Reasonable Offer?

eschaton

Is there a difference in council tax? If so you need to factor that into your calculations. 

The 3 bedroom could be a band higher. 

Also do you need a 3rd bedroom?

ReadySteadyPop

RogerPensionGuy said:

If all three of them suit you, why not make an offer on all of them. 

Looks like these houses aren't in any bidding wars and asking prices being reduced so why not put in lower offers that suit you, 5% 10% 15% or 20%. 

You can always put in an offer and if not accepted, that's okay, you can tell them the offer remains good until you go forwards on a purchase, this allows the seller to have a potential backstop if they choose to take the offer. 

The housing market has slowed down a lot as many potential sellers feel they want to sell houses for more than buyers willing to give, its often like this in a slow or reducing market, we have enjoyed super low interest rate for many many years and them times have now passed. 

Don't be embarrassed to make offers, sellers were asking over the real price value of the houses and are now dropping anyway. 

Look on Zoopler at houses and similar houses in them areas, Zoopler has a nice data on said house prices showing price movement, normally down, however some houses get removed from sake, then a few months later gets put back on with a lower price and lose the price historic data. 

Good advice, also use price tracking apps to monitor how much nearby sellers are dropping their asking prices by.

ReadySteadyPop

abc.xyz said:

Hi all. Single FTB looking to purchase ASAP. My max budget is £180k, 5% deposit. For context, £165-180k currently seems to get me a modern 2-bed semi or a 3-bed semi in need of renovation. A lot of properties have been on the market for a couple of months or more, some with £5-10k reductions in that time.

I have three options I'm interested in:

1) Modern 2-bed semi
£180k
613 sq/ft
Listed last October for £190k, didn't sell, relisted in June for £180k
Not sure about vendor's position

2) Modern 2-bed semi
£175k
624 sq/ft
On market since July, £5k reduction
Vendor looking to upsize, has offer accepted on a new build

3) Outdated 3-bed semi
£180k
696 sq/ft
On market since July, £5k reduction
EA says vendor has been put into a care home

I know markets and prices differ between city and region, but what would be a reasonable under offer? Is 10% insulting? I've heard being a FTB looking to complete ASAP gives me some extra leverage.

It's been difficult to find comparable sales because the first two are 90s semis on estates with mostly detached houses, so no recent sales to go by. There are some recent sales for similar properties on the same street as the third, but they had much more modern bathrooms, kitchens, carpets, etc

Your lender will value the property, that will be the best guide, I don`t see any problem with 15% under asking in this market unless it is already cheap.

Yorkie1

Herzlos said:

Which one to go for is up to you. 2 will probably get you the cheapest place now as the seller will be keen to get moving into the new build, but 3 if you can live with it in it's current state will probably be the best long term investment, especially with the extra bedroom which is always handy. 

It might be worth finding out what stage the new build is at. I remember people used to put offers in on new builds, almost off-plan, and there was then a delay of months while the property was built, risking mortgage offers expiring, and then the developer gave the purchaser a relatively small period of notice for a completion date.

I also remember some threads on the forum more recently, where the developer didn't finish all the paperwork promptly, which risked impacting on timeframes.

That may not be the case here, and sales of new builds may have changed in the intervening years, but if you are keen to move asap then I would double check whether there is a known and soon timeframe for the new build to be ready to be fully sold.

ReadySteadyPop

Yorkie1 said:

Herzlos said:

Which one to go for is up to you. 2 will probably get you the cheapest place now as the seller will be keen to get moving into the new build, but 3 if you can live with it in it's current state will probably be the best long term investment, especially with the extra bedroom which is always handy. 

It might be worth finding out what stage the new build is at. I remember people used to put offers in on new builds, almost off-plan, and there was then a delay of months while the property was built, risking mortgage offers expiring, and then the developer gave the purchaser a relatively smally period of notice for a completion date.

I also remember some threads on the forum more recently, where the developer didn't finish all the paperwork promptly, which risked impacting on timeframes.

That may not be the case here, and sales of new builds may have changed in the intervening years, but if you are keen to move asap then I would double check whether there is a known and soon timeframe for the new build to be ready to be fully sold.

I am almost certain that doesn`t happen any more.

https://www.rics.org/news-insights/housing-market-weakens-buyer-demand-softens-prices-retain-downward-pressure

Bigphil1474

My nephew and his wife moved into their new build last year - around 10 months after they were originally told they'd be moving in. Bought just after the foundations were laid if I remember correctly. They lost their first mortgage offer and ended up paying nearly £300 a month more. It still happens. 

ReadySteadyPop

Bigphil1474 said:

My nephew and his wife moved into their new build last year - around 10 months after they were originally told they'd be moving in. Bought just after the foundations were laid if I remember correctly. They lost their first mortgage offer and ended up paying nearly £300 a month more. It still happens. 

Not nearly on the scale it used to though, when people were forming a line to view upcoming builds?