Negotiating direct with the seller & best opening offer

cheekeemonkey

We are contemplating putting in an offer for a house that is being marketed by www.housenetwork.co.uk

Since the first viewing we have been talking direct to the vendor rather than anyone at housenetwork as it is effectively a private sale.

The house has been on the market for c.12 months and was originally priced at £550k then reduced to £530k around February time.

The vendors moved area about 12 months ago and recently bought their new house. They rented this house on and off for the last few months but it is currently empty.

The house is an individual build so it is difficult to get a direct comparison but after first seeing this house over 6 months ago and 3 months of serious house hunting we have yet to see anything that is better as a total package.

We have found lots of houses that are better in terms of the house but with no garden/garage/poor area/location etc. so no other has the best of all worlds!

Our gut feel still tells us that the price is too high?! and we have that horrible £500k stamp duty change that will put another £5k+ on the cost if we don't get it for less than £500k

Apologies for my ramblings but wanted to set the scene...


Our thought based on the above is to go in with a bid of £480k/£485k and dependant on reaction move up to but hopefully not over the £500k. If it goes over £500k we thought of offering around £4-5k for chattels which we have checked with our solictor as they will be leaving carpets/curtains/wardrobes and a few other bits.

- Does this seem a 'good' opening offer/strategy?

- What advice would you give for dealing direct with the seller in terms of placing the offer/negotiating?

- Any other hints and tips?

We know that the house is worth what someone will pay etc. and that they can only say no but I guess we just want to get this right and get the best price but don't want to alienate the seller at the first hurdle!

:T Thanks for reading:T

mr.broderick

If I were selling for £550k and someone offered £480k I wouldn't alienate them, not in the current climate that's for sure.

Doozergirl

If you're worried by offerig direct then just use House Network. They are an internet EA, it isn't effectively a private sale. They will be very happy to act as the mediator even if it is just to relay messages.

I don't think your offers would be insulting at all. The fact that it has been on the market ofr such a time and that SDLT threshold is a big factor - addding £5000 to the price in the blink of an eye!

They should be accepting anything close to £500,000.

SquatNow

The house is only worth what someone is prepared to pay for it.

If no-one will offer them £550k, they will eventually be forced to accept less.

In the current market the longer they hold out the less they will get.

bluewater

Doozergirl is quite right about Housenetwork being an EA but they require the vendor to show people the house I'm not surprised yopu find yourself dealing direct with them. We sold using housenetwork and were happy with the service. But in our experience this doesn't go much beyond the relaying of messages. As a seller they just told us what had been offered (they do of course try to establish the sellers position etc) but you don't get much in the way of advice ar assistance that you might expect from a local EA. I'm know that our buyers felt the same - that they were just message takers. So I don't think your sellers will be getting much help from HN.

In our case we ended up dealing directly with the buyers which was no bad thing.

Of course people who choose to use an internet EA like housenetwork night be a bit more savvy than your average seller (they are certainly aware of what they are saving in EA fees).

Not sure that the above is a great help but I don't think you should feel reticent about offering £480

cheekeemonkey

All good advice so far - sounds as though £480 is the right opening offer...

Bluewater and Doozergirl - any tips/thoughts on how to pitch it direct with the seller?

My thought is to be clear and concise - something like....

"We have made a decision to place an offer on your property. As such we are in a position to offer £480k subject to a satisfactory survey. As we have said we are in a position to proceed immediately. Please let me have a response within the next 48 hours as we have another property that we are also considering."

Any further suggestions?

Thanks again

CM

cheekeemonkey

Hi

It's been a while but we offered £480k this week on the original selling price of £530k and he's come back and said the minimum they'll accept is £520k

Will ring later in the week (don't want to appear too eager) with an increased offer - I don't think I should move to more than £490k at this stage - thoughts?

I can't believe that £520k will be his final price and I also dropped in a point around stamp duty over £500k and that this was a real barrier for us - so at least he has "food for thought"


Any ideas, suggestions??

Thanks
CM

dolce_vita

This sounds like an opportunity to use the old "phantom buyers" trick.

Ask a few friends and family to arrange a viewing and put in offers lower than yours. This will spook the vendors if nothing else and they may then accept your offer.

Whatever you do, don't offer more too soon and certainly not over 500k.

good luck

merlinthehappypig

We are in a similar situation, looking at houses around the £500000 mark and not wanting to pay the extra stamp duty.

It's not possible to offer you any detailed advice as every house and seller is different. The house you are looking at might be on for the correct price, equally it might be on for much more than it is worth. Personally I think that any house on on or near £500000 is too much, but then I'm reluctant to pay that sort of figure!

We have seen some houses reduced from £649950 to around or just under the £500000 level and some on for £560000/575000 where they are hardly prepared to reduce at all. It depends on the seller's circumstances and the valuation in the first place. You need to make a decision on your own circumstances and gut feeling.

At this sort of price it doesn't really matter if you pay a bit over the odds if it's the right house for you and you can afford it - comparing like with like is almost impossible. That said, I can't make the decision either!

The way the market is heading it's very likely that they might bite your hand off in 12 months time at £480000, but it's equally possible that it might sell. If you aren't too bothered, stick out - if you like it then you may have to bite the bullet......

cheekeemonkey

chriseast

I agree with all that you've said - what with the HIP 'tax' and the prospect of 4% stamp duty it is over £20k down the drain and the £500k threshold is an extra £5k for the tax man :mad: in the same way as the guys out there going for a house around the £250k mark

I guess our aim is to ensure we have got the house at the best possible price and before anyone else - if that is over £500k then we have accept it and move on (metaphorically speaking as I couldn't do with the stress of moving again!) and just think of how we pay another £5k off the mortgage

The acid test for us is that we would be gutted if we lost the house - just wish ours had sold and we would be in a stronger negotiating position.

CM

chriserenity

cheekeemonkey wrote: »

I agree with all that you've said - what with the HIP 'tax' CM

Did you look at the EPC in the HIP out of interest?