How to increase your offer when buying a house

Yorkie1

http://www.nethouseprices.com/ is the best evidence - it's the land registry details of sold properties.

Have a look at similar houses on the same street which have sold in the last year or 18 months, max 2 years probably. If none, look at neighbouring streets if they are similar in nature and houses.

You may even find out what the seller paid for the house, although of course they may have spent more on it in the meantime.

Just because the seller wants you to pay over 97% of selling price for the property £112K) does not necessarily mean that it is worth that much.

I agree that going up in small increments is not a great idea - makes you look like a timewaster or, at the very least, they'll get impatient with you.

leew

Bea787 wrote: »

Thanks for taking time to reply. Asking price is £115, initial offer £105 250. Cash buyer ready to go. There's some work needs doing on the property IMO. Zoopla average (debatable I know) is around £105 for sales in the last year with a max sale price of £107 on the same street. I would like to get an offer accepted but don't want to look too keen but also don't want to sweat it out for nothing ...

Sounds similar to 'ours' that!

It was on for offers in excess of 115k having been dropped from 125k and on the market since April.

We knew they payed 115k back in 08 and obviously spent money on doing it up etc.

We offered 110k initially as we are FTB no chain mortgage in place more or less but that goy kicked out pretty quickly, second offer was 113.5k but again it was a no but the EA then said we'd get a deal at 115k on the nose.

We had a think and decided we wanted something off due the the Garage needing a new roof and door so we told thye EA this and said we'd go to 114.5k and to put that to the Vendors.

That was accepted and to be honest we wouldn't have gone any higher!

Do some research and take your time, good luck.

Mobeer

If you keep making small increases I would expect them to keep saying no, because the more they say no, the more you offer. That could be a very expensive practice to follow, even if you do eventually get them to say yes.

I would advise patience. Most places in the country the housing market is not doing great and sellers are not overwhelmed by offers. Since you are a cash buyer, make a hard sell on this and how ready you are to buy at £105,250 rather than just offering up extra money.

Maybe ask the estate agent about other properties that they have to market, and make a viewing somewhere else that the estate agent can get wind of. Don't let the estate agent know that you have your heart set on this property; that will end up costing you a fortune.

AlexMac

The last couple of posts are useful; to continue the anecdotes...

Our kids have just been thru' this process; a house originally up in the Spring at a well-optimistic £195k, reduced to 'offers over £175k' in summer... They waited over the weekend after the second view so as not to seem over keen (tho' they were; very keen) before offering £165, got the response that 'it has to have 17... in it', then waited another day and came in with £169k and got it. Difficult for the vendor, despite being bang on the Zoopla 'z-value' for the terrace, as this was very little more than they'd paid over 6 years ago just before the boom peaked.

They sweetened the pill by layering on detail about their bona fides to the agent; 'Sold already (so not quite cash buyers but almost as good as), name of their own selling agent available, mortgage in place and lender agreeable to its transfer, solicitor appointed already, willing to move fast...' Good luck

caeler

I was in this situation 2 years ago, I made an offer which was near my max budget and a tad more than what I felt the house was worth and it was rejected. I went through every emotion and of course I'd fallen hard for the place despite telling myself I wouldn't.

Anyway. I increased offer by £1K as that was all I could find, this was rejected so I said I would leave the offer on the table for 5 days so the vendor could have a think. They firmly rejected and I walked away.

I was gutted for a few days but 1 week later I found another house which I offered far less and it got accepted and I moved within 2 months! Just the other day I checked out what that first place sold for, it sold 9 months later for £10K less than I offered! I am so pleased my offer wasn't accepted, what I fool I'd have looked now!

Good luck, this house buying lark isn't easy but it is great to get opinions on MSE.