FTB: How Much Should We Offer

pob100

We are looking to bid on a ground floor flat which has asking price of 199,950.
Owner originally accepted an offer of 196k in January, but buyer pulled out because of some rising damp. Owner took it off market, and put it back on a month ago. Damp proofers say it will take 1,300 to put right. Owner is keen to move, and we are FTBs.

How much should we go in at?

kinesin_2

i wouldn't offer, to start with any more that 170K :eek:

average selling price in 93% of asking.. + plus work that needs doing.. plus it's falling market. Max out at 180K and don't even think about going higher.

Your a FTB.. they are keen to sell - you have the cards. What's the price like relative to others in the area?

pob100

Asking price is pretty standard for the area, but apart from the damp it is in well above average condition. Estate agents are generally telling us that flats in the area are going for 2-3% below asking, but obviously cant trust them. A mortgage advisor in the area told us that some properties were going for up to 10% less than asking.

meanmachine_2

Currently it's all about understanding the motives of the vendor.

If they've put it on the market just in the hope of selling it top dollar, they're likely to be belligerent, thinking that, in 12 months' time, "it'll be worth more anyway".

Until the house price indices all start turning negative, they'll continue to think that.

And then, to be honest, I think many people will just take their houses off the market and sit tight.

If they're keen to move, then you can make an offer around 90% off asking price I'd suggest.

However, I do think that a quality property in a quality area will still sell, eventually. It's those overpriced houses and flats in the less aspirational areas that will suffer should the market turn red.