Making An Offer, Advice Please.

queequeg

Hi,
This is my first post and any advice would be greatly appreciated. I am a FTB, with a 32K deposit, mortgage aip, solicitor ready for action and other money kept aside for all other costs. What I need advice about is, I have seen a house that has been on the market for over a year marketed at £169,950. After searching I found out the house had been bought by a property developer for £130K in early 05, done up and has been on the market ever since. Nobody has shown any interest and the house is now offered with 5% deposit paid and stamp duty paid. I don't know anybody who has recently bought a property to ask for advice and am unsure of what would be a good opening offer. Help please!!
Thanks

Ian_W

You also don't know if the "property developer" is an experienced one or just someone who's watched Sarah's Property Ladder and overpaid for the house in the first place.
Try and do the same research on sold prices of other similar houses in the area. There are several sites like https://www.ourproperty.co.uk/ who have the land registry info. You can only judge the worth of this house by comparing it to how similar ones in the area actually SOLD for.
Oh! BTW welcome to the forums, you'll get loads of helpful advice here.

queequeg

Thanks for advice. The property developer is an experienced one with a substantial portfolio. On checking house prices in the road the most recent went for 154K.

Ian_W

You are in a very good position with everything lined up and ready to go but the property being on the market so long suggests, unless the market where you are is very slow indeed, and the comparison, suggests it is over-priced.
The developer won't be sentimental about the prop as it's business so you can't upset him[?] with too low an offer like a private seller. However he will want to maximise profit. How much are you willing to go up to?
Personally, I'd start below £150K, maybe around £147 -148K and see what the response is. Bearing in mind the 6% incentives mean the real ap is around £160K.

mrs_deadline

Also dig around to find the streets where houses have sold at the higher price or the price you hope to pay, i.e. take a keen interest in what else you could get for the same money. Congratulations for being in such a good buying position - make sure you let them know it when you put in your offer. Good luck!