Mortgage offer @ right level?

Susu75

Good morning All,


I recently viewed a place and am now looking to put an offer in. It has a guide price of £459,950. My ceiling is £439,950. I am thinking to put in an initial offer of £421,950. Is this a reasonable offer?


The property has only been on the market for a week and in a very desirable location, so I'm looking to move quickly.


Given my maximum budget of £439,999, does my initial offer give enough room to negotiate or should I start lower?


This is the first time I am doing this (first purchase was through a Housing Association on a shared ownership scheme), so didn't have to go through this stage.


Appreciate your thoughts and advice. Thanks

Dan-Dan

Who really knows , offer what you think its worth but it appears just from the limited info you give re area etc that you might not be able to afford this house

glasgowdan

I agree - houses in desirable locations are easily getting the guide/asking prices, especially in that price bracket as there are a lot of families with that kind of money looking for places to settle.

Susu75

Thanks for your responses. Your points are noted.


I just wanted to get a feel on whether the offer would be viewed as insulting....and if it was reasonable with only another £17k to negotiate.


I do have a decision in principle to borrow up to £455k, but have decided to cap my budget @ £440k.


Will take a chance and if it's not this one, another will come.


Thanks again for your responses.

Dan-Dan

You can only try , people shouldnt be insulted , after all its a business transaction , but as we all know its bleeding emotional as well!

Good luck

cashbackproblems

I agree if its anything like the South East someone will pay the asking price or above, for such a low offer to be accepted it should be in a very undesirable location/condition which I doubt is the case.

If anything the EA will think you a time waster and you need them on side for future properties

Cakeguts

If it says guide price then that usually means that they will only accept offers in the region of that price or offers over the guide price. This means that this house is actually too expensive for you even at your limit. If you are thinking of offering £421,950 it might be an idea to wait a week or so then you might get a better idea of what other offers are being made in which case you could save yourself some effort.

In a popular area you will need to make a much higher offer in order to be taken seriously. If you don't think this house is worth what it is on the market at then look for something cheaper.

Susu75

Thanks everyone, my offer has now been accepted. I made the original offer which the seller rejected but went in higher at £442k.


They accepted as they are quite keen to move, and given my situation of being able to sell my flat quickly to a first time buyer through the HA, they decided to go with me.


Here's hoping it sticks all the way to completion. Thanks again.

glasgowdan

Well done! I'm surprised... make sure it stays off the market now so they don't get a cheeky higher offer from someone!

Susu75

Thanks Glasgowdan


I did ask them to take it off the market and can only hope they do.