Help me buy this house, please

Catatonia

Some background: I have found a house I like, but it seems a bit overpriced. Came on the market towards the end of September for £310k. It was reduced to £295 a month later. It's a bit hard to value as on the street, there are only three other houses that are identical and none of the four have sold since 1995.

However, it's basically a three bed semi which has been extended to the side on both storeys to make a 4 bed. Three bed semis of a similar age are on for £230-250k, including those with single storey extensions to the back. It just seems that it's a lot extra for not a great deal of extra space.

I have had offers of £250k, £260k and £266k all refused, without counter-offer. The seller changed EAs in December. I called the new EA to explain the situation, who agreed that it makes no sense to keep offering with no counter-offer. He said he'd talk to the sellers and get back to me. Which he did, to say that they still won't counter-offer, and all they will say is that they want closer to asking (but they won't define what closer means).

A similarly sized (but much more attractive in terms of decor, character, period features etc) came onto the market at £285k, but mysteriously seems to have sold straight away. So in the area, it is currently this or nothing. I know I could keep waiting, but it feels like I've been waiting for long enough now.

I am a chain-free buyer with a large deposit and mortgage and solicitor in place, so you'd think they'd want to sell to me, but apparently not. The sellers are downsizing, and lost out on a place they found a couple of months ago because they hadn't sold yet.

So what would you do? Keep raising the offer for small increments? Or just go in at my walk away price straight off?

silvercar

Not surprised they haven't counter-offered - they don't need to. Every time they reject your offer, you offer more.

What do you really think its worth and how much are you prepared to pay?

I would be inclined to tell the estate agent that 266k was your final offer and it is valid for 7 days only,after which you intend looking elsewhere.

poppysarah

Put your offer in writing.

I'd really not want to go over 250k mark myself.

State you've got a mortgage in place, can move at their speed. BUT put a deadline on it for say end of month for them to make up their minds.

Don't keep upping your offer it has made you appear over keen.

If they want to downsize then perhaps the heating costs are very high and another spell of cold weather might give them the incentive they need to hurry up.

They don't have to sell at anything other than the asking price - it's just a game of cat and mouse how much they want to move and how patient you can be.
They may still be unsold in two years time because of their reluctance to reduce their price.

Keep looking for houses.

CloudCuckooLand

Decide on your final offer, make it. And get on with your life...

Why did you do nothing about the £285k one?

They may have been more willing to counter-offer...

Cissi

CloudCuckooLand wrote: »

Why did you do nothing about the £285k one?

Catatonia wrote: »

A similarly sized (but much more attractive in terms of decor, character, period features etc) came onto the market at £285k, but mysteriously seems to have sold straight away. So in the area, it is currently this or nothing. I know I could keep waiting, but it feels like I've been waiting for long enough now.

Sounds like the one for £285k was taken off the market before OP had a chance to see it, which to me suggests that it was priced for a quick sale and probably achieved very near asking price. OP, it's a pity that you weren't told of this property by the EA in question - are you in regular contact with all the EAs in the area in case something else comes up again? Don't be so focused on one particular house that they forget about you when something else comes up!

Depending on how badly you want this and your budget of course I would make a FINAL offer in writing, somewhere between £266k and £285k, referring to the fact that the other house was in better condition. If you can afford it, I'd probably aim for £275k - it doesn't sound as if they're desperate enough to accept anything lower than that. If they refuse, then walk away.

michaels

I had something similar, retiring sellers had a value in mind and were willing to wait even though they had been on for a while (this was 18 months ago when prices were rising) I was not willing to 'overpay' and we reached deadlock. Then I put mine on and got an offer 25k more than I had budgeted as my min and this let me go the extra 5k to secure the deal. May be I overpaid by 5k but it was all that was available at the time and over the 30+ years I expect to live in the house the 'cost per day' is less than 50p.

£275k is probably only about the same as 230k for a 3 bed plus a loft conversion to get the 4th bedroom and with a side extension does that mean it has a bigger plot in which case it probably is better value. Not sure how you could best get them to agree 275 - you need to convince the EA that that is the highest you could possibly go.

treetrunks

Do you know if they are downsizing for financial reasons of merely for a smaller more manageable house. If the latter then i think you'll need to pay close to asking or simply walk away. If they havent got somewhere they are looking at, at the moment it suggests they are happy to wait for the right offer. Not everyone is desperate to sell.

Running_Horse

Catatonia wrote: »

I am a chain-free buyer with a large deposit and mortgage and solicitor in place, so you'd think they'd want to sell to me, but apparently not.

They do want to sell to you, at a price they are happy with. If you're not willing to meet that price then you are not willing to buy from them.

Having a deposit, mortgage, and solicitor in place are the minimum requirement, and nothing top make them grovel at your feet.

https://forums.moneysavingexpert.com/discussion/2959954=

And when you asked a week ago the general consensus was that having cash in the bank does not give the right to a big discount.

Catatonia

Thanks for the thoughts, everyone.

silvercar wrote: »

I would be inclined to tell the estate agent that 266k was your final offer and it is valid for 7 days only,after which you intend looking elsewhere.

I did this in November, and they didn't care.

poppysarah wrote:

Don't keep upping your offer it has made you appear over keen.

I thought that was the normal practice? I've only upped it 3 times, and to be fair, my initial offer at £250k I expected to be refused.

Cissi wrote:

OP, it's a pity that you weren't told of this property by the EA in question - are you in regular contact with all the EAs in the area in case something else comes up again?

I am, except for that one EA, who seem pretty useless at returning my calls about any of their properties. I think you might be right about a final offer of £275k (or perhaps slightly less as I'm not convinced it's worth that).

Thanks for your thoughts, Micheals. I overpaid slightly for my last house and wasn't so bothered about it, but I am more reluctant to do so in this market. I would plan on living in this house forever, but if things don't work out as planned and I have to sell in a couple of years I don't want to lose a lot of money.

Treetrunks - I think it is the latter, so it's clear their not desperate to sell. Although changing EAs and the early price reduction suggests that they are keen.

Running horse - I think it's clear I don't expect them to grovel! I was just pointing out that as a chain-free buyer, I am quite a good bet as I imagine most other people who'd want this would have something to sell.

Doshwaster

Catatonia wrote: »

I thought that was the normal practice? I've only upped it 3 times, and to be fair, my initial offer at £250k I expected to be refused.

I would say that three increased offers should be the absolute maximum of any negotiation. Any more and it just makes you look weak and willing to keep making increased offers. My method is
1st - opening gambit
2nd - serious offer
3rd - "Oh, OK then, here's a bit more. Take it or leave it"

I would walk away. Never fall in love with a house before making it your home.

There are many other houses out there and many sellers who want a quick deal. Last year I was looking at buying a house from a retired lady and the situation was similar - she was in no real rush to sell. In the end I bought from a couple who were getting divorced. They wanted a really quick deal and that suited me fine.

Catatonia

Doshwaster wrote: »

There are many other houses out there.

The trouble is that there really don't seem to be!

I have been looking since the end of August.