Very low initial offer... Should I be worried about insulting?

FirstTimeBuyer88_2

That's a great answer really thank you.

No, not even slightly in love with it, it is a nice enough house and I would like it for cheap enough but it's not something I would want to be in for more than 3 years to be honest!

Thank you clark24

thequant

FirstTimeBuyer88 wrote: »

Any advice at all please?

Thanks!

You need to learn the art of making a successful business deal, that is simple summed up as one that leaves both parties happy.


you are making two classical mistakes.


1) Seeing the other party as someone to be screwed over leaving them nothing from the deal.


2) Going in extremely low because you think it will tip the psychological balance your way. It won't as it will backfire as it will create distrust.


So how do you price up the deal ?


work out the cost of the property when done up. As posted by someone above, that is things that needs doing, not what you want doing.


Then knock off the cost of the works that need doing.


Then knock off the cost of any of your own labour in getting the place up to scratch.


Then knock off the "hassle factor" for doing all of this, this is your profit margin.


Don't get greedy, because the sellers will otherwise find another developer who knows what they are doing.

clark24

FirstTimeBuyer88 wrote: »

That's a great answer really thank you.

No, not even slightly in love with it, it is a nice enough house and I would like it for cheap enough but it's not something I would want to be in for more than 3 years to be honest!

Thank you clark24

My husband would like to add that you should use part of your 46 grand to buy a bargepole, and then to make sure you never ever touch the house with it

I do hope you find another, better house soon tho, just beware of any that need work, they almost always cost a lot more than you think.

Running_Horse

If you offered me 50% of the asking price I would not take any of your subsequent offers seriously. But that's just me.

haras_nosirrah

I used to work in an estate agent as a mortgage broker and have seen the other side of the coin so to speak. They had one client who was renowned locally for making silly offers on things. It got to the point where the local agents refused to do viewings with her as she kept offering silly amounts (around 50 to 60% of asking) which they had to pass on legally and ended up with some very upset vendors. I think every agent in town refused to deal with her so tread carefully in this approach op as it can backfire spectacularly

angelsmomma

I wouldn't take any further offers from you if you went in at that price.

If the house has been inherited the son may not be in any rush to sell anyway and it has not been on the market very long.

Also the executer of the estate (who may not be the son) has to justify the price he gets for the estate and £41k is not justifiable so soon after it has gone on the market.

Doozergirl

Wow. There's cheeky and then there's taking the proverbial. I can be pragmatic but £41k is deluded. You're making the estate agent's job very hard when they have to justify that.

I really would echo the comments above about this being a business deal in which everyone needs to feel that they've won. I would be nothing but angry at 25% under asking, that would be the point at which I couldn't help be anything else. I would reduce the price heavily again before even considering selling to someone who clearly couldn't care less. Even if the offer were raised considerably, I'm not sure I would trust your motives or feel confident through the process. Someone who offers like that is someone that also would also be happy to gazunder, imo.

Are you a troll?

straas

makeitstop wrote: »

I'd say you might have more luck at £65K, but maybe not so much well under that kind of figure. There's a low offer and there's simply taking the pi55..... which is what a £41K offer is in truth.

What you have listed there by the way of work required to get the house sorted, would amount to approx £10K (give or take a bit) What other "lots more on top" are we talking about.???

Clearly there has to be some profit in what you are considering, but you still have to be realistic on what people are willing to accept.

Of course, if the seller is desperate, you never know I guess.

I'd like to meet your builder!

Realistically you're looking at £20k minimum for a basic finish.

charleyroo

straas wrote: »

I'd like to meet your builder!

Realistically you're looking at £20k minimum for a basic finish.

even at a £65k purchase price, that's still £15k profit . It takes some people a year of full time hard graft to earn that.

i think OP has been watching too much Homes Under The Hammer! You might go 'that low' starting at auction, but this ain't an auction :money:

duchy

I think it's a very good point that a ridiculously low offer won't make you look like the supreme negotiator that you see yourself as but as someone not to be taken seriously. Once this offer is refused you'll have damaged the view the estate agent has of you so when the next house (which could be the true bargain you are looking for) comes along you will either be low on their list to contact as you'll be regarded as a timewaster and a chancer-and ultimately estate agents want serious buyers as they get paid by the sales they make not the unrealistic offers they pass on.

Have you considered auctions ?