FTBs - What to offer

Charmer2

We are FTB ers with a 10% deposit and an AIP in place. The house we have seen seems to tick all the boxes but unsure what to offer initially as its been on and off for the market for over a year with different prices according to zoopla. Any suggestions what to start at ?

March 2015 - £209,950

Sep 2015 - changed EA offers over £200k

June 2016 - EA changed again back to £209,950

They are not in a chain either.

Regards

Rob

System

As a FTB, I have been using the rule of 90% of the asking price as a starting offer then negotiating from there. My maximum offer on any house is 94% of the asking prices - regardless. According to the Land Registry, majority of the sold prices were 94-96% of asking price. I do understand in some areas of the UK that houses do sell for more than the asking price, I believe this is down to mainly affordability and restricted supply.

csgohan4

been on for a year , means over priced. I would start at 180 and go from there.

eddddy

mrlegend123 wrote: »

According to the Land Registry, majority of the sold prices were 94-96% of asking price.

Are you sure? How do Land Registry gather data about asking prices for property?

System

Due to economic uncertainty, I would start with a offer of £180,000. The maximum offer would be £188,000. I do not understand why the EA would increase the price back up to £209,950 - ???.

ukcarper

Without knowing house it's difficult to say, you need to compare it to similar properties for sale and those that have sold. If it's been on the market continuously for a year it would appear to be overprice or have something that is not obvious wrong with it.

System

Land Registry don't gather information about asking prices, other property sources do. Accurate property sources use Land Registry data to compare asking prices with sold prices, It is quite interesting. I know I shouldn't have used the saying according to...

iantojones40

I've seen quite a few examples of prices being reduced, property still doesn't get any interest so the vendor has a foot stamping tantrum and whacks the price right back up again, a very clear sign of an irrational, stubborn and deluded vendor.

Also being on the market for a year or more isn't a particularly good sign of it being a genuine and realistic vendor.

I suspect you might find this one will be more trouble than it's worth but I suppose there's nothing wrong with putting an offer in as long as you don't allow yourself to get too emotionally attached.

ukcarper

mrlegend123 wrote: »

Due to economic uncertainty, I would start with a offer of £180,000. The maximum offer would be £188,000. I do not understand why the EA would increase the price back up to £209,950 - ???.

Offers over £200k and £210k are in the same ball park offer £205k at both prices and have a very good chance of offer being accepted.

iantojones40

ukcarper wrote: »

Offers over £200k and £210k are in the same ball park offer £205k at both prices and have a very good chance of offer being accepted.

Just because >£200k and £210k happen to be in the same ball park doesn't mean that's what the property is worth and the evidence suggests it's not.

System

iantojones40 wrote: »

Just because >£200k and £210k happen to be in the same ball park doesn't mean that's what the property is worth and the evidence suggests it's not.

I agree, why would you pay over what the property is worth? I believe this type of behaviour drives up house prices.