FTB - Making An Offer - Very Low Offer

chambta

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.

You should have offered less then.

MysteryMe

The art of successful negotiation is to strike a deal where both sides are happy. We all like a bargain but no one likes the feeling of being screwed.


You can of course offer as low an amount as you like but contrary to what several have posted on this thread do not assume that there are no potential consequences or downsides to offering close to 25% below asking price.


Some people think all they need to do is up offers and everything will be fine. In some cases it wont be, they may find the vendor decides they are a timewasting chancer and refuses to entertain them further, they may find the vendor decides it's not worth selling at that sort of price and takes the property off the market, the buyer may find themselves gazumped at the last minute as the vendor has no goodwill towards them. They may also find Estate Agents view them as timewasters and as a result miss out on the first calls when a good property comes onto the market.


I'm not aware of it being common for houses to be overpriced by around 25% TBH. It might be better for you to refine your search to those properties more within your price range.

itGuyUK80

My budget is not the problem, but I do not want to invest into a property way above the area, I will be happy to pay for quality but not go nuts

Now it is right property for me, but if my circumstances change for any reason I would struggle to selling if too high in the area that it is in.

As I say going to see a 3 bedroom house in better area about 1.5 mile away which is listed at £125k. Just based on photo and initial research I would pay £115k..

I'm not looking for a bargain, I'm looking for value for my money and potential return in my investment; yes I know there is a risk, but doing my home work, rather just based on emotional is providing clear idea on what I'm prepared to pay.

LEJC

The thing is you can offer whatever you feel the property is worth and spend a lot of time analysing the figures and comparing whatever data you can find.....but the reality of the situation is the vendor will have a figure in mind at which they are prepared to sell and if your offer is off the mark with their figure it will be rejected.


The ball is then back in your court to up your offer or walk away.


Its interesting that you say youre looking for value for money and a return on your investment...but its double edged,potentially the vendor is also seeking a similar return on their previous investment.
You have to consider the wider scheme of things sometimes and if what you are prepared to pay doesnt match what someone is able to accept you may need to re think the level at which you enter the housung market.

itGuyUK80

LEJC wrote: »

Its interesting that you say youre looking for value for money and a return on your investment...but its double edged,potentially the vendor is also seeking a similar return on their previous investment.
You have to consider the wider scheme of things sometimes and if what you are prepared to pay doesnt match what someone is able to accept you may need to re think the level at which you enter the housung market.

I think this is the IT analyst that is creating my own custom logical process into making my decision based on facts & things rather than emotion.

Has this the start of my first journey into buy my first property I will more likely have to rethink my approach to my offers as time goes by

nubbins

Hi,
It all depends on the area, in my area where a decent property typically sells for asking or 3-4% under I would get laughed at for offering 78%. Obviously there are some properties where the seller has got way ahead of themselves and decided to price it themselves and they can be on the market for ages until the seller comes to their senses, this could be one of them. If your not that fussed about the property I would give it a go but like the poster above says rarely do you get properties overvalued by 20 plus percent.
Good luck

Loopy28

In my area, houses only seem to go between 2-5k below asking price. Many go for asking price or above.

There are a lot of houses going for 'offers in excess of' here and quite often I have looked at historical data, decided they are overpriced and waited for the buyer to decide they need to reduce. However, more often than not these properties seem to go to sale agreed before they are reduced so clearly at the moment people are paying it, in my area anyway.

The house I currently have an offer accepted on was on the market for offers over 180k, having been reduced from 185k. I offered 165k, 168k-both rejected. Had offer accepted at 180k. But I did look at comparable sales for the street this was a good price.

There is nothing wrong with making your offer, although I suspect they will not accept it. If a property is as vastly overpriced as you have stated then I doubt anyone will be stupid enough to offer that sort of price and to be fair, would the mortgage valuer not come back and say it isn't worth 120k anyway if your research is correct?

[Deleted User]

As the OP says the house has a nice finish, time and money has been spent to get it looking as nice as possible etc, the vendor could be expecting to get back whatever they have spent, regardless of market conditions locally.

Offer what you think it is worth but as it is nicely presented (i.e. owner is probably a bit precious about the house) expect to get a no in reply.

Armorica

You call it a bungalow, but say it has two floors? A bungalow is usually a single floor.

The configuration does sound odd, may be ideal for an couple (potentially elderly) where one of the couple/family cannot use stairs for whatever reason.

If it is an estate with a high proportion of eldery people rather than families that may explain the school closure, but lack of a high school obviously wouldn't be a major bad factor in that case.

Similarly, if largely retirement age, the attraction of a nearby train station may not be worth much (as not working age/commuting).

If it's an estate you grew up on, are your assumptions based on what the estate used to be like, or what the demographic is like now?

kinger101

Armorica wrote: »

You call it a bungalow, but say it has two floors? A bungalow is usually a single floor.

It sounds like the OP is referring to a dormer bungalow. These are very common, either purpose built, or as conversions.