First offer declined, what next??

Gareth83

A house is just about to come up on the market for £109,950 and is described as an investment property. I was recommended by a friend (who has several properties) that this would be a good start, so to speak to the estate agent before it comes on the market.

Went to have a look, and it needs the following:

Carpets, wallpaper, paint, bathroom, kitchen, 2 rear windows, front and back door and central heating, possibly a garage door depending on the plans. My estimate brings this work to about £8000 (being generous)

A similar property has just sold for £122,950 literally 2 doors up although has a slightly larger rear garden.

I though I'd test the water and throw in an offer of £97,000. I felt a bit cheeky so knew this was a good start.

The estate agent said the vendor will probably lauugh at the offer and give him some abuse, but she politely declined. So hoping this is a good sign.

From my calculations I think £104k would be the maximum to really make it worth our while as an investment.

How much to offer next?? £98,500?

Obviously we would like this property, but don't want to pay over the odds as there could be extra work along the way.

Suggestions

BTW we are first time buyers and the mortgage is sorted pending a survey

Doozergirl

Properties like this are very sought after and if your plan is to live and not blatantly refurbish and move on, then even asking price doesn't sound unreasonable.

Still though, I'd go for the round £100,000 because it's the magic number here. I can't see anything less getting accepted, indeed if competition doesn't arrive to snatch it from under your nose

As a FTB I'd want to try and secure the deal early, though negotiating won't give the vendor much incling that it is worth more.

Gareth83

so you'e recommend going straight for the £100k and leave at that??

mr.broderick

Offer £100500. There is a reason for this my friend which i will reveal when i am not so tired.

Doozergirl

I'm recommending that you offer at least the amount of the psychological barrier and that you ask your friend exactly how popular this sort of property is.

If it's below market value and it needs not that much work, I wouldn't be mucking around as these don't stick around too long.

If it were me, I'd make my best offer and happily walk away if paying anything more didn't fit my criteria. You treat it like a business or you treat it like a home . They aren't compatible with each other.

Doozergirl

mr.broderick wrote: »

Offer £100500. There is a reason for this my friend which i will reveal when i am not so tired.

Too obvious.

Gareth83

Okay, so I submitted my offer of £100,500 this morning from your advice.

The vendor is going to speak to her partner.

What's my next step if they decline? Just say I'm not interested in going any higher? Up it by £1000? I don't want to sound too desperate but I want to get this property.

What's the reasoning of the £100,500? I'm assuming it breaks the psychological barrier of £100,000 and is also half way between what my first offer is and the most I'd be willing to pay???

RHemmings

Gareth83 wrote: »

Okay, so I submitted my offer of £100,500 this morning from your advice.

The vendor is going to speak to her partner.

What's my next step if they decline? Just say I'm not interested in going any higher? Up it by £1000? I don't want to sound too desperate but I want to get this property.

What's the reasoning of the £100,500? I'm assuming it breaks the psychological barrier of £100,000 and is also half way between what my first offer is and the most I'd be willing to pay???

I'd guess that it would be slightly more than anyone else who bids £100,000. Such that all else being equal, you'd get the house.

danlightbulb

Gareth83 wrote: »

My estimate brings this work to about £8000 (being generous)

A similar property has just sold for £122,950 literally 2 doors up although has a slightly larger rear garden.

Therefore its worth around £115 so the asking price of £109 is fair.

Gareth83

so what should be the most i should offer and at what stage?

obviously i need to make some profit

Gareth83

Haven't had a reply since this morning, what next??