Non-insulting offer??

Lone_Northern_Lass

Hi all,

I'm a first-time buyer in the North East of England.

I viewed a property yesterday which I am very interested in. It's a "deceased estate", in need of significant cosmetic updating but no obvious major problems (of course I would get a survey done).

It's been on the market since late August this year at "Offers over £89,950" (this is well within my budget - so I'd be able to afford significant cosmetic updating as well) and, according to the agent, has had some but not massive amounts of interest.

During the viewing, the estate agent dropped what I think was a fairly major hint that I could make an offer under the advertised asking price. His words were roughly: It's the family's inheritance so they want to get as much as possible, but they'll also be wanting it to sell, so if you were to put in a reasonable offer, they'd probably look at it quite favourably, obviously they don't want an insulting offer.

I'm a first time buyer. I don't know what exactly counts as reasonable and what exactly is insulting in these circumstances (I'm guessing £88K is definitely "reasonable" and £80K is either "insulting" or very nearly so).

Through a combination of extreme good luck and a decent amount of hard-work and prudence, I consider myself to be very fortunate in terms of my financial circumstances. I'm not a scrooge and don't want to take advantage of a family who may (or may not) be grieving a dearly missed relative. On the other hand, I don't want to be taken for a mug and buy a house at a few thousand over what anybody else would consider paying for it.

What are your thoughts on a reasonable offer in these circumstances?

Many thanks in advance for your help,

Lone Northern Lass

(ps I know Martin's advice sheets mention that some people give the rightmove link when asking this kind of question. For my own privacy and that of the vendors, I'd rather not do so, or even give too many more details of the property. Thanks.)

Mojisola

If you put in a low offer and it's refused, you can offer a higher amount.

As a FTB, you're not in a chain - the sellers might be prepared to accept a lower offer for a quick sale with no chain involved.

On the other hand, they might not be in any hurry and will hang on for the best price possible. Until you make an offer, you won't know.

monty-doggy

When we sold my oh Nan's property it was listed at 140k even though probably should have been more like 160 in hindsight. We sold it for 120 for a quick sale.

newbutold

I'd start at nearer the 80k mark than the 88k mark. 80k is approximately 11% less than the overs over asking price, so I would not class it as that insultingly low.

Sparx

Check sold prices in the area on Zoopla.

If prices are about right start at 80k and work your way up if not accepted 1st time (slowly)..

Davesnave

The vendors will be thinking it's not much fun taking an empty house into winter and paying all the bills that become due. As a first time buyer you are their dream ticket out of that, with none of the usual chain complications.

So, you don't want to waste the opportunity you'll only have once.

Ignore 'offers over,' which as you can see, isn't a very productive tool in anything other than a fast moving market. The vendors wanted 90k, but they haven't got it, so logically they should settle for less.

If you offer £82k they might bite, and that will enable you to come up a little if they don't.

Against accepting is the chance of a better market in the spring and the possibility that one uninformed sibling will see you as some kind of robbing !!!!!! Probate sales with several beneficiaries, are occasionally 'complicated' but there's no reason to suppose this one will be.

You can be confident that there will be something beyond cosmetic which you'll wish to do once you know the property better, so keep that in mind when negotiating.

Good luck.

System

i would start at the lower end of £80k , we are selling a house that was up for £115k although no way was it worth that we accepted £108k.

robatwork

First offer 81,500.
Then counter with final offer of £84,500 and stick with it.
Or what you think it's worth.

poppysarah

Mojisola wrote: »

If you put in a low offer and it's refused, you can offer a higher amount.

Or stick at that offer.

Don't feel obliged to pay more than you think it's worth.

moneyistooshorttomention

Davesnave wrote: »

You can be confident that there will be something beyond cosmetic which you'll wish to do once you know the property better, so keep that in mind when negotiating.

Good luck.

My thoughts precisely, having just bought a probate house.

The vast majority of probate houses will have been lived in for the last x number of years by someone who was too old and, possibly, too ill to be that bothered about having anything that major done to the place. What they HAVE done might have been "cheapskated":(.

In my new-to-me probate house this has proved to be the case. I was expecting some of it, but there was more than I thought involved. A fusebox rather than a consumer unit in the electrics for instance. A bit of more recent electrical work had been bodged by an amateur. The kitchen and bathroom aren't that old, but have been "cheapskated" (ie poorly-designed and poorly-fitted). Some maintenance work that had been done was cheapskated and is having to be redone properly.

Think of it...would YOU bother yourself that much if you only expected to live for a few more years and/or were preoccupied with being ill? Chances are, the previous owner thought exactly that...

So, even if something looks like its been done, don't assume it HAS been (ie done properly).

Check out my signature for how much I've spent to date and then about double it for how much I will be spending in total at some point...

jimbog

Start at £80K and assume it will be knocked back. Then offer £82K as final offer