Is there any point viewing a house 10% over my budget? - Now: How much to offer?

HxBro

Definitely look at 10% over budget, we are doing that, it's always nice to see properties 15% over budget come into your range too - in our case this meant we were looking at 3 beds, now it might be 4 beds as the months go by

LandyAndy

nutmegman wrote: »

And how do you expect this strategy to work?

Reference to this thread. http://forums.moneysavingexpert.com/showthread.html?t=924441

artherfouxache

PeteW wrote: »

Hiya!

I've just seen a £270,000 house on rightmove and fallen in love with it! Only problem is that I really can't afford a penny more than £250k as the stamp duty would be too much. Is there any point viewing it and hoping they would take an offer 10% below asking price? Or would I just be wasting everybody's time?

Regards

Pete

Just had details through priced at £290,000
Hand written note next to price..... 'would take £250,000'.
Last sold 20-12-07 for £280,000 http://www.nethouseprices.com/index.php?con=sold_prices_street_detail&locality=LIDLINGTON&town=BEDFORD&street=BUTLER+DRIVE&year=All&house_style=All&house_age=All&house_type=All&search_radius=150&northingToSearch=23910&eastingToSearch=49920&cCode=EW&outcode=MK43&incode=0UQ&order=streetASC

...should reply with...'thanks, but must try harder'

PeteW

OK, so I viewed this property on Friday and it's everything I hoped it would be!

I'm utterly in love and am taking the missus to see it on Tuesday, though I'm sure she'll want it as much as I do!

So... to take it form here, does anyone have any suggestions for a bidding strategy?

Thanks

Lotus-eater

Yes whatever you do DON'T fall in love with a property :rotfl:
tell the OH not to say a positive word when you are looking round it, don't tell the estate agent anything, be hard headed, its a business transaction right? The next dream house is just round the corner if this one falls through, trust me.

mrs_deadline

The offer will be taken that much more seriously if you can show you're ready to proceed. The ideal offer will be from someone who's not affected by the credit crunch, and not in a chain that someone else might break due to house price jitters etc.

PeteW

Yeah we've got an 80k deposit and a mortgage agreed in principle, plus we're first time buyers so there's no chain. So that all goes in our favour, the question now I guess is, what should my opening offer be?

budget_counsellor_shaz

PeteW wrote: »

Yeah we've got an 80k deposit and a mortgage agreed in principle, plus we're first time buyers so there's no chain. So that all goes in our favour, the question now I guess is, what should my opening offer be?

IMHO you need to do your research first.

1) How much did they pay for it and when did they pay for it?

2) How much have similar properties sell along the same road or within quater of a mile?

3) How much will you need to spend on it?

4) Then after asking the estate agents whether they will take an offer. Now you are ready with your first offer of between 15 to 20% below the original asking price.

5) The estate agent will tell you its worth loads more than that, explain that although you like the property thats what you feel its worth and with the current market as it is you don't want to take too much of a risk and feel that you are in a good position as you have no chain etc.

6) Then wait at least 4 days, the estate agent will probably ring you back and ask you to up your offer and the vendor will now except 5 to 10% less. Explain you need to chat to your wife and that you will get back to them.

7) Try to be patient and wait for them to get back to you.

8) Although it maybe your dream house keep viewing other houses.




Now sit back have a glass of wine to celebrate your successful offer:beer:

Shaz

PeteW

Thanks for that, in response to the research questions..

This house was bought for for £139k in 2000.

Three houses in that road sold in November last year for 226 to 233, though they are listed as terraced, and this is a semi. The highest any house in the road has sold for is 260 (last October).

I don't really think it'll need any work, its already been thoroughly modernised to a high standard.

With that in mind, what sort of value do you think my opening ofer should be? Maybe £230k or would that risk 'insulting' the vendors and them not wanting to deal with me at any price?

Nenen

PeteW wrote: »

With that in mind, what sort of value do you think my opening offer should be? Maybe £230k or would that risk 'insulting' the vendors and them not wanting to deal with me at any price?

Personally I don't agree with the oft quoted 'an offer that is too low will insult the vendors'. I know there are a few vendors who think so highly of their property they think everyone who views it should offer them at least twice what it's actually worth :rolleyes: but even then I don't think that would stop any serious seller from being prepared to negotiate. IME most vendors are quite realistic about the fact that first offers will be low and are a starting point for negotiation. When we sold our last house we were offered 20% less (this was over a year ago when the market was a lot stronger). We certainly weren't prepared to take an offer that low but were not insulted in any way... viewed it for what it was... someone hoping to get the best possible deal for themselves by starting with a low offer! We gradually negotiated and finalised on a price that was just over 9% reduction (which was 5,000 more than the lowest we had been prepared to accept)!

I think 220-230 would be a very reasonable starting offer.