what do you think of this offer?

Prosaic

We've had our place on the market since beginning of December. Asking price has been £265,000, which I have been thinking is a tricky price area due to the stamp duty change at £250k. Estate agent told me when he valued that he always over-values by 10-15k

Anyway had 2 FTBs look round over the weekend and after one look-round phoned in with an offer of £255k.

Estate agent said ' I thought you'd get £249,999' and asked what I thought of the offer. I said I'd worked on the assumption of getting £250k due to stamp duty so was happy with 255k. However he said the buyer doesn't seem to know what he's doing and he felt he could push him for a few more thousand.

Our house needs probably 20k spending on it modernising, and I felt 255k was a fair price so instructed the agent the offer was ok, as long as buyer pays all stamp duty.
He said ' You're too nice, but if those are your instructions...'

Buyer is renting, so can wait for me to find new property, but now I'm wondering was I daft to take the offer without pushing the buyer -should I have held out, or was tha agent just appealing to my greed instinct?

Any thoughts?

Tallymanjohn

Remember, the estate agent also gets a higher fee if the price is higher, & as estate agents have been one of the driving forces behind the current state of the property market, then it's almost certainly their 'greed instinct' which is driving things. If you're happy with the offer then take it - better than pushing the buyer & possibly creating an air of distrust before completion.

What a world where £250k is FTB-land!!

firesidemaid

hi there

i think that sounds like you've got a good deal. you've got a little more than you (or in fact the estate agent) expected.

the ease of a no-chain ftb is also a bonus.

i am very happy for you!

cheers

Prosaic

Tallymanjohn wrote:

What a world where £250k is FTB-land!!

It gets better...first-time buyer is going for 100% mortgage! on 255k!! :eek:

Won't be my problem later down the line, but couldn't help wonder if they'd thought about things like interest rates going up , or her leaving work to start a family and salaries suddenly being halved...maybe he hasn't thought that what you can borrow is not the same as what you can afford...oh well

lynzpower

I would say this, has your EA checked out thier offer in principle before accepting the offer?

Prosaic

lynzpower wrote:

I would say this, has your EA checked out thier offer in principle before accepting the offer?

EA said he's doing all that today- it seems buyer has gone through mortgage broker/financial advisor. He's going to call them himself today to verify offer.
I'm keeping ours on market & still taking viewings in the meantime. I am even going as far as not instructing sol until survey done etc so I know it's actually happening

Poppy9

Buyer sounds a bit green. I wonder when they start the buying process properly if they will realise there is extra stamp duty on top of purchase price and try to review their offer.

silvercar

I would be worried. 100% mortgage, have they set aside over £7,000 for stamp duty?

dreamalittle

The other issue would be the lender's valuation. With a 100% mortgage for a large amount they are likely to be very cautious.

sm9ai

I would also be very worried that someone will drill some sense into them before you complete.

Still good luck.

Robert_Sterling

I expect at some point you will be asked to drop to £249,995.
Why not do that, at your suggestion, now.