How to offer on a property without feeling like we're pulling a number out of the air

moneysavinghero

If you feel like you are pulling a number out of the air, what makes you so certain that the asking price is overpriced?

greensalad

moneysavinghero said:

If you feel like you are pulling a number out of the air, what makes you so certain that the asking price is overpriced?

Again, feelings. That's sort of the point of this thread. It seems that getting the right number for a house is really, mostly based on "feelings" and I'm finding that hard to accept I guess. It seems like it should be more based on data and facts but it seems to always come down to what "feels" right and I don't think I have enough experience to say that the "feeling" of prices is correct.

Ultimately, I know that if I offered asking price on this house I wouldn't "feel" right about it and that's all there is to go on.

moneysavinghero

Data and facts mean nothing if the next couple to view don't care about data and facts and just have a feeling that they must have that house and outbid you.

The house looks like the kind of house that would be very popular right now. Would you feel dissapointed if you offered less than £500k and got outbid? Or would you feel 'oh well, not too bothered that was too expensive for us anyway, on to the next one'?

getmore4less

The research put those feelings in some sort of perspective and context using other examples of what's sold what's under offer and for sale.
There is another one on at £500k nearer town is this one better or worse(for you).
 I don't think that one's sold do it for everything around your price point SSTC and sold through.
It can also help prioritise your wants.

Might have to do wider search to get good sample.

AdrianC

greensalad said:

It seems that getting the right number for a house is really, mostly based on "feelings"

It's a unique, second-hand product in a marketplace made up largely of unique, second-hand products.

Of course there's no central, authoritative pricelist.

buythedip

We are in a similar position to you (FTB, budget, content in rented house) and it’s taken us a while to come around to the idea that you don’t need to defend your bids to anybody, least of all to the estate agents and other rent seekers that proliferate this “market”. Maybe the situation of the current owners works in your favour if you aren’t in a rush.

From our perspective, there isn’t much value around in our area: we’ve seen knackered houses in desirable bits of Bath for £500k that needed £50k of work (despite much nicer pictures online), and new builds at £475k that we wouldn’t have been happy paying £425k for. If somebody values this house > your price then so be it, there really isn’t much downside to submitting a speculative bid but don’t be surprised if you don’t get filled.

buythedip

AdrianC said:

greensalad said:

It seems that getting the right number for a house is really, mostly based on "feelings"

It's a unique, second-hand product in a marketplace made up largely of unique, second-hand products.

Of course there's no central, authoritative pricelist.

Well put, I would also add highly emotive and illiquid to the rap sheet. 

greensalad

buythedip said:

We are in a similar position to you (FTB, budget, content in rented house) and it’s taken us a while to come around to the idea that you don’t need to defend your bids to anybody, least of all to the estate agents and other rent seekers that proliferate this “market”. Maybe the situation of the current owners works in your favour if you aren’t in a rush.

From our perspective, there isn’t much value around in our area: we’ve seen knackered houses in desirable bits of Bath for £500k that needed £50k of work (despite much nicer pictures online), and new builds at £475k that we wouldn’t have been happy paying £425k for. If somebody values this house > your price then so be it, there really isn’t much downside to submitting a speculative bid but don’t be surprised if you don’t get filled.

Thanks, that does make me feel a bit better. It's hard to know what's right, beyond what we feel comfortable with. Just as FTB it feels like the wrong way to make a financial decision but it seems like perhaps we're being overly sensible and you do need to just go with what feels right...

Anyway, we're still discussing it but likely will put a speculative bid in it and try not to be heartbroken if it gets rejected, because we know there are people who will probably pay over the odds. Not much we can do without also overstretching ourselves. I guess you never know... they may get higher bids but still value us as FTB and the money might not be so bad. Or it could be the complete opposite way and we'd only win if we had a much bigger stack of cash.

greensalad

getmore4less said:

The research put those feelings in some sort of perspective and context using other examples of what's sold what's under offer and for sale.
There is another one on at £500k nearer town is this one better or worse(for you).
 I don't think that one's sold do it for everything around your price point SSTC and sold through.
It can also help prioritise your wants.

Might have to do wider search to get good sample.

If you mean the big 4 storey townhouse one, we've seen it but have discounted it based on being right on the main road (a road we know well) and also the garden is a tad on the small size for us. (I'm aware asking for a large garden is a big ask, but we've been looking at more rural properties as well because we know that will help us get a larger garden).

Crashy_Time

A quick scan with PropertyLog shows price drops of up to 50k for the area, I don`t think the market is as "hot" as some people would like it to be?