Should I hold out?

brit1234

Sounds like the estate agent has you by the curlies, time to make them sweat. Dont contact them for a week, make them think they are going to lose a certain sell. When they call say 210 is your max and you are now looking at other properties.

Tancred

glos1983 wrote: »

This is my first time buying a house privately (bought first home new build - big mistake, but that's a different story!!). We have put some offers in for a house we love on the market at £220k. £200k was rejected, then £205k, so put final offer of £210k in. Estate agent has just come back and said they will accept £213k.

I'm kind of in two minds what to do now. In the current market a £7k drop from asking price doesn't seem a lot, especially considering we dropped £12k on a much lower value property. I'm thinking they are try to squeeze a bit more and will probably accept £210k in the end if I hold firm.

That said, we do really like the house and the area, it's not really an investment as such as we plan to be there for 20/30 years, so is it really worth risking it for the sake of £3k?

If you like the house just shut up and buy it! Seems to me that you are a game player, not a serious buyer.

Tancred

martinsurrey wrote: »

exactly,

I walked away from a house that was up for £310k after my final offer of £282k (it eventually sold for £275k after he realised what a mistake he'd made) a 12% drop, I bought a house for £278k that was up for £285k a 2% drop.

asking price alone isnt enough, you need to give us details of the local market and recent selling prices.

But what if there aren't any recent selling prices? And houses differ even within the same street, so your argument isn't necessarily valid.

Tancred

Strapped wrote: »

Go £213k, and renegotiate after the survey :whistle:

This is precisely the wrong attitude to take. Do this and then see the whole chain wrecked because of your bl**dy mindedness. Only if there are major issues should a price be renegotiated after a survey, unless the surveyor already values the house at around the sale price.

Lumox75

Split the difference - 211.5k

kkgree1

Personally I'd hold tight as to me you've already placed your final offer. Our house was listed for sale as offers over 225k and we originally offered 200k, then 204k and final offer of 209k. When we submitted our mid offer of 204 the estate agent countered that the vendor wanted 215k, we then offered 209 and secured it. We had done our research though and said that no other house had sold on the street for more than 210k. I'd look at what others have sold for in the area and use that as a guide. Good luck!

Lokolo

Whats to stop the EAs coming back with "Actually the vendors has said minimum of £215k" when you offer £213k?

Nothing.

The fact you've said your final offer, it would be silly to go back and offer more, as it means you were lying that it was your final offer.

bclark

brit1234 wrote: »

Sounds like the estate agent has you by the curlies, time to make them sweat. Dont contact them for a week, make them think they are going to lose a certain sell. When they call say 210 is your max and you are now looking at other properties.

Someone tried to do that to us when we were selling after we rejected their offer. We had another offer at an acceptable level just 3 days later. The original 'buyer' then came back trying to find out what the level was and would we accept his offer if he matched it, we said no.

If you play games then you have to be prepared to lose.

hazyjo

I don't get all these 'game playing' comments. How is it game playing?

A house is worth what someone will pay, not what the vendor or EA wants. If a house is priced low, or realistically, the chances are there will be people willing to buy it. If someone wants to pay £210k, then that's what they offer and that's what they stick with.

If someone else wants it, they'll pay more. Simple as that. If there's only one person wanting it, they should have their top price limit in mind before offering.

Don't be forced to pay over the value (which I do think you can still roughly work out even if nothing exactly the same or in the same street has recently sold).

I looked at a house up for £400k a few years ago. We offered around £380k-something, I seem to remember. They woudn't budge to anywhere near it, so we walked. That wasn't game playing, or being stubborn, it was because the house wasn't bloody worth it! A year later, it sold for £345k.

Don't end up in a bidding war with yourself!

Jx

glos1983

Thanks for all the advice. It's difficult to judge the price, but looking at what has sold in the area I think £205k - £210k is about right. The house has been on the market for two months, and it is a second home so I don't know how quickly they need to sell. Two months doesn't seem that long considering it took us a year to get our first offer. It was originally on the market for £225k and dropped it to £220k after the first month.

They bought it in October 2008 for £193k, which with average price rises in the area would value it at £206k. That said there is nothing to say they didn't get a really good deal, and mouseprice and zoopla (don't know how accurate these are!) value it at £215k and £190k respectively (I certainly think the Zoopla estimate is well out).

Anyway, we really do like the house, the area is nice, there are lots of playing fields nearby, it's walking distance from a really good primary school, and we are expecting our first child towards the end of the year. So we have decided to accept the £213k and get the ball rolling - I certainly don't plan on playing any games with the price while the sale goes through, unless the survey really does come back loads different (I doubt it will). My thinking is that if we are overpaying it's not by a lot, the mortgage is still affordable, and it is a small price to pay to be settled in our dream home in time for the birth of our first child.