Offer Strategy - wwyd?

sydenhamlass

A house near us has just come onto the market and we are wondering what to do regarding an offer strategy.

We have been looking in this area for the last 18 months since my partner came into an inheritance - we're renting on a rolling contract and are 1st time buyers now with a big deposit so are ideal for sellers.

However, not much comes on here very often. Other houses have taken 18 months to sell (dark and smelled of dog, bad reverse layout) or have been on the market 6 months then dropped in price (damp old mill though).

So, the house we like is on for a guide price of £525K - the sellers are divorcing. The layout isn't everyone's cup of tea as the fourth bedroom is up a separate staircase off the kitchen. But it's ideal as a home office for us.

So, the house has been on for 2 weeks now. We have offered 480k (rejected) and now 491k (not very enthusiastic response from agent - waiting on a decision). The agent did mention that if we met the vendors in the middle it might be okay. But they bought for 199k in 1999 so even for our local area (cornwall) it seems a bit inflated. What would you do next? It's in great condition and we really want it so we're thinking of offering 500k and if they reject this, say the bid stands for 2 weeks only or starts to go down. Are we mad?

molit

all I would say is that the estate agent works for the vendor not you - his job is to get as much cash out of you as possible.

Personally, I would work out what I think the house is worth, and offer that. I don't mean to have a go at you, but there seem to be a lot of people on here who are more concerned with trying to screw over the seller and get a bargain, that actually buying somewhere to live...in fact, re reading your post, this isnt you....so please ignore

BornAtTheRightTime

Saying the bid will go down after 2 weeks is guaranteed to upset the sellers. Why not just tell the agent it stands for 2 weeks after which you will be visitng other houses on your shortlist.

BornAtTheRightTime

PS. An asking price of 525k is usually set so as to achieve 500k, giving an exact 5% discount on price to hit the SD limit. Since you know from the asking of 525 that the vendors are expecting to get 500k, the trick is is offer an amount under 500k that is 'nearly 500' without quite being there. I suspect you'd be accepted at 495 or more.

LandyAndy

BornAtTheRightTime wrote: »

PS. An asking price of 525k is usually set so as to achieve 500k, giving an exact 5% discount on price to hit the SD limit. Since you know from the asking of 525 that the vendors are expecting to get 500k, the trick is is offer an amount under 500k that is 'nearly 500' without quite being there. I suspect you'd be accepted at 495 or more.

I pretty much agree with this. If you are feeling brave offer £492650 and tell them that you've pulled out all the stops to offer that. The 'odd' amount is designed to add credence to your claim of having 'gone as far as you can'. It worked for us;).

Eton_Rifle

LandyAndy wrote: »

The 'odd' amount is designed to add credence to your claim of having 'gone as far as you can'. It worked for us;).

I don't think anyone really falls for that now! Not unless they're a sweet old 106 year old grandmother.

It's not exactly a secret strategy since just about everyone has been doing it for donkey's years now.

It's like taking a 'credibility' day when you're 'sick' - we all know you're doing it but we're all prepared to go along with it as it makes no difference to the outcome.
You're still swinging the lead - you know it and we know it but there's nothing we can do about it!

betmunch

I would say, as its priced to sell at £500, offer what you are comfortable with, but when you get to £500K make sure they know thats your highest offer and wait for something else if its not accepted.

I would also suggest not wasting too much time, as its clear that available property in this area is scarce, and pricing at £525K is clearly saying will sell for £500K someone else might like it and not fanny about with the negotiations, they could just go straight in at £500K

sydenhamlass

Thanks everyone. Sounds like we're on the right track with the bid. I'm now not sure whether to do 498,950 or just go for the 500k?

LandyAndy

Eton_Rifle wrote: »

I don't think anyone really falls for that now! Not unless they're a sweet old 106 year old grandmother.

It's not exactly a secret strategy since just about everyone has been doing it for donkey's years now.

As I said it worked for me:D.

LandyAndy

sydenhamlass wrote: »

Thanks everyone. Sounds like we're on the right track with the bid. I'm now not sure whether to do 498,950 or just go for the 500k?

........................

rking100uk

just bid 500k, if your buying a house for that amount what is 1k going to make the difference to your mortgage?

also, is it worth losing the property...which you have been waiting for ages to come on the market....for the sake of looking unprofessional and them accepting another offer just go in with 500, or gamble and run the risk of waiting another 18 months....