First-time buyer, found a house, what should be look to offer?

Leard91

We're first time buyers looking to buy in Cardiff. We've found a 3 bed we really like for £280k. The place sold in 2015 for £203k and so I struggle to believe it has gained £77k in value in 4 years. Granted the place has all new flooring, a relatively new kitchen and bathroom and we wouldn't have to do much at all in terms of refurbishment.

Zoopla estimates the house at £232k. There's a 3 bed in a nearby postcode that sold in March for £250k, and another that sold in August 2018 for £246k.

Just wondering what you would consider a fair offer that isn't too low? I was thinking £240k to start off.

Apparently I'm not allowed to post links, otherwise I would leave a link to the Rightmove page for it.

Surrey_EA

Leard91 wrote: »

We're first time buyers looking to buy in Cardiff. We've found a 3 bed we really like for £280k. The place sold in 2015 for £203k and so I struggle to believe it has gained £77k in value in 4 years. Granted the place has all new flooring, a relatively new kitchen and bathroom and we wouldn't have to do much at all in terms of refurbishment.

Zoopla estimates the house at £232k. There's a 3 bed in a nearby postcode that sold in March for £250k, and another that sold in August 2018 for £246k.

Just wondering what you would consider a fair offer that isn't too low? I was thinking £240k to start off.

Apparently I'm not allowed to post links, otherwise I would leave a link to the Rightmove page for it.

If you state the postcode someone will be able to find the house and put a link up for you.

And ignore Zoopla estimates, they're next to useless.

need_an_answer

What is the maximum offer you would make?


starting at £40k below the asking price does seem a little optimistic and much will depend on how much the vendor wants to sell the property for and how long its been on the market.


Making a low offer is likely to be rejected you need to make sure your second offer if there is to be one is closer to the amount of your budget rather than just a small increment.


Personally I wouldn't suggest you go more than 3 offers so you need to work out the increments to reflect the differences between the first low offer,your maximum offer and the asking price

hazyjo

Check out how much other properties have increased (sold in the same two years). I'm not surprised by a £77k increase in 4 years in Cardiff. If it's £40k pricier than other things, then it's overpriced. If it's level with similar properties, then surely it's priced about right. Roads in Cardiff can vary drastically so try to make sure you're comparing like with like re sold properties.


My last house price nearly doubled in 3 years, and I think the Cardiff market has been pretty active with quite hefty price increases.


If it's that overpriced, it won't sell. I would be waiting for them to drop the price before offering.


To expect anything over 10% off is, IMO, 'optimistic'.


Make sure you're not buying 'the best house in the worst street'. Don't be too fooled by glossy interiors. Sounds like, if you think other houses are worth around the £250k-ish level, maybe offer on one of those and add the gloss yourselves.

gettingtheresometime

Bear in mind that there are now no tolls on the Severn Bridges and have pushed up house prices considerable in Chepstow/ Newport areas which I have no doubt will have affected Cardiff prices as well

cattie

Take no notice at all of Zoopla, it plucks prices out of thin air. To do a fair comparison you need to find out the actual sold prices of similar properties over the past few months & if the house you're interested in has been refurbished or done up recently & is great move in condition, then you know the realistic price of the one you're interested in should have a higher price.

MovingForwards

https://forums.moneysavingexpert.com/discussion/6017784/first-time-buyer-put-an-offer-in-that-was-rejected-next-steps

OP, it's so much easier for us to keep up if you have one thread with the info....