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FTB - Making An Offer - Very Low Offer

itGuyUK80
itGuyUK80 Posts: 81 Forumite
edited 15 November 2014 at 1:52PM in House buying, renting & selling
Hi All,

I viewed a property yesterday which would be suitable for me. As non driver it is great as train station is 5 minute walk as I need quick access to and from Birmingham City Centre.

I only need to be the office occasionally for meetings etc.. as majority of the time I work from home.

However, the vendor I feel is asking way to much for the property (Offers over £120K), but they have done very nice finish on it, extremely clean and clearly see time and effort has been spent on this to make very presentable.

The property itself is a Modern 2 Bedroom End Terrace Bungalow, which has one bedroom & bathroom downstairs and other bedroom and bathroom are upstairs.

Now for me the configuration of the bungalow is not an issue, but if I come to re-sell it I think I will have a problem.

At the moment it only appears to be listed for 2 months, but have spend sometime researching
  • Area (Growth/Regeneration)
  • Nearby Property Prices
  • Potential Resale

In Summary the estate is not the best estate, but it is not the worst.. However as I am on the back end of the estate and I grew up there I do not think I would have too much problems. Last sale in the street was for 3 bed room semi attached (built in 60's) with off road parking and garage for £90,000.

There is no indication that the house prices will grow in next 5 years; infact they dropped slightly; nearby streets and the estate itself is averaging about £85 to £95k of recent property sales.

I think one main reason is that the estate is becoming unsuitable for families with teenagers as high school on the estate closed which means teenagers are even travelling further to alternative high schools.

So looking at all these factors I have come to the figure of £93,500 (77.9%) is what I be would prepare to offer..

So would this be straight insult to the vendor or worth while pursuit?

Thanks in advance
JP
By day: IT GURU By Night: Depends if there beer involved
Machine: Custom Built
Motherborad: Z87-Pro, CPU: I7 3.40 Ghz, RAM: 32 GB, OS: Win 7 Enterprise x64: Storage SSD 256 GB, 4 x 2TB Hybrid SSD drives, Graphics: Nvidia Gefore GTX 750 TI
«13456

Comments

  • stator
    stator Posts: 7,441 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    I think just go straight in with your offer. It's probably going to be rejected but you've got nothing to lose. I don't think starting lower and working your way up to that figure will help you, it will just make matters worse.
    Give them your offer and once it's rejected either leave it on the table or increase it slightly.

    Just my stupid opinion
    Changing the world, one sarcastic comment at a time.
  • suelizab
    suelizab Posts: 241 Forumite
    Part of the Furniture 100 Posts Photogenic Combo Breaker
    An insult. If they wanted offers of that price , surely that would have put it on for around £95-98000 ? Maybe the school closed because there never was enough teens living on the estate or people just prefer to get their education away from their street and mix with different people .
    old enough for my bones to feel the cold .
  • suelizab wrote: »
    An insult. If they wanted offers of that price , surely that would have put it on for around £95-98000 ?

    Over last few days of visiting a number of properties I personally feel vendors sort of fit in one of the follow categories IMO
    • Know the true value of property
    • Trying their luck
    • Living on Cloud 9
    • Need quick/reasonable timely sale
    suelizab wrote: »
    Maybe the school closed because there never was enough teens living on the estate or people just prefer to get their education away from their street and mix with different people .

    If that is the case they picked the wrong location...
    By day: IT GURU By Night: Depends if there beer involved
    Machine: Custom Built
    Motherborad: Z87-Pro, CPU: I7 3.40 Ghz, RAM: 32 GB, OS: Win 7 Enterprise x64: Storage SSD 256 GB, 4 x 2TB Hybrid SSD drives, Graphics: Nvidia Gefore GTX 750 TI
  • stator
    stator Posts: 7,441 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    You're right, some people have looney ideas about the value of their home. You see them on Sarah Beeney's show :rotfl: Unfortunately it usually takes a long time for reality to settle in.
    Changing the world, one sarcastic comment at a time.
  • lee111s
    lee111s Posts: 2,987 Forumite
    Eighth Anniversary 1,000 Posts Combo Breaker
    If you don't insult then you haven't offered low enough!

    I offered 117k on a house up for 133k and it was accepted striaght away. It just all depends on the circumstances.

    I was lucky in that I bought last January when the market was very quiet from a couple who had split leaving the property empty, they just wanted rid of it.
  • kingstreet
    kingstreet Posts: 39,335 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Are you trying to buy a property, or make friends? Why worry about strangers?

    Anyone insulted by an offer on their property is plain daft. If it isn't acceptable, say it isn't and get on with your life.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • stator wrote: »
    You're right, some people have looney ideas about the value of their home. You see them on Sarah Beeney's show :rotfl: Unfortunately it usually takes a long time for reality to settle in.

    I agree and I don't have the patience or time to entertain, so it will be case of move on...
    lee111s wrote: »
    If you don't insult then you haven't offered low enough!

    I offered 117k on a house up for 133k and it was accepted striaght away. It just all depends on the circumstances.

    I was lucky in that I bought last January when the market was very quiet from a couple who had split leaving the property empty, they just wanted rid of it.

    I got one more property to look at tomorrow which has caught my attention, then I will make a decision if I will offer or just wait...
    By day: IT GURU By Night: Depends if there beer involved
    Machine: Custom Built
    Motherborad: Z87-Pro, CPU: I7 3.40 Ghz, RAM: 32 GB, OS: Win 7 Enterprise x64: Storage SSD 256 GB, 4 x 2TB Hybrid SSD drives, Graphics: Nvidia Gefore GTX 750 TI
  • kinger101
    kinger101 Posts: 6,631 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    It sounds like you've done your research, so just go ahead and offer. It might be worth explaining to the EA that the amount you have offered is based on recent sold prices for similar properties in the area etc. At least then they can feed back to the vendor.

    There is a possibility that the vendor may have asked for offers below a certain amount not to be forwarded though.
    "Real knowledge is to know the extent of one's ignorance" - Confucius
  • kingstreet wrote: »
    Are you trying to buy a property, or make friends? Why worry about strangers?

    Anyone insulted by an offer on their property is plain daft. If it isn't acceptable, say it isn't and get on with your life.

    Good point....
    By day: IT GURU By Night: Depends if there beer involved
    Machine: Custom Built
    Motherborad: Z87-Pro, CPU: I7 3.40 Ghz, RAM: 32 GB, OS: Win 7 Enterprise x64: Storage SSD 256 GB, 4 x 2TB Hybrid SSD drives, Graphics: Nvidia Gefore GTX 750 TI
  • Hoploz
    Hoploz Posts: 3,888 Forumite
    Historic price data is historic. Compare with what else is currently on the market/recently become under offer. That is the current market value. They are unlikely to accept your offer, I think it is too low on that asking price, but if that is what you are prepared to pay, and you will walk away then do it.

    But don't fanny around upping it many times in small increments as they will think you are a chancer and tell you to go away. Offer at the level you really want to pay, or walk and find something at your price level.
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