Asking prices - thoughts

stationx

I posted this on another thread, but here it is on one of it's own...


Hi there,

Sorry if this is a bit of an essay...

I am looking at buying my first place in Reading, Berks. and have found a property I immediately fell in love with. It is a mid terrace house, set over four floors, three bedrooms, two reception rooms, near the town centre, has river access and a mooring at the back. The asking price is £249,950.

The EA told me that it has been for sale since before christmas with another agent, and they have taken it on this year. I viewed it on friday last week, and wanted to go and see it again with my Dad. However, the EA told me on tuesday that I couldn't have a second viewing because the vendors had an offer they were happy with. The EA told me that I could make an offer though.
I said thanks but no thanks unless I could have a second viewing.

I got a call on friday saying that the buyers had retracted their offer, and that I could now have my second viewing.

I am sure this is all EA tricks trying to make me panic.

Anyway, I went along with my dad. The chimney stack at the back is falling apart, the back of the house is really high, and the only way to get the scaffolding in is through the house... so it's not a small job to get to the back of the roof... unless they come by boat over the river.
There is slight subsidence in the front bay window too, and a few other little bits here and there, damp in the bathroom, needs a new window on the front top floor etc....

So I want to put in an offer, but was wondering what you experts think would be too cheeky or not.

My dad said I should start at 210k and go from there, and mention the things we saw wrong with it. Would that be taking the p%ss a bit?

I only wrote the above novel, trying to give as much info as possible, what do you think about the EA's tactics so far?

any help, thoughts or advice is much appreciated,

thanks,

Jamie

gingin_2

I think your dad sounds sensible.... go for it and if you really want it you can negotiate with them.

And yes, it does sound like EA games and if it is genuine there must be a reason as to why they retracted their offer

willis

Hi,
I think £210k is fine for a first offer, especially given your status as a first time buyer.
I would advise you to pay extra for your own survey (not just the standard valuation one for your mortgage) as it sounds like it would be worth the money (and if any other problems come up in it, you could try getting money knocked off the price at a later date).

stationx

Thanks for your comments gingin and willis, very helpful...

What seems to be the current percentage off asking price that people are actually accepting, does anyone have any info?

A 210k offer on a property of asking price 249,950 is about 16 percent below roughly.

I think that's an awful lot, but I think i'm going to give it a go... i'll report back after if anyone's interested.

gingin_2

stationx wrote: »

Thanks for your comments gingin and willis, very helpful...

What seems to be the current percentage off asking price that people are actually accepting, does anyone have any info?

A 210k offer on a property of asking price 249,950 is about 16 percent below roughly.

I think that's an awful lot, but I think i'm going to give it a go... i'll report back after if anyone's interested.

Definitely interested to hear what happens

I heard that selling prices were around 8.5% off but can't find a statistic to back it up. You are a FTB and therefore a desirable purchaser and given the problems you mentioned and that the house has been remarketed with a different agent, I think your offer is perfectly reasonable.

Wishing you lots of positive vibes

For what it's worth we are also FTB's and in this market I would go in at around the 15% off mark also with a view to achieving at least 10% off a realistically priced property.

mrs_deadline

Asking prices and percentage drops aren't quite so relevant if you're looking at a place with possible structural probs and subsidence (not to mention flood risk near a river?) What will the necessary work cost, and at what price can you afford to buy the house and still have the cash for structural repairs, that's the sum that has to add up.

jaype

Agree with mrs deadline - make a low offer, stick to it and try to be hard headed. There's a reason it hasn't sold. Is it under water on a regular basis or in the process of sliding into the river? I have a feeling i read something about flood defences being built to protect some towns in the Reading and Maidenhead area that had just directed the water to another area. Make sure it's not yours! Maybe you could get a builder round for a quote on repairing the obvious bits and pieces, but another member of these forums would have to advise as I'm not very knowledgeable about such things.

Markinjapan

First time buyer here too! And wondering what kind of level to go in at and what to aim to achieve.

Our budget is lower, looking at spending up 180k
For a house on the market at 180 is it wise to go in at 170 aiming for 175 or is that still too high?

Oh, the confusion! Don't want to be a sucker and pay too much!

gordonstights

Markinjapan wrote: »

Oh, the confusion! Don't want to be a sucker and pay too much!

I saw another thread on here where someone said "if your first offer isn't embarrassing then it's too high". I liked that saying. It makes me feel better about the 15K under offer I made on a house a few months back!