Things that could/should be mentioned in offer letter

epm-84

One property I'm looking at has an asking price of around £15k more than an almost identical property recently sold for, just around the corner. There's obviously reasons why estate agents and buyers might do that.

If I was to consider making an offer I would follow the usual advice of including my selling points e.g. no property to sell before I move.

Say I was to make an offer of around £13k below the asking price, I was wondering that people think about saying something along the lines of - I believe this is a competitive price for a 2 bed house with x, y and z, based on properties a and b recently selling for slightly less than that.

itsthelittlethings

Personally I would go in a bit higher and stress that you really want the house.

Herzlos

How comparable is the house around the corner?

BikingBud

epm-84 said:

One property I'm looking at has an asking price of around £15k more than an almost identical property recently sold for, just around the corner. There's obviously reasons why estate agents and buyers might do that.

If I was to consider making an offer I would follow the usual advice of including my selling points e.g. no property to sell before I move.

Say I was to make an offer of around £13k below the asking price, I was wondering that people think about saying something along the lines of - I believe this is a competitive price for a 2 bed house with x, y and z, based on properties a and b recently selling for slightly less than that.

How much is £15K in % terms and does it cross a SDLT threshold?

I am massive fan of set your own value and negotiate based upon that rather than simply matching what they hope to achieve but if the reasons are obvious why are you contesting? 

If it is affordability then why should the vendor reduce their price to sell to you?

epm-84

Herzlos said:

How comparable is the house around the corner?

I see no evidence that the house is worth the asking price. The house that sold around the corner is practically the same - built at the same time, same modifications, interior in similar condition, possibly might need some work done on the roof in the medium term.

There's only been one 2 bed house that's sold in that area for close to the asking price, and based on Right Move pictures that one had a brand new kitchen and bathroom.

The house I'm looking at only sold two years ago and it sounds like the current owner is planning to move in with her partner, so the asking price is an optimistic level based on her getting back what she paid, plus covering her moving costs. 

epm-84

BikingBud said:

epm-84 said:

One property I'm looking at has an asking price of around £15k more than an almost identical property recently sold for, just around the corner. There's obviously reasons why estate agents and buyers might do that.

If I was to consider making an offer I would follow the usual advice of including my selling points e.g. no property to sell before I move.

Say I was to make an offer of around £13k below the asking price, I was wondering that people think about saying something along the lines of - I believe this is a competitive price for a 2 bed house with x, y and z, based on properties a and b recently selling for slightly less than that.

If it is affordability then why should the vendor reduce their price to sell to you?

I wouldn't say I can't afford the asking price, but obviously I'm not going to write I could bid higher in an offer letter!

I would say there's a potential selling point in high deposit value in relation to the proposed sale price increases options for mortgages. I have heard about a few nearby being advertised as SSTC and then going back on the market because the potential buyer's decision in principle didn't turn into a suitable mortgage offer.

RHemmings

It sounds to me as if you can make a reaslistic (not derisory) offer based on the comparables, and your language sounds simple and straightforward. I wouldn't include the word 'slightly' in front of 'less than that'. I'm assuming that £15k is less than 10% less than asking. 

The EA and seller shouldn't be offended by your offer. Note: 'shouldn't'. Doesn't guarantee they won't be, or won't pretend to be. 

One thing to possibly consider is to mention the end of the stamp duty holiday. Sales are recovering, but are still down after its end. But, only if the house is expensive enough that stamp duty will be paid. 

epm-84

RHemmings said:

I'm assuming that £15k is less than 10% less than asking. 

Yes £15k is in the 5-10% below asking price range. 

Stamp duty would be payable if I wasn't a first time buyer i.e. between £125,000 to £300,000

Herzlos

Deposit isn't an issue the seller cares about since presumably you've got a mortgage Agreement In Principle (AIP) already lined up so you're clear to proceed?

I'd keep the offer simple. "I offer £ _____ for the property at ______. I have a mortgage AIP in place and are ready to proceed / not part of a chain / etc". 

Are you doing it yourself or are you getting the solicitor to submit the offer?

Albermarle

I did not think it was normal to actually send an initial offer in letter form?
Of course nothing to stop you, but usually initial offers are made verbally to the EA, then you can gauge the reaction better, and maybe extract a bit of useful info from them about the vendors position.

Are you doing it yourself or are you getting the solicitor to submit the offer?

I thought in England at least, solicitors prefer to keep out of the price negotiation process?

RHemmings

epm-84 said:

RHemmings said:

I'm assuming that £15k is less than 10% less than asking. 

No £15k is in the 5-10% below asking price. It's a property in the north.

Stamp duty would be payable if I wasn't a first time buyer i.e. between £125,000 to £300,000

I've not been clear in my post. I meant that offering £15 less than asking is an offer greater than (or equal to) 90% of the asking price. 

So, £15k is 10% or less off asking. People often give a rough rule of thumb that a 10% less offer is a reasonable starting point. That depends on other factors of course. E.g. how it's priced compared to 'the market'. But, you've looked into comparables already.