What to offer when priced as £xxxK - £xxxK?

londonlydia

After some advice, viewed a property yesterday which is a good contender, doesn't really need any work doing. It is priced between £230k - 250k. Wondering what kind of first offer we should put forward?
Have placed offers before on other houses with another EA (Ward) and had a nightmare with them just blanket refussing offers.
I mean I heard that down South we don't have this bidding war issue? Is this true?

Many Thanks.

G_M

What to offer when priced as £xxxK - £xxxK?

I would offer £xxxK.

londonlydia

Very Helpfull! :T

Good_Money

I don't understand why people advertise houses with a price range.

I read it as they are pretty much telling you the lowest they will accept is 230k.

I viewed one recently and it was advertised as 350k to 390k. I didn't offer as I did not like it but the agent told me during the viewing they would not accept less than 375k ???

Offer what you are willing to pay for it.

BigAlC

Look at previously sold prices in the area. See how the prices compare. Go and view again. Then offer what you think it is worth. Prices are guides to what the vendor wants and that is it. Not until you buy it, is it given a current "worth".

Caveat_Mortgagor

The price range shows the agent / vendor is playing a game with you - it's a tactic to focus you on a floor price.

If the asking price was £230k, some people might offer full (or near full) asking. However some people would go in at 10-20% below as their first offer.

The price range is to focus the mind to say "the vendor thinks its worth £250k, offers must be over £230k".

In reality, it says "even in an age of deluded vendors and fantasy asking prices, the people wanting shot of this place are too embarrassed to ask for £250k, but we'd like to kid you they think its worth it".

Me???? In my area, for properties priced at £230k I'd go in at £200k max.

londonlydia

Thanks for the advice. Had already looked at sold prices for the street, nothing has really sold since 2006. The house next door is currently up for sale @ 220k-240k and was sold in 2006 for 260k.
Just had such bad experiences with one EA, that unsure how to proceed.
I am wondering of putting a cheeky offer of 220k in. Don't want the buyer to think I am taking the mick, but showing some interest.

Good_Money

no harm in offering 220k

they can either say "no, the minimum I want is 230k"

or if they are serious about selling they could say "meet you half way at 225k?"

nick_

It's a big 3-way game between the vendor, the EA and you. As long as you understand that, i don't think there is any need to get stressed over things.

Doesn't hurt to put a 'cheeky' offer in, although expect it to be rejected. If nothing's sold on the street for 6 years and you have everything in place (no chain, or house already sold, mortgage etc) then the cards are firmly in your hand.

Panda78

It's normally an EA tactic rather than the vendor's decision. I've seen properties advertised by several EA's. One says offers over £240K, the other says £240-260K, trying to steer buyers away from offering too low when in fact these houses usually go for £230-235K.

In your case, i would offer 225K and say it's in line with the market average. They can only reject it and then you can come back at £230K.

Angelicdevil

The property I ended up buying had a price range. I offered below the lower end of their range and got my home