Opinions on offering a house OIEO

Prothet_of_Doom

giddyG2001 wrote: »

Any opinions


Met with the vendor who showed me round who said she would rather it go to a first time buyer.

BullCarp.

Vendor will look at the offers and balance the offers with the likelyhood that it will go through quickly and cleanly.

BtL investors often don't like houses which are too perfect, as they can't get them cheap enough, BUT they might be buying with cash. But probably not.
So, get a Lender to give you a decision in principle, and make one offer in writing. Explain that this is your best offer, and unless something changes you actually can't go higher.
Remember that if you over offer the lender might not agree it's worth so much. I'd go in at £125K

Prothet_of_Doom

Ms_Sophia wrote: »

Can I ask if it's standard to make an offer what are below the price £XXX when a property is marketed at "OIEO £XXX"?
Surely, I understand that there is a number of factors that any buyer takes into account, such as how much they liked the property, and how many they've seen already and how this one is better for them, the sold prices in the postcode/on the street etc.

But in general - if a property is marketed at "OIEO £XXX" - doesn't it mean that the owner expect it to be higher than this figure? Just trying to understand the principle.

A good estate agent will convince the buyer that at this price it's a bargain, and try and use emotional buttons that price becomes irrelevant. Estate agents started to hate my clinical approach to buying for letting. Will it give the right return? will someone want to rent it? Is it going to fall down?

Just about to Exchange (should have been Friday) on a house that was marketed initially at £147K. I think that was because that's what they paid in 2007 at the peak. Then dropped to £145, then £135. We were gazumpted on another house, at £105K, and had set a limit of £115K. But this was bigger and in a nicer area, so we did some sums on excel, and decided to look at all the other houses between £115K and £140K but decided then our max was £130K.
So when we viewed this house, we knew that offering £130K was a gamble, but we plan to rent it out so not looking for something we love, just had to meet certain criteria of lettability. They accepted it. Exchange should be Monday.

The very first house we looked at was £150K, when similar houses had sold for £160K, but this was a wreck. I suggested that it would cost £20 to £25K to "save" it, and suggested £120K to the agent.
Nine months later they have another agent, an asking price of £130K and it's SSTC.