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What to do when vendor expects too much?

Hi just put my first offer in on a property that was £17k below asking price reason behind it was next door sold for similar price last yr. anyway have had my offer rejected saying that due to amount sellers bought property for (pre crunch) they are unwilling to come down so far! I have been told there lowest reduction would be £7k off asking price, but surely if this not what the property is worth they are mad to think I would pay it?! Having said that I do really like the house!!

How do I find out what the true value is? I don't want to be in negative equity before I even begin!
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Comments

  • betmunch
    betmunch Posts: 3,126 Forumite
    The true value is what someone will pay for it.

    If you do not meet their expectations then you walk away and buy something else.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • DVardysShadow
    DVardysShadow Posts: 18,949 Forumite
    To find the true value, buy it then sell it. Its true value to you is the price that the next most willing and able buyer after you will pay for it.

    Apart from that suggestion, anything else is at best an educated guess at the true value.
    Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam
  • Soot2006
    Soot2006 Posts: 2,185 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    They might not have a choice - mortgage commitments, etc ...
    In which case no amount of negotiation will get you what you want. Of course this means they might lose out even more in the long term, but impossible to know this for sure.
  • Rudess
    Rudess Posts: 197 Forumite
    Tenth Anniversary 100 Posts Combo Breaker
    Hi just put my first offer in on a property that was £17k below asking price reason behind it was next door sold for similar price last yr. anyway have had my offer rejected saying that due to amount sellers bought property for (pre crunch) they are unwilling to come down so far! I have been told there lowest reduction would be £7k off asking price, but surely if this not what the property is worth they are mad to think I would pay it?! Having said that I do really like the house!!

    How do I find out what the true value is? I don't want to be in negative equity before I even begin!

    The most important thing is NOT to show the estate agent that this is the only property you're interested in. Should they know you are serious buyer and too keen on this property, they will not reduce as much as you want. Also the vendor may be restricting them in regards to how much to reduce, but this can change if the property doesn't get enough offers which are close to the asking price.

    How to find our true value? search for similar properties in the area which were sold recently and see for how much they were sold. Of course each property can be in a different condition, might have or not have extensions or different floorplan. But it will give you an indication of what to expect.
  • Have pretty much the same story today. Went to see a bungalow up for £410k. Looking at sold prices the bungalow across the street went for £372k last August. Vendor bought for £405k in 2008, so unlikely to settle for more realistic price around £370k.
  • SG27
    SG27 Posts: 2,773 Forumite
    I've had this a couple of times. Look elsewhere. They generally end up taking it off the market.
  • david29dpo
    david29dpo Posts: 3,986 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    SG27 wrote: »
    I've had this a couple of times. Look elsewhere. They generally end up taking it off the market.

    How true!!
    Nextdoor has just taken theres off the market after 6 months with a silly asking price.
  • Yorkie1
    Yorkie1 Posts: 12,689 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Don't forget that even if you decide to pay over the amount you think local sales would justify, you've also got to convince your mortgage lender about its true value. If you're tight on LTV already, that could be a deal breaker for you too.
  • justjohn
    justjohn Posts: 2,260 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    what they want for it, What the EA says they will get for it and what the buyer will pay for it are not always the same.

    Untill the sellers is willing to take that on board then there is not much you can do.

    However EA's/Sellers do play games to get the best offer.
  • zaksmum
    zaksmum Posts: 5,529 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    A friend of mine's had her house on the market for over three years at a ridiculous price...and not a single viewer!
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