Found a property we love how much should we offer?

[Deleted User]

I know how it goes, you offer based on how much you love the property and we do love the property BUT we also don't want to overpay. We are in Scotland the property is a very popular family orientated area in Glasgow. It is a 2 bed semi-detached  with a dining room/bedroom 3, 1930s build in need of a degree of modernisation but in a very good state of repair. Will need insulation and a new boiler. The kitchen and bathroom will need ripped out at some point. It has a driveway, garage and, huge back garden. Scope for extension as has surrounding properties have done. Overlooks a lovely park and is in close proximity to transport links. The family are looking for O/O 144K, Home Report is 160k. There are 6 notes of interest inclusive of our own thus far. 

sst1234

Impossible to give a decent opinion without a link to the listing.

D.L

If you want to buy a property you have to "overpay" almost by definition. Your bid needs to be higher than the other (currently) 5 who are interested in putting in an offer. Are you asking about how to have the second highest bid + £1,000? If anyone had that kind of foresight, they would be very rich.

riotlady

What can you afford + still have money for the jobs that need to be done immediately? 

davidmcn

D.L said:

If you want to buy a property you have to "overpay" almost by definition. Your bid needs to be higher than the other (currently) 5 who are interested in putting in an offer.

Which will almost certainly mean a price significantly above the Home Report valuation, so in that sense certainly "overpaying" as it will be above the valuation which the lenders will be using.

OP, have you asked your solicitor for advice? They might have a fair idea of what the local market is like. I also found it useful to look at recent sold prices versus their HR valuations (though I suspect recent months being rather odd won't make it easy to follow any particular trend).

Anamox

I'm a seller of the type of property you mention, one that everyone falls in love with.

I don't think the people who offered calculated their offers, they just put in what they thought was a good offer based on 1) their love for the place and 2) my asking price. In the end I didn't accept the highest offer (three offers were above asking price), I accepted the one that was likely to kick themselves into gear quicker and give me an easy sale. My estate agent told me "offers over" is a bit of a gimmick and recommended against it, as it just alienated the potential market and rarely achieved a sale actually over that amount.

Take their asking price and remove whatever you think is a valid amount to remove. At the end of the day unless you're a cash buyer if you pay £5k less, it won't equate to £5k in your pocket to do your odd jobs... if they say no, you're not disqualified from the race and you up the amount to the next increment you're still willing to pay. I've had people do this to and fro-ing many times and it didn't put me off them, in fact, it made me realise they wanted the house more than the others who offered once then remained quiet.

davidmcn

Anamox said:

Take their asking price and remove whatever you think is a valid amount to remove. If they say no, you're not disqualified from the race and you up the amount to the next increment you're still willing to pay. I've had people do this to and fro-ing many times and it didn't put me off them, in fact, it made me realise they wanted the house more than the others who offered once then remained quiet.

It's Scotland. It's a closing date. Generally speaking, they'll get one shot at making their best offer. It's already been valued by a surveyor at £160k. The highest bid will almost certainly be more than that (and definitely more than the asking price), the question is by how much.

RelievedSheff

You just need to weigh up what the property is worth to you, how much you can afford to pay for it while still having enough left over to carry out the modernisation and at what price would you just walk away.

You already know that there is a lot of interest, it is going to sell for more than the asking price and most probably for over the survey value. You just have to decide what it is worth to you and put forward your buying position.

jimbog

No matter how much I enjoy driving a bargain I've realised that a dream house in a dream area would never be a 'bargain'

HummingBird76

I was in a relatively similar position, also in Scotland (Livingston).  The house was on at offers over £145,000 and it was valued at £150,000.  It went to a closing date and I knew that basically, I had to offer as much as I was comfortable paying, and that I wouldn't kick myself if I didn't get it, thinking I could have went higher.  I offered £160,028 and my offer was accepted (I was told it was very close).  Go with whatever amount you are comfortable pay, knowing that if you didn't get it for that amount, you would be okay with that (although obviously disappointed) because you wouldn't have been happy, or willing, to pay anything higher.  I hope that makes sense!

getmore4less

sst1234 said:

Impossible to give a decent opinion without a link to the listing.

my guess is this one.
https://www.rightmove.co.uk/property-for-sale/property-95656286.html

Looking at Glasgow search
needs more analysis but I am seeing the best SSTC numbers ever on a rightmove search.

Just for 2 bed semis upto £160k
For sale 31/112 SSTC
all 2 beds. 590/1317
all 2 beds all prices.
968/1824
that is massive sell numbers compared to stock maybe the listing don't get pulled in Scotland.

narrow to the local area.   Knightswood, back to semis/detached.

0-140 1/5
0-150 3/7
0-160 3/10
0-max 3/12
its a go through the SSTC and the sold prices to see where this sits.