Making offer on house - thoughts?

the_salmon

Hi all,


me and GF have got our deposit together and agreement in principle from the bank on a mortgage so are green to go on looking for a property. We have viewed 2 so far, but not much else out there in our range appeals to us (though it is a quiet time of year).

But 1 we viewed sparked the 'I want this house' comment from the GF and I really liked it also. Its in a good enough condition but with some improvements needed (but we are fine with that).


We had AIP for a £180k house with a 10% deposit and this is on at £180k so would be our max (and whilst it would be affordable for us, I don't want to max out what we can borrow). we have done our research and the street is a really good, quiet street, low crime. We need some assurances about the fixtures and fittings, gas and electrical safety etc but will ask the EA these questions.


Zoopla is suggesting the value is nearer to £160k and the current owners are not in an onward chain and are ready to move ASAP. The house has been on the market since April 2014.


Given the above information I am tempted to go in quite low with an initial offer, and even thinking of £160k.


Just wondering if anyone would consider that offer insulting?

brett84n

the_salmon wrote: »

Hi all,


me and GF have got our deposit together and agreement in principle from the bank on a mortgage so are green to go on looking for a property. We have viewed 2 so far, but not much else out there in our range appeals to us (though it is a quiet time of year).

But 1 we viewed sparked the 'I want this house' comment from the GF and I really liked it also. Its in a good enough condition but with some improvements needed (but we are fine with that).


We had AIP for a £180k house with a 10% deposit and this is on at £180k so would be our max (and whilst it would be affordable for us, I don't want to max out what we can borrow). we have done our research and the street is a really good, quiet street, low crime. We need some assurances about the fixtures and fittings, gas and electrical safety etc but will ask the EA these questions.


Zoopla is suggesting the value is nearer to £160k and the current owners are not in an onward chain and are ready to move ASAP. The house has been on the market since April 2014.


Given the above information I am tempted to go in quite low with an initial offer, and even thinking of £160k.


Just wondering if anyone would consider that offer insulting?

I wouldn't worry about insulting them, I can't imagine the vendors ignoring nay further offers from you because they were upset by your first offer. If you're nervous/apprehensive about submitting that offer, maybe do it by email to the agent?

rosie383

Just go for it. There could have been other offers higher than that refused already by the vendor. But you will never know until you ask. Don't worry about offending the vendor. You won't.

the_salmon

Thanks.
GF is surprised it hasn't gone for the price that its on for, I am just a little cautious as to why its been on for so long, and given how eager they seem to sell.


Thanks for the reassuring comments

jacko74

I'm not trying to discourage you from making a low offer on this or any other property... but I would pay very little attention to Zoopla 'valuations' they're notoriously useless, both too high and too low.

Actual recent sold prices on Rightmove, Land Registry and Housprices.io will give you a better idea of a properties true value.

rosie383

Depending on which area the 'sold' prices from a year ago may be completely irrelevant now. Prices in my area for a 2 bed have risen from around £130k to about £160 in the past year. Not the same everywhere though.

kaflinkle

Start low, especially if it's been on the market for a while.

You have nothing to lose.

This morning I offered £35K less than the asking price, you don't ask, you don't get. It sounds a lot but the house is grossley overpriced and has been on the market for a while.

The best advice I can give is don't get attached to the house you're trying to buy.

Hoploz

Ignore Zoopla estimates, they are completely useless.

I would sound the vendors out a bit more to see how keen they are to move on and how set they are on the price. It is a lot below asking, percentage-wise.

When I had a stupidly low offer on my house (100k or 17% below asking) then he started upping it a bit at a time, I told the agent I would not be interested in that buyer even if he offered asking price, as I would not trust him to go through at the higher price. Which I got from somebody else quite easily.

I was told he had based his valuation on what we bought for 7 years ago, and what he considered we had spent on the huge extension we put on. He had no idea the work we had done on the rest of the house. None of which has anything to do with the current market price.

the_salmon

Hoploz wrote: »

Ignore Zoopla estimates, they are completely useless.

I would sound the vendors out a bit more to see how keen they are to move on and how set they are on the price. It is a lot below asking, percentage-wise.

When I had a stupidly low offer on my house (100k or 17% below asking) then he started upping it a bit at a time, I told the agent I would not be interested in that buyer even if he offered asking price, as I would not trust him to go through at the higher price. Which I got from somebody else quite easily.

I was told he had based his valuation on what we bought for 7 years ago, and what he considered we had spent on the huge extension we put on. He had no idea the work we had done on the rest of the house. None of which has anything to do with the current market price.

Thanks, we asked the vendor what her circumstances were, she said they had no onward chain and were ready to go straight away, I could tell from that they were very keen to move as soon as, the fact its been on since April also suggests that they have struggled for offers (either altogether, or ones that meet the minimum they would accept), so puts us in a stronger position. I am not basing my offer on Zoopla (I own a home myself and have altered the price on there based on a recent valuation I had) but I am factoring it in alongside the above information.

Pete9501

Nice position to be in. Make a low offer (£161K) and if it is refused then sit back and wait a week. You could then up the offer a few ££££ more and say that it really is your final offer (even if it isn't).

You need to act like a professional poker player and your opponent is the Estate Agent, who does it 40 hrs week and works for the seller only, despite being really nice to you. Its your hard earned money so fight for every penny which you will need for a first home.

Good luck.

inatdeepend

One thing I have come to learn, both from here and my own experience and that of friends and family, is that the irrationality of sellers is all part of the "fun" of the buying process.

What seems perfectly logical to you, and to the man on the Clapham omnibus, is not to a seller. And vice versa.

Go ahead, make the low offer, but be prepared to walk away and save yourself the hassle.

As my nephew says - "You can't cure stupid".