Help with offering on property

ReadySteadyPop

gabbro86 said:

ReadySteadyPop said:

What is the price history of the property? That is super important now that interest rates have moved so much, just because they have "had work done" it doesn`t mean they should expect to make a profit on the property, or even re-coup the cost of the work, that isn`t how a "market" works. Are you using PropertyLog to check price reductions on similar properties?

They purchased for £845k in 2017. According to house price index for the specific post code (https://www.nationwide.co.uk/house-price-index/), it'd be worth about £940k now.
Actual similar properties in the area are a bit rare, but they sell for about £950k-£1.1m.

What would have driven the increase in value, interest rates in the UK in 2017 were 0.5%? I think this is a classic case of overpaying in a very manic market encouraged by super low borrowing costs, the OP is right to think they may be overpaying here!

gabbro86

We do not think the house is worth £1.1m, tbh. We think it's closer to £1m. Hence the initial offer.
Unfortunately, the other buyer is making the seller think it's worth what they're asking for, and I believe it'll be difficult for them to change idea...
I think we'll let them stew for a bit and send a new (possibly final) offer of £1.05m tomorrow afternoon.

Bigphil1474

I would stick to the £1m and say that's as high as you want to go. If they are going to live in NZ I believe its a requirement that you have to sell your property over here before you can move - that was the case when my brother went out there, but that was about 15 years ago. They are stuck over here until they sell, but you are offering them a short chain at a reasonable price. It's a buyers market at the moment as well. I'd take it if I was the seller unless I absolutely needed the extra few £k.

GDB2222

NBigphil1474 said:

I would stick to the £1m and say that's as high as you want to go. If they are going to live in NZ I believe its a requirement that you have to sell your property over here before you can move - that was the case when my brother went out there, but that was about 15 years ago. They are stuck over here until they sell, but you are offering them a short chain at a reasonable price. It's a buyers market at the moment as well. I'd take it if I was the seller unless I absolutely needed the extra few £k.

Apparently, the husband is starting a job there later this month. So, he’s not going to sell his house before then, is he?  

ReadingTim

The fact that property has been on the market for 2 years suggests they're in no hurry to sell for a price they're not happy with, and you have been given a pretty solid clue to what that price is.  You have also admitted you love the place/location, and can afford the asking price.  

Now, if someone else came along and offered the £1.07m and got it, how would you feel?  You've already had somewhere else fall through, how much do you want to get on with your life? 

Or are you annoyed because physiologically you feel you need to "win" the game by "beating" the seller into making them accept your offer rather than you accepting theirs and "losing", and are just dressing this up as a fear of overpayment?!?  

Bigphil1474

GDB2222 said:

NBigphil1474 said:

I would stick to the £1m and say that's as high as you want to go. If they are going to live in NZ I believe its a requirement that you have to sell your property over here before you can move - that was the case when my brother went out there, but that was about 15 years ago. They are stuck over here until they sell, but you are offering them a short chain at a reasonable price. It's a buyers market at the moment as well. I'd take it if I was the seller unless I absolutely needed the extra few £k.

Apparently, the husband is starting a job there later this month. So, he’s not going to sell his house before then, is he?  

Presumably you can get a working visa, before officially emigrating, but not sure it matters. Thanks anyway.

ReadySteadyPop

ReadingTim said:

The fact that property has been on the market for 2 years suggests they're in no hurry to sell for a price they're not happy with, and you have been given a pretty solid clue to what that price is.  You have also admitted you love the place/location, and can afford the asking price.  

Now, if someone else came along and offered the £1.07m and got it, how would you feel?  You've already had somewhere else fall through, how much do you want to get on with your life? 

Or are you annoyed because physiologically you feel you need to "win" the game by "beating" the seller into making them accept your offer rather than you accepting theirs and "losing", and are just dressing this up as a fear of overpayment?!?  

I think it suggests that they are overpriced and out of touch with market reality, and like a lot of sellers stuck in the mindset that they MUST make a profit and are entitled to re-coup money spent on "having work done", neither of these expectations are realistic in this market.

https://propertyindustryeye.com/uk-house-price-currently-out-of-sync-with-economic-reality-as-budget-cracks-start-to-appear/

ReadingTim

ReadySteadyPop said:
 

I think it suggests that they are overpriced and out of touch with market reality, and like a lot of sellers stuck in the mindset that they MUST make a profit and are entitled to re-coup money spent on "having work done", neither of these expectations are realistic in this market.

https://propertyindustryeye.com/uk-house-price-currently-out-of-sync-with-economic-reality-as-budget-cracks-start-to-appear/

You can think what you like about the seller and their view of the market and their property's value, but if you want to buy their house then you're going to have to come to a deal with them, whether you like it or not.  

The OP needs to decide if he or she wants to buy an actual house, or "win" a partly imaginary game.  

ReadySteadyPop

ReadingTim said:

ReadySteadyPop said:
 

I think it suggests that they are overpriced and out of touch with market reality, and like a lot of sellers stuck in the mindset that they MUST make a profit and are entitled to re-coup money spent on "having work done", neither of these expectations are realistic in this market.

https://propertyindustryeye.com/uk-house-price-currently-out-of-sync-with-economic-reality-as-budget-cracks-start-to-appear/

You can think what you like about the seller and their view of the market and their property's value, but if you want to buy their house then you're going to have to come to a deal with them, whether you like it or not.  

The OP needs to decide if he or she wants to buy an actual house, or "win" a partly imaginary game.  

The "game" is not imaginary, we are dealing with very powerful forces in debt/credit markets that dictate borrowing/spending power for most people, any way we look at this I`m afraid the seller is out of touch with the market, they won`t get the price they paid for the house if the OP backs out in my opinion, and the OP is absolutely correct to trust their innate sense about overpaying.

https://www.ft.com/content/6b9daf91-1968-4d14-8de0-7857229ef688

Way past Truss levels and no big fanfare in the media that I can see? Strange world we live in.

GDB2222

ReadySteadyPop said:

ReadingTim said:

ReadySteadyPop said:
 

I think it suggests that they are overpriced and out of touch with market reality, and like a lot of sellers stuck in the mindset that they MUST make a profit and are entitled to re-coup money spent on "having work done", neither of these expectations are realistic in this market.

https://propertyindustryeye.com/uk-house-price-currently-out-of-sync-with-economic-reality-as-budget-cracks-start-to-appear/

You can think what you like about the seller and their view of the market and their property's value, but if you want to buy their house then you're going to have to come to a deal with them, whether you like it or not.  

The OP needs to decide if he or she wants to buy an actual house, or "win" a partly imaginary game.  

The "game" is not imaginary, we are dealing with very powerful forces in debt/credit markets that dictate borrowing/spending power for most people, any way we look at this I`m afraid the seller is out of touch with the market, they won`t get the price they paid for the house if the OP backs out in my opinion, and the OP is absolutely correct to trust their innate sense about overpaying.

https://www.ft.com/content/6b9daf91-1968-4d14-8de0-7857229ef688

Way past Truss levels and no big fanfare in the media that I can see? Strange world we live in.

That's not relevant to the OP. He wants to buy the property, but he just doesn't want to pay more than he has to.