Putting in a low offer I exchange for flexibility - worth trying?

song_of_calliope

We viewed a house yesterday which we liked a lot, and it has been on the market for 6 months at £299k. The owners want to move south but haven't started viewing properties yet.

We are in rented and had hoped to find something and move quickly. However with this house, we would be willing to be flexible on our dates so that they would be in a good position for their own search. They said they don't want to start viewing until they get an offer as they know houses move slowly where they are selling. However I know down south where they want to buy they are moving quickly so flexibility for them would be an advantage.

I'm thinking we would offer £250k plus some amount for fixtures and fittings (there are custom solid wood kitchen units and wardrobes and integrated high end kitchen appliances - £8k?). In return we would say we could complete anytime within 1-6 months. They choose the date and just give us say 2 weeks notice. Is this a reasonably decent offer or a complete insult or something in between?

We would need to ask our solicitor to draw up an agreement with penalties if they withdrew or did not complete within the six months. Is this reasonable as well? Much appreciated if you can offer any opinions or advice.

FR_262

If you are renting you would usually need to give at least one month's notice, so check with your Landlord. Your idea of flexibility might not be a good idea for your landlord who potentially will not be able to give a date for the new tenant to move in.

I think if you want the house, put in a offer and it's accepted, then the vendor needs to move out, even if they have to rent a while.

song_of_calliope

Thanks for the reply, FR. We are on a month to month contract with our rental so could really move at anytime and only lose a max 1 months rent which would be okay with us.

Vendors don't want to go into rented - that's why I think flexibility would appeal to them.

FR_262

It sounds like you have an offer worth trying - a bit of a cheeky offer, but go for it. You can always offer more.

phill99

It's seems a good idea, but even being flexible, your offer is embarrassing.

AdrianC

song_of_calliope wrote: »

I'm thinking we would offer £250k

Just tipping it under the Stamp Duty threshold, too...

plus some amount for fixtures and fittings (there are custom solid wood kitchen units and wardrobes and integrated high end kitchen appliances - £8k?)

They'd normally be included in the sale price anyway.

In return we would say we could complete anytime within 1-6 months.

One month is probably a bit optimistic - the solicitors have to do their thing, and searches etc can be slow.

They choose the date

Normally, the completion date is negotiated between solicitors.

Is this a reasonably decent offer or a complete insult or something in between?

It's very low. But you have got a whole raft of arguments in your favour. What is there to lose?

We would need to ask our solicitor to draw up an agreement with penalties if they withdrew or did not complete within the six months. Is this reasonable as well?

Stop over-thinking it, and just let the solicitors do their job.

Until contracts are exchanged, there's not normally any penalty for either side to pull out, other than loss of whatever fees have been incurred up to that point. You couldn't realistically put any such agreement into place before that, anyway.

After contracts have been exchanged, then breaking the contract starts to get very expensive anyway.

song_of_calliope

Had another idea - renting the house back to the vendors at a low rate after the sale for a period up to six months. Any better for them? For us? Versus waiting to complete. Thanks for the answers so far.

mrginge

Three problems.

1. £250k would imo be seen as a joke and make you seem like a timewaster.
2. Defrauding the tax man with 8k of f+f is not a particularly good idea. You are aware that they would be valued at 2nd hand rather than new?
3. Putting a penalty clause in that hurts the vendor but not you is a little unfair. Plus there is so much that can happen which the vendor cannot control, so why would they agree to that?

If my house was on at 300k i would be expecting 280k. Some hare-brained scheme and 250k from a ftb would be given little consideration.
However, the vendors are clearly mad if they wont consider going into rented given their plans, so perhaps you have a chance....

mrginge

song_of_calliope wrote: »

Had another idea - renting the house back to the vendors at a low rate after the sale for a period up to six months. Any better for them? For us? Versus waiting to complete. Thanks for the answers so far.

Are you getting a BTL mortgage then?

Sorry but this one is a non-starter.

makeyourdaddyproud

At £299k, I would accept £300k. Round to the nearest 100k.

ethank

song_of_calliope wrote: »

Had another idea - renting the house back to the vendors at a low rate after the sale for a period up to six months. Any better for them? For us? Versus waiting to complete. Thanks for the answers so far.

If you are getting a mortgage, then you will not be able to do this.