Help! FTB - What to offer...

stardust2000_uk

Hi,

Found this house on RM. Asking price is £335k but I reckon it's only worth about £280k.

Here's my logic... All other houses on the street in the last few years sold for the RM market trend average price of the wider area (M33). Assuming then that this is an 'average' street it would value this property at £271k in April '15 and prices in last few years have bounced up and down but never above £280k. Yes it's 3 double bedrooms and it has a cellar and period features but needs a new kitchen and bathroom so I figure they cancel out?

Presuming I'm not completely off base, I'm just not sure how to start the negotiation! If I want to end up paying £280ish then what should I go in with an initial offer of without being laughed at?

Some background: The seller has already found an unoccupied property to buy with the same EA so I'm presuming they want a fast sale to get both sets of commission. We're first time buyers in a strong financial position and happy to get going quickly.

I'm not a great negotiator, much more of a 'that's a fair offer, please just accept it!' sort of person so any tips are much appreciated :beer:

Hoploz

Offer what it's worth to you. Stop getting tied up with 'facts' about average prices. Just make the offer if that's all you want to pay. Then if they say no, move on.

househuntingmad

stardust2000_uk wrote: »

but I reckon it's only worth about £280k.

Then offer 280.

Brown_Eyed_Girl

If other properties in the same street went for less I'd be asking the EA about the reason for this one is "worth" more.

Ultimately if you're not happy paying that price, don't. your lender would get someone to value it anyway before theyd stump up any money, and they only give you what they think it's worth

stardust2000_uk

Thanks all, I think I was nervous because I assumed that our first offer would be rejected as they'd expect us to negotiate? I'm trying to get the balance right between making a good investment decision and getting a house I love. I'm risk averse so the whole thing is a bit uncomfortable, I suppose I better just lean into it!

emmatthews

Not impossible, but I would hazard a guess that most vendors wouldn't sell for 280 if they've been advised to market at 335.

If you are only willing to pay 280 then offer at 280 but expect to be rejected! If you go in much lower than 280 with a view to negotiating they are not likely to take you seriously (in my opinion).

jacko74

If your research and figures are accurate I wouldn't even contemplate trying to make an offer... the vendor is obviously so deluded and greedy you've got no chance of them accepting a realistic offer in line with sold prices of other comparable, local properties.

Edit-Just noticed your link to the property and even £280k looks far too high given it's condition and what others have sold for... that asking price is just insane!

eddddy

jacko74 wrote: »

... the vendor is obviously so deluded and greedy you've got no chance of them accepting a realistic offer...

I'd hesitate to blame the vendor. It's far more likely to be the EA that proposed the asking price, and the vendor just agreed to what the EA said.

But if you're correct, and it is hugely overpriced, I agree that it will take a while for the vendor's expectations to be reset.

(Some EAs will purposely overvalue to get the vendor to sign up, then use a 20 week tie-in to gradually wear the vendor down on price expectations.)

LottieLou

This is on my favourite road in sale. I would have LOVED to live on it, but ended up abandoning the sale property market rat race. I do not understand your logic how a house needing a new bathroom and kitchen is enough to offset the value of 3 good sized doubles, a cellar (potential for more living space) AND period features in an area such as Sale. (Not forgetting a road that is actually ok to park on, with the canal at the bottom).

There is no real up to date sold prices on rightmove for urban road, the latest being 2013 (please correct me if I am wrong). I know from personal experience that property values in this area have increased considerably since then. If I put myself in the vendors position, I would not sell that house for anything less than 300k but it's always worth a cheeky offer, worst he can say is no!

jacko74

LottieLou wrote: »

This is on my favourite road in sale. I would have LOVED to live on it, but ended up abandoning the sale property market rat race. I do not understand your logic how a house needing a new bathroom and kitchen is enough to offset the value of 3 good sized doubles, a cellar (potential for more living space) AND period features in an area such as Sale. (Not forgetting a road that is actually ok to park on, with the canal at the bottom).

There is no real up to date sold prices on rightmove for urban road, the latest being 2013 (please correct me if I am wrong). I know from personal experience that property values in this area have increased considerably since then. If I put myself in the vendors position, I would not sell that house for anything less than 300k but it's always worth a cheeky offer, worst he can say is no!

The latest LR figures for that postcode don't really agree with your opinion. You're not the vendor are you?;)

stardust2000_uk

eddddy wrote: »

I'd hesitate to blame the vendor. It's far more likely to be the EA that proposed the asking price, and the vendor just agreed to what the EA said.

But if you're correct, and it is hugely overpriced, I agree that it will take a while for the vendor's expectations to be reset.

(Some EAs will purposely overvalue to get the vendor to sign up, then use a 20 week tie-in to gradually wear the vendor down on price expectations.)

I think you're right with this as the seller has already got an offer accepted on another property with the EA and this has only just come on the market with them so it's likely they got him on the books with the promise of a high price.