Negotiating advice

WaveyDave_2

A plea for advice to experienced house buyers.

My wife and I have seen a house we love, its a 1930s semi, that needs some modernising. We had a house lined up in the area last year, but it had an adverse survey (suspected subsidence) which we walked away from. This is the premium area for the town, so houses are more expensive.

The new house is same style, but slightly larger and in (much) better condition. Its on the market for 255000 (which is a full 97500 more than our accepted offer on the last one :eek: ), which I think (and the agent agrees) is overly optimistic. I've had an indication that they'll accept a sub 230 offer, but we made an offer yesterday of 217500, which was rejected. We estimate there to be around 40k of modernisation work required. Agent has come back today to say they are looking for 230-235. I won't (and can't afford to) go up to that due to the refurbishment cost. He asked if I was prepared to up my offer at all, maybe try 225, I said I'd get back.

225 is really all I'm prepared to pay, so should I just make that as a full and final offer, or try smaller increments? I'm going on holiday at the end of the week so need to sort it asap!

Thanks fellow MSErs!

WaveyDave_2

posted in wrong forum, sorry

HelpWhereIcan

I would start by doing your homework on what price properties in the area have actually been selling for (as opposed to marketed for). Use a site such as http://www.housepricemaps.co.uk/ or http://www.rightmove.co.uk/soldprices.rsp/svr/1012;jsessionid=9E2CC6502347C9A8F70924518DC4169A?hpt=h6 to get the actual picture rather than the one a less than scrupulous agent may give you.

If you see that equivalent properties in the area (in good condition) have been selling for no more than, say, £245,000 you have your potential 'ceiling price' for that property type and area.

Then make a realistic note of the works that you think need doing and how much they will realistically cost you - B&Q etc prices for kitchens, bathrooms and conservatories can be useful and quick to get with no saleperson overly involved. If you know a couple of friendly tradesmen willing to give you a guestimate - all the better.

If those works will cost, say, £35,000 you then do 245000 - 35000 = 210,000.

This will give you an offer price that you can 'quantify' and will act as a good starting point - they may even accept it (doubt it though).

Do not forget that the strength of your offer is down to more than the just the price you offer.

If you have no chain, that can help the vendor if they need to move quickly. If they are in no rush, emphasise the fact that you will allow them a reasonable period to find somewhere and move.

If you have a chain and have sold, how many sales are behind you? - the fewer the better.

Is your mortgage agreed in principle? Have you arranged your solicitors?

Find out a bit about the vendors' position and try and see how your circumstances will make it easier for them and then emphasise those facts to the agent when making the offer.

Nothing wrong with smaller increments followed by a full and final offer - they can only say no. Being away for two weeks may help with a rejected offer. They may have time to reconsider your offer while you are away if they get no others. I would try to avoid being rushed into offering more than you want.

Hope this helps