How Much should I offer?

gizzmo_2

Hello friends

I saw a wonderful house today that I really liked that is on the market for £465,000. I have been looking for a while and most other places I saw didn't quite fit the bill, but this little gem was perfect for what I am looking for, and I'm really keen to move ahead with the purchase.

I have about half the amount in cash readies and the rest would be a mortgage that would comfortably fit within 3x my salary. I'm also not in a chain so there are no other restrictions.

How much should I offer that would be a realistic amount? I can imagine that there would be a fair bit of interest in the property, as it is very well done and presented. I wouldnt want to lose out.

Also - being new to the whole HIP thing, should I ask to see the HIP paperwork before making the offer, and when I do go through it, what should I be looking for exactly?

Any suggestions would be greatly appreciated.
Thanks
gizz

jonewer

Its up to you and depends on how much you want the house. There are two options:

1: You could play hardball and sweat the vendors with a low offer but risk losing the house but save yourself a tiny fortune.

2: You could offer full ask or close to it and secure the house but end up paying tens of thousands of £s more than you need to.

So it comes down to how much more you like the house than you like your hard-earned cash.

selectcase

If you have 50% cash and can afford the rest via 3x salary then i woul go between asking price and 10% under. If you love the house then go for it - prices may drop but then they go up again in the long term cycle of things and its a home not an investment.

its funny - people dont want to lose any money on a home but will wilingly throw away £k's on cars

david29dpo

With regards to the HIP, the EPC may be of some interest to you, same with the searches. Title plan simply tell you what your buying within the red outline. Title register will tell you if its free or leasehold, the owners, maybe how much they paid and who the mortgage is with if they have got one and any covenants. More helpful to your solicitor if you buy the place and should save you money, other than your survey.

gizzmo_2

Thanks for the very helpful replies. Well I just found out that it was previously listed at 10K more and the price was only dropped this week, so that may be an indication that the vendors are anxious to sell soon.
Yes - I'm definitely going to get it surveyed, although I never knew you could stipulate that the vendor's abide by the surveyor's valuation before.

I think I'll go in at 90% and take it from there.....
Finger's crossed!

Thanks again for your prompt answers everyone.
gizz

PasturesNew

gizzmo wrote: »

Thanks for the very helpful replies. Well I just found out that it was previously listed at 10K more and the price was only dropped this week, so that may be an indication that the vendors are anxious to sell soon.

£10k down from an original £475k isn't very much. Just a 2.11% drop.

jaype

You say there will probably be lots of interest - but they have already had to drop the price, so evidently the market isn't as healthy as all that... Same on the opposite side of the Big Smoke. One I have my eye on in an area we wouldn't mind was just reduced to 350 from 400, been on the market a year, has five bedrooms .Though not really decorated to modern tastes is roomy and you could do a lot with it. Meanwhile, on the next road they're hoping to get 425 for a 3 bed that's been 'Sarah Beeny'd' with some neutral colours and a few old dried plants. Good luck with that, I say!

Links, in case anyone's interested...

http://www.rightmove.co.uk/viewdetails-15970258.rsp?pa_n=3&tr_t=buy


http://www.rightmove.co.uk/viewdetails-17414579.rsp?pa_n=2&tr_t=buy

http://www.rightmove.co.uk/viewdetails-17300624.rsp?pa_n=2&tr_t=buy

merlinthehappypig

gizzmo wrote: »

Yes - I'm definitely going to get it surveyed, although I never knew you could stipulate that the vendor's abide by the surveyor's valuation before.gizz

You can't.

Unless I'm missing something obvious, I can't see where in the thread might have given you that idea. You can't force the vendors to do anything they don't want to.

As for what to offer, how long is a piece of string. I'm in the same situation (and at a similar price level). If the sellers are having to sell they will reduce the price - if they don't have to sell they won't. That is certainly our experience of the last few months, regardless of what you might see in the media.

If your luck is like ours recently then all the houses you don't like will come down 20% and all the ones you do like will stick out for the asking price!

merlinthehappypig

dolce_vita wrote: »

10k off a 465k house?

That's not a reduction. It's a f*cking joke.

You shouldn't be paying any more than about 400k.
And if any other potential buyers thought the same way then the price would come down.

see stock replies #2 and #3

You know I feel the same way about the long term prospects for house prices as you do and I agree with your comment, but, in reality, it just isn't hitting home to people yet.

We've made price enquiries on 7 houses this last week.

Best prices for the three we like (private owner occupiers who have no plans about where they are going)

£485000 from £495000
£485000 from £499950
£450000 from £450000 (not a typo)

And the four we don't like as much: (one divorce, one 'Property Ladder' type developer, one following a death and just one couple moving normally because of a new job)

£485000 from £600000
£495000 from £560000
£395000 from £475000
£405000 from £450000 (with some room left to get it under £400000)

Bottom line is as I said above. Buyers are few and far between and those having to sell are having to discount by some big percentages. Those who don't really want to sell won't budge much at all.

No real signs of panic out there despite all the gloomy media soundbites.

dolce_vita

merlinthehappypig wrote: »

You know I feel the same way about the long term prospects for house prices as you do and I agree with your comment, but, in reality, it just isn't hitting home to people yet.

We've made price enquiries on 7 houses this last week.

Best prices for the three we like (private owner occupiers who have no plans about where they are going)

£485000 from £495000
£485000 from £499950
£450000 from £450000 (not a typo)

And the four we don't like as much: (one divorce, one 'Property Ladder' type developer, one following a death and just one couple moving normally because of a new job)

£485000 from £600000
£495000 from £560000
£395000 from £475000
£405000 from £450000 (with some room left to get it under £400000)

Bottom line is as I said above. Buyers are few and far between and those having to sell are having to discount by some big percentages. Those who don't really want to sell won't budge much at all.

No real signs of panic out there despite all the gloomy media soundbites.

Merlin, those nicer house you mention will probably always be nicer and more desirable, but they won't always be as expensive as they are now.

Unfortunately for you and your situation, time is not on your side. Which is a shame.

Because time and patience is a buyer's greatest weapon at the moment.



good luck to you

mr.broderick

dolce_vita wrote: »

Merlin, those nicer house you mention will probably always be nicer and more desirable, but they won't always be as expensive as they are now.

Unfortunately for you and your situation, time is not on your side. Which is a shame.

Because time and patience is a buyer's greatest weapon at the moment.



good luck to you

Hi Dolce

I sold a car today to the sales manager at the estate agents who sold our house last year.
I was giving her a bit of a ribbing and commenting on how the market is doomed, she replied with the fact that they had agreed sales on 27 properties this month. I said that means nothing to me, put it in to context. She said they agreed 22 sales last january when the market was hot.
Must admit there appears to be a lot of "under offer" boards gone up round here in the past few weeks to my great surprise. I thought there were only lunatics like me buying/already bought at the moment .