Love the house - stupid to offer full asking price?

calliopeviolet

Is it folly to offer the full asking price for a place these days?

Normally, I'd offer around 10% less (especially if the place clearly needs work) but the flat I saw yesterday just looks perfect and I want it. It's easily the best place I've seen in the 8 months this year which I've spent looking. Full asking price is at the lower end of my budget and in order to secure it, I'm so tempted to offer the full price. I realise that my current problems with my LL are clouding my view a little bit here so opinions would be good.

I guess I could always renegotiate if the home-buyers survey shows up any problems.

What do you think?

pinkshoes

A percentage is meaningless when it comes to house prices.

Is the house overpriced, or priced to sell? If it's priced to sell, then offer near the asking price, if it's overpriced, put in a cheeky offer.

What did they pay for it? When did they buy it? What have similar houses in the street sold for?

MacMickster

If this is the right house for you, then offer the price that you think that its worth (to you). Your lender will have the house professionally valued, and if they value it lower than your offer then this may give you a chance to renegotiate.

That said, too many people think of houses in terms of a financial investment only, rather than as a home (an investment in your life). House prices may rise or fall over the next few years, but what is it worth to you to live in the right home for you at a price that you can afford?

calliopeviolet

Mac: I am not interested in making money on this - I just want somewhere to live where I can close the door at night and be safe. The EA who showed us round said that last time it sold, it went to sealed bids. However, I've checked Zoopla and can't see it on there so have no idea what it sold for last time. Other places in the area appear to be houses, rather than maisonettes so comparisons don't seem to be available.

Egg_custard_2

Personally I would look at how long it's been on the market, and what similar flats have sold for recently. You can always increase your offer but you can never reduce it.

Even if you are prepared to go up to asking price, I would still start lower (although if you've been looking for 8 months, you know the asking price isn't unreasonable so I'd start within 5% of asking price).

Usually people expect a first offer not to be the highest, so as long as you don't start so low that you offend the vendors, there's no harm trying to save yourself a little money... and if the EAs are on the ball, negotiations should only take a day or two so unlikely to ruin your chances.

Good luck

calliopeviolet

It only went on the market a couple of days ago so it's not as if they've been sitting there for months with no interest.

What do people think about this not showing up on Zoopla or Nethouseprices? Is that weird?

MacMickster

calliopeviolet wrote: »

Mac: I am not interested in making money on this - I just want somewhere to live where I can close the door at night and be safe. The EA who showed us round said that last time it sold, it went to sealed bids. However, I've checked Zoopla and can't see it on there so have no idea what it sold for last time. Other places in the area appear to be houses, rather than maisonettes so comparisons don't seem to be available.

In that case I, personally, would offer the asking price on the condition that the property is immediately withdrawn from the market. As I said previously, your lenders valuation will let you know if your offer was on the high side, and should that happen you will then have something in black and white that you can use to renegotiate.

Best of luck. The peace of mind that it seems that this property would give you is priceless.

missile

calliopeviolet wrote: »

Mac: I am not interested in making money on this - I just want somewhere to live where I can close the door at night and be safe. The EA who showed us round said that last time it sold, it went to sealed bids. However, I've checked Zoopla and can't see it on there so have no idea what it sold for last time. Other places in the area appear to be houses, rather than maisonettes so comparisons don't seem to be available.

There is your answer. If you really want this house, get your bid in now at the asking price with the condition that it is your offer is accepted within 24 hours and the property is taken off the market

myhouse_2

missile wrote: »

There is your answer. If you really want this house, get your bid in now at the asking price with the condition that it is your offer is accepted within 24 hours and the property is taken off the market

Reject this advice.
Go in at 10% below. If rejected, increase to whatever you feel comfortable with. Do so quickly if you are concerned it will sell quickly (don't forget though that it's a different market from when it last went to sealed bids). No need to offer full price from the start - just be prepared to increase your offers quickly if necessary.

calliopeviolet

Do sealed bid properties not show up on sold house price websites then?

devotee

If it's brand new on market and you want to secure it, then I'm afraid put a full asking price offer and request that it be removed from the market.
I'd ignore some advice here that you go in at 10% off, it's silly, the property has not been on the market for months to even entertain such big discount. If someone offered me 10% off just because "people off the internet said it was a rule" I'd laugh them off and would not even bother to sell to them.
If it's priced to sell (judging by your description it is) then offer the full price and secure it. It's in your budget and you can afford it so just go for it! Good luck!