How high should we go?

3dsmills

Hello

We've seen a house we really love, it's in a village location, ex local authority, 2 bed, planning for an extension (which we can't afford to do at present) and is on at 175k

The vendors paid 160k for it a year ago and have had it double glazed and fitted a new kitchen. They have a genuine reason for moving. House has been on since beginning of Dec, they had an offer before christmas that was accepted but fell through.

We're first time buyers with mortgage in pricipal. Offered 150k that was rejected, offered 155k that was rejected.

EA doesn't seem to think they will take less that 170k for it, which I can understand from their side as that's at least what they've spent on it. But we can't afford that and in today's climate I think they may be being a little optimistic.

How high would you guys go?

Any thoughts/comments gratefully received....

*UPDATE*

10 weeks on from our offer of 165 (which we then withdrew 3 weeks later)

Received a call from the agent which went something like this..
EA: Helloooo, was was just phoning about the property you offered on a little while ago, welllll, the vendors have realised (!) they can offer a bit less on the house they want to buy so they'd be willing (!) to accept 168 from you, so would you like to put an offer in at 168?

I politely told her to bog off.

I was actually gobsmacked she had the nerve to call me. This is the same EA that last week left me a message to 'call her urgently', she had to tell us about the perfect property - we'd actually viewed it 3 weeks ago. Then called me about a new property they'd got and invited us to view it, shut her up when I told her it had sold the day before. :mad: :rotfl:


Anyway, we're starting to notice prices coming down a bit in the Northampton (villages) area, which is great for us :j

anyone else in the area noticed a change?

carolt

Offer what you think it's worth, but clearly no point in offering more than you can afford.

Point out nicely to the state agent that with the credit crunch and all, you just aren't in a position to offer the 170K they want but are in a very good position to proceed now and are serious buyers. Point out tactfully that you've read prices are falling nationally.

That said, it takes a while for vendors to accept which way the wind's blowing, so don't be surprised if they turn you down - selling at a loss is a big psychological barrier and even if they know the price of what they're moving to has dropped too, they'll still be reluctant to accept less than they paid such a short time ago.

IveSeenTheLight

No-one can say how high to go as we do not have any market research into the area you are looking to buy.

It will be interesting to see in the next few months what happens to the market.

Generally the market picks up in spring. Will it do so this year with the credit crunch and sentiment playing its part.

I believe it may affect some areas while others will not be affect in the same way

dannyboycey

3dsmills wrote: »

EA doesn't seem to think they will take less that 170k for it

Who'd have thought it.

Offer what you want to pay for it, not what a slimy turd in a cheap suit thinks you should pay.

boinging_2

There is no scientific formula but I would suggest:

a) What you can afford on a monthly repayment (-5% for all the unexpected things that will happen).
b) How desperate you are to move in this house? The more desperate you are the more you offer!
c) Market value / how much they bought for is irrelevant as it's only worth what some one will pay.

3dsmills

Well we've offered 165k, which is as high as we can afford. It's been declined, so now all we can do it sit back and hope they reconsider....

david29dpo

What they paid is irrelevant. Its what its worth to you and others and them.

ManAtHome

Walk away now - they're probably not going to move on price because they've seen you moving on price. Can't be that desperate if they're turning down 94% (ish) of asking price the way things are at the moment.

Running_Horse

3dsmills wrote: »

The vendors paid 160k for it a year ago

And?

3dsmills wrote: »

and have had it double glazed and fitted a new kitchen.

So they have added value?

3dsmills wrote: »

They have a genuine reason for moving.

As opposed to a false one?

Not being funny, but as others have said, offer what you think it worth to you today.

If they reject your offer, you can increase it, or walk away. But you can't force someone to accept an offer, because you think they are being unreasonable. Just don't panic yourself into paying more than you think it is worth.

ginvzt

I don't understand people that look at houses out of the price bracket they are prepared to pay - the asking price is £175k, you can't afford more than £165k as you say. Why you even consider it then? I know it is possible for vendor to drop £10k (ours did a year ago from £145 to £135, but the house was onthe market for more than half a year and we were able to afford £145 anyway), but I don't think it is a good idea to look at the prices above what you can actually afford with the mind that vendor will drop the price for you...

pinkshoes

Well if they paid £160k and had a put in a new kitchen and double glazing, I'm guessing they won't (or can't afford to - perhaps they took a 100% mortgage or borrowed more for the improvements) accept less than perhaps £170k.

They may have a genuine reason for moving, but if they're not in a hurry, then they might hold out for higher offers.