Taking the plunge and making an offer :)

Rockaway_BabyDoll

Hi all,

I think I've found the place I want to call home.

I've viewed a property twice and want to put in an offer.

It would be great to hear opinions on whether I'm going in too low or should omit/add anything else. Thanks

________________________________________

Dear EA,

Re: Property address

I would like to make an offer of £161,500.00 on the above property. I am in a strong position being a first time buyer with a healthy deposit in place and have a mortgage agreement in principle, which can be confirmed with my broker. I can instruct my solicitor to start the conveyancing process immediately upon the offer being accepted.

The offer is based on a 15% reduction on the asking price due to three reasons:

Firstly: to deduct the costs I will immediately incur to bring the house into a suitable and secure living condition for me. This includes breaking down the wall between the living room and hallway to allow for more space and light in the property; double glazing the bedroom and living room windows; a complete clear out and clean up of the cellar; tackling the garden at the front of the property and an extension of the lease to 999 years.

Secondly: it reflects the less desirable factors of the purchase; such as that the majority of flats are tenanted, there isn't a compulsory sinking fund in place to take care of urgent, expensive unforeseen problems, and the unsightly building work of next door's extension.

Lastly, but most substantially: it takes into consideration that flats of similar size (some with more bedrooms/even larger square areas) and attributes, for sale within the same area, or slightly further into London and within half a mile from a train/tube station, are on the market for significantly less than £189,995. I've linked to a handful of examples to help illustrate why I think this an unrealistic price:

*LINKS TO OTHER PROPERTIES IN THE AREA*

Bearing all of this in mind I wish to offer £161,500 subject to the following conditions:

All future and current viewings are cancelled;
The property is withdrawn from the open market immediately and I have exclusivity over it;
The sold board goes up within 48 hours;
I receive weekly updates on the progress of the sale.

My preference would be a speedy completion, but I am happy to be flexible with regards to the vendor's circumstances as I can remain where I currently live for as long as needed.

Full details for my mortgage broker and solicitor can be provided at your request.

Please forward this email, in its entirety, to the vendor. I look forward to hearing her decision.

Yours sincerely,

Rockaway BabyDoll

Caroline73_2

Or you could just ring the EA and say "I would to make an offer of £161,500 on property X"

Rockaway_BabyDoll

Caroline73 wrote: »

Or you could just ring the EA and say "I would to make an offer of £161,500 on property X"

I like things in writing

daisiegg

Caroline73 wrote: »

Or you could just ring the EA and say "I would to make an offer of £161,500 on property X"

Yes that is exactly what I was going to say!

Explaining your reasoning in as much detail as you are makes it seem, to me, that you feel your offer is too low and needs lots of justifying.

But either way - best of luck! I think the flat looks lovely

BaconandEggs

Let us know how it goes.

tiernsee

I agree with you that I like putting offers in writing, though normally I don't go into quite so much detail. I do wonder if you should mention things like removing walls as this is your choice and not really of interest to the vendor.

I do wish you all the best and hope you are successful.

kmmr

The research is all well and good for you - but the vendors won't be too interested I think. Presumably they have a price they want to achieve and the cost of work to be done isn't much relevant to them. It's not like these issues are invisible and only appeared on the survey, they know about them, and when they set the price in their mind they were taken into account.

And again, you knew the location, and so did the vendor, so that in implicit in the pricing given.

The price of other properties is relevant, but as a vendor I might say 'well, go get one of them then, mine is the property you want, so if you want it, then you need to consider my price'.

Not saying the price you offered isn't right, just don't think the factors you worry about will make the vendor suddenly realise his price was wrong! From his/her point of view, it's all about the ££££. I think buyers sometimes forget that the vendor isn't overly interested in what a buyer thinks is reasonable - but more interested in how much they can get for the place!

kmmr

Good luck though! And I also would just call up and offer the money. Daisygg said it best - too much explaining makes it sound like you know the offer is too low.

Rockaway_BabyDoll

All your opinions are valuable guys, thanks! I'm grateful to be told I am over-justifying it. Sometimes less is more, eh?

I'll let you know how it goes. I'm not going to put the offer in till mid/end of next week and WILL be viewing those properties I've unearthed in the mean time in case one makes me change my mind (I've looked at around 15 already).

kmmr

Oh Rockaway - just realised this is the second time I have said you are writing too much in communications! I must stop.

Anyway, this place looks much better than the basement place before. Share of freehold, and a much better layout with much more light. One less bedroom, but nicer and much more liveable than the last place. Plus your own garden space, as well as access to the common area. Is it only two flats? In my experience that tends to mean upstairs will never use the garden.

Good luck! fingers crossed for you.

If it was me I would be investigating local planning regulations - any chance you could do an extension into the patio area?? But that is just me... I always look to see if it's possible to make a 1 bedroom into a 2 bedroom eventually. It's one of the most effective ways of increasing the value of a flat.

Rockaway_BabyDoll

kmmr wrote: »

Oh Rockaway - just realised this is the second time I have said you are writing too much in communications! I must stop.

Anyway, this place looks much better than the basement place before. Share of freehold, and a much better layout with much more light. One less bedroom, but nicer and much more liveable than the last place. Plus your own garden space, as well as access to the common area. Is it only two flats? In my experience that tends to mean upstairs will never use the garden.

Good luck! fingers crossed for you.

If it was me I would be investigating local planning regulations - any chance you could do an extension into the patio area?? But that is just me... I always look to see if it's possible to make a 1 bedroom into a 2 bedroom eventually. It's one of the most effective ways of increasing the value of a flat.

Yes, sorry, I keep meaning to update that other thread but I've been so busy with the home-hunting!

No, no, I must stop over-writing It's five flats with four SOFH and the other LH. The LH flat can't use the garden

It's a really pretty flat.

Would you mind telling me how to go about investigating local planning regulations? Perhaps on the council's website?