What is a realistic offer on house price selling for min £270K?

olympicsmummy

I've seen a house I want to put an offer in tomorrow morning. The value on right move says from £270 000 then on the leaflet I got it says £270K - £300K.

It's hard to say what its worth as properties in the area are all totally different (some are 2 bed, some 3 or 4 and some with or without garage etc). I'd be prepared to pay £270 but want it for less if possible of course.

I'm thinking of offering £250 and mentioning about stamp duty being a problem if its over £250 or should I offer £260 but ask for them to contribute towards stamp duty?

I dont want to be laughed at for offering too low though!

We are renting so we have no chain which should hopefully make us attractive to sellers

G_M

olympicsmummy wrote: »

I'd be prepared to pay £270 but want it for less if possible of course.

I'm thinking of offering £250 and mentioning about stamp duty being a problem if its over £250 or should I offer £260 but ask for them to contribute towards stamp duty?

If it's advertised at 270, the vendors will have considered the stamp duty threshold of 250. They are clearly not looking for a buyer who is restricted by that, or they'd have advertised lower.

No one will offer seriously 250/255 (or even 260?) because of the SD, except as a bargaining position/1st offer, bu by all means try that and then work upwards.

As for being 'laughed at', why do you care? What matters is getting the property you want at a price you are happy with.

Better_Days

I put a low offer in on a property last week (justified by the amount of work that needs doing + some 'wiggle room'). It was refused, but I had an interesting converstation with the EA about it.

He said that it was the right tactic to start low as in his experience buyers get properties at a better price by doing this. I wasn't too worried about upsetting the vendor, but I do want the EA to take me as a serious buyer.

The SDLT threshold distorts the prices up to about £270-275k, and any realistic vendor should not be at all surprised at an offer of £250k on an AP of £270k.

A lot also depends on the position of the vendor and how long the property has been on the market. You are a good position as you are in rented, are you a cash buyer, or do you have an AIP?

If your first offer of £250k is refused (and it might not be) have a chat with the EA and see what info you can winkle out of them. I have been surprised about how frank some EA's have been when I have been discussing properties I have viewed. After all, they want a sale and their fee, so they may be able to obtain a counter offer from the vendor or a 'ball park' figure of what the vendor is hoping to achieve. They may also tell you if there have been any other offers on the property.

One way of looking at value it to look at price per square metre. I have prepared a spreadsheet with details of all the properties I have viewed (sad I know), my comments, and included the floor area. I obtained the floor area from the EPC's, and sometimes it is surprising how relatively big/small properties look when you view them compared to the floor area.

GL with your offer.

Yorkie1

olympicsmummy wrote: »

I'm thinking of offering £250 and mentioning about stamp duty being a problem if its over £250 or should I offer £260 but ask for them to contribute towards stamp duty?

This would be a 'vendor gifted deposit' and the vast majority of lenders won't lend in these circumstances so you might find it impossible to get a mortgage.

You're also potentially inflating the true value of the property, which could cause problems when the bank came to value it for lending purposes.

Stick to the usual negotiations and good luck.

olympicsmummy

Thanks people for your helpful replies.
What a good idea working out cost per metre :-) That could prove technical but good thinking! :-)

And no not cash buyers but deposit is ready and mortgage all agreed :-)

sharpe106

How long has it be on the market for? What condition is it?

olympicsmummy

its in excellent condition. Nothing at all needs doing to it.
It has only just come on the market in the past 2 weeks

adamzetec

Cost per metre gives you a way to compare properties side by side to an extent, but it's not like a commercial property whereby you can confidently say that based on the area being "x"m2 then the price should be "y".

Dan-Dan

Excellent condition?
Been on the market 2 weeks?
up for 270/300k
You want to offer 250k ?


In 3 months time , you might get somewhere with that , but i would think any estate agent worth their salt will push the vendor to hold out till at least nearer the end of their agreement

Strapped

Dan-Dan wrote: »

Excellent condition?
Been on the market 2 weeks?
up for 270/300k
You want to offer 250k ?


In 3 months time , you might get somewhere with that , but i would think any estate agent worth their salt will push the vendor to hold out till at least nearer the end of their agreement

No, they would push them to sell - after all, no sale = no fee. It's a complete myth that EA give a toss about how much a property sells for - cash flow is king.

Having said that - I doubt that the vendors would want to accept a low offer quickly.

Dan-Dan

Strapped wrote: »

No, they would push them to sell - after all, no sale = no fee. It's a complete myth that EA give a toss about how much a property sells for - cash flow is king.

Having said that - I doubt that the vendors would want to accept a low offer quickly.

You do realise that most EA`s work on a percantage of a sale?
Imagine for a bit , that this house that in the OP`s words is in EXCELLENT condition , and has only come on in the last two weeks ,the OP is thinking to offer 250k on it , what decent EA is going to encourage their vendor to take that so early in the process , especially as they could have lots of interest that they know could materialise into a higher sale process...