how much to offer?

james007ago

Hello
Two weeks ago, me and my partner have seen a 2 bedroom flat in North London with an asking price of £260k but were outbidded by a cash buyer. We offer 250k on it.
Now there is another flat which came to the market last week and my partner sees it as our future home. Its asking price is £255k and we viewed it last Saturday. As we dont want to be seen as overly keen on the property, we put an offer of £225K on the property several days ago but were turned down by the vender. The EA told me the vender is asking 250k for it!
Do you think at the moment its better to hold off a bit and up the offer in a week time? My partner doesnt want to lose it so telling me to increase it by 10k? I do feel its too much. What do you think will be the more appropriate offer? I dont want to lose it myself but its good to get it at a lower price.
Our combined salary is £65k/year, got an MIP from the Halifax (will lend us 250K), can move ASAP and we have a deposit of £70k.

evoke

I have a simple approach to this type of question. You know what your budget is. If you have fallen in love with the property then offer an amount that secures the sale. If you have to umm and ahh about the price then you haven't really committed to it so keep looking.

Good properties are always going to sell quickly, regardless of the market.

You may end up kicking yourself if you lose a property that you have your heart set on.

Offering £225K on a £255K property is simply taking the p*ss IMO. I'd offer £245K to secure it.

hazyjo

See what other similar properties are actually selling for.

I live in East London and had my house up for £250k. First buyer was paying £247k as things were selling very near or at their asking prices. Deal fell through and, as we found a house we loved, put it up for £243k for a quick sale - accepted £230k from an investor who's since dropped us to £228,500 after the survey. (We substantially dropped the price on the one we're buying, so it's not a concern - all monopoly money to me!)

Unfortunately, due to the stamp duty threshold, the three beds which were up for £280k near me are now falling down to £250k so mine, being a 2 bed, has dropped even more.

Do your homework - you might actually find it's worth less, or you might find £250k is a bargain. If the two beds you're looking at were around the £270-280k mark a couple of months ago, the chances are they'll be snapped up very quickly at £250k. If 3 bed flats (or smaller houses) are now around the £250k mark, you should get the 2 bed flat for less.

Don't automatically presume everything is worth a set amount less than it's up for.

Jx

Son_of_a_beesting

evoke wrote: »

I have a simple approach to this type of question. You know what your budget is. If you have fallen in love with the property then offer an amount that secures the sale. If you have to umm and ahh about the price then you haven't really committed to it so keep looking.

Good properties are always going to sell quickly, regardless of the market.

You may end up kicking yourself if you lose a property that you have your heart set on.

Offering £225K on a £255K property is simply taking the p*ss IMO. I'd offer £245K to secure it.

Why is offering £225k taking the p*ss? Do you know the place well?

Better to start low then start to high!