Guide price? Expensive!

jak

Hi,
im a first time buyer and there is a house on the market I like. It’s on at a guide price of £240k. I’ve had a look at recently sold houses on that street and the most they have gone for is £220k. This has been in the last month. Some have gone for £210k. Same number of bedrooms and in better condition.
The house has been on the market since October last year. Most houses around here sell within a week or two. 

This is my first house so my question is this: do I have to offer 240 or does guide price mean I can offer less? My max is 220 so obviously I can’t go to 240 anyway. Am I going to offend them if I offer that much under the price? 

How do I go about figuring out the houses actual worth? I’m so confused. Does the fact it’s been on the market so long help at all? 

I know this all sounds a bit silly but it’s the first time I’ve done this and I’m not sure how these things work! 

Many thanks,
J x

parkingadvice1212

If your absolute max is 220 offer that and make it clear you can't go any higher.

jak

Ok thank you x

SpiderLegs

Offer 210 if that’s what the market rate is.

Irishpearce26

A guide price is just a guide. I went 13K under a guide price and it got accepted. You wont get if you don't ask. All they can do is say no and you increase your offer.

jak

Fab thank you x

moneysavinghero

You can offer whatever you like. Also the seller can refuse whatever offer they like.

They may have deliberately overpriced it in the hope that someone overpays and makes them some money. They may just point blank refuse to accept anything less than the price advertised.  Surely someone would have offered less than asking price in the last 5 months, unless there is something you are not telling us and there is something about this property that would deter most people.

The price it's actually worth is whatever someone is prepared to pay for it. This may be a different value than the sellers thinks it's worth. It may also be a different value than the mortgage providers thinks its worth.

jak

There is nothing obvious that I can see but that’s true. They must’ve had some offers. It’s a lovely house, although it does need some decorating etc x

[Deleted User]

If you are definitely comparing other recently sold properties like for like, then it sounds like this one is overpriced by at least 20k. 

The fact it has been listed since October whilst other similar properties have been selling, tells me they are greedily waiting out for the maximum. However, theres no harm in you going in with an offer for whatever you feel comfortable with. The worst that can happen is it be rejected. 

You need to bear in mind that with overpriced properties, there is a risk that the bank might undervalue it therefore you might end up with a shortfall to find. 

jak

Ok thank you. That makes sense. I figure I can only give it a go! X

springmagpie

Guide prices in my area are usually due to repossessions rather than a "normal" sale