Too Cheeky?!

what_to_do?_2-2

Thanks for the responses.

I'll update whether successful or not. A friend of mine recently had to accept an offer of 10% under the asking price and she had been trying to sell for some time!

Naturally, I would love a bargain but that is not my driving force for this offer. I think that if I do the work required to the property then I would get between £85 - £100K selling it on. That's realistically, in my view, what someone would actually pay - not the valued price on a piece of paper, in this current market anyway

Excuse me for being naive, but if the seller got offers to warrant the closing date then why wouldn't they have just accepted the highest offer? Can a closing date be added if no offers have been submitted?

what_to_do?_2-2

19lottie82 wrote: »

Home Reports are based on 2006 prices? I don't think so. I bet a load of sellers wished they were tho!
Again, the clue is in the type of asking price, offers OVER. I have lived in Scotland all of my life and having kept a keen eye on the property Market for the last five years I have never heard of anyone accepting less than an O/O price, never the less almost 20% less!

Can I ask how you would know how much a property went for?

The EA said that, in this market, people are offering less. I can't tell you what the successful bids are though.

19lottie82

WTD, you need to remember, it's all well and good all of us going on about home reports and the like but at the end of the day a property is only worth what someone will pay for it. I'd keep an eye on this property and if it doesn't sell this time around do some sniffing about, maybe the sellers will consider a lower price, as low as you have in mind, I doubt, but you never know!

In response to your question re the closing date.... Some sellers prefer to work this way. To me this would suggest that they have had moderate interest in the property and think that this type of selling will make people "panic" and place higher bids. Then again the reasoning could be that the sellers don't really "need" a set amount of cash from the sale (if they did it would be on @ a FP), and have just decided to see how things work out, hoping it will w in their favour. There are quite a few mindsets behind it, although going to a closing date is usually the traditional way of selling an O/O property

19lottie82

what_to_do? wrote: »

Can I ask how you would know how much a property went for?

The EA said that, in this market, people are offering less. I can't tell you what the successful bids are though.

You can find out how much properties have sold for on zoopla and other websites.

Final figures under fixed price properties are the norm, but not on O/O properties. If it didn't sell@O/O then I'd imagine the seller would re list at a fixed price

myhouse_2

From what I see, many home reports are indeed quoted at peak price - there are so many properties for sale at "40,000 below home report valuation" - thereby making a nonsense of the home report valuation - particularly as they still don't sell at the cheaper price.
The issue of course is vendor realism. If they believe they can get offers over, they'll probably reject offers below that. There aren't so many offers over prices compared to a few years ago, and those that exist tend to be in higher price brackets. It's also common to see prices going from "offers over" to fixed price when they don't get any interest. Usually this just means the vendors wasted the initial all-important weeks on the market when their property is fresh.
Still, no harm in putting in a lower offer - at the very least it provides a shock to vendor expectations.

missile

If it were my house, I would refuse this ridiculous offer, mark you as a time waster and consider any subsequent improved offer with suspicion i.e. he will back out / gazunder.

If you want this house, be sensible and offer what you think the property is worth.

missile

I note you are in Scotland. Where about? Do you have a link to the property?

Property going to closing in Scotland, means they have noted interests and you will have only one opportunity to bid. Not all those who have noted will bid and seller does not have to accept the highest or indeed any offer.

Unlike in England you do have something to loose by bidding too low. You must use a solicitor to make a bid and I would suggest you are wasting his time and your money. The solicitor will want to see you have a mortgage agreed in principle or funds available before he will make a bid on your behalf.

Nearly_Old

My son and DIL recently completed their first house purchase in Scotland on a house that needs complete modernisation. It was being sold by the executors of a will and the history is:

House first advertised for £190k (Home Report value £200k).
Then after some months dropped to offers over £140k (refreshed HR £150k).
Taking into account the work highlighted in the HR (quotes came in at £15k) they offered £120k to leave themselves a safety margin.
The offer was rejected but a few weeks later the vendor's solicitor called to say that £120k might be accepted.
In the meantime they had been back to the house a couple of times with other builders and found a bit more work (about £7k in value) that really needed doing so in went a revised offer of £100k - rejected but a revised offer of £103k was accepted two days later.

So I would recommend that you offer what you think it is worth taking into account a) the work required; and b) a reasonable risk allowance for those unforeseen things that always crop up.

darkpool

19lottie82 wrote: »

I have lived in Scotland all of my life and having kept a keen eye on the property Market for the last five years I have never heard of anyone accepting less than an O/O price, never the less almost 20% less!

i really can't believe you've never heard of anyone accepting less than the O/O price.

pararct

19lottie82 wrote: »

Home Reports are based on 2006 prices? I don't think so. I bet a load of sellers wished they were tho!
Again, the clue is in the type of asking price, offers OVER. I have lived in Scotland all of my life and having kept a keen eye on the property Market for the last five years I have never heard of anyone accepting less than an O/O price, never the less almost 20% less!

Nonsense, many people set deluded asking prices as a consequence of the boom and in the hope they can find someone foolish enough to pay it.

As has been said many times on this board any property is only worth what someone is prepared to pay for it.

Of course none of us know the exact circumstances of this particular property except the OP who may not find out what it actually sells for unless he/she buys it.

We do know from Land Registry data that on average properties are selling around 18% under the asking price.