How much should my starting bid be?

itsamystery_2

Hi,
I've seen a house that I'm interested in and it is currently on the market for £229,000.

According to Property Bee it went on the market on Jan 28 2011 for £239,950 and was lowered to the current value on Apr 23.

I went to view the property yesterday and it needs some work. It could do with new windows (the current d/g is >10 years) and a kitchen extension. Plus other bits of remedial work - I reckon it needs £30k of work doing over time.

The vendor is selling due to divorce. They bought the house in 2007 for £225k from an asking price of £239k.

What do you reckon should be my starting bid? I'd be looking at a max of £215k.

Cheers.

casualwalks

200K? That would give you room to increase.

The_Blue_Hatter

Id go for 200k or 205k. If they are getting divorced they may want the sale sorted and may well accept 215k, but not if its the first offer.

itsamystery_2

Just to keep people in the loop on this one.

We put in an offer last night for £195k. We made it clear to the EA that we are going to let our current property and therefore we are not in a chain.

The EA seemed completely uninterested in that but said they would put the offer to the vendor in any case.

Updates to follow...

sharpey1786

I would go for 205k... shows you're not a time waster but also leaves some lee way for negotiation

itsamystery_2

They've turned down the £195k, as expected, but the EA has told us that the vendor has already turned down £208k.

We're now thinking to offer £209-£210 - negotiate up to £214-£215.

Caveat_Mortgagor

itsamystery wrote: »

Just to keep people in the loop on this one.

We put in an offer last night for £195k. We made it clear to the EA that we are going to let our current property and therefore we are not in a chain.

The EA seemed completely uninterested in that but said they would put the offer to the vendor in any case.

Updates to follow...

Depending on where in the country you are that could be a very generous bid or it could be too low.

Some parts of the country have seen slight rises since 2007, though these are very select areas. Some areas have stood still and some areas have seen falls of up to 30%. So without saying where the house is its difficult to advise.

Good luck though. In my part of the country the ea would advise a vendor to tear your arms off for 87% of the 2007 price.

itsamystery_2

Caveat_Mortgagor wrote: »

Depending on where in the country you are that could be a very generous bid or it could be too low.

Some parts of the country have seen slight rises since 2007, though these are very select areas. Some areas have stood still and some areas have seen falls of up to 30%. So without saying where the house is its difficult to advise.

Good luck though. In my part of the country the ea would advise a vendor to tear your arms off for 87% of the 2007 price.

Hi,
I'm in West Yorkshire.

According to the wonders of Zoopla, prices have gone down 10.5% since the vendor purchased in 2007.

saleda

They bought in 2007 for £225 and don't seem to have done any improvements.

And you're thinking of paying £215K -- I doubt any mortgage provider will agree to that amount.

According to the land registry, house prices (2007) for West Yorkshire council ranged from £132095(jan) to £138,788(dec). The latest figure is £114593 (july2011).

This is a fall of 13.2% to 17.4%.

The no of sales have fallen from 20281 (jan-may 2007) to 7345 (jan-may 2011).

Based on the information provided,I wouldn't pay more than £195K.,and that's probably too much.

saleda

I'd also take the £208K offer with a pinch of salt.

Why didn't the EA tell you of this higher offer at the time you made your £195K offer?

The EA has set the trap,and you're falling for it.

itsamystery_2

Latest...

We offered £210 and were told the vendor would go to £215.

Anyhow, my wife has got involved and agreed to £215 if they leave fixtures, curtains, carpets and white goods.

I know, I should never have given here the phone!