How much should I offer?

BigSammyA

Hi all.

Myself and a mate have seen a property we're interested in, mid-terrace house built in 1997, on the market at £119,950. There was a similar property on the market a bit ago that was listed for £115,000 - not sure what it went for.

Given that on average sale prices are as much as 5-10% below asking price, what should we offer? We're first time buyers, and can move in anytime from 8 weeks to 3 months as we both live with our respective parents.

We were thinking around the £110k area, as we have quite a lot of bargaining power being FTBers (mortgage will be fine) but we really like it and don't wanna get usurped!

Any advice?

YorkshireBoy

BigSammyA wrote:

There was a similar property on the market a bit ago that was listed for £115,000 - not sure what it went for.

You can find out here...

http://www.nethouseprices.com

Little_Miss_Winner

I would start as low as possible. Houseowners are always told to put a subastantial amount on top of the figure they are looking for. Ours has been valued at £167,500 but estate agent said if we came to sell he would market it at 180,000 :eek:

rizla01

Start at £98, 500 and explain that this is all that you can raise. See what the response is and wait two days - dont make contact.

based on the response you can then 'find' another £5k- £7k to make another offer of 105k. First offers are rarely accepted but they set the scene. Finally you should get it for under 110k.

all this depends hugely on how long it's been on the market and why.
Just on - be prepared to lose it, or pay the price asked!

Good luck.

Riz

meanmachine_2

It all depends on the area.

If you're in the south there is NO justification for the vendor putting an identical property on for more than another that recently sold.

In fact, if they're willing to sell rather than waste everyone's time, it should have been put on the market for 5K LESS!

If you're further north, then you'll have to use local knowledge.

But don't confuse asking price with actual selling price. nethouseprices is the butyer's best ally.

Woby_Tide

was the similar property sold recently 'identical', or are there internal differences(new decor/kitchens/bathrooms) say or extensions that the new property may have a 'premium' over the previous sale? If you can get the final price for that last prperty and have an idea about it's overall 'package' then you can get a good feel. As the other poster said though, don't start too high, especially if the other sold for under asking price.

bridiej

potogold wrote:

I would start as low as possible. Houseowners are always told to put a subastantial amount on top of the figure they are looking for. Ours has been valued at £167,500 but estate agent said if we came to sell he would market it at 180,000 :eek:

I'd use a different estate agent then, what's the point of over valuing it? Particularly if like our agent they fix the fee on the asking price not what you sell for...

Our neighbours have been on the market for over a year because they were over valued then stuck another £10K on top.

The agent we have chosen to go on with said £165K was a realistic price and that's what we should go on at, so we have. So it's not true that all houseowners add "a substantial amount on top"!

ca-uk

i'd agree with rizla - 98.5k

you've got to look at what these houses are *really* worth - i know that a house is only worth what you're prepared to pay and blah.. but take a look at nethouseprices and see what the sensible price (ie, pre-meteoric rise) was, and work your offer based on sense.

there will always be plenty more houses come up for sale..

BigSammyA

Thanks all.

Will re-evaluate and prob put in a sub 105k offer.

BigSammyA

Here's the price history of the house:

Built: 1997 (so should still have guarantee!)

05 Jan 2001 sold for £53,200

28 Feb 2002 sold for £63,000

19 Jun 2003 sold for £80,000

22 July 2005 asking price £119,950

A rubbish analysis (its obviously not going to be linear, but its a good start) says that its making £11k ish per year on average, so sale price now should be £102,000.

Any more feedback (i've really appreciated it so far!)

Katinkka

Dont want to be a downer but its a bit odd that so many owners have sold it so soon after buying it...