Negotiating

lianne1978

Further to a recent post i made where we were considering buying a house at 135k, asking for 170k, this was point blank refused as the vendor wants the full asking price, even though the house is in a bad state of disrepair. So on we went and viewed another house yesterday at 'offers in the region of 175k', it has been on the market since 3rd March 06 and hasn't had any offers. The vendor said they have their eye on a property which is still on the market but if that goes then they will probably stay put. We realistically only want to pay max 160k as that's what we can afford but decided to go and view on the basis of the vendor's situation.

Well we like the house now and want to make an offer, what should be our starting bid and what should we do/say to try and get the house. Are we allowed to ask the vendor's estate agents questions on the house? We have sold our property to a first time buyer and aim to get our mortgage in principle off our broker tomorrow evening.

Sorry for all the questions but any help would be appreciated.

Thanks, Lianne

thesaint

I would be cautious in making an offer on a property that has been on the market for so long.
If they haven't had an offer, it is possible that they do not want to move, that's why they are not doing anything to secure a sale.

lianne1978

why would you have a property on the market that you don't want to sell? (sorry if this is obvious!)

chant1l

Make an offer and find out, there is no point speculating as to reasons for a lack of sale, if they are doing viewings , they are selling.
£135k was a bit hard, but initiate the negotiation by asking the agent where you need to be, be dismissive when they restate full asking price and ask again.Get an indication from the vendors first and see where you go from there.

terrierlady

have u looked on the house price sites and seen what homes are making in the area/road? this should give you an idea where to start, if your chosen home needs work have you got an idea of cost involved?
there is always a middle point where the vendor and purchaser can meet keep talking and offering upto your chosen limit then if no joy walk away, there is always another home dont get carried away.

zipwen1

if they have found a property they like then this could explain why their house has been on for so long they could just be waiting for the offer that they need.
make a cheeky first offer and see what the EA says

lianne1978

checked on mypropertyspy and one sold on 15th aug last year for 148k. have house prices risen that much in the last few months? the houses are all similar, its an estate built around 1940s. the thing is we can't go beyond 160k so are we wasting our time or is it worth a go? If so, how do I start negotiations?

thesaint

Some people put their house on the market and then change their mind.

if they are doing viewings , they are selling.

Not true, It costs nothing to put your home on the market, some people just want to see what there house is worth, if they get a ridiculous offer they may sell. It costs them nothing.

Put in an offer of how much it is worth to you, go from there.

zipwen1

its always worth a go.
call the EA and tell them you'd like to make a first offer of 150 then the EA will either say no or give you a rough idea of what the vendor is looking for.
if he says no just increase your offer by 1 thow every time then when you hit about 156 start to increase by £500 once you get to 160 make sure the EA is aware that it will be your final offer. nothing ventured and all that, good luck

fbrj

zipwen1 wrote:

its always worth a go.
call the EA and tell them you'd like to make a first offer of 150 then the EA will either say no or give you a rough idea of what the vendor is looking for.
if he says no just increase your offer by 1 thow every time then when you hit about 156 start to increase by £500 once you get to 160 make sure the EA is aware that it will be your final offer. nothing ventured and all that, good luck

I would be slightly careful here - I wouldn't say "this is my first offer" (ie lots more to come!). The EA is acting (or should be!) for the vendor. He is duty bound to inform his client of your offer - even if he tells you it won't be enough.

Bearing in mind that yours is the first offer they have had the vendor should bite your hand off if it's sensible. You could say to the agent that you are aware that a similar property sold for around £148000 last August (even though the price was probably agreed a few months beforehand!) - mention any reasons you can think of why the one you want is not so good (location on the estate? garden size? state of repair externally? internal decor of the house you want etc etc) - and offer £147500.

I wouldn't even mention that you could increase your offer - if really pressed, just say you want to take one step at a time and will wait for the vendor's reaction to your offer before considering further what you want to do (tell the agent you are looking at other properties - ie you have a fall back if your offer is not warmly received!)

The reason they have had no offers is because it is overpriced!

Good luck