Wondering how much to offer? -ftb

VJH1978

I've been looking for a house for a while now and have found one that I think is the "one". I'm a first time buyer so just want to check I'm doing the right thing!

It's a 2 bedroom end terrace in Pudsey, Leeds. It's on a corner, and has gardens to 3 sides, and a large drive which is gated. The house doesn't need any work.

The asking price is £124,950. 5% deposit will be paid as the vendors are buying a new build and as an incentive they have this offer so they can sell quicker. They are leaving carpets, curtains, blinds, most light fittings (the ones they are taking they will leave something there). They are also leaving white goods such as washing machine etc

The price minus the 5% is £118,702.

Should I offer the asking price considering that 5% deposit will be paid & that they are leaving things that I would otherwise have to buy, or should I offer lower. E.g offer for £120,000

All suggestions will be gratefully received. Thanks

Doozergirl

I should think that the 5% deposit paid would be on th econdition that you offer the asking price. No point in offering £120,000 if they're basically asking £118,702! I wonder how easy it would be for them to pay your 5% deposit if they are not a developer. Do you have a deposit yourself? If you do, then it will probably be easier to offer the 5% less. I suppose they are hoping to entice people with no depoist to speak of with that marketing ploy (if you can call it that!)

What have similar houses sold for?

VJH1978

I have a deposit already (more than the 5%). I would need to check the rules re the 5% deposit being paid. This is paid by the developer of the house that the vendors are buying. If I offered a couple of thousand that may be ok, but not sure!

Other houses in the area seem to be from 115K to 125K. the nearest in price to this house is one for 119,950, but doesn't have a drive or anywhere to park a car etc.

Doozergirl

The developer?! Go in lower! Offer them £110,000 and a quick or flexible sale!! Whatever they need. Remember that the asking price is £118,702 NOT £125,000. They are already offering a 5% discount - really. That deposit paid incentive is useless to you and that means you can take better advantage as you already have your deposit.

You can easily settle at a little more than £110,000 but you must hold your nerve.

I can't believe you wanted to offer £120,000

SquatNow

A quick 15 second google search on the leeds house market will answer your question... Leeds is probably the uk's biggest property disaster hotspot.
I've spent the last 2 years convincing my dad not to buy into the BTL market there.

Having lived in yorkshire for, like, 6 years, I can honestly suggest you offer arround 40k. Houses in yorkshire have suffered worst from speculation in the last few years, and will probably drop the fastest.

Walk away and wait out the crash... there are now about 2 flats for each person in the leeds area!

For the love of god, don't waste your money.

VJH1978

The reason why I was considering offering £120K was so that I'd be going in lower than the advertised asking price. They are offering 5% so this would actually be £114K.

The 5% deposit paid will still be useful even though I do have a deposit, as it will reduce the overall price, so I would have a smaller mortage.

People I've asked seem to say to start at 10% lower so this would be £112,455. So I could start at 112K. I don't think an offer of 110K would be accepted and if I did offer so low, they may think I'm not serious, and I could lose my chance on this house.

carpetbelly

Go in low, why wouldnt they take you serious? State you clearly are very serious, a FTB thus chain free with a sizeable deposit and can easily afford the propery but you're unsure of the market and are offering what you think it's worth. Why isn't a low offer serious? An offer is an offer atm, take advantage of a fluctuating market!

lypsey

You are insane , look .............

http://news.bbc.co.uk/1/hi/business/7061814.stm

DO NOT PAY ANYTHING TILL YOU WATCH THIS PROGRAM

The markets going to crash 40% , I have sold my house and am renting. I really believe this will happen

VJH1978

Thanks to Doozergirl and Carpetbelly for your useful advice. I haven't made an offer yet as I've been trying to weigh up all the options, but I think I will put in an offer tomorrow and see what happens!

lypsey

VJH
Did you watch the program ??

Are you still going to buy??

VJH1978

I watched the program. The prices that have been dropping so far seem to be related to the overpriced flats. People have been saying for years that the market will drop, but knew really knows.

It's my choice at the end of the day, and I asked for advice, not judgement.