Stamp duty and houses on at above threshold

Gorgeous_George

Now I understand.



GG

m00m00

a house priced at 139k is generally priced far enough away from the stamp duty threshold that they won't drop it below it (it's mainly properties in the 125-130k range that are priced with the expectation of dropping).

of course seller willingness/need to sell and local market conditions also come into play.

Addy1

Yeah that's what I feared

Oh well I will just have to keep my fingers crossed for tomorrow. Very nervous!

m00m00

a 14k reduction though, is still only 10% and that's certainly not outrageous given the current climate.

The one thing in your original post that would make me worry though, is the sellers just don't seem to be in a hurry to sell, which will make them much less likely to be open to a big reduction for a quick sale

Addy1

m00m00 wrote: »

a 14k reduction though, is still only 10% and that's certainly not outrageous given the current climate.

The one thing in your original post that would make me worry though, is the sellers just don't seem to be in a hurry to sell, which will make them much less likely to be open to a big reduction for a quick sale

Yeah I know that gives us less bargaining power. I just hope they have been reading on here how everyone thinks prices are dropping through the floor!:rotfl:

Doozergirl

Addy1 wrote: »

What I am trying (unsuccesfully) to say is that

We put an offer in of 125k - no stamp duty.

We put an offer in of 127k - we have paid 2k more for the house, plus we have to pay stamp duty of £1270

2000 + 1270 = £3270

Therefore by increasing our offer by 2k we end up paying £3270 more for the house!

I appreciate what you're trying to say, but at £127,000 + SDLT, you're still paying over £10,000 less than their asking price, not £3270 more than a random number in your head.

GG's suggestion that you offer accordingly and ask them to pay the SDLT for you is a good one.

There's nothing wrong with trying £125,000 but on face value, their asking price is far enough away from the threshold for a £125k offer to be considered cheeky as opposed to fair. However, you never know what people will be willing to accept, so I'd still go for it! If you think the asking price is a fair one already though, you should be prepared to be disappointed

Addy1

Just wanted the best price that's all.

Everyone says go in 10% lower, which would make it 126, which seems a stupid offer if you can go 1k lower and avoid stamp duty.

Like I said before we have budgeted for it, but everyone keeps saying put as much deposit down as possible so we though that extra money would be better off on our deposit.

May just start higher now cos feel too embarassed:o

Also, is it common practice for people to ask the vendor to pay their stamp duty? That would be a great option for us, cos it would mean we have more cash up front ie for deposit. It might mean vendor gets nearer their asking price as well. Thanks for the suggestion.

m00m00

it's easier to start low and increase your offer than go the other way.


you have nothing to lose by going in at 125k, a seller is hardly likely to refuse a further offer in the current climate, especially from a first time buyer with no chain.

tanikk£

go for 123K-125K ... it is not embarassing in this climate

Doozergirl

I'd still go in at £125k!

I'd just change your thinking a little. Everything you get off the asking price is a bonus. It is at a price where the SDLT argument isn't going to cut it with them BUT they may be prepared to sell for a lower price. The lower you start, the best chance you have of getting their best price. Just don't be disappointed if you settle for a lower price where you have to pay SDLT if you think the asking price isn't that bad!