Advice on opening offer

BSW89

Hi all,

We are first time buyers, currently renting and just looking casually. We saw a flat yesterday we liked. We've seen about 10 properties over the last 6 months and this is the first we've liked enough to make an offer. We've only viewed once but would struggle to view again quickly but did take a more experienced relative the first time for another pair of eyes. That relative is local so going to walk through the area at night to double check nothing concerning.

- 2 bed flat in greater London
- guide price £315k
- on the small side but great condition, lease length fine, area fine
- no chain - sellers have already moved and I don't sense any particular hurry to sell
- only just gone on the market, agent claims they've had 10 viewings already
- not that many recent sells nearby so hard to compare against other properties, but looking at the average sq ft price for a similar in that postcode the property should be closer to £250k!

315 is within our budget but we don't want to overpay - we were thinking of offering say 306, but read a good rule of thumb is 5% lower than asking price?

About us - first time buyers, currently renting with a break clause so can move whenever, decent deposit with no debts so shouldn't have an issue with mortgage, both in stable jobs etc so could potentially move quite fast.

Any thoughts on the offer to make?

Thanks

Cakeguts

There is no rule of thumb about offering 5% lower. You offer what it is worth to you. If it is popular it will sell for more and faster than if it is not popular. You base your offer on that and what it is worth to you.

hazyjo

BSW89 wrote: »

- not that many recent sells nearby so hard to compare against other properties, but looking at the average sq ft price for a similar in that postcode the property should be closer to £250k!

315 is within our budget but we don't want to overpay - we were thinking of offering say 306, but read a good rule of thumb is 5% lower than asking price?

Don't think you can base an offer or asking price on square footage in London. Prices vary wildly from one street to another, to what floor the flat is on, what the service charge/ground rent is, lease length, condition, what's nearby, parking, etc.

If you truly believe it's worth nearer £250k, why not look at other properties around the £315k mark.

If it's 'a bit on the small side' now, you'll prob be bursting at the seams in a few years' time.

Ask about the area on here and you'll find out what it's really like. A walk round one night will not tell you that. For example, one part of Ilford is totally different to another. Same with Eltham. Bits of both I'd not touch with a bargepole.

BSW89

Thanks both, that's very helpful.