House offer for dad - guaranteed-chain cash buyer - was this offer too low?

annetheman

Hi all

Just wondering people's opinions on an offer I made that was rejected and whether it was fair considering my dad's position.

I've just been helping my dad search for a house due to his current mortgage-free house being purchased by a developer for a large regeneration project. They will tear it down and build over and the price to sell to the developer was agreed in January and is locked in.

He can move whenever he likes (no move-by date). So he is a guaranteed-chain (as in no risk of collapse beneath him) cash-buyer. I thought this would make him an appealing buyer; though he is 69 and therefore unable to mortgage the house, so the developer can lend him some money and put it as a charge on the property - we are not keen on this and want to remain 100% cash.

I've therefore been looking mostly around the £300,000 mark but found this property for £325,000 where the EA said negotiation would be possible (they didn't give any figures, though). We viewed it, and he liked it, so we offered his maximum of £310,000 cash.

• Was this too low in this market, with mortgage interest rate rises announced today etc?
• Was this fair considering his cash and guaranteed chain position, do you think?

The offer has been rejected, with a final price of £319,000 proposed - dad can't go to that without borrowing, and the property also has something of a service charge (though it is freehold) attached and he will be a pensioner soon, so left the offer on the table and sadly walking away.

There are many other options at his price range as he has cast his net quite wide, we have seen many houses and this was the first he offered on at the viewing so I am really gutted I couldn't negotiate it for him

BarelySentientAI

No such thing as too low to offer.  Offer what you (he) can afford and what you think it is worth.  If someone else values it higher, that's their opinion and not yours.

A sale happens where there is a value acceptable to both a buyer and the vendor, but that doesn't mean every buyer has the same value.

Being a cash buyer does not actually add that much to a negotiating position.

cymruchris

If £310 wasn't accepted - and that's the limit he wants to stick to - stick to it, and walk away. They'll either cave in and say yes, or will hold out for another buyer. It's hard to know if it was a 'sensible' offer as different parts of the country are experiencing different demand for property it seems at the moment.

There may be a service charge for communal areas on the estate if it's a relatively new build. So not getting the house might be a blessing if he can find one that doesn't have a similar charge.

If there's no rush - keep on looking - stick to the budget - and no doubt something will come up. He is in a fairly strong position - and proceedable - so not a bad starting point really.

caprikid1

"No such thing as too low to offer."

This is myth, there are no shortage of sellers who will just not entertain further offers from people who start too low.

The negotiation can be difficult and too low can cause a lack of trust and concern they will chip at the last minute / negotiate heavily against a survey etc.

GoogleMeNow

annetheman said:

Hi all

Just wondering people's opinions on an offer I made that was rejected and whether it was fair considering my dad's position.

I've just been helping my dad search for a house due to his current mortgage-free house being purchased by a developer for a large regeneration project. They will tear it down and build over and the price to sell to the developer was agreed in January and is locked in.

He can move whenever he likes (no move-by date). So he is a guaranteed-chain (as in no risk of collapse beneath him) cash-buyer. I thought this would make him an appealing buyer; though he is 69 and therefore unable to mortgage the house, so the developer can lend him some money and put it as a charge on the property - we are not keen on this and want to remain 100% cash.

I've therefore been looking mostly around the £300,000 mark but found this property for £325,000 where the EA said negotiation would be possible (they didn't give any figures, though). We viewed it, and he liked it, so we offered his maximum of £310,000 cash.

• Was this too low in this market, with mortgage interest rate rises announced today etc?
• Was this fair considering his cash and guaranteed chain position, do you think?

The offer has been rejected, with a final price of £319,000 proposed - dad can't go to that without borrowing, and the property also has something of a service charge (though it is freehold) attached and he will be a pensioner soon, so left the offer on the table and sadly walking away.

There are many other options at his price range as he has cast his net quite wide, we have seen many houses and this was the first he offered on at the viewing so I am really gutted I couldn't negotiate it for him

Seems to be a fair offer to me.  You can always leave it on the table and tell the estate agent that you will look at other properties in the meantime.  If there are lots of viewings booked, then that might indicate that the asking price is realistic and there won't be much of a reduction to be had.  If there are not many viewings booked, then take a chance and wait for the owner to come back to you in a few weeks time.....

However, one thing that occurred to me.  Why is your 69 year old dad considering a property with two staircases?  I'm sure he's fit and healthy now, but what about the future?  Surely a single storey flat or bungalow would be a better choice for future proofing?

BarelySentientAI

caprikid1 said:

"No such thing as too low to offer."

This is myth, there are no shortage of sellers who will just not entertain further offers from people who start too low.

The negotiation can be difficult and too low can cause a lack of trust and concern they will chip at the last minute / negotiate heavily against a survey etc.

Read the context.  This wasn't someone trying to start a negotiation with a cheeky lowball.

OP offered the maximum they were ever going to and is asking whether there was something unfair or "too low" about offering that amount.

No, it was not too low, nor was offering it unfair.  Doesn't matter if the seller won't entertain any further offers because they feel slighted, because no further offer will be coming.

pinkshoes

annetheman said:

Hi all

Just wondering people's opinions on an offer I made that was rejected and whether it was fair considering my dad's position.

I've just been helping my dad search for a house due to his current mortgage-free house being purchased by a developer for a large regeneration project. They will tear it down and build over and the price to sell to the developer was agreed in January and is locked in.

He can move whenever he likes (no move-by date). So he is a guaranteed-chain (as in no risk of collapse beneath him) cash-buyer. I thought this would make him an appealing buyer; though he is 69 and therefore unable to mortgage the house, so the developer can lend him some money and put it as a charge on the property - we are not keen on this and want to remain 100% cash.

I've therefore been looking mostly around the £300,000 mark but found this property for £325,000 where the EA said negotiation would be possible (they didn't give any figures, though). We viewed it, and he liked it, so we offered his maximum of £310,000 cash.

• Was this too low in this market, with mortgage interest rate rises announced today etc?
• Was this fair considering his cash and guaranteed chain position, do you think?

The offer has been rejected, with a final price of £319,000 proposed - dad can't go to that without borrowing, and the property also has something of a service charge (though it is freehold) attached and he will be a pensioner soon, so left the offer on the table and sadly walking away.

There are many other options at his price range as he has cast his net quite wide, we have seen many houses and this was the first he offered on at the viewing so I am really gutted I couldn't negotiate it for him

It was only listed on 27th March 2024 so not even 4 weeks yet, and they paid £280k for it in May 2021.

I'd want to know why they're selling after less than 3 years. 

Oddly, the £319k is the Zoopla valuation, so that might be where they got that price from. The £310k sounds a sensible offer though. It might be worth finding another £5k to up the offer to £315k.

Flugelhorn

Worth looking at other properties - he is a few years older than me and I wouldn't buy somewhere without a downstairs loo and also avoid a place where the kitchen is up a flight of stairs. It doesn't take a lot to stop people being able to easily manage stairs

thegreenone

What is the developer building on your Dad's plot?  Would Developer build a two bed bungalow for Dad as part of the deal.  We know someone who has done this.  It would be upheaval but might be worth it.

I'd be hesitant to buy a townhouse at 69 years old.  Not being rude at all and agree with the extra toilet required.  We lived in a townhouse when we were 27 and 37 y/o.  Now at 57 and 67, we would never consider a townhouse again.  Also, on the plans there is a communal area that leads to the garage, which leads into the house.  Not sure I'd like that for safety/security reasons.

Albermarle

However, one thing that occurred to me.  Why is your 69 year old dad considering a property with two staircases?  I'm sure he's fit and healthy now, but what about the future?  Surely a single storey flat or bungalow would be a better choice for future proofing?

A relative moved into a townhouse in her late 60's. Within 5 years she had to move out due to the issues you mention.

Even a standard two storey house would be better, especially if it was bigger downstairs than upstairs.

annetheman

Thanks for the opinions, all, really valuable to hear beyond my echo chamber. I am happy that I didn't lowball, I think, and it's still on the table anyway but you have raised some concerns that I think might draw us away from it, actually - mainly 3-storey living for a 70+ year old.

We did discuss with the EA on the viewing installing a downstairs loo in the townhouse. Dad is a fit widower and for now, he is still working on wards as a doctor, but I do know the old adage about people who are fit and active suddenly deteriorating rapidly after retirement (which will be this year for him). Very much noted.

I have found some bungalows in the Surrey area, the problem is that the ones that are within his budget are almost always Retirement ones (he qualifies and they look perfect in every other way) that have Lifetime Lease - he doesn't want any charges on the property at all. When I've enquired about buying outright it is about £100,000-150,000 higher price, sadly. 

But yes he is in a great position in that there is absolutely no rush - I will keep looking and find something with fewer stairs -- I know dad's bungalow is out there somewhere!

Thank you!