How much to offer?

vinny048

Hi all, 1st post and a 1st time buyer so please bear with me if I ask any silly questions....

I have seen a property which has dropped its original asking price by £20k. The EA have said its because the sellers have part ex'd and the finance company are trying to sell it quickly.

The EA has ask my buying position which is a 1st time buyer with a large deposit and a mortgage provisionally agreed. I believe this puts me in a good position compared to those in a chain but it seems a bit to god to be true. So the questions i have are;

Is it quite normal that finance company's drop prices for a quick sale?

Is it risky offering less than the asking price as I'm not in a chain? (yes I know I'm being cheeky here)

Thanks in advance

kilby_007

vinny048 wrote: »

Hi all, 1st post and a 1st time buyer so please bear with me if I ask any silly questions....

I have seen a property which has dropped its original asking price by £20k. The EA have said its because the sellers have part ex'd and the finance company are trying to sell it quickly.

The EA has ask my buying position which is a 1st time buyer with a large deposit and a mortgage provisionally agreed. I believe this puts me in a good position compared to those in a chain but it seems a bit to god to be true. So the questions i have are;

Is it quite normal that finance company's drop prices for a quick sale?

Is it risky offering less than the asking price as I'm not in a chain? (yes I know I'm being cheeky here)

Thanks in advance

It's not at all cheeky to offer below the asking price. Forget the bit about them lowering the price for a quick sale. The reason they've dropped the price is because they couldn't sell it at the original asking price, likely because it was too high. The estate agent's slant on it is waffle. Offer what you think it is worth. If you can afford to risk losing it and/or you're sure there's no other interest then offer low, stick to your guns and sit and wait for them to get back to you. This has worked for me on a couple of occasions and if the seller is motivated (which in this case if the estate agent is to believed it sounds as though they are) then you might not be waiting very long. If you really have to have it, then pay the asking price if you think it's worth it.

Crashy_Time

vinny048 wrote: »

Hi all, 1st post and a 1st time buyer so please bear with me if I ask any silly questions....

I have seen a property which has dropped its original asking price by £20k. The EA have said its because the sellers have part ex'd and the finance company are trying to sell it quickly.

The EA has ask my buying position which is a 1st time buyer with a large deposit and a mortgage provisionally agreed. I believe this puts me in a good position compared to those in a chain but it seems a bit to god to be true. So the questions i have are;

Is it quite normal that finance company's drop prices for a quick sale?

Is it risky offering less than the asking price as I'm not in a chain? (yes I know I'm being cheeky here)

Thanks in advance

Dropped 20k from what though? Not really a bargain if you are still over-paying and could get a bigger discount later?

Cakeguts

You have to think of it like this. A house is only worth what someone will pay for it. It isn't worth what an estate agent or a finance company guess it is worth. So it looks as if at the original price no one thought it was worth buying. They have dropped it 20k so see if anyone offers on it now.

What you need to do is to try to work out if this price is more likely to get the place sold. The way you do this is to have a look at the sold prices of other houses like this one in the local area. Do not go by asking prices compare it to the actual sold prices. Both Rightmove and Zoopla have actual sold prices of houses. Your comparison has to be with similar houses in the same area. The actual sold prices will give you an indication of what someone might be likely to pay for it.

There are a lot of people who are not in chains. First time buyers, cash buyers, (those with the whole price of the house in the bank) and people moving from renting so being a first time buyer doesn't give you a huge advantage. The size of the deposit is not relevant if you still need a mortgage.

Crashy_Time

Cakeguts wrote: »

You have to think of it like this. A house is only worth what someone will pay for it. It isn't worth what an estate agent or a finance company guess it is worth. So it looks as if at the original price no one thought it was worth buying. They have dropped it 20k so see if anyone offers on it now.

What you need to do is to try to work out if this price is more likely to get the place sold. The way you do this is to have a look at the sold prices of other houses like this one in the local area. Do not go by asking prices compare it to the actual sold prices. Both Rightmove and Zoopla have actual sold prices of houses. Your comparison has to be with similar houses in the same area. The actual sold prices will give you an indication of what someone might be likely to pay for it.

There are a lot of people who are not in chains. First time buyers, cash buyers, (those with the whole price of the house in the bank) and people moving from renting so being a first time buyer doesn't give you a huge advantage. The size of the deposit is not relevant if you still need a mortgage.

Good advice, but I would say that in this market cash buyers will be driving hard bargains, they won`t be "giving it away" (the cash)