How much do I offer?

Britannia12345

I'm finally in a position to buy a house and I have no idea what I'm doing! 
We've seen a property for sale for £290,000 that is perfect but needs some work - only one toilet, kitchen needs doing, carpets etc. It's been empty for a year or two. 
What kind of figure should I be offering? If I offer too low will the agent be insulted? 
Be gentle with me - I've only ever rented so I'm in a foreign land right now 😁

user1977

We have no idea what £290k is in relation to the local market - it could be vastly overpriced, it might be a bargain at that price. Or what the competition is like from other buyers. Presumably you've done some research?

(and no, why would an agent be "insulted"?!)

Britannia12345

It's a good price for the property but I think it hasn't sold because it is very old fashioned. Similar properties that have been modernised are going for way more. 
I just have visions of the agents !!!!!! themselves laughing if I put an offer in that is too low or is it like haggling in a market - I offer low and they go back and forth? 
My partner suggested offering £250,000 but that seems a bit low. On the other hand they are probably keen to get rid as it's been for sale for so long. 

propertyrental

You should research the local market and then offer what you think the property is worth (either to you or to others), but not more than you can afford.

caprikid1

"My partner suggested offering £250,000 but that seems a bit low. On the other hand they are probably keen to get rid as it's been for sale for so long. "

Forget what needs doing to it and working back on the price, this has been priced in already potentially. The fact it has been on the market for so long could be a red flag that bigger problems exist or its over priced.

Ensure you have a good grasp on the final value and the cost of getting their combined with the disruption and funds etc.

Also remember "You never get a second chance to make a first impression".

Talk to the agent, they may help guide you as to why the house has been on the market so long and previous offers. 

£250K seems a bit low as an offer , talk to the agent and throw the figure out there.

BarelySentientAI

Britannia12345 said:

It's a good price for the property but I think it hasn't sold because it is very old fashioned. Similar properties that have been modernised are going for way more. 
I just have visions of the agents !!!!!! themselves laughing if I put an offer in that is too low or is it like haggling in a market - I offer low and they go back and forth? 
My partner suggested offering £250,000 but that seems a bit low. On the other hand they are probably keen to get rid as it's been for sale for so long. 

The agents don't haggle.  All they do it tell the seller what your offer is.  It's the seller who decides to say yes, no, or negotiate.

Sellers can be completely irrational about responding to offers - some have a specific price in their head and will not budge no matter how long it's been, some will be insulted by low offers, some will not, some will negotiate.

Offer what you think it is worth in the condition it is in now.  Not based on a randomly picked 'discount'.

Albermarle

BarelySentientAI said:

Britannia12345 said:

It's a good price for the property but I think it hasn't sold because it is very old fashioned. Similar properties that have been modernised are going for way more. 
I just have visions of the agents !!!!!! themselves laughing if I put an offer in that is too low or is it like haggling in a market - I offer low and they go back and forth? 
My partner suggested offering £250,000 but that seems a bit low. On the other hand they are probably keen to get rid as it's been for sale for so long. 

The agents don't haggle.  All they do it tell the seller what your offer is.  It's the seller who decides to say yes, no, or negotiate.

Sellers can be completely irrational about responding to offers - some have a specific price in their head and will not budge no matter how long it's been, some will be insulted by low offers, some will not, some will negotiate.

Offer what you think it is worth in the condition it is in now.  Not based on a randomly picked 'discount'.

I would not argue with the above post, except to say valuing a property is not an exact science. So you and your partner between you may come up with a price range ( hopefully not too wide) and then you can start with your initial offer at the low end of that price range.
Typically the final selling price will be a small % below the asking price, but not always.
It also depends on your position, It sounds like you will be able to move quite quickly if a price is agreed and that is an advantage .
Suggest you read this.
First-Time Buyer Guides - MoneySavingExpert

kempiejon

Britannia12345 said:

I'm finally in a position to buy a house and I have no idea what I'm doing! 
We've seen a property for sale for £290,000 that is perfect but needs some work - only one toilet, kitchen needs doing, carpets etc. It's been empty for a year or two. 
What kind of figure should I be offering? If I offer too low will the agent be insulted? 
Be gentle with me - I've only ever rented so I'm in a foreign land right now 😁

Perfect doesn't need work but I guess I know what you mean. We looked at loads of houses before we chose ours. Gave a good idea of what money bought you what in the area. We made an offer under asking price, £190k on £200k list settled on £192k. The house had been on the market for months and months and we were the only to offer a reasonable amount/ Apparently, that weekend, a developer offered the same amount as us and the EA squeezed that extra £2k from us. We could afford it, the price was fair and we liked the property well enough. We were buying a home to live in that was more important than pure price.

Who cares if you insult an estate agent, it might get you the best price.

theartfullodger

You offer whatever it's worth to you today.  There are no rules regarding offers. 

Albermarle

kempiejon said:

Britannia12345 said:

I'm finally in a position to buy a house and I have no idea what I'm doing! 
We've seen a property for sale for £290,000 that is perfect but needs some work - only one toilet, kitchen needs doing, carpets etc. It's been empty for a year or two. 
What kind of figure should I be offering? If I offer too low will the agent be insulted? 
Be gentle with me - I've only ever rented so I'm in a foreign land right now 😁

Perfect doesn't need work but I guess I know what you mean. We looked at loads of houses before we chose ours. Gave a good idea of what money bought you what in the area. We made an offer under asking price, £190k on £200k list settled on £192k. The house had been on the market for months and months and we were the only to offer a reasonable amount/ Apparently, that weekend, a developer offered the same amount as us and the EA squeezed that extra £2k from us. We could afford it, the price was fair and we liked the property well enough. We were buying a home to live in that was more important than pure price.

Who cares if you insult an estate agent, it might get you the best price.

I know EA's are not popular, but.....

jimbog

it’s been said before that if a seller isn’t insulted by your first offer you’ve offered too much