Offer advice on 300K..can I get under 250?

marshall666

Hi

Your thoughts most appreciated on what is a realistic offer to make on a property on the market for 300K.

Of course it's property dependant, you should only pay what it's worth, etc, etc - but I am after some ballpark % figures - everything I have found on the internets is from a few years ago when the market was different. Being such a buyers market I am optimistic that I/we could get a bit of a bargain.

I have seen an argument that the asking price will probably be 10% above the expected selling price, and that one should offer 10% below *that*, i.e 243K. This seems a big jump, but it does get under the stamp duty threshold (plus it's just a first offer).

I know the property has been on the market for coming up to a year, and sold for 285K in 2005, if that makes any difference. This makes me think there will be a mental barrier for the vendor of 285.

This is a nice house but the idea of having to pay around 9K in stamp duty really grates with me...is it realistic to expect to get down to under 250K?

sinbad182

Where is it?

marshall666

Tis in Swansea

sinbad182

Might be doable.

There's no ball park figure though, it's totally dependant on the local market, the equity the current owners have in it, how much they need for their next purchase, how quick they want or need to sell etc

sham63

Check out the forum here;

http://www.housepricecrash.co.uk/forum/index.php?showforum=53

Worth a look if you're buying in Swansea!

marshall666

awesome, thanks!

phoebe1989seb

Friends of ours bought a house (in late 2007/early 2008 - I can't remember exactly when) and paid £280k against an asking price of £295k. It was in a bit of a state and had been on for £325k prior to them buying, although at the time they felt the price they paid reflected the work required.

They gutted it completely and spent goodness knows how much renovating it, but sold it last year for £250k - their buyers not wanting to go above the Stamp Duty threshold.

They initially had it on for £280k, then dropped to £270k as their EA said that despite all the work done, they'd be unlikely to achieve any offers above £250k. Incidentally the first offer that came in (not from the eventual buyers) was £240k........

This was in the South East btw

Likewise we took a huge hit when we sold in Essex last year - but one of our neighbours there who bought just before us in 2007, has had theirs up for sale (no significant work done) for 18 months at a similar price to what they paid and haven't lowered their price at all!

Judith_W

I was looking to buy with £250k being my max. No-one with houses on over £280 entertained the idea.

hazyjo

It's always 'dodgy ground' buying just over that threshold as, even a tiny drop in the market, can force the value down to £250k (IMO and experience).

Personally, I'd not want to pay between £250k-275k because of the risk of it being 'worth' £250k or less in the near future.

Yes, they probably are looking for £275k+ - but it's all very well paying that (or even say £260k+!) for a house in a rising market, but to pay it in one that's dropping or weak is crazy.

They have to accept the price is going in the opposite direction now - and you have to accept that if you put an offer of £250k on the table (or thereabouts), they are likely to turn their noses up for a while.

Don't let them think that offer stands indefinitely. Don't force them to accept within a timescale, but it's wise to say that level only stands for a while and if you feel the market has dropped in the time it takes them to accept your offer (if indeed they do), your revised offer will reflect market conditions (ie reduce it!).

Of course, if similar properties are selling for around £285k+, you probably won't pick up a bargain. The fact this one's been on the market for so long (presumably with no price drops), you might twist their arm.

Jx

marshall666

you make some good points there, thankyou. The forum posted above makes for some sobering reading - enough to make me think rather than being cheeky at trying to get below 250 we might just be being realistic.
btw yes, you are correct the price hasn't dropped in 11 mths. Average time on the market here is around the 300 days mark I believe.

hazyjo wrote: »

It's always 'dodgy ground' buying just over that threshold as, even a tiny drop in the market, can force the value down to £250k (IMO and experience).

Personally, I'd not want to pay between £250k-275k because of the risk of it being 'worth' £250k or less in the near future.

Yes, they probably are looking for £275k+ - but it's all very well paying that (or even say £260k+!) for a house in a rising market, but to pay it in one that's dropping or weak is crazy.

Jx

chewmylegoff

marshall666 wrote: »

Hi

Your thoughts most appreciated on what is a realistic offer to make on a property on the market for 300K.

Of course it's property dependant, you should only pay what it's worth, etc, etc - but I am after some ballpark % figures - everything I have found on the internets is from a few years ago when the market was different. Being such a buyers market I am optimistic that I/we could get a bit of a bargain.

I have seen an argument that the asking price will probably be 10% above the expected selling price, and that one should offer 10% below *that*, i.e 243K. This seems a big jump, but it does get under the stamp duty threshold (plus it's just a first offer).

I know the property has been on the market for coming up to a year, and sold for 285K in 2005, if that makes any difference. This makes me think there will be a mental barrier for the vendor of 285.

This is a nice house but the idea of having to pay around 9K in stamp duty really grates with me...is it realistic to expect to get down to under 250K?

there is no hard and fast rule to say what offer is likely to succeed is on a house marketed at £300k, because it depends on whether the house is realistically priced, and the expectations (or even needs) of the vendor.

no doubt there are examples of people accepting £250k on properties marketed for £300k, although i would have thought most people marketing at £300k are hoping to sell for significantly more than £250k. to some extent it may depend on how long the property has been on the market for and the seller's levels of desperation.

still, no harm can come of offering £250k (or £243k). the worst they can do is say no.