How Much To Offer On £120000 PROPERTY

DannyboyMidlands

Come on, this aint rocket science. Nothing on that road has EVER sold for £120k. The maximum was £118k at the height of the bubble (2007) but the most recent sales were for £98k and £100k (2009).

I'd be offering £80k as a start and my max would be £90k. Except I wouldn't cos the house is a dump. Like Flora says, widen your search.

Caveat_Mortgagor

The highest price paid on this street was when the housing market was at its peak. £118k at the end of Sep 2007.

So whats happened to prices since then. All areas are different so you really need to get local information. According to Land Registry, at the peak of the market, the average terraced house in Leicester sold for £104,750.

But today, the average terrace in Leicester sells for £89,860. As such, the suggestion is that this area has fallen by 14.2% since peak.

So, based on the highest ever price on your street and the downturn in the market in Leicester, the highest price anyone would offer right now would be £101,250. This should be the highest you offer. (and assumes that the houses are in the same condition).

I would start at £95k or £96k first. Remember, by paying £101,250 you are aligning yourself with the least financially cautious person to have bought on this street who would have made a decision at a time when they believed prices only ever go up who would have had to compete on price to get their house.

The conditions of competing on price against other bidders is now defunct. You are competing with common sense and trying to avoid a reckless decision that would jeopardise your financial future (as well as buying a home!)

Good luck!

mercyade

Thanks so much.it is just that my wife likes the house as it is within a reasonable distance to her work place.
but would have to use my sense now and not my heart to make an offer.
As I can now see,the property is overpriced so wont make more than an offer of £102000.the vendor can either take it or we walk away.

martinthebandit

mercyade wrote: »

Thanks so much.it is just that my wife likes the house as it is within a reasonable distance to her work place.
but would have to use my sense now and not my heart to make an offer.
As I can now see,the property is overpriced so wont make more than an offer of £102000.the vendor can either take it or we walk away.

personally again, if 102k is your max I would be wanting to offer less than that for a first offer to give yourself some negotiating room

poppysarah

mercyade wrote: »

Thanks so much.it is just that my wife likes the house .

You should be firm with your wife and GO AND VIEW some other properties within 1/4 mile of that one.

Really.

Have you second viewed this one?

Have you done the police maps check etc etc etc

mercyade

No we haven't second view the property but we we are doing that tomorrow.We would keep looking and i will paste an update.Thanks so much and God bless

mercyade

theartfullodger wrote: »

'cors, this could all be a con just to get interest in the old dump going - crafty old seller eh, masquerading as "mercyade"...

No.I am actually a real buyer looking to buy a property.We have been looking now for 4 months and we are just getting frustrated.we have looked at so many properties and 1 thing or the other is just not right with each property we have viewed.we like this one bcos it has ,cloakroom,en-suite and close to town.that is why I am trying to make sure I am making the right financial decision in this process.

I am not a crafty old seller!

geoffky

Become a crafty old buyer and do not pay anywhere near the peak (2007) asking prices....

mercyade

we are viewing the property again tomorrow and would let you know how the whole process goes.