Seller just won't budge

darrensen

Hi guys,

Just wanted to share our experience with you.

We've been to look at lots of 3 bed properties. New build and old.

The one that keeps jumping out at us is one that we've made 2 offers on. It went on the market at the very beginning of April 2011. We saw the property after just a couple of days and made a prompt offer of 249,950. (on the market for 279,950). It was declined, probably because we were one of the first to see it.

Anyway, a few months went by so i called the EA and said, we're still looking, we're in a position to move immediately, my offer of 249,950 still stands. Again declined.

Today it's been over 3 months and still no price drop. We really like this property but refuse to go over the 250k stamp duty threshold.

With my last offer i said it would be their last chance from us and then we'd would go else where. But i was thinking of maybe waiting until late July before contacting the EA again with same offer. Also that might give them enough time to readjust the price.

I was also thinking of getting a mate of mine to take a look and maybe offer 5k less than us? See if that gives them a kick up the backside!?

All the reports say the market is slipping, i guess it's just a case of waiting unti they realise that their price is unrealistic. Or maybe they aren't really that committed to selling?

warehouse

Such a difficult price area, just above the stamp duty threshold. I think they've priced it badly, and that you are right to stay at £249K. The idea of a friend to view and offer £5K less is a good one in my opinion, maybe even offer £240K.

Good luck.

kingstreet

What do you think the property is worth?

If the stamp duty thing is the only thing putting you off, why not make them an offer which removes the problem?

If you think it's worth £270k, offer them £270k, subject to them paying the extra £5k stamp duty.

They get £265k net and you get the house and don't pay the extra stamp duty.

When your surveyor goes to value it, if he doesn't think it's worth what you've agreed, he'll say so and you'll have to renegotiate or walk away.

angelsmomma

Maybe they just don't want to sell it to you as they were offended about your low offer.

If they are not desperate to move they don't need to drop the price by that much.

CAN1976

What do similar houses in the area sell for?

princeofpounds

If you buy a house for just over the stamp duty barrier and it's not your final property you don't just lose the stamp duty, you could find it much harder to sell above that barrier when you come to do so.

celyn90

But what is the house actually worth? What do other properties go for in the area? I found in our area some properties were priced realistically, others not so. We paid over the asking for ours as it was priced low to start with.

Although you are in a position to move fast, the vendors might not need to and would be happy to sit and wait for a bit until they get closer to the price that they want. They may not be able to afford to sell at the price you have offered at; say if it doesn't clear their mortgage or give them enough to move on.

It hasn't been on the market that long to be fair either.

The reports might say the market is slipping but is it in your area? Where I live hasn't seen the flucuations other areas have for example as the market is pretty stable and demand outstrips supply.

You can't force the vendor to sell to you at that price and I'm not sure constantly repeating the same offer would endear you to the vendor at all. The EA has a record of your offer. They haven't actually priced the property close to the stamp duty bracket so it doesn't look to me that they were aiming for the sub-250K market.

If you are interested you should be prepared to negoitate, maybe sound out the EA and ask what sort of figure the vendor is looking for and what sort of price drop they would be prepared to take; 10/11% is pretty steep.

pmlindyloo

I agree that pricing a house that close to the stamp duty threshold is a very difficult.

In my experience the vendors will be after as much as they can get but their position might change if they are deperate to sell (eg. in danger of losing their dream house). Do you know their position? It sounds as if they haven't found anywhere to move to so they're prepared to sit tight.

If you tell the EA to 'leave your offer on the table' they might come back to you. (This has happened to me when the vendors became desperate to sell)

What is your positon? Found somewhere? Cash buyers? Are you a 'perfect buyer?'

ps Sorry, slow typer so much already said and I realise you are able to move immedately!

Frustrating business, isn't it?

darrensen

Thanks for all the rapid replies.

Our position - FTB, living with parents, 25% deposit (on 250k), MIP was arrange but expired now. Shouldn't be a problem arranging again.

Sellers position - They didn't want to find another home until they've secured an offer on their property. They purchased the property for £166k in 2001.

Next door (exactly same house), was up for sale for 265k and the only difference this house we're interested in has a porch. Next door is still under offer and has been since Feb, so wouldn't be bad for us if that fell through.

I really don't think it's worth more than 250k. I don't wan't to annoy them any further and jeopardise any possible deal later on.

poppysarah

darrensen wrote: »

All the reports say the market is slipping, i guess it's just a case of waiting unti they realise that their price is unrealistic. Or maybe they aren't really that committed to selling?

It's the new l'oreal generation - cos their house is worth it.

;-/

Just walk away from them if they don't accept that stamp duty limit is an issue.

cooltt

Makes me laugh all these sellers asking stupid prices for their houses. It's only worth what the market says it's worth not what the seller thinks it's worth. Never mind it's their loss sitting in a house they don't want to be in.