Should I write a letter to the seller to make a a case for why they should accept our offer?

maxxpayne

Hello,

We just came back from visiting what looks like our dream property - only challenge, it's 30k over our budget - which we've already stretched by 90k.

Background - late last year when we started our house hunting, we spotted this property on sale for 850k. The listing description mentioned in range of 850-900k. So we disregarded it at that time, as we were ideally looking at properties at around 750k mark, as we wanted to keep our existing property as BTL and buy a new house as main residence.

Fast forward a few months, we found a property, got mortgage approved etc. but decided to pull out as we needed to make a number of compromises. It happened this week.

At the same time, we noted that the 850k property is now down to 800k, but with similar description, e.g. range of 800-850k - while I have no idea why estate agents do this, nevertheless went to visit the house with the hope of getting an idea of exactly what the owner wants.

After speaking to the agent, looks like the owner wants around 830k - which honestly is high for us. We'd prefer not have a mortgage of over 400k, so 800k was going to be the sweet spot.

So what are my options now? The house is in a nice place in north London with excellent schools nearby so it's a desirable place. I could max out at an offer of 810k at probably, taking out even more savings than I wanted.

Do you think it's worth for us to write an passionate plea as to how we love the house but don't have the budget to the owner and see if that works?

swingaloo

They have already dropped by £50,000.  It may or may not sell so depends how desperate they are. 
But, if you were the seller would you be willing to give up another £20.000 because someone wrote you a nice letter?

FlorayG

I wanted to say just "no" but I can't post anything that short, so...
...no

p00hsticks

I'd also say no...

incus432

I would not write a letter - go through the agent. Offer 790 and explain to the agent that you are stretching your budget. Come up to 800 if they refuse.  What have you got to lose?   It all depends on how keen they are to move, how long they've been on the market, what price they need (are they downsizing  or moving to a cheaper area?) etc.   We have been in a similar position to the vendors - starting off at the agents recommended 750 then coming down to 700 when little was happening. We accepted 685 from a cash buyer.

Emmia

Sell your current house and plough the money into the new property - the BTL will be affecting your borrowing and you'll be paying extra stamp duty both of which affect what you can afford...  And you could take more out of savings presumably.

Presuming the house is fairly priced how would you feel about someone coming in with a letter wanting a further £20k, £30k off? 

If you want to offer £810k offer it, and see how the seller responds. You never know, they might take it.

maxxpayne

Emmia said:

Sell your current house and plough the money into the new property - the BTL will be affecting your borrowing and you'll be paying extra stamp duty both of which affect what you can afford...  And you could take more out of savings presumably.

Presuming the house is fairly priced how would you feel about someone coming in with a letter wanting a further £20k, £30k off? 

If you want to offer £810k offer it, and see how the seller responds. You never know, they might take it.

Yup - we're planning to sell our current place - BTL is simply not wort the hassle - the only thing was the fact that it was a lovely 2 bedroom apartment in Islington in London and we'll miss it.

maxxpayne

Ok - message received. Well make an offer.

p00hsticks

incus432 said:

I would not write a letter - go through the agent. Offer 790 and explain to the agent that you are stretching your budget. Come up to 800 if they refuse.  What have you got to lose?   

Well, the OP describes it as their 'dream property', and the property is priced at £800-£850k, having already been dropped £50k. The OP has also said that they are already prepared to offer £800k, and have hinted that although a stretch they could in fact go higher (not that the seller will know this)......

maxxpayne said:

After speaking to the agent, looks like the owner wants around 830k - which honestly is high for us. We'd prefer not have a mortgage of over 400k, so 800k was going to be the sweet spot.

In my view, the OP would run the risk of the seller not only rejecting a £790k offer but seeing it as being so far off the mark as to be insulting and refuse to consider any further offers. In which case the OP loses their 'dream property' .

AskAsk

the seller won't take any notice of a plead.  they want the best price for their property.

TroubledTarts

£5-10k less than the offer band is not unusual so £790k is a good start and go from there.