First offer made - next steps

rebeccatom

We have made a first offer on a house.

The house on the market for £260,000, but is (in my opinion) over priced, it's a full renovation project, would be buying from deceased estate so money can be passed down to the adult children. We are also first time buyers so there is no chain on either side.

We have made an offer of £215,000. This was based on the sale amount history of do-er uppers on the street which is between £205,000, £214,000 and the top one of £244,000.

Our top price would be £245,000.

I am expecting the first offer to be rejected, but was wondering how much the next offer should be? There seems to be two opinions on the forums, either go up really slowly or go in big jumps. I am trying to figure out the best strategy in our circumstances.

sirmosh

To be honest you need to wait for a response really. You could be told a straight no way, you could be told that they were looking for a little bit more, they may even say something like, "We're looking for £230,000 really so offer that and you can have it".

If you think £215,000 is close to the going rate then you could always only go up a little bit and tell them the reasons for your valuation. Some people might tell you you're wrong while others may take it on board.

rebeccatom

So, just heard from the estate agents, offer was rejected as expected.
She gave good feedback, the seller wants £250,000 but would take a little less. The same estate agent sold the one on the same road for £244,000 and are using that as a comparison so I think the seller would accept that.

I have gone back with £230,000 and pushed that we are in a very good position and are serious buyers.

Will see when and what they come back with. I am thinking if they come back today or tommorow with a no, then tell them the offer is on the table and leave it over the weekend.

Does that sound like a good plan?

Dan-Dan

be prepared for other people to have been told similar and getting in there first at - 250k

rebeccatom

I have been keeping in touch with the estate agent and so know there have been no other offers or second viewings as yet.

However, there was someone that saw it on Saturday who told the seller they were very interested but were going on holiday for 2 weeks.

I am hoping that we can agree a price before she gets back and out bids me!!

R_P_W

They can outbid you anytime up until you exchange contracts I'm afraid

jacobtheamish

Would you be happy to lose out on this property? If so then only increase marginally and/or take your time when increasing.
If you are very keen and there is other interest then make your best offer, you will be the ones who lose out in the end if your offer gets beat. I would imagine if its probate the vendors are not going to be as motivated as owner occupiers, so you will be viewed as proceedable or not. The length of your chain etc will probably be irrelevant to them.
Gazumping still happens but a vendor is less likely to gazump someone who didn't mess round at the start.

gazter

rebeccatom wrote: »

So, just heard from the estate agents, offer was rejected as expected.
She gave good feedback, the seller wants £250,000 but would take a little less. The same estate agent sold the one on the same road for £244,000 and are using that as a comparison so I think the seller would accept that.

I have gone back with £230,000 and pushed that we are in a very good position and are serious buyers.

Will see when and what they come back with. I am thinking if they come back today or tommorow with a no, then tell them the offer is on the table and leave it over the weekend.

Does that sound like a good plan?

I bought my house for £245,000 a few weeks ago... No relevance, i just wanted to say