Offers around £135k... reasonable offer?

marathonic

I've viewed an apartment on the market at 'offers around £135k' and really like the place.

It only came on the market last week and there's currently an offer for £114k.

What would you offer in this scenario?

I'd considered an offer of £120k but, if I do that, I'm worried that the other bidders max offer would be £125k (the stamp duty threshold).

By not offering the £125k to begin with, he may make that offer (I'm not willing to go above this) before me and secure the house.

R_P_W

Hi I dont think we have enough info to make a proper response.

If i was in your situation though....
how do you know about the other offer? Did the EA tell you?
Is the seller looking for a quick sale?
What is your position? Are you chain free? Mortgage in place?
The ultimate question is what are YOU prepared to pay and what can you afford?

If you are in a good position offer the £120k.

If i was seller and I had offer of 120k from a chain free buyer and one of 125 from something in a chain i know which one i would probably go with....

marathonic

Yeah, the estate agent told me about the other offer. Not too sure of the position of the other potential buyer (if they exist).

My situation would be single, dependant-free First-Time Buyer, Chain-Free with 25% deposit looking to borrow 3.54 times salary. One credit card with £1000 limit paid off in full.

The furniture has been removed from the flat so, as it only came on the market last week, I'd reasonably assume it's probably a repossession (if it was a straight sale, I'd imagine the estate agent would have been around to take photos PRIOR to furniture removal).

R_P_W

looks like you are in a pretty good position. so i would offer what you are prepared to pay, bearing in mind that this other buyer may or may not exist.

If someone else offers more than you can afford then its out of your control. Also is what is the motivation of the seller?

120k doesnt seem too unreasonable to me.

nick_

marathonic wrote: »

Yeah, the estate agent told me about the other offer.

Probably best taking that with a pinch of salt then. Not saying there isn't one but it could be a tactic to force or increase your offer. Focus on offering what you think it's worth and go from there.

marathonic

R_P_W wrote: »

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Also is what is the motivation of the seller?

120k doesnt seem too unreasonable to me.

I'm not 100% sure on the motivation of the seller but I suspect it's a reposession.

I wouldn't believe a word the estate agents say anyway. One of the previous estate agents that handled a viewing told me that the buyer needs X amount because that's what she owes on the mortgage and she needs that to break even and avoid repossession.

When I typed the address into google, it turned out that it belonged to a reasonably wealthy local news reporter who passed away a few years ago and the house was left to the daughter as an inheritence..... how helpful google can be!!!

marathonic

nick_ wrote: »

Probably best taking that with a pinch of salt then. Not saying there isn't one but it could be a tactic to force or increase your offer. Focus on offering what you think it's worth and go from there.

Yeah, maybe I'll shoot for £120k then. If the estate agent comes back saying that the other party increased their offer to £125k, maybe I'll say that I'll match the offer if the other buyer doesn't secure finance but won't increase it due to the stamp duty issue.

I do see another house that I'm interested in that requires work but the adverts state that there's currently an offer of £100k on it and to contact them prior to exchange of contracts if you're interested in increasing on this.

However, I'm put off by this because I don't want to increase on an offer that someone else has probably gone and got a solicitor and, potentially, paid some mortgage arrangement fees on.

nick_

marathonic wrote: »

Yeah, maybe I'll shoot for £120k then. If the estate agent comes back saying that the other party increased their offer to £125k, maybe I'll say that I'll match the offer if the other buyer doesn't secure finance but won't increase it due to the stamp duty issue.

Sensible - provided the EA knows your position (they do don't they?) then they'd be stupid to keep forcing your hand. Sometimes it can come down to who blinks first so don't be pushed into offering more than you think its worth.

marathonic wrote: »

I do see another house that I'm interested in that requires work but the adverts state that there's currently an offer of £100k on it and to contact them prior to exchange of contracts if you're interested in increasing on this.

I would assume that another offer would have to be substantial otherwise the vendor risks p!!!!!g off the buyer for a few k. I don't have any experience here so perhaps someone else can advise?

marathonic

nick_ wrote: »

Sensible - provided the EA knows your position (they do don't they?) then they'd be stupid to keep forcing your hand. Sometimes it can come down to who blinks first so don't be pushed into offering more than you think its worth.

I didn't tell the estate agent that £125k would be my max but, obviously, did tell them that I'm chain-free, etc.

I'd imagine that they do know that £125k is probably what the house will end up going for so, if I offer £120k, they might have a 'phantom' bid of £123k or something....

I would assume that another offer would have to be substantial otherwise the vendor risks p!!!!!g off the buyer for a few k. I don't have any experience here so perhaps someone else can advise?

Yeah, that's true. I wouldn't consider another offer though but am keeping an eye on the property to see if anything changes - it's status changed to include information about the other offer about 2 months ago so it's around now that the other buyers should be finding out whether their mortgage approval came through or not.

Either way, as they say, it's a buyers market and there's absolutely no point in being rushed into any decision over the next few months.

nick_

Regarding the phantom bid, like i said i doubt they'd force your hand twice. If they know you're serious they really would be making a terrible hash of things if they price you out when they have no other offers on the table.

Good luck with it, you sound like you know what you're doing. It's always nerve-wracking negotiating for the first time.

SunnySusie

marathonic wrote: »

it's a buyers market

Yes, would agree that the market should guide OP. If there are other houses coming up that are viable options then it makes sense to keep your cool. Your goal is to pay as little as possible for a place (even if you think it might be worth more!), EA's goal is to sell for as high a price as possible.

Of course if all the houses you look at are getting snapped up or if there is very limited availability then one has to wonder if it really is a buyer's market in your preferred area.

GL! :cool: