Offer rejected

RS89

Hi,

We were interested in a 1 bed flat recently put on the market at £290k which seemed optimistic as no other flats on the road has sold for more than £270 since the peak in 07.

We put in an offer at £250 which has been promptly dismissed with the agent stating that the vendor had been advised by 5 valuers that they could get at least £270k.

1. Has the agent basically admitted that the property is overpriced by 20k as a minimum?

2. Would anyone realistically pay £260-270 for a property given the stamp duty break at £250?

We were thinking to sit on it for a bit and see what happens; we don't want to pay £260-270 because of the stamp duty issue and don't think the proeprty is worth more than that.

Any advice as to how to handle the next move? We have AIP, solicitors instructed, ftb/no chain.

firstaspect

If you don't want to pay more than £250k then just sit tight and see what happens. In a few weeks time they may be more willing to negotiate if they haven't had any higher offers.

wessexw

I presume you're in London if it's a one bed flat at those prices? I spent many months looking for a flat around the 250k range in London, a lot of EAs told me that they know fine well that they have a problem selling properties in the 250-300k range and they have to convince the vendor of that - though it's the last thing the vendor wantes to hear.

It's a bit trickier if the price is at the upper end of this range as nobody wants to take a 40k drop. If no other property has sold for more than 270 though I agree that this asking price might slowly come down over the next while. In all my months of searching it was quite common to see something put on the market for about 280 in February, down to 270 around May, and then to the 250 mark in August.

satchmeister

RS89 wrote: »

Hi,

We were interested in a 1 bed flat recently put on the market at £290k which seemed optimistic as no other flats on the road has sold for more than £270 since the peak in 07.

We put in an offer at £250 which has been promptly dismissed with the agent stating that the vendor had been advised by 5 valuers that they could get at least £270k.

1. Has the agent basically admitted that the property is overpriced by 20k as a minimum?

2. Would anyone realistically pay £260-270 for a property given the stamp duty break at £250?

We were thinking to sit on it for a bit and see what happens; we don't want to pay £260-270 because of the stamp duty issue and don't think the proeprty is worth more than that.

Any advice as to how to handle the next move? We have AIP, solicitors instructed, ftb/no chain.

Five valuers said at least 270k and it hasn't sold, I assume the seller has asked for the return of the money he paid for the valuation.

RS89

Thanks. I agree the valuation seems a bit high but then again it's only been on the market for a couple of weeks. The agent reckons there's "a good level of viewings" coming up but it's the usual patter I suspect.

I think the advice to sit it out for a few weeks is about right. I doubt people will be interested at £289, and even if they are I think that when the mortgage valuation comes in lower they will have issues getting funding.

I do think it's a little silly putting a flat on at £289 when it's been valued at £270 - is this just a vendor who has an over-inlfated view of what their property is worth?!

firstaspect

RS89 wrote: »

I do think it's a little silly putting a flat on at £289 when it's been valued at £270 - is this just a vendor who has an over-inlfated view of what their property is worth?!

I'm guessing the vendor is in no rush to sell so is happy to try his luck at a higher price to see what happens.