Thinking of a starting offer

Gromitt

http://www.rightmove.co.uk/property-for-sale/property-31158316.html

On the market for £129,950. No garage and doesn't seem to be the space for it. A lot of other properties on the road include a garage. Also, the roof does require some attention and probably needs to be renewed in 5 years or so.

The current owners bought it in 2004 for £87,000.

We like the house, but it just seems way overpriced. Its been on the market for months and no sign of a reduction in price.

I'm thinking of a first offer of £120,000 and a second and final offer of £122,000 (as it seems people always reject your first offer regardless). Does that sound reaonable?

According to land registry data acquired by mouseprice, not many houses have sold recently on this road (see http://www.mouseprice.com/house-prices/land-registry/postcode-ST3%202BX) but those that have, sold for far cheaper.

tonycottee

If it's way overpriced, why are you offering within 8% of the asking price?
I don't know the area, but do you know what they have done to the property since they bought it? Prices are now silmilar to those in 2004, so have they really made £35k worth of improvements?
All the houses in the road seem to have sold for a lot less, so why is this one more?

property.advert

Your reference point is wrong and could cost you tens of thousands.

You have to reference this house against others in the area which have sold recently. You cannot reference it against the "plucked out of the air" price the owners have stuck on it.

By your thinking, if they said it was worth £10,000,000 you would this a decent offer was £9,200,000 and not £85,000 !

This is real money, not toy town play money.

Gromitt

I was going on the fact that there is quite a few properties for sale in that area, and they are all for sale between £125K - £129K, but to be honest, none of them have sold yet, so it could be that they are all overpriced.

But the average for the area seems to be around the £115 - £120K range, so therefore I was thinking £120K would be more reasonable.

(I also have this thing in my head that offering below 120K would somehow insult the EA and the seller for some strange reason)

LandyAndy

The strangely shaped back garden and the high fence to obscure next door's huge shed/garage must be a negative factor.

On the plus side solid semis like this will always be a decent investment.

motherofstudents

insult the EA and the seller ? Why is making an offer insulting anyone ? If you make a lower offer you can always increase it but you can't really go back to them with a lower offer. It is a business transaction, you should investigate the sold prices for similar property and then decide how much this house is worth to you. If you are happy to buy at £122000 then offer that price but remember that if you are getting a mortgage the valuation could be lower.

jimpix12

Offering below the asking price is not insulting, it is realistic and you will regret paying over the odds when/if faced with negative equity or high monthly payments for the sake of trying your luck

I personally enjoy offering below the asking price because I believe it helps the vendor in the long run with a dose of realism.

serious_saver

I think you have to go with what you think it's worth. If you beleieve that £120,000 it the right price and you're happy to pay that then go for it. There's nothing wrong with offering below the asking price and I don't see why they should be insulted with any kind of genuine offer. After all it's a business transation!

There are a couple of semi-detatched houses on the same street that sold recently. One in 2010 for £126,250 and one in 2011 for £120,000.

Given the negative points you've brought up I wouldn't want to spend higher then those. The house itself has been done up beautifully but there's nothing to stop you doing the same on the interior of anyhouse you decided to buy.

somethingcorporate

I'd start at £100-105k and work upwards from there. If they are stubborn you will probably end up somewhere near the starting price you have suggested.

You owe the sellers and EA nothing. Certainly don't overpay for fear of insulting some people you will never meet / do this kind of thing for a living.

zara*elise

Why is the fence in the garden so high? Is that a building next to it with a corrugated roof?

Honestly don't feel bad about placing a more realistic offer, even if it seems low.

skinnyman9000

Think of it this way, its on for £130k, you say similar houses in the area are selling for £120k. Then add into the fact the roof needs attention, it has no garage, and a massive fence to hide a big building next door. So why would you offer £120k?!? Surely you need to take the £120k and then deduct money for the negatives this house has over others in the area