It's very near Warwick centre which is quite an expensive place to live, but the house is definitely over valued. Another 3 bed detached sold in Nov 09 for 315k. Interestingly we viewed a house with an agent yesterday whose friends parents had owned the house before the current vendor and he said the house is way over priced.

The money has been spent on knocking 2 rooms into one, making a nicer kitchen, putting an aga in (which is staying, but has never been on a 'wish' list for me) and adding a downstairs shower room. Here is the link to the house http://www.rightmove.co.uk/property-for-sale/property-27210751.html

I honestly can't see how 50k has been spent, as the extension to re-house the kitchen was already done and from the state of the roof is a few years old.

david29dpo

I know the area well and agree its over priced. However, what they paid and what they have spent on it is irrelevant. The market will dictate what its worth today.

Fay

So what would your advice be David? I have to say I don't know the area well and am moving there for convenience for work-also been looking in Stratford.

david29dpo

Check resent sold prices in that road and adjoining roads. You may be in for a long wait till the sellers see sense!

harrup

Fay wrote: »

We viewed 8 houses yesterday and really liked one and could see potential with it. It's a 3 bedroom detached house in Warwick that is up for £375,000. We knew from net house prices that the house was brought last March for 275k and the vendor openly told us this and that she has spent 50k on it (we don't think it is that much to be honest) and that she wants at least 355 to 360 from it.

Basically we can't afford that much and wouldn't want to pay that either, so what would people offer? We were thinking of going in at 330-too cheeky?

The compromises with this property for us compared to others we have seen: 3 smallish bedrooms (could do a loft conversion to add a 4th, but obviously will cost), bathroom is tiny with a seperate toilet and to do the stairs for the loft the bathroom would need to be made bigger and the toilet moved into it, north facing garden that is smaller than what we have seen else where, extension looks like it might need a new roof in the next few years (not done by current vendor)-actually apply that to the house.

All advice gratefully received!

It sounds to me as if the seller simply seeks to recoup the money they spent = i.e HP paid + Stamp Duty + improvements.

You say that it doesn't look like she spent 50K....but believe me, if you call in professionals ( painters, plumbers, electricans, kitchen fitters, builders) instead of doing DIY jobs, that money soon goes. It's not the cost of the new kitchen furniture, bathrooms suites, etc....but the installation which costs.

Anyhow, how much to offer?

The vendor already told you that she is looking for a minimum of 350 -365 for a house marketed at 375. I think you are wasting your time offering below 350. If you like the house enough try 352 and she what feedback you get. If you can't afford to go that high for an initial or even final offer....it's out of your price range. All in all, unless the vendor HAS to sell it, they are unlikely to sell it for less than they bought it & spent on it.

harrup

david29dpo wrote: »

Check resent sold prices in that road and adjoining roads. You may be in for a long wait till the sellers see sense!

I don't want to pick an argument, but what does it mean "until the seller sees sense"?

It is an immaculately presented, very attractive home which has recently been refurbished. In an expensive area.

WHY should the vendors accept a bargain price? Because....???

Listen, I'm all for cheeky offers because most sellers put their - often long neglected and overdue for refurbishment - houses on for a cheeky, silly, greedy price. But this one actually looks worth the money. JMO.

Fay

harrup wrote: »

It sounds to me as if the seller simply seeks to recoup the money they spent = i.e HP paid + Stamp Duty + improvements.

Thanks for your advice but I have to say that as a buyer I don't expect to bear the brunt of the cost of the sellers stamp duty + HP costs. As a seller I have never expected to pass these costs on, I have sold my houses for their market value, and having done some research I really don't think this house is worth the asking price. I expect to pay what a house is worth now, regardless of what stamp duty the seller paid originally.

lossofbargain

why do people look at a house and say they cant afford it. would you go to a showroom for a ferrari and get it 20% below.

possibly the attitude to house buying is the opposite of the boom where we paid top dollar and more. people cant be faulted for trying to sell for what it is worth to them and all this lopping 20% off, people forget that a drop in profit, can make a move impossible as the need for profit often allows people to move up the ladder. if the nature of buying is now meaning people cant afford to move, the market is soon in for a very tough time.

SimonMrGreenWard

Offer what you think it's worth. In reality, there is so much competition from agents to get properties on that they nearly always come on overpriced. 22 week tie-in with some agents, so they've got plenty of time to get the price down and still get paid.

Naff all competition for the property on the market.

Market will dictate price. I know people who want top money for their property and just won't move unless they can get it, so you're likely wasting your time.