First-time buyer, put an offer in that was rejected - next steps?

Leard91

We are looking at a really nice 3 bed in Cardiff, CF5 2QY.

It's on the market for £280k. However they bought it for £203k in 2015, and looking at other 3 beds in nearby postcodes, this feels overpriced. I struggle to believe it's gained £77k in 4 years.

Just to clarify. Every other 3 bed in the area is either under offer for around £250k or has been sold for a similar amount.

We have offered £245k as our initial offer, knowing it'll probably be rejected. However other houses around the area are going for about £240-260k.

We are willing to go as high as £260k, however the vendor wants £270k according to the estate agent.

Should we go in with another offer of £250/255k or straight to £260k?

foxy-stoat

If you want it then offer what you can afford - £260k tell them best and final offer and be prepared to walk away. House values go up so try not to get hung up on how much money they paid for it and how much "profit" they will make. Base your offer on the market and what else is available.

need_an_answer

I'm in agreement with Foxy...offer what you feel it is worth,however if you have a top figure of £260k and that's below what the vendors want if you are comfortable with that offer make it....a vendor doesn't want to see a potential buyer put in offers that are in small increments.


I tend to feel that vendors don't want multiple small increases,they have a figure in mind,you have a figure in mind go to that and no more.


2 offers is a reasonable amount to make,maybe a third but after that the seller may think you are just stringing them along.

The sold price from 2015 is irrelevant to you...the cost of the house now is your priority,as you will no doubt find out if and when you come to sell at a later date and your buyer is too hung up on what you paid for the property!

Linton

You made a mistake by making your first offer of less than 90% of the asking price too low. It was obviously far lower than would be acceptable and so the vendor rejected it out of hand. If you had bid closer to what you were prepared to pay the vendor would be more likely to come up with a lower price which would give you a basis for negotiation.

As things stand I agree with foxy-stoat and suggest you make a best and final offer. Should the vendor says no, look elsewhere but leave the offer on the table. If the house really is overpriced and the vendors expectations unrealistic they may contact you in a few months time.

Leard91

They've had no offers so far and there have been interested parties. They also had an open house without a single offer on it.

Looking at the rest of the market, £250-260k seems a fair price. There aren't any other houses around the area that have sold for more than £260k, and the current ones under offer are going for between £240-260k.

I agree that we go in with £260k and then let them stew for a while. Hopefully they'll realise that £280k is too much and come down a bit.

SmashedAvacado

Offer 258
Then 259
and then 260 and say you're literally unable to go higher at that point
Leave it on the table for a couple of weeks if they say its too low
it might be enough

happy35

If you think it is over priced I would offer what you think it is worth and walk away if it isn’t accepted. If it is over priced it will still be for sale in a few months time, when the vendor may be more open to offers.

As you are FTB you are not holding up a chain etc or feel pressured to find something immediately so can keep looking for another house, and snap one up as it comes onto the market.

I recently walked away from an over priced house and bought another one, the original house is still for sale whilst those around them are selling within a week or so.

Cakeguts

Leard91 wrote: »

They've had no offers so far and there have been interested parties. They also had an open house without a single offer on it.

Looking at the rest of the market, £250-260k seems a fair price. There aren't any other houses around the area that have sold for more than £260k, and the current ones under offer are going for between £240-260k.

I agree that we go in with £260k and then let them stew for a while. Hopefully they'll realise that £280k is too much and come down a bit.

Just remember that the vendors do not have to accept any offer. Some vendors are totally unrealistic. Also remember that if you need a mortgage the bank may not offer the full amount you need to buy the house if your offer is very high. You can make up the difference in cash if you have saved enough for ths purpose.

hazyjo

Previous thread for info:


https://forums.moneysavingexpert.com/discussion/6016327/first-time-buyer-found-a-house-what-should-be-look-to-offer

Cakeguts

Who do the two garages next to the drive to the house belong to?

gwynlas

The estate agent sold another 3 bed in Danescourt on at 229K so I think you should ask them why this one is 50K more?
Obvious points are refitted kitchen and new flooring but you are right to query price, however only recently on market so buyer not open to low offer.
Decide what you ccan afford and try to get EA on board with your FTB possition.