Offer Price Advice Please

topgunmatthew

Hi
We are looking at a property which is on the market for offers in the region of £223,000.
The property has been on the market for around 2 years, we feel the vendor is keen to move and there is no chain but he has only dropped £4000 since it was put on the market.
We have spoken to estate agent he they told us we would be very lucky to get the property for £215,000-220,000.
I know people say "only offer what its worth to you" but i would like some guidance on first and second offer prices.
Is there any other tips i can do get the house for a favourable price.The house is in good condition and requires very little work apart from decoration.

Your input is appreciated.

topgunmatthew

Also, a house on the same location sold for £197,000 in Jan 2010.

72clg

I would ask questions on why the house has been on the market for 2 years and not sold? Maybe because it’s overpriced already?

If they are keen to move start with a cheeky offer of £200k to test the water. Remember the EA will say things to get the best price for them as well as the vendor as they are most probably working on a percentage basis

cattie

If the vendor has been on the market for 2yrs and only dropped the price by £4k, how realistic & keen to move can he really be?

Friends of mine had their house up for sale for 18months. It went up at close to £300k because a relative (who didn't live or work in the area) and who was an ea gave them that valuation. Two local agents gave valuations in the £265k-£268k region because of the location overlooking a busy A road. But they marketed with the relative because the price sounded so much better.

They did eventually bring the price down from £300k to £285k after no interested buyers & then the only offer they ended up with was at £265K, which was the price suggested by local agents, but they felt it was far too low as they had it in their heads that the house was worth close to the £300k mark and felt they were offering a bargain by having knocked £15k off original asking price.

They recently had to face up to the fact that they wouldn't get what they thought their house was worth & decided to stay put and have just had an extension done to make it more suitable for them.

What it all boils down to is just how realistic a vendor is on price.

topgunmatthew

Thanks for your replies, the vendor is living on his own at the moment so told us that he hardly stays at the house.
Im thinking about maybe going in with an offer of £203,000 then working from there.
Our budget is around £210,000.

Dave_Ham

Work on the basis that no-one tells the truth, and the Estate Agents are professionals at this.

So 2 years, £4k reduction and keen to move.

You just never know what is in the background and this dictates price:

I have had clients buying a property within a marital dispute and Mr did not want to move out and therefore dictated price and only decreasing asking price when forced to do so.

If they have a tight 95 or 110% mortgage they may not be allowed to sell at less.

They may be "unofficially" renting to a friend or whatever and earn more this way under the counter

There may be issues obtaining a mortgage on the property, or with the freehold or a boundary dispute or something that means chains keep collapsing.

Whilst the above are specific and unlikely events, there may be a reason in the background why the vendor will not reduce price.

I always say the same thing about price. I guarantee no-one knows the true value of this place more than you. You have probably been living and breathing looking for a new home and probably know more than the Agents in terms of what represents good value and what does not.

Whatever you bid the Estate Agent will tell you they want more, whatever he says to the Vendor will always be you should expect less as this equals more chance of a payout on completion.

Good luck