Offer refused - what are my next steps?

Thrugelmir

jalebi wrote: »

I think my next step will be to go in with an offer just below the £150k stamp duty threshold and tell the EA my reasoning.

Your reasoning is of no relevance or interest to the vendor.

Tell the EA its your final offer and ask if they have other properties on their books which may be of interest to you.

gazfocus

cattie wrote: »

Things like sheds, light fittings, curtain poles, gas fires etc can be included, even fitted wardrobes etc. so it shouldn't be hard to list a decent handful of things to reach an agreement on. Beware though that unless it's a large and expensive house the taxman will likely want to know more if the f&f's come to more than around £2k-£3k. And a decent solicitor will warn you if he feels you are pushing your luck. A reasonable guide is that no item should be charged or listed at over 50% of purchase price, even if relatively new.

I read about a case recently where HMRC did an audit of stamp duty files and one lady had bought fitted wardrobes as a fixture and fitting and was told it was actually a material part of the house and she'd have to pay stamp duty so be careful with the list of f&f's.

jalebi

Hmm, I'd much rather the vendor get more money instead of paying stamp duty, but I think it would be difficult to value fixtures and fittings high enough.

With all the responses here, my thinking now is just lay all my cards on the table for the EA. I know my best offer is below what vendor is after - if it doesn't get accepted then I'll just have to accept that it wasn't to be.

Thanks everybody for your replies. All very helpful, even the ones alluding to the cold hard truth about having to go look at something I can actually afford

Scabarella

jalebi wrote: »

The seller has already reduced the price from £165k to £160k. He would like a quick sale as is relocating but the impression I get is that there is no rush

If he has reduced his price and is relocating, then surely he is after selling the property quickly. Go in at the higher offer but not more than you can afford, you are correct he will probably refuse but tell the EA that your offer stands until you find something else. You never know once the initial buzz that a reduced house usually generates dies down the vendor may re-consider your offer (if you haven't found another house by then)

If it's meant to be it will happen, that is what I have come to realize about house buying!!

Cheeky_Monkey

The other thing to keep in mind is that areas are deemed to be 'disadvantaged' for a reason. So you need to be sure that you want to live in that area. Afterall, you can improve a house but not it's location!

abaxas

If in area where prices are currently increasing (few) : increase offer
If in area where prices are currently decreasing (most) : wait and see what happens.

cattie

gazfocus wrote: »

I read about a case recently where HMRC did an audit of stamp duty files and one lady had bought fitted wardrobes as a fixture and fitting and was told it was actually a material part of the house and she'd have to pay stamp duty so be careful with the list of f&f's.

I did actually pay for fitted wardrobes in my last house as an extra and have actually viewed other houses where vendors want money for fitted wardrobes, unless they receive close to asking price offers. I paid because if vendors took them with them, then I need the bother and thhe higher cost of having new ones installed.

Obviously if they are something like self installed sliding door wardrobes etc. then it's not realistic to be charging for them but if wardrobes have been professionally fitted and could quite easily dismantled by an experienced person & installed in another property, then the taxman should have no gripe. Usually a decent conveyancing solicitor will know what and what isn't acceptable.