FTB - What should I offer?

newfoundglory

I am a FTB, and have been looking for about 3 years for a property to buy.

I have set a budget of around 250k + fees, as I have a large deposit saved... The most I can comfortably borrow is around 120k, and I don't really want to borrow more than this.

I have recently found a place I like, but the asking price is £285 thousand. It is in outer London and prices can be artificially high for any number of reasons. It does benefit from being near a Tube station, so this may be the reason.

Looking at historical sold prices from 2011 and 2012, a terraced house with the same number of beds on the same road would suggest around £245,000! The property has been finished to a high standard in many areas and would not require much if any work.

There appears to be a lot of new furniture and other goods to be included in the sale - leather sofa and footrests, glass dining table with chairs, oven/washing/fridge, desks, wardrobes, 2 beds with new (sealed) mattresses - I could go on.

It has been on the market previously and quite recently, as I recall seeing it around 12 to 18 months ago when the asking price was £300,000. At that time I hadn't visited the property - it was too expensive and disappeared from the market shortly after being advertised (for unknown reasons)

Its above my budget and the 3% stamp duty over 250 does not make things any easier. It concerns me that if I were able to buy it and want to sell it on, that I might struggle to get more than 250 for it due to the stamp duty.

I am wondering if I should consider making an offer and what that offer should be.

250 would seem to be a bit cheeky, but would it make sense to offer to buy the movable goods contained within separately? Or offer to buy without the goods? Or could I put an offer in closer to the asking and then propose the vendor pays the stamp duty?

LandyAndy

You say 'I have set a budget of 250k'

So

That is your max price

So start them below that

LandyAndy

But, in general,

Decide what is the maximum you are prepared to pay

Make a bid below that and work up to it if you have to

newfoundglory

I have discovered that it was purchased back in 2004 for £199k

I think the seller might be taking the !!!! here.

I reckon it was rented after being advertised for 300k over a year ago.

No wonder the market is in such a state :rotfl:

ess0two

What bearing does the 2004 price have?

newfoundglory

Because you can work out roughly, given average increases in London, how much it might be worth today. Increases would put it around £257-£258k. Its silly to think a property like that has increased in value by 100k in 8 years.

I'm just going to leave it for now. I don't think it will sell, its only a small 2 bed terraced and most others in the area would get you a 3 bed semi for that price. Its an awkward price point due to the stamp duty, yet too small to be a family home.

Maybe the price will be reduced, or maybe it will just be rented out.

ess0two

TBH 100k in 8yrs is small fry compared to some areas.

newfoundglory

True, but its only worth what someone is prepared to pay for it.

I've had an eye on another 2 bed property, technically not in London, which has now been on the market over 2 years. Hard to believe, as its a nice area which is very popular.

It will never sell - its a new build and very nice - but too small and expensive. Yet the vendor is more interested in making a profit that does not exist.

i'm in no rush

Jason74

It sounds like a case of make an offer within your budget and see what happens. Based on what you've said, the price doesn't seem obviously excessive. You say that other similar properties in the road are going for £240-£245k, but that this is in better order than most. That would leave me thinking around £260-£265 as a sensible figure, based purely on what you've told us.

Based on that, you're probably going to struggle to get this under your budget, but it's worth a try. As an FTB with a big deposit, you may be more attractive as a buyer than most others, which could help.

I'd be tempted to make a cheeky offer of £240k. You may find yourself being told where to put it, but if the agent is sensible, you have a bit of room to up the offer to £250 when the first bid is inevitably truned down. While it sounds like this property is just a tad out of your price range (a problem I sadly know all too well), you might just get lucky in this market. Certainly no harm in trying

newfoundglory

Would you believe it the property NEXT DOOR to this one has just come onto the market at 240k. Not as good condition inside based on the pictures, but who cares at this asking price :eek: