What to Offer?

Mrs_Optimist · 15 December 2006 at 2:55PM

We have seen a house that we like and are having a second viewing tomorrow. It is empty and part of an Estate. Has been on the market for a short while but the EA says although there has been lots of viewings no-one has been interested (so far) to arrange a second - let alone make an offer. It is overpriced at £219,950. It will need a new kitchen, new central heating system, double glazing to the front of the house (big bay windows) new roof (slates falling off everywhere), probably rewiring and a few other bits and pieces. There is damp in some of the walls but this could be because it is empty. The decor is not great and we will need new carpets but we accept that is our own personal choice and so will bear the costs of that ourselves. the purpose of the second viewing tomorrow is to determine how much this extra work will cost and then guage our offer accordingly. We know that the house next door sold for £208k in May this year but just from looking outside it has a new roof, double glazing etc. That is a more realistic asking price for a house that is ready to move into.

We were thinking of an opening offer of, say £180k going up to £195k if necessary but no more than that. However we do not want to offend anyone (given that the house once homed a deceased relative) and are not sure how to play it. We could buy a house for the £220k to move straight into, but - sods law- we really like the feel of this house - it would make a great family home for out two children and the location is perfect for our own needs.

My husband doesn't think any offer below asking would be accepted because beneficiaries are relying on their inheritance. I however want to at least try to but the hosue if I can.

What would you do?

Acc72 · 15 December 2006 at 3:49PM

You only offer what you feel the house is worth (as long as you can afford it !!)

As there is not a traditional seller who is part of a chain, they may turn your offer down and decide to wait for a higher offer.

Depending on how much you want (and can afford) this house, you can then either up your offer or sit tight and wait to see what happens.

If the house is already in need of repairs, then the longer it is left empty then it is likely that more repairs will be needed.

I wouldn't worry about offending someone - if they don't like your offer they will reject it !

dips_3 · 15 December 2006 at 3:59PM

In my (limited) experience it is just this sort of sale that often does accept a lower offer. They are probably keen to close the estate and move on. Because they are not relying on the funds to purchase a new property they have more room for movement.

I would definately go in with the lower offer and work up from there if you have to.

leftieM · 15 December 2006 at 4:00PM

If I really wanted a house I would stick in my top offer and ask for immediate acceptance to ensure the purchase. If you don't really care and are looking for a bargain then you may as well put in a low offer. They might accept it.

WestonDave · 15 December 2006 at 4:16PM

Estate sales can go either way - as there is no sitting vendor there is no pressure to keep a desired purchase going so they can sit around waiting for a good price, however on the other hand if there are borrowings on the house or possible inheritance tax to pay (depending on other assets) then they may wanted it shifted asap to keep the interest cost down. Also sometimes beneficiaries are just plain greedy and want their hands on the money sooner rather than later.

Make an offer but stick to your limits - if you aren't going to get it at a price that you can afford to make a home out of it, you won't enjoy it so don't do something you'll regret.

Mrs_Optimist · 15 December 2006 at 10:21PM

Thanks for your input guys - what I suspected. We do have a top limit to offer and refuse to be mortgaged to the hilt but see little point in paying over the odds for it and then spending further money pushing it over what it is actually worth!

Have a second viewing tomorrow and will see how the land lies then.

Once again, many thanks, it is always nice to have another opinion.

Robert_Sterling · 15 December 2006 at 10:53PM

Please let us know what happens next.

Mrs_Optimist · 15 December 2006 at 11:12PM

Mr O and I have just had a discussion. Does anyone know the difference between "Under Offer" and "Sale Agreed"? Is Under Offer when an offer has been accepted but cannot proceed because the buyer hasn't found a buyer to proceed? Or the Vendor hasn't found a property to move on into? Or Is it just the same as Sale Agreed when an offer is accepted and all parties are proceedable? Sorry for being a complete dunce but have only ever boought as FTB (many years ago) and have never had to sell. The market is so different now to when we first bought and we are not sure.

Answers on a postcard please!

Grateful as always.

leftieM · 15 December 2006 at 11:28PM

I thought Under offer means there is an (unaccepted) offer on the table and Sale agreed is when the offer has been accepted. However you've made me rethink that now! I thought the under offer sign was to lure other buyers in to make a bid.