How much to offer

navdeepsingh24

i am first time buyer and dont know how much i should offer, i like the below property on rightmove : property number 48985808

please search any property on rightmove and the replace the number at the end of url with 48985808.
please help me put an offer.

spadoosh

I'd bid £3837 as thats all i have.

glasgowdan

I don't know what property is worth in that area. But I'd allow £30k for upgrades, renovation and furnishings.

The loft conversion appears to have a very low ceiling.

What's the bedroom in the hallway all about?

I think I'd be looking at these first:
http://www.rightmove.co.uk/property-for-sale/property-52847678.html
http://www.rightmove.co.uk/property-for-sale/property-42492531.html

sheff6107

£400k as a first time buyer is pretty generous!

Offer depends whether you're a cash buyer or are getting a mortgage, how much others on the same road/area have gone for, the motivation and situation of the seller etc. etc.

We don't know if the house is worth £400k or whether it's massively over or under priced.

If you thought it was worth every penny of £400k you might go in at a cheeky £340k for cash, 370k for mortgage as a starting point. I'd do some research first though.

lincroft1710

glasgowdan wrote: »

I think I'd be looking at these first:
http://www.rightmove.co.uk/property-for-sale/property-52847678.html

That is definitely one strange property! 2 x 1 bed bungalows, one with massive lounge and dining room and 3 bathrooms one off the utility!!. Garages at either end also.

Cakeguts

It isn't a 4 bed house. It is a 3 bed with a loft conversion. How much do 3 bed detached houses fetch?

Alpaca

Here's how I'd approach this ...

1) What can you find out about the market in that area for that kind of property?
2) Based on similar examples, does the asking price look right?
3) What have similar properties actually been selling for compared to the asking prices they were listed at?

Corresponding to each of the above:

1) The local market.

The average asking price for a 4-bed property in DH4 is £254k and it's on the market for 255 days. A couple of more specific examples:

- North View Terrace. This was mentioned earlier in the thread but the price has been reduced from the one shown on Rightmove. It's a 4-bed detached bungalow, originally listed in Feb 2015 at £395k, but reduced to £350k around October last year
- Shop Row. This is a 5-bed detached house (not bungalow), originally listed in Oct 2015 at £360k, but now "realistically priced" which presumably means reduced from the original price. I did a bit of poking around and found some evidence of the reduced asking price being around £340k.

So properties seem to be sitting around unsold for quite a long time and subject to decent reductions. In fact, the Frederick Gardens property that you're looking at was itself originally listed at £465k. All of this suggests that, as a buyer, you're in a strong position and prices are, if anything, likely to be subject to further reductions.

2) Asking price.

With the above examples of a 4-bed bungalow and a 5-bed house both sitting at asking prices of around £350k, £400k looks on the high side for an asking price for the property you're looking at.

3) Selling prices vs asking prices

5 minutes' drive away from Frederick Gardens, this 5-bed detached house in Shummard Close sold in August for £385k having been advertised at an asking price of £425k. The one next door sold in April last year at £300k having been advertised at £325k. In other words, they sold for £40k and £25k below asking price respectively.

It seems like the prices that similar properties actually sell for are often at a reasonable discount to asking prices. So even given a "fair" asking price somewhat below what is currently being asked, you could still offer below that.

If it was me, I'd think Shop Row looks attractive and you could reasonably put an offer at 25k below asking at £315k. I know there'll be other considerations, but given that Shop Row is a 5-bed house, I'd think there's a strong case for offering quite a lot below what they're currently asking for Frederick Gardens.

The final considerations, as others have mentioned, are to do with your status as a buyer. As a first time buyer you don't have a chain which puts you in a strong position with both reduced risk of the deal falling through and likely a quicker completion timeline. Beyond that, being a cash buyer would be a huge plus, but unlikely for a first time buyer. If you're getting a mortgage, the key metrics are the size of the mortgage (loan-to-value ratio or conversely the size of your deposit as a percentage of offer price) and the affordability (the mortgage size as a salary multiple).

Hope that's helpful.

navdeepsingh24

I am not sure how should i thanks you, you kind of opened my eyes and made it very easy for me to put an offer forward. I did not want to be rude by putting a lower offer but now i can do that with confidence. This is the best advice i can ask for. thanks a ton dear for spending time to help.

cashbackproblems

the London market (especially in dumps like Heston) is falling you would be better off waiting or making a "silly" offer.

Alpaca

navdeepsingh24 wrote: »

I am not sure how should i thanks you

There's a little "Thank you" button under each post which you can click if you found the post helpful