FTB'r - what offer to make?

RS89

Hello,

Long time reader 1st time poster.

I'm buying my first property in a very particular part of West London. It's not the cheapest of areas but we like it and it has the right transport links etc for us.

Now, quality stock in our price range doesn't come up very often (in this part of West London a 1 bed flat can go for £300k) and when it does, it tends to be quickly snapped up. We were recently involved in a 4 way bidding war where a flat ended up being sold over the asking price... in this market! Whereas the dregs tend to hang about on the market for ages (e.g. basement flats etc)

We've just found somewhere we like, but we can't help think the agent has been overly generous in their valuation/asking price. It's on at £289k.

Zoopla says that the flat was originally bought at £245 back in 2008 and would probably be now worth £262k now. There isn't a comparable flat on the market on the road at the moment, but other 1 beds on sale on the road (smaller, not as good a finish, top floor/basement) are on sale up to £265k

We were thinking to open at £250 aiming to buy at c£265. We could afford the £289 but think it's too much for this one and suspect that the valuer for mortgage would probably agree. However, we also don't want to play things too cool and lose it.

Any thoughts as to the best way to handle? The vendor has no chain, they already have another property bought and have vacated this one. We have AIP agreed and proceedable. Property been on for a week.

Thanks for your help.

R

jozbo

It's only been on a week - if you think there's buyer competition I would go in with an offer quickly, so what you think it's worth - whether you build up to it is up to you. Decide your limit - even if you can go up to asking price it sounds overpriced so don't overpay.
Do you know the motivation for selling? If they want to move quickly?

googler

You do know that if you buy something at under £250k, if you're a genuine FTB, you pay no stamp duty, and as soon as you buy over £250k, you'll be paying 3.00% of the purchase price to the taxman?

RS89

Thanks. I will ask more questions about their motivation for selling but I don't think they are in a rush as they have already moved out into another property.

It's the point around whether I build up to my max or just go right in; since my max is under the asking price that leaves me no room to negotiate if I go in at my max, but it also minimises the risk of someone beating me to it.