Is this a cheeky offer?

tulipz

£200k for a 'offers over £220k' property? Or should I be starting lower? We know the vendors a bit (ex neighbours)... So we don't want to offend them with an unreasonable offer....

They bought the property for £191k in 2005.... Not much work done on it since then...

tulipz

Btw, this is in north London...zone 5

arby

are they likely to say 'that offer was so insulting i won't even entertain another higher offer from them in future?'. Very unlikely. If someone's offering you £200,000 while no-one else is offering anything then they'll be forced to listen. Starting too low is better than starting too high

roger196

If this works in your favour, use the following argument. If not think of something else.

Justify your offer to the EA by saying the index for month 2005 was x and its now y. Multiply by y and divide by x. Use the index series which is most favourable to your case. You can choose between the Land Registry, Nationwide or Halifax. I try to use the non-seasonally adjusted figures.

tulipz

roger196 wrote: »

If this works in your favour, use the following argument. If not think of something else.

Justify your offer to the EA by saying the index for month 2005 was x and its now y. Multiply by y and divide by x. Use the index series which is most favourable to your case. You can choose between the Land Registry, Nationwide or Halifax. I try to use the non-seasonally adjusted figures.

Thanks for the suggestion! Very useful....

I just checked..Halifax value s £198k ...I'll offer based on that....

cattie

You might well find that the vendors have instructed the ea not to even pass on offers under £220k, as £220k seems to be the lowest figure they would consider, putting it on at offers over. Perhaps this is the minimum amount they need to fund their next house.

How long has the property been on the market? Don't forget that London still has a relatively healthy property market, especially those priced under the £250k stamp duty threshhold, so unless it's been sitting on the shelf for a while, your offer may be instantly rejected.

tulipz

cattie wrote: »

You might well find that the vendors have instructed the ea not to even pass on offers under £220k, as £220k seems to be the lowest figure they would consider, putting it on at offers over. Perhaps this is the minimum amount they need to fund their next house.

How long has the property been on the market? Don't forget that London still has a relatively healthy property market, especially those priced under the £250k stamp duty threshhold, so unless it's been sitting on the shelf for a while, your offer may be instantly rejected.

I'm negotiating with the vendor directly. There is no EA in this. Also, the lady did mention that she is willing to slightly lower the asking price. The property has been on the market for 6m through an agent.

go_cat

have you visited the agent at all?

If not then she could pass on what she has saved in commission to you

[Deleted User]

I think £200 is the lowest I would offer personally, and wouldn't be surprised if it was rejected.

jee

I think an offer of 200,000 is fair. However in London, as you probably know, good property sells quick especially places that can be rented out. Be prepared to act quickly.
I agree with go cat though, why not approach directly if you know them already?

tulipz

go_cat wrote: »

have you visited the agent at all?

If not then she could pass on what she has saved in commission to you

No we haven't visited the agent at all....I contacted them directly...