FTB Putting offers in on a house

Bargainhunter20

Hi

Help needed!!
We are looking to purchase a property worth £139,950 we are hoping to obviously get the asking price down, but by how much percent lower should you offer?

Also a House a few doors down on the same road went for 126,000 mid December 2007 they are both 3 bed semi-detached houses surely house prices couldn't have risen by that much in such a short space of time?!

To update the 1 that went for 126,000 we don't believe to have a master en suite and also has smaller bedrooms overall.


Any advice would be much appreciated.


J x

Kaz2904

Pay no more than you can afford.
If you think it's only worth £126k then offer that.

neas

Offer 120k imo... be cheeky, maybe send a letter to them personally just incase the EA doesn't pass on the offer.

Cant help in these climates.

MortgageMamma

read this, its full of really useful tips and is a sticky at the top of this board

http://forums.moneysavingexpert.com/showthread.html?t=209805

MortgageMamma

and this!

http://forums.moneysavingexpert.com/showthread.html?t=175653

aztec21

If the other houses on the same road went for £126,000 in Dec 2007 then your opening offer shouldn't probably be more than that.

All obviously depends on your circumstances.

Badger_Lady

If it really is worth £126k (make sure you know your stuff - was the other one in need of complete refurbishment?), I'd aim for £125k at the most, keeping it under the Stamp Duty threshold.

But do some work to find out what you think it's worth now - don't just base it on one alternative figure.

Jorgan_2

Bargainhunter20 wrote: »

Also a House a few doors down on the same road went for 126,000 mid December 2007 they are both 3 bed semi-detached houses with garage surely house prices couldn't have risen by that much in such a short space of time?!

You need to make sure you are comparing like with like. The house that sold for £126k may have needed a lot of work doing whereas the one you are looking at may not.

Thoroughly research the area you are looking to buy in, do not just use the online sites that show what are property sold for, they can be flawed as the recent 'scandal' over the new build prices has shown.

halia

Jorgan wrote: »

You need to make sure you are comparing like with like. The house that sold for £126k may have needed a lot of work doing whereas the one you are looking at may not.

Thoroughly research the area you are looking to buy in, do not just use the online sites that show what are property sold for, they can be flawed as the recent 'scandal' over the new build prices has shown.

Completly agree, we're looking at 2 houses at the moment on market in same area.
house 1, 3 beds, new roof+ loft conversion (storage space, boarded out, power sockets, lighting and velux), GCH, new kitchen ext
house 2, 3 beds, old slate roof, electric night storage heaters, teeny tiny kitchen and warren of tiny 'cupboard sized rooms behind it (WC, pantry, utility etc).

House 2 is on for £10k less but tbh the roof alone could cost that much!

Estate-Agent-Expert

There is no fixed percentage in the current market that you must try to negotiate down to...what is more important is that you have a very clear idea of the market value of the property based on your own research.

1. Firstly, how many other comparable properties have you seen (that are currently on the market)? You should have a very clear idea of what your money will buy you NOW based on what is currently available, not from last year's comparables.

2. The price of the property sold in December doesn't really tell you a great deal - it may have been in very poor condition, or the Vendor may have been pushing for a very quick sale, choosing speed over price.

3. Ask the agent what the Vendor's motivation is - are they in a chain, highly motivated and needing to find a buyer fast? Or are they testing the market and happy to wait for a strong price? If they are keen then offers will be welcomed - as long as YOUR position is a good one! Which leads neatly to...

4. What is your position? Are YOU in a chain? A cash buyer who can move like the wind? Or needing to sell your own home before you can proceed? The faster you can move, the lower you can offer.

4. Did you tell the agent what your maximum budget was? If you have already revealed how much you are able/willing to spend, then it will be harder to negotiate effectively. The key is to keep your cards close to your chest so that the agent cannot manipulate you.

Taking all of this into consideration, decide what you think it's worth, "sell" yourself to the agent as a buyer and then go ahead with your first offer, ensuring you have enough room to negotiate up (an agent will often ensure their Vendor never accepts a first offer, even if it is considered acceptable). And don't be afraid to leave a lower offer on the table for a while - the Vendors may change their mind later on.

Good luck!

Bargainhunter20

Thankyou all for your replies much appreciated! x

We are First time buyers and the people who own the property we want were let down 6 months ago by a buyer in a chain which fell through 3 days before they were due to move!

The house they wished to purchase 6 months ago they are still currently the highest bidder on.

Since we are first time buyers with no chain i think we are in a good position and a lot less risk to these people who have already been let down once.