How should I handle this?

dazeruk

I've been looking over the last few months for my first property to buy.

I saw a property at the start of my search that I liked, but when I phoned to view was told the property was sold subject to contract.

Last week the property came back on the market, the previous buyers mortgage application had fallen through.

I had my first viewing on Saturday and loved the flat. Going for a second view with a sensible friend tonight. It's not in prefect condition but has everything I want.

I'm probably going to make a first offer tommorrow.

The flat is priced at offers in excess of £200,000. I had a look on Zoopla and the current owners bought for £190,000 in 2009 and estimates the current price as £197,000.

The property is currently empty as the owners had to move due to a job change. I therefore presume they are currently paying two mortgages or a mortgage plus renting.

I have a mortgage in principle arranged and only have to give a months notice on the flat I'm currently renting. I therefore think I'm in quite a good position to bargain on the price.

Two questions:-

Should I start my offer at below the £200,000? Obviously they don't want to make a lose on the sale and I assume they have spent money on selling the house.

When can I ask for the property to be taken off the market? I think they may be nervous to do this as the first sale fell through.

All opinions welcomes.

DVardysShadow

Start by deciding your 'walkaway price' which for £1 more, you would walk away. Then decide how much you will open with, planning on your first offer being rejected.

MoneyJuggler

Zoopla is good for sold prices, but I think can be a bit out on estimates -if you google "house price calculator' or similar it will throw up a couple of other places which will estimate what the current value is -Nationwide have one for example on their site.

Also worth looking at what similar properties have sold for recently.

After that then (just my opinion, obv.!) There probably isn't any harm in offering lower -you can always go up from there, and as you say you are in a strong position -regardless of their position, you are a first time buyer, and there is a shortage at the moment! I would just make sure you explain the reasoning behind your offer -what other sold prices are, how fast you can move, no chain etc.

We are selling atm, (first time sellers!) and I'm realising the offer isn't just the number, it's how solid it is in terms of length of chain, timescale etc.

Good luck!

FireWyrm

dazeruk wrote: »

Should I start my offer at below the £200,000?

Absolutely! You can start the 'conversation' at any price you think is sensible. They can always say 'naff off', but I always made it clear in my purchases that this was 'opening the dialogue' and that there was *some* room for negotiation. Ultimately, you have to set your bottom line and this is what you feel comfortable with. Dont get pulled into a bidding war. I'd start at 195K but be prepared to go to 198K.

dazeruk wrote: »

Obviously they don't want to make a lose on the sale

No-one does, but a house is worth what they can get for it. They lost a previous buyer which means that they've spent time and money on this. You're going to have to go some to catch up with the chain, but if you are a cash buyer, you're in a good position to proceed quickly - this should appeal to them. Since a bird in the hand is worth two in the bush, chances are, they'll take your offer, any bloody offer as long as you're in a position to proceed...like now.

dazeruk wrote: »

and I assume they have spent money on selling the house.

Well, they'll have agency fees probably which might be in the thousands depending what the final sale price is.

dazeruk wrote: »

When can I ask for the property to be taken off the market?

It's a buyers market, you ask for it to be taken off immediately that the offer is accepted and you are actively proceeding. They are obviously free to refuse this, but generally, most sellers are just happy to have a buyer at the moment and wont want to risk you walking on them.

dazeruk wrote: »

I think they may be nervous to do this as the first sale fell through.

All opinions welcomes.

This is 'your' sales pitch then. They are nervous, you are a cash buyer (or are you?), you are in a great position, you have the money, you're really keen, you'd like to complete in 6 weeks if possible....ya de ya de ya....Re-assure them, but, at the same time, you're not going to risk money on this with surveys if they wont show faith in you and remove it from the market.

golddustmedia

Zoopla price estimates are way out, ignore them!

See if you can find out what the previous sale that fell through was at then offer to match it?

I would request it comes off the market on the grounds your mortgage is already in place and you are proceedable.

dazeruk

MoneyJuggler wrote: »

Zoopla is good for sold prices, but I think can be a bit out on estimates -if you google "house price calculator' or similar it will throw up a couple of other places which will estimate what the current value is -Nationwide have one for example on their site.

Also worth looking at what similar properties have sold for recently.

I had a quick look at some price calculator sites and the results seem to be a bit confusing.

Zoopla - £197,585
Nationwide - £205,581
Mortgages Online - £185,980
Lloyds - £188,621

Unfortunately, the last property to be sold in that road is this one.

Thefunkygibbons

Newsflow continues to show this is a buyers' market so start at £185k and if rejected, state you will not up your offer unless they counter offer first

FireWyrm

dazeruk wrote: »

I had a quick look at some price calculator sites and the results seem to be a bit confusing.

Zoopla - £197,585
Nationwide - £205,581
Mortgages Online - £185,980
Lloyds - £188,621

Unfortunately, the last property to be sold in that road is this one.

So, say 'hello' at £188 and negotiate from there....They can only say no, that's the point of negotiation. They are expecting a low offer to start. However, being cheeky sometimes pays off....you *might* be lucky and depending how desperate they are and how fast you can promise to move it along, you might get it.

MoneyJuggler

dazeruk wrote: »

I had a quick look at some price calculator sites and the results seem to be a bit confusing.

Zoopla - £197,585
Nationwide - £205,581
Mortgages Online - £185,980
Lloyds - £188,621

.

Yes, they do - I guess averaging them out would be a starting point, but as other people have said,you are in a strong position, and in the current market no one should take offence at lower cash offers.

Also they are only estimates, so don't factor in anything like any costs to do place up, or how keen people are to buy/sell, so are only useful as rough guides.

dazeruk

Thanks for all your advice.

Just though I'd post an update.

I decided I really liked the flat and was willing to go up to £205,000. It has the right amount of space I need and a garden, which I've never had before. Located in a quite treed side street and 10 minutes walk to the tube on one side and 10 minutes walk to the main high street on the other.

I started my offer at £195,000, this was rejected.

Upped to £197,500 and again rejected, but was told I very close to an amount they would accept.

Made an offer of £200,000 and this was accepted.

Very happy that I got £5,000 below my pull out amount.

Now the stress of getting a mortgage begins.

iheartbristol

Agree with everyone else about Zoopla. When I did mortgages I found that it consitently undervalued properties.