Advice on what to bid on 'offers over £190k' + pics!

dinofabio

I started a thread a few days ago on this forum. People attempted to flame me for saying I was going to go in 15% lower than what I thought the property was worth (some of the same people are posting on this thread too).

Ignore the EA's valuations - They're usually highly inflated. Make your own valuation by comparing other properties in the area. They don't have to be exactly the same style. When you have a ballpark figure of what you think it's worth go in very low. If no dea,l slowly and very gradually increase the offer.

Expect a lot of people on here trying to dissuade you from going in too low. Ignore them. I had a few on my thread. Nearly all of them were frustrated sellers!!

dinofabio

kaylz39 wrote: »

No you're completely right, we've viewed lots of houses up to now and most people are completely unrealistic. One guy actually said to us 'I was a builder and have valued this myself at £260k so you're getting a bargain at £180k'. Felt like saying there's a reason why its been on the market for two years with very few years...but I understand people have worked very hard to maintain their homes so they want to get the most from it.

I honestly think I'm not so confident with going in low on this one simply because I love it, I cant find any fault with it. If it needed a little sprucing up or wasn't in a great spot I could be confident in saying 'were offering _____ which is lower than asking because _____'. Obviously I dont want to offer what they're asking so need to work on my argument I think ha ha.

From looking at it I think its worth around £190K but the stats the guys above game me from land registry are interesting to read. You've obviously got to consider the entire market in the area and I'm not sure on where to do that sort of research...

You don't have to justify to anyone why you are making a low offer. Just put an offer in writing (email) to the EA and let them forward your offer.

Even if you think it's worth £190K go in a lot lower and slowly up your offer. No point in going in anywhere near the £190K mark with an opening offer - that's plain stupid! - The vendor may have accepted eg £180K!!! and you'll never have known!!

ukcarper

dinofabio wrote: »

I started a thread a few days ago on this forum. People attempted to flame me for saying I was going to go in 15% lower than what I thought the property was worth (some of the same people are posting on this thread too).

Ignore the EA's valuations - They're usually highly inflated. Make your own valuation by comparing other properties in the area. They don't have to be exactly the same style. When you have a ballpark figure of what you think it's worth go in very low. If no dea,l slowly and very gradually increase the offer.

Expect a lot of people on here trying to dissuade you from going in too low. Ignore them. I had a few on my thread. Nearly all of them were frustrated sellers!!

Out of interest have you had any of your offers accepted

dimbo61

From my point of view the house looks very nice and you wont need to spend much money on it when you move in.
Well maintained but check if the Gas central heating is serviced every year and it has a nice garden.
Price is the all important question and WHATS IT WORTH!
How are things in Blackburn? lots of houses up for sale in the area?
Good schools? Well paid jobs nearby? Nice neighbourhood? Good transport links and shops/pubs/leasure facilities ?
Go in with a Bid you feel happy with and tell the estate agent to are keen to buy but wont pay £190K GOOD LUCK

dinofabio

ukcarper wrote: »

Out of interest have you had any of your offers accepted

Looked at 5 properties so far. Not interested in making an offer an any of them because I don't like them. Pretty sure 2 out of the 5 would have accepted low offers if I had of been interested - they made it clear they would wanted out and would accept offers - an invite for a low offer

kaylz39

dinofabio wrote: »

You don't have to justify to anyone why you are making a low offer. Just put an offer in writing (email) to the EA and let them forward your offer.

Even if you think it's worth £190K go in a lot lower and slowly up your offer. No point in going in anywhere near the £190K mark with an opening offer - that's plain stupid! - The vendor may have accepted eg £180K!!! and you'll never have known!!

Thanks for this. That's what I have been thinking, I would kick myself if they accepted the first offer we gave. That happened with our first & current home and I was so annoyed...almost tempted to retract it.

Think my hesitance is due to the fact that it's only been on since May which isn't actually very long compared to other houses we've viewed. Some have been on for 2+ years so I know people would consider accepting a low offer. Think these might hold out for something better if something low comes in...all we can do is try though so we will put the call in tomorrow :j

kaylz39

dinofabio wrote: »

I started a thread a few days ago on this forum. People attempted to flame me for saying I was going to go in 15% lower than what I thought the property was worth (some of the same people are posting on this thread too).

Ignore the EA's valuations - They're usually highly inflated. Make your own valuation by comparing other properties in the area. They don't have to be exactly the same style. When you have a ballpark figure of what you think it's worth go in very low. If no dea,l slowly and very gradually increase the offer.

Expect a lot of people on here trying to dissuade you from going in too low. Ignore them. I had a few on my thread. Nearly all of them were frustrated sellers!!

I honestly don't think 15% is a ridiculous amount, people have accepted an even larger percentage knocked off before!

I had a call this evening from one EA about a property we viewed n Tuesday. It was on for offers over £179K (he said this he wouldn't accept lower) & I liked it despite it needing a lot of modernisation but since then we've seen something similar in asking price/location which needs no improvements so it put the first one out the window. I told the EA this & said his asking price is unrealistic he needs to see what is out there as people can get better value for money. She asked what I would pay, I said £165k at the most and she said she may call me back Ayer speaking to him. Within 10 minutes she had called back to say he wants us to go for a second viewing and he would accept £165k

I've got my heart set on another house now but it was good to know!:money:

ukcarper

kaylz39 wrote: »

I honestly don't think 15% is a ridiculous amount, people have accepted an even larger percentage knocked off before!

I had a call this evening from one EA about a property we viewed n Tuesday. It was on for offers over £179K (he said this he wouldn't accept lower) & I liked it despite it needing a lot of modernisation but since then we've seen something similar in asking price/location which needs no improvements so it put the first one out the window. I told the EA this & said his asking price is unrealistic he needs to see what is out there as people can get better value for money. She asked what I would pay, I said £165k at the most and she said she may call me back Ayer speaking to him. Within 10 minutes she had called back to say he wants us to go for a second viewing and he would accept £165k

I've got my heart set on another house now but it was good to know!:money:

I also don’t think 15% below is ridicules but what dinofabio is saying you offer 15% than you think it’s worth so if you thought that house was worth £160k you would offer £126k. That’s not to say you shouldn’t offer less than you think its worth but I just think 15% is a bit to much. If that house was mine I personally wouldn’t feel insulted if you offered me £126 but I certainly wouldn’t accept the offer.

WibbleSnarf

DRP wrote: »

Just to examine this from the vendors point of view... :A

based on national land registry figures, the house would arguably be 'worth' about 165k now (~+14%). Taking into account that most vendors are looking to get about 90%+ of their asking (171k in this case) and with them likely to have improved the place in the last 7 years, it is not a ridiculous asking price imo.

of course LR prices in the north-west have appreciated by much less than the national average, so I agree a figure around 160 or less would be about right assuming no major improvements/extensions

Where do you get the figure ~+14% from?

The house was bought in November 2005.

In November 2005, the national average price according to the Land Registry was £158,519.

Than national average price today, according to the same index is £161,777.

That's an increase of ~+2.1%.

So, apply that to the £145,000 paid in 2005 and you get a figure of £148,045 today. So, it turns out, if you use the national average, I was actually doing the vendor a favour.

Better still for our prospective buyer, if you use the averages for the district "Blackburn and Darwen", the average price in November 2005 was £78,591 and today it is *down* to £78,304.

So, I'm genuinely not being rude, but where are you getting your data from?

Moving onto the next section of your post, where are you get the idea that "most vendors are looking to get about 90%+ of their asking [price]" from? I am looking to get a brand new Aston Martin - doesn't mean I'm going to get it. Get yourself onto Property Bee and then ask yourself how you came to your conclusion. It matters not one jot what a vendor is looking for. All that matters is what a buyer agrees to pay.

In short, OP, unless there has been some significant money spent to improve (not just maintain) this house since 2004, pay more than £150,000 and you are paying too much.

You could take the advice of those saying things like "make an offer of £174,950 and 'test the water'" but it's not their money you'd be throwing away, it's yours.

Look at it another way. Imagine what that £24,950 you'd be wasting could buy you. Then consider that this £24,950 would be borrowed money and that you would therefore have to pay back the interest on it. It becomes approximately £40,000. Think what *that* would buy you!

Be bold. Pay your money. Take your choice.

WibbleSnarf

harrup wrote: »

My interpretation of this particular "offers above" is that the vendor is regarding 190K as the absolute MINIMUM under which he will not ( or cannot) sell. And, given its condition, it appears to be "worth" a minimum of that.

How do you come to that conclusion? Given its condition, how does it appear to be "worth" a minimum of that?

£190,000 is an *asking* price. Nothing more, nothing less.

I'm *asking* £25,000 for the 13-year old BMW on my drive with 169,000 miles on the clock. Given its condition (it only has a few stone chips on the bonnet and a little ding on one wing), do you agree that it's "worth" a minimum of £25,000?