First Time buyer - need help negotiating!

spottydog

I would probably just wait, I can't imagine anyone offering £123k as it will actually cost them £4230 more than offering £120k.

It sounds to me like the EA is trying to get the most possible and thinks you'll pay it.

I would make sure that the estate agent thinks you cannot go above £120k in any circumstance (maybe by looking at other properties even) then he will probably be more likely to push the vendor since further advertising, showing people round etc. will cost him more than the £50 commission he would probably get for an offer of £123k.

kellyp

I did say he would struggle to get any offers over 120k because the house is on the market at such an awkward price. Also metioned we were looking at other houses in the area this weekend (a little white lie never hurt anyone!).
When she said about 123k I said about houses going for between 93 and 95% of asking price, so she knows that i have been doing research into the market and not going into this blind. She did say that was not the case for the area we are looking to buy in, which is probably partly true, but 123k seems very excessive it todays housing climate!

kellyp

Offer turned down but really want this house!

Help!!

Ian_W

Hi Kelly,
Agree with comment above re EA - don't think they will be advising refusal for more commission but may be 'cos you've shown out as "too keen".

Working on the assumption that the market is slow in your area and FTB's are quite thin on the ground as seems to be the case in most places but not everywhere - if it's not the case where you are you need to factor that in - especially as you don't think properties are selling for 93/5% of asking price.

Three possible strategies I would consider:
1. Ring EA back, you've talked about it, no chance 123 as you're not paying SD at any price, would have been prepared to offer £1/1.5k for fixtures, carpets, white goods etc but obviously vendors not going to say yes. So have they any other props in your area, location etc. Looks like you're walking away but does give prospect of some extra money. It's what I'd do but may not be for you.
2. Offer to split difference at 121500 and swallow SD - might still refuse.
3. Offer 123,000 - if vendor pays SD bill of £1,230 - again may still refuse.

In the meantime I would look at others that may suit you if you haven't seen all in your location & price range. Two reasons - first, you might still find one you like better, or it will reinforce the reasons you want this one and confirm you're right to pay more for it. Second, that even though you REALLY want this house, and even when your offer is accepted it can still fall through right up to exchange - up to 1/3 of agreed sales do fall through so it pays to have a fall back.
Best of luck.

Doozergirl

I still think this guy will be incredibly lucky to get over £120k when it's marketed at £125k.

It's hard, but you should really be able to get another similar, if not identical house at £120. I think you should *try* (easier said than done, I know) to stick it out for another week or so. View as many other properties as you can and DON'T speak to the agent about this house, let the vendor sweat.

When you can't bear it any more, try offering £120k again.

If you can't do this, then Ian W's suggestions above are good ones,

meanmachine_2

Only you can know what the market is like in your area.

But I would be looking at offering 90% as an opening gambit.

There is no way on god's earth I'd offer above the stamp duty threshold on a house with an asking price of 125K.

Havin said that, many FTBers are so stupid they don't even know what "stamp duty" is.

You seem canny. Don't be suckered in by the EA. Remember, it's their job to get the best price for their vendor and to screw as much money out of you as poss.

And yes, start looking elsewhere, letting the agent of this property know you are doing so.

guitaruser

Check that stamp duty applies on the house aswell.....you never know it could be a stamp duty exempt postcode.