House buying advice please.

BeardedDez

Any thoughts on a strategy?

We have just had an offer rejected on a house. Our initial offer was 93k.
EA stated that they had just reduced. They have had viewings since latest reduction but, we were told, no offers as yet.

History is -
18 March 2011 - On market at £124,950
16 April 2011 - reduced to £119,950
19 May 2011 - reduced to £109,950

Recent house sales on this road of comparable properties ( though not sure on interior state) have been -

12th July 2010 - 100,000
4th June 2010 - 107,500

Current vendor is moving in with parents and there is no history of a sale prior to 1995 when prices were around the 40k mark.

I have an upper figure in mind and there are other similar properties around the on offer price. Would offering in 1k increments be pointless? Should we quickly move to upper point, say 3k increments, and leave final offer on table?

GlynD

It really is a matter for yourself, in discussion with your conveyancing solicitor. You've got to try and figure out what's in the vendor's mind. You've made an offer which has been refused so now you either wait and make the same offer in a month's time or you go up. That's the gamble and there's no easy way round it. I also believe that, should your offer be accepted and someone else make a slightly higher one, the vendor could still allow you to be gazumped up until contracts are signed. I know England was supposed to be adopting the Scottish "missive" (or verbal contract) methodology, but has it been formalised?

GAH

You need to have a final offer/walk away price in your head.

How you get to that is different for every buyer and every vendor that are looking to sell.

From the information you have given, the vendor is moving in with parents, so that could tell you that she isn't super motivated to move as she isn't chasing a property but on the other hand might be looking at move with parents to save money.

If I was the vendor and had just dropped to £109,950, I wouldn't be probably entertaining anything under £100k yet.

Its difficult I know, but there is no real stratergy,as i said because everyone has different circumstances.