Stalemate on a house

Leah26

Hi

We've seen a house that we really like which was bought in June 2007, so when house prices were on the way up, for £160k (the owners then put in a new kitchen and bathroom). The house has been on and off the market over the last year and a half and she has received no offers.

Its now on the market for 165k - was originally on for offers over £159,950 in april this year.

We put in an opening offer of £148,500 which was turned down, which we expected, and the estate agent said that the owner was hoping to achieve the asking price. So we put in a final offer of £155k which she thought about overnight and then turned down again saying that she wanted the asking price or there abouts.

We were originally hoping to get the property for somewhere in the region of 150k-155k as the conservatory needs attention and a house sold last month in the street for 170k which had an extension on to make it into a 4 bed and a loft conversion.

So she declined our offer of 155k and we asked the estate agent to withdraw our interest and offer.

A few days later the estate agent called to ask if there was any flexibility at our end, we said no 155k is our offer but that we were willing to resubmit it. So that was friday and hopefully we will hear back tomorrow if the offer has been accepted or not. I don't think she will accept, I think she has the figure of 160K stuck in her head since that is what she paid for it.

But do you think we have gone about this in the right way - I kinda feel like we are being played and I can't see how anyone can expect to get the asking price in this market when they've had no offers for over a year and a half. That said, we can afford to pay 160k for it but it would mean not being able to sort out the work that needs to be done on the conservatory! Any advice / reassurance would be appreciated!

Thanks

caitchbee

Frustrating situation and it's awful when it's on a house that you really love but I would tend to agree with you. I fail to see how a vendor can expect to get the same as at the top of the market. Hold your ground and don't pay more than you think it's worth (and £155k is probably too much?)

ILW

Is the seller in any hurry to sell?

Leah26

Thanks for the reassurance caitchbee. Yeah 155k is perhaps too much. Maybe we jumped up, put in our final offer to quick. Ah well, you learn!

ILW - Not too sure, it's available with no forward chain. I think there may be some sort of divorce or split involved but I may be reading between the lines. She said she had found somewhere to move to but that had been sold since she'd received no offers in time, I think this is probably when she had it on the market for offers over 159,950.

atush

I would point out the other house that sold for 170Kwas larger and so you won't pay a penny more than 155K. Hold firm.

The_Pedant

People often had their reasons for not accepting offers below the market rate.

I've known people who were in the process of a divorce that would agree a minimum price for the house. They could not go below the agreed price unless they put together a new consent agreement between them. Also consider, if a house does go into negative equity, then they may have reasons for not being able to accept the additional debt that negative equity would bring (especially after deducting fees etc) .... they could be planning to emigrate and therefore cannot have any debt etc. Additionally they might just me in no rush and are happy for the prices to nudge up slightly, or get someone that is happy to put in the asking price.

I believe that an estate agent is legally obliged to pass on offers, however if the vendor does not clearly communicate the limitations of acceptable offers (and maybe why) then it can come across as a bit stubborn on their part if the estate agent does not inform the prospective buyer that the offer may not be accepted. At the end of the day, it's the seller's choice though.

poppysarah

You should have stuck with your original offer.

HAMISH_MCTAVISH

Leah26 wrote: »

was originally on for offers over £159,950 in april this year.

Is the property in Scotland?

I kinda feel like we are being played and I can't see how anyone can expect to get the asking price in this market when they've had no offers for over a year and a half. That said, we can afford to pay 160k for it but it would mean not being able to sort out the work that needs to be done on the conservatory! Any advice / reassurance would be appreciated!

Thanks

A house is worth the price at which both a buyer will agree to buy and a vendor will agree to sell.

Without both those things being true, there is no agreed price and hence no defined value.

Other sales locally and previous sales prices are a guide as to fair value, but no more than a guide. People are free to offer more or less than previous or comparable prices, vendors are free to accept more or less than previous or comparable prices, and it's in this way that market prices rise or fall.

Leah26

HAMISH_MCTAVISH wrote: »

Is the property in Scotland?



No its in Durham, UK.

If I believed it was priced to sell I wouldn't hesitate about offering the asking price but I think it is overpriced and I begrudge paying someone over what I think its worth just for them to sell it.

I can see my stubborness may be my downfall and cause me to lose it!

HAMISH_MCTAVISH

Leah26 wrote: »

I think it is overpriced and I begrudge paying someone over what I think its worth just for them to sell it.

Fair enough.

I'm not sure I'd be happy to lose a house I really liked over a relatively petty £5K, but that's your prerogative.

I can see my stubborness may be my downfall and cause me to lose it!

A member of my family has always regretted losing a house back in the late 60's through not offering an extra 3%. They still talk about it today. Given that the house in question just sold last year for over £300,000, it does seem daft to have lost it over a couple of hundred quid.

If there are plenty of identical houses around for the same or less money, then I wouldn't worry about it. Just buy one of those.

If it's the only house you've really liked in a good few months of looking, it seems silly to lose it over 5k.

Anyway, good luck.

casper_g

Leah26 wrote: »

I can see my stubborness may be my downfall and cause me to lose it!

On the other hand, your stubbornness may be your salvation, and save you from paying over the odds for a house and ending up stuck in negative equity, unable to sell.