Vendor suggesting price during viewing: what to do?

Gingka

Hi all,
Very excited to be part of the community!

FTB here, agreement in principle in place, ready to move out from rented accommodation ASAP.
Fell in love with a property with a guide price of 210-220k. Similar properties on the same road are going with O.I.R.O or O.I.E.O 200k (with LONGER lease, at least 10-15years+ the one that I am considering) but need work i.e new kitchen/bathroom, potentially new carpet.

During the viewing the vendor mentioned an offer of 212k which have been declined (also, the property has been on the market for less than a month and vendor is stuck in a chain). They said that a compromise of £215k would be an accepted offer. Would 3k really make such a difference?! Confused on what to do next! £215 sounds a bit mean considering that the neighbouring properties are going for around 200 (although in need of some work internally!)

Any suggestions welcome! Thank you everyone:beer::T

kinger101

Offer what you think it's worth. It's quite possible the vendor is talking out of his bumhole.

TamsinC

the vendor knows what they will take - whether anyone offers it is another matter - depends how much you want to house as to whether to offer what they want.

Davesnave

Offering slightly more than likely comparables may be largely irrelevant on a property that's appealing to you and intended to be lived in for some time.

Imagine someone else offers £215 tomorrow and the property goes SSTC. How do you feel?

getmore4less

What the vendor has done is try to get you to set your expectation higher than their advert does and it seems to have worked.

You had a guide of 210-220 which you may have widened with thoughts like I wonder if they would take less than 210 but if not then you would have probably been thinking how much over 210 do we need to go.

now you have a lower limit in your head of 212+

As well as asking prices you need to look at SSTC prices and the follow through real sold prices.
See what others are buying and what is not selling quickly and ask why.

There is loads of info out there to analyse what is going on use it.

shortcrust

People often post on here with anxieties about the lower price of 'similar' properties, but these properties never seem to be similar enough for them to consider buying! Is it just that the others need more work? I bet there are more reasons.

For my house I probably paid 10 to 20k more than 'similar' properties nearby. But I have an amazing view and a private garden which gets full sun and the sunset. As I sit sipping my wine of an evening I've never once wondered if I paid too much.

davidmcn

Never really understand the point of guide prices with a range - surely it's an indication that they'll accept the bottom end of the range?

loveka

The nearby houses aren't similar if they need money spending on them! A new kitchen and bathroom and carpets would be at least £10k. That would be using cheap fittings.

ACG

When you say the other properties have longer leases what are we talking?

If you are saying some have 500 year leases and others have 510, then realistically there is no major difference there. If we are talking 70 and 80 year leases then it is a bit difference.

bouicca21

Guide prices and OIRO or OIEO were common during the London bubble and basically meant that EAs weren't able to predict an accurate price because the market was moving so fast. What is the market like in your area?

Why are there multiple properties for sale in the same road?

stator

Don't buy a leasehold, buy a real house that you can afford