How much shall I offer??

back2square1

Hi looked at 3 bed house today which is on market for £214975. It was put back on market today due to previous buyer dropping out. The sellers have already had their offer accepted on house they wish to buy before Christmas and are due to move in May therefore have 6weeks before they should move.

I have looked on nethouseprices.com and found they purchased property in 2002 for £125500, they were first time buyers at the time. However without knowing how much deposit they put down therefore how much they borrowed I cannot know how much equity they have.

Me and my girlfriend are currently in rented accommodation and are ready to move therefore we hope our offers will be seriously considered.

We have sat and discussed this evening how much we should start bidding at noting that the house does need new fascias and guttering urgently and the windows will need replacing sometime in near future. The house is 12years old and still has original windows (wooden frames).

The interior is of very high quality and the only thing we would want to change is the laminate flooring.

So, with looking at all the facts I have mentioned how much do you think we should start in at? We thought maybe £202500??? with a view to then increase at £1000 increment.

Curly_Girly_2

What you can do is go in with a low offer, playing on the fact you are first time buyers with a mortgage offer in place and a solicitor lined up. Chances are your £202.5k will be rejected, but you can then ask the agent what the vendor's had in mind - they will have a 'walk away' point, especially with a previous buyer having pulled out, and if they are keen to move quickly, they may be willing to divulge this (ours did, and it saved hassle all round).

You really only want to go in with a first offer, and then a revised offer that's slightly higher (giving enough time to make it look like you've had to ask parents for money etc i.e. don't ring back 5 minutes later!) and saying that's the best you can do. You don't want to go back more often than that, because if you keep coming up with 'extra' £1k, they will hold out for your highest offer, or someone else may come in with a better offer whilst you're faffing about.

Before going in with an offer though, see if you can find out why the previous buyer has dropped out, in case it's related to the survey. It's also worth seeing what similar houses in the area have already sold for. Also, you say the windows need replacing - have the other houses around it had windows replaced or not? If so, then that may have been reflected in the valuation and if not, then using it as your reason for offering below asking price won't really wash.

It's irrelevant checking what they paid for the house 5 years ago - all that's important to you is whether you feel it's worth the price, and whether you can afford it!

Best of luck!

back2square1

Thanks for your reply. I shall definitely bear your advice in mind tomorrow when I make my call and then later receive call back saying no.

The seller did tell us today that the previous buyer dropped out due to their lease on house they were renting was terminated way before she could move into this house. She thought when her offer was accepted before Christmas that she would have moved by now. As the sellers could not live elsewhere before their house was ready to move into they decided to place property back on market. How much of this is true I do not know but I shall ask EA tomorrow what was shown up on survey and again why did the previous buyer drop out. The house is 12yrs old so I don't know if anything would show up on the survey on such a low-aged house.

The houses around it have replaced windows, fascias and guttering. I shall also check houses sold prices in the area too, thanks

alm721

Just a thought but do the windows really need replacing in a 12 year old house? I ask because our house is 11 years old with wooden windows and they still seems new to me? Surely they should last longer than this.

shell2001

We had a 120 year old house with original wooden frames and they were fine, we replaced them because we wanted the benefit of DG. You cannot expect them to fund alterations you WANT to make rather than work that NEEDS to be done. Bit like saying I dont like the decor so it will cost me £x to replace it all so I want you to knock that off the price!

Thats my opinion anyway.

back2square1

Hi I have been a busy bee this morning doing a bit of research regarding this house I wish to buy.

Firstly I went into EA and placed offer for £202,500 and reiterated to them how we are in strong position as we are ready to go due to having no property to sell and have solicitor in place. Secondly I did explain to EA how all other properties on this estate have replaced windows, fascias and guttering and this house definitely needs fascias and guttering doing very soon.

I also mentioned that I have found out all the sold prices for similar properties in that area in 2006. I have drove round this morning and have found one of the said properties is identical to one I have placed offer on except it was not as old and fascias, etc did not need doing. This property sold last October for £180,000. The EA reply was "the market had changed, blah blah blah" but I don't think it could have increased that much in 5months.

EA also advised another offer had been given for £210000 but was refused due to potential buyer have not sold their own property yet.

I have just received a call from EA stating our offer for £202500 had been refused because they are looking to get £210000. I told them I am unsure due to size of mortgage we are having to borrow and don't know if I could stretch to £210k.

I am due to visit the property again this afternoon for second viewing and EA shall contact me afterwards.

Does anyone think I should hold out for less than £210000 or not??? Any tips on how I could try and achieve this?

Amitoocautious

Yeah hold out! Blimey they are making enough on it in such a short space of time and the average asking price reduction is 7% remember. If they really want to sell and noone else is interested then they will probably go for it,

FWIW i think interest rates are going up again and what with even the Sun (which is crap but read by many) stating a hpc is on its way and would have been here if not for the BOE artificially holding down rates to push property up which has saved us from a recession as well as the broadsheets i reckon they could be chasing the market down!

Out of interest as we too are FTB, what multiple of your income is this house

We have made an offer of 35 k under asking price and it hasnt been thrown out, they are waiting to see if they can find a greater fool and if they can't i reckon we could have a bargain (well relatively speaking) though not sure if we are going to buy now!

Doozergirl

If they have an unproceedable offer of £210,000k, then you are unlikley to seal the deal at any less than £208k anytime soon, possibly a little more because they will be inclined to wait for a little time before dismissing the higher offer entirely. They also have some reassurance that the house is worth what they want for it.

If you want to make a higher offer then I'd say it would have to be around £208k, pushing your very proceedable position, your willingness to move to their timescales and shoving your mortgage acceptance in principle in their face. If they refused but would come down to £209k to meet you, I'd still go for £208,500 final offer.

Whether you think it is worth it, I don't know! Just letting you know what I think is acheivable and how I'd expect it to go...

12 year old windows should really just need a good rubbing down and repainting to keep them good. My MIL has a similar aged house and the windows and the DG units are absolutely fine. No one else has replaced their windows in the close either. You should check to see that it isn't just the paint flaking off the fascia boards as well.

back2square1

Thanks Doozergirl, I shall speak to my other half in a moment and discuss your good advice.

I shall keep you posted on how our negotiations go.

Kind regards

back2square1

I have just returned from 2nd viewing on house and the vendor has told me she wants to get £207k for this property. She desperately needs to move before end May and clearly I am in good position to be able to meet that.

My other half is still worried about how much we can afford, (already having to sell car and downgrade to cheaper model). He wants to put in offer tomorrow morning for £205,000 and see what happens.

The offer I did make this morning for £202500 was considered because the lady who is selling the house did ring her husband to discuss it first and then they decided to refuse it. So from this I can see that it was definitely thought about and not a straight no when the EA rang her with our first offer.

What do you think we should do next????

Amitoocautious

Blimey are you sure you can afford the house at all! I mean what will happen if one of you loses your job or you have a baby as it sounds like its mega tight at the beginning if you dont mind me saying. Do you have any savings for eventualities like this?

I would leave the offer in the air for a little bit if i was you as they obvioulsy considered it and if she's desperate they will take it. If not then there will be loads more houses on the market especially with the introduction of HIPS