How much to bid to clinch deal?

ironlady2022

Hi

Went to see a house in an estate where My brother lives last week. It was a private viewing set up by Sharon. She lives on estate and works for an Estate Agent. She also is friends and neighbours with the vendor hence I got first glimpse.

Sharon sold the exact same house opposite in Nov 2021, went on for guide price £290-£300k and sold for £300k, survey came back at £300k too.

The market has moved on and when I visited the house, they had not got it valued. They will do as a next step. The last valuation was March 2021 at just over £300k.

Sharon values it at £315k. And the house Sharon lives in is bigger, with an extra utility and 4 double rooms instead of 3 doubles and a single room. Her valuation came back around £335-£340k. So in my mind, it should not be worth more than £335k.

The vendors have said if we agree a number, they will not put it on the open market. Sharon reckons the vendors will want to try the open market at £320k to get as much as possible if they go down that route. 

The vendors are a young couple, and her Dad is in ill health, wishing to move nearer to her Parents, but they are not in any rush.

My position is, ideally I want to be in area by Jan 2023 to apply for primary school for my daughter. So again no rush but with covid, everything is taking a long time. 

We both have desirable houses to sell, it's a matter of how much.

My question is, what shall I put my opening bid for? My budget is £360k at its max but it really is the perfect house. South facing garden, great layout, can move straight in, house is only 2yrs old so in great condition.

I'm thinking £310k as a serious offer, and increase to £315k as a final offer. I can do £320k but still deciding if it's worth it. I do think it is...

Obviously survey may come back otherwise. 

dimbo61

A home is worth what someone is prepared to pay for it !
Now you want to move into the same estate as your brother ? YES
Sharon knows this and has found YOU the perfect property ?
Would you really want to lose it for £5,000
Do you need to sell your current home/s ?
In some areas 20/30/40 house hunters are chasing every property that comes on the market.
Yes with Increases in the BOE base rate the housing market may start to slow down 
Is this a modern ( Good EPC) so cheap to heat
Detached ? Gone up the most in value in the last 2 years
Garden? Parking or better still a Garage
Ticks all your requirements ?
Your call 

 

ironlady2022

dimbo61 said:

A home is worth what someone is prepared to pay for it !
Now you want to move into the same estate as your brother ? YES
Sharon knows this and has found YOU the perfect property ?
Would you really want to lose it for £5,000
Do you need to sell your current home/s ?
In some areas 20/30/40 house hunters are chasing every property that comes on the market.
Yes with Increases in the BOE base rate the housing market may start to slow down 
Is this a modern ( Good EPC) so cheap to hear
Detached ? Gone up the most in value in the last 2 years
Garden? Parking or better still a Garage
Ticks all your requirements ?
Your call 

 

Thank you. This is my first time selling so it's good to hear more opinions to get advice. 

Yes i do want to move onto same estate. You are right losing it over £5k would prob make me regret it if I look back.

I do need to sell my current home. Yeh last week a property on sale estate has 20 viewings and sold for '£10000s' over the asking of £300k.

It is a modern home so EPC should be good. 

Didn't know about the fact on detached!

South facing garden, tick, double side by side drive way, tick! 

AFF8879

She’s done you a massive favour here, and in your words it’s the perfect house- this is not the situation to be haggling back and forth trying to scrimp an extra few £k off the price, as soon as you do that the vendors will just put it on the market - and in this environment they’d be crazy not to. So, it needs to be a bid that makes them go “wow, we don’t want to lose this buyer!”... 

So given everything you’ve said, I’d probably go in at 325-330, no messing about but make it clear that’s contingent on the property not going on the market at all….

Thrugelmir

If the market is buoyant cash in on your own property now.  Little point in waiting. The vendors are going to be looking for proceedable buyers when accepting offers. 

UnderOffer

“I do need to sell my current home…”. Are you even in a position to offer if you still need to sell? If I was the seller I might be hesitant in accepting any offer from you when you are not yet proceedable. 

ironlady2022

UnderOffer said:

“I do need to sell my current home…”. Are you even in a position to offer if you still need to sell? If I was the seller I might be hesitant in accepting any offer from you when you are not yet proceedable. 

Yes, because it is down to the vendor as to whether they accept. The advantage I have is I spent 40mins looking around and our positions are similar as explained. Not in a rush to move and both got desirable houses to sell.

If vendor does essentially go through an estate agent, then it's down to them what criteria they put on for what buyers they want to view. Everything is negotiable. 

dimbo61

Getting this right is very difficult in the current crazy market.
My son is trying to buy a 3 bed detached house in Wales where prices have increased by 15% in the last 12 months and the buying process has taken 9 months already.
I have a friend offer and pay £50,000 over the guide price to get the " Perfect home in the Perfect area " 5 other buyers so went to sealed bids.
Spoke to another friend who wants to view a property in Manchester and 45 other potential buyers also asking to view.
You need to get your home on the market ASAP

ironlady2022

dimbo61 said:

Getting this right is very difficult in the current crazy market.
My son is trying to buy a 3 bed detached house in Wales where prices have increased by 15% in the last 12 months and the buying process has taken 9 months already.
I have a friend offer and pay £50,000 over the guide price to get the " Perfect home in the Perfect area " 5 other buyers so went to sealed bids.
Spoke to another friend who wants to view a property in Manchester and 45 other potential buyers also asking to view.
You need to get your home on the market ASAP

I know it is a very difficult market. That's why I think my next move is extremely important. I've told Sharon she can have my business, if she can sell me that house lol so let's see. The vendors will not be using her office (will be using same company) so Sharon will be representing me, but can pull some strings potentially for me.

I'm just trying to mull over my next move. 

theoretica

You seem to trust Sharon and she has said 315-320k - so seems an argument for offering in that range.

ironlady2022

theoretica said:

You seem to trust Sharon and she has said 315-320k - so seems an argument for offering in that range.

Exactly my thoughts!