How much should I offer?

Toptom1

Seen a house I love and it is up for guide price of £140k and previously bought in 2011 for 120k I asked to view the house but my budget is £130k max and aparantely the vender was still interested. So I viewed the house yesterday and I told the estate agent that I don't understand why it up for 140k anyway I knocked on next door neighbours house and was told that the couple who lives there have split up and they did sell the house 2 years ago which fell through at 120k.

Personally I think the house is worth 128k and I won't be going higher than that. I offered 122k giving a list of things that need doing and with the info I know. I was laughed at and said no she wouldn't accept that. How should I progress from here? I was thinking saying 125k and then after that 128k final offer. House prices in manchester ain't gone up that much in short space of time have they? Looking for a house to live in not to make money on. Not quite sure where the house price market is leading too at the moment tho so don't want to be in negative equity.

How would you procced?

kinger101

It was a mistake telling the EA your max budget was £130K. What you've outlined seems okay. Perhaps arranging through the EA to view another property as well might make you seem less keen, and demonstrate to vendor you are considering other options. Thought you may lose it if they have another buyer lined up.

Mojisola

Toptom1 wrote: »

Personally I think the house is worth 128k and I won't be going higher than that.

A house is worth what someone will pay for it.

You have your maximum figure and will stick to that.

The vendors don't have to accept it.

Either someone will come along and pay more or it won't sell and they'll have to drop the price.

Our system for selling houses is hopeless - well past time for reform.

Loopy28

The house was purchased in 2011 for 120k and you now feel it is now worth no more than 128k, so that is less than 7% growth in the last 4-5 years. Has annual house price growth in Manchester only been just over 1% a year then?

I remember this time last year seeing an article that house prices had risen in Manchester by about 21% in 2013 alone. I am not familiar with the area so don't know if that is accurate but 8k in 4-5 years, really isn't big growth unless things really aren't selling there.

I live in the south west so a completely different area but a house that sold for 120k in 2011 here would be selling for about 145k now.

md87

I am not shocked that your offer was rejected. Compare with others in the area,if you really want this one, decide on your best and final offer, make it and see what happens. I have sold my house and would be put off by people making small increases. I wou,d probably give people 2 offers and then say not interested any longer, but that's just me, I was never desperate to sell and always knew the lowest I would accept.

Dr._Shoe

I'm not shocked. The house nextdoor sold for 120K two years ago and you want to buy an identical house two years later for 122K?

I think the vendors would be fools to accept less than 130K minimum.

Toptom1

You have misunderstood. The house I'm bidding for was sold for 120k 2 years ago but buyer pulled out. I'm offering 128k as work needs doing to it

jacko74

I'm pretty familiar with the Manchester market and I'd say prices have moved very little in the last 2 years, if the vendors haven't spent any money on it since the last 'sale' then I don't think it would be worth much more than the £120k they were willing to accept back then.

The market in Mcr is a flat as a pancake at the moment and all the predictions are that it will stay that way for the immediate future.

I'd say stick to your guns

rosie383

Toptom1 wrote: »

You have misunderstood. The house I'm bidding for was sold for 120k 2 years ago but buyer pulled out. I'm offering 128k as work needs doing to it

But you haven't offered £128k yet. You offered £122k which has been rejected. You will not know if they would accept £125k or £128k until you offer it.
As for telling the EA what you feel needs done, and why £x is your offer, I think that all the EA hears is 'blah, blah, blah, blah £xxx.'

turkeywelder

jacko74 wrote: »

The market in Mcr is a flat as a pancake at the moment and all the predictions are that it will stay that way for the immediate future.

Can you elaborate on this, are you talking about City Centre or the surrounding towns? We're currently looking and I'm trying to get a handle on where our offer should be.

Sorry for threadjacking.