How low would be reasonable to offer?

ceb1995

We're first time buyers and viewed two houses on the same street today, both on the market at the same price of £159,950 which is at the utter top end of our budget. One property has a conservatory, garden in brilliant condition and big driveway and the agents felt it was a very reasonable price so we know we couldn't offer that much lower.
So considering the other property, with no conservatory, a small garage and the kitchen and bathroom needing modernising we're wondering whether offering 10k lower ( which we'd be more comfortable at) would be reasonable?

Crashy_Time

Do you have links?

nicos42

Hi I m a first time buyer and I got a 5% reduction. I started with 10% lower on a great house and location. I think first time buyers have the advantage now as rare commodity because of the economy. Don't listen to estate agents. If you love the house put an offer in. Look at zoopla and rightmove prices history on that road or nearby. For the price you mentioned I think something like 145500 is a reasonable start but I m no expert
Also if the Estate agent reminds you that the chancellor gave us no stamp duty I reminded mine that is a helpful hand to us to no to the vendor....You might find that in some places the estate agents are trying it on. I m not a great fan of estate agents at all

ceb1995

Crashy_Time wrote: »

Do you have links?

Yes
http://www.dewhursthomes.co.uk/more-details.php?id=27340484

http://www.rightmove.co.uk/property-for-sale/property-69195062.html

JoJo1978

You won't know how reasonable an offer is to a vendor until you submit it and hear feedback from them.

EA work for the seller often on a % fee so their incentive is towards encouraging you to offer as high as possible.

Things to consider:
* How long has each house been on the market?
* Have other people made offers that were rejected?
* Is it unusual that 2 on the street are up for sale?
* What are the circumstances of each vendor?
* How have sold prices been trending in the area?
* Have these houses been on market at higher price?
* What is the value of a conservatory, garage to you?
* What would it cost roughly to bring k + b to your std?
* What is the very most that each house is worth to you?

You need to offer lower than your max price to give yourselves wriggle room to go up to your max. You can offer whatever you want to, the EA has an obligation to pass all offers to the vendor.

ceb1995

nicos42 wrote: »

Hi I m a first time buyer and I got a 5% reduction. I started with 10% lower on a great house and location. I think first time buyers have the advantage now as rare commodity because of the economy. Don't listen to estate agents. If you love the house put an offer in. Look at zoopla and rightmove prices history on that road or nearby. For the price you mentioned I think something like 145500 is a reasonable start but I m no expert
Also if the Estate agent reminds you that the chancellor gave us no stamp duty I reminded mine that is a helpful hand to us to no to the vendor....You might find that in some places the estate agents are trying it on. I m not a great fan of estate agents at all

There aren't any sales in the past year or so for the same amount of bedrooms, 18 months or so they went for around 10-15k less for nicer houses it seems. There haven't been any cheeky comments from agents about stamp duty yet, it's certainly great timing that they announced it just as we're looking to buy.

nicos42

Hi Ceb when have you started looking? Lovely house and conservatory. if they have not been many sales in the area for a year I think is agents trying it on. I d put an 10% off offer or hold off for something better it took me nearly a year to find the one house and I had two offers accepted that did not go trough because I was gazumped hence my love for the EAs

ceb1995

JoJo1978 wrote: »

You won't know how reasonable an offer is to a vendor until you submit it and hear feedback from them.

EA work for the seller often on a % fee so their incentive is towards encouraging you to offer as high as possible.

Things to consider:
* How long has each house been on the market?
* Have other people made offers that were rejected?
* Is it unusual that 2 on the street are up for sale?
* What are the circumstances of each vendor?
* How have sold prices been trending in the area?
* Have these houses been on market at higher price?
* What is the value of a conservatory, garage to you?
* What would it cost roughly to bring k + b to your std?
* What is the very most that each house is worth to you?

You need to offer lower than your max price to give yourselves wriggle room to go up to your max. You can offer whatever you want to, the EA has an obligation to pass all offers to the vendor.

Thank you for all your pointers. There's no offers on currently, the one that has work that needs doing has no chain as they're looking to move into a smaller rented property and the other is seemingly being part exchanged for a new build. It's a reasonably large street so seemingly not unusual.

JoJo1978

OP, I forgot to say think about how urgent your need to move is. Right now the stock of houses on the market will be its natural lowest across the year. If you aren't in a rush, wait until next spring when houses that have been taken off the market for Xmas are out back on. And when new sellers who decide over the holidays to put themselves on the market.

Cakeguts

The one on rightmove with the green garage door is on a wider plot.

ceb1995

nicos42 wrote: »

Hi Ceb when have you started looking? Lovely house and conservatory. if they have not been many sales in the area for a year I think is agents trying it on. I d put an 10% off offer or hold off for something better it took me nearly a year to find the one house and I had two offers accepted that did not go trough because I was gazumped hence my love for the EAs

we've been looking a month or so now. I'm not set on having a conservatory, it just so happens many in the area happen to have them. 10% off seems like a good place to start