Another 'how much to offer?' post...

AAS

Hi

Apologies as I know there are a lot of these and it's a long one but...

We put an offer in on a house we really like before Xmas - the house was marketed for £160k and we offered £153k but lost it to another buyer who offered more. The house purchase fell through and it's now back on the market. We asked the EA why as we guessed it would be due to survey issues - they have given us the info which includes several issues (possible damp issues due to blocked drain, at least 2 sash windows needing refurbishment/repair, electric need updating, no felt on roof, repointing of chimney and front wall...) the surveyor valued at £152k in current state, we are going to view it next week (with a builder in the family) and they will bring a copy of the reccommendations from the survey. We don't have loads of cash as we're FTB but hoping that none of this sounds terrible?!

Anyway we really like it and don't feel it was massively over priced as 3 doors down is on for £170k although that is over priced as has been on the market for over 9months. The vendors bought it for £150k in Jan 2008 not sure if they did much to it. It's in Wilts.

What would be a reasonable offer? Any advice/opinions welcome.

Thanks very much.

Running_Horse

Rightmove link?

irishcol

If the surveyor (a professional who values houses for a living) valued it at £152k, do you really think that some anonymous posters on a website are going to give you a more accurate valuation without seeing the property?!

If I was being more helpful, I would suggest that you find out the vendor's position. If they have already found somewhere to buy, and want/need to get an offer on their place to keep the onward chain in place, then you have the potential to offer slightly less than £152k.

It would also be worth trying to find out if there is much other interest - if the estate agent won't tell you (or if you think he's making viewings up!), then you need to be a bit clever about it. For example, you can get a friend to call up and ask for a viewing, to see if they are given the same answer - plus it's also interestign to find out what the estate agent says about your viewing!

If you think the price is reasonable (which it soudns liek you do), then I would start off with an offer of £148k, depending on all the above factors. Don't do what other people do and tell the estate agent that you're prepared to go higher, just state that that is your offer.

P.S. Don't forget that, if you need a mortgage, your accepted offer needs to be no more than the mortgage company's valuation.

DannyboyMidlands

If they bought for £150k at the top of the market I reckon I'd be knocking a good 20% off for starters, so offering something like £120k. But because you know the house and the local conditions and initially thought that it wasn't overpriced I would say:

Offer = £153k - cost of repair works - a bit more if you think they're getting desperate

AAS

DannyboyMidlands - I thought it would be worth less than 2008 but it does seem like an ok price for a large 2 bed in the area... I was thinking what you said valuation minus cost of 'essential' repairs rather than everything on the list = offer so possibly £148k?

irishcol - The vendor doesn't live in it and the tenants are gone so it's now empty I'm guessing this means they will be keen to sell... There's interest but hoping people will be put off by the buyer pulling out - we can't look at it til Friday so fingers crossed. Yes am aware that the mortgage valuation is the most we can borrow - was hoping we could get a bit more off...


Always a bit paranoid about putting a RM link but here it is...
http://www.rightmove.co.uk/property-for-sale/property-35952368.html

pauletruth

hi it looks like a nice house. the felt on the roof if its dry in the loft/attic is not a big deal it just means its an older roof. it looks streight from the front which is a good sign. nice fire places. it looks like its got storagre heaters so new central heating but it can wait so can the wiring if its not dangerous. if you like it offer on it if you don't then leave it alone.

irishcol

Looks good.

If you were happy to offer £153k before it fell through, then I'd now be thinking of an initial offer of £145k - explaining to the estate agent that you are in a good position to proceed (FTB, mortage AIP?) and reflecting the amount of work which needs done.

If you get it at that, then that's great. If not, then just tell the EA thanks and that you have other properties to view, but are happy to leave the offer on the table for now. Let them feed that back to the owners, then wait a few days - in the current market, it's unlikely that there will be many other viewings or offers (whatever the EA says!). Hopefully the EA will call you back before you get twitchy and call them! When you next speak to them, sound vaguely interested, bt not too keen. If you phone them, then just ask if the owner has considered you offer any more. If the answer is still "they want closer to the asking price", then say you'll have another chat with your hsuband / wife about it. You can then call back the next day with a slightly improved (final!) offer of £148k.

As long as you don't absolutely love it, and are prepared to walk away, then you'll be fine doing the above. If you do think this is the only hosue for you, then you might be better just offering £150k straight away and getting it taken off the market ASAP. For the sake of a few extra £ per month (and still less than you were prepared to pay), this might be the best option for you. Only you know how much you like the house!!

AdmiralX

The price the vendor would accept depends on many things; and sometimes how quick the vendor wants to sell. Some vendors might decide - if their property has a specifif problem - suddenly to rent it with the Council. I have seen this...

You might try the Zoopla site http://www.zoopla.co.uk and look at "sold house prices in...." or "current property values in ..." which contain estimates...
Some buyers ask the EA what would be the lowest offer; or some make an offer and then wait for some weeks or up the offer.

theartfullodger

£137.4k. Defo..

AAS

Thanks for the advice - I'd be happy to get it for £148k so I'm thinking of an offer of £146k on Friday - Fingers crossed!

AdmiralX

So, the overpriced house is 10K dearer. Do you know how much the items you cited for refurbishment would cost?