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

budget_counsellor_shaz

Nenen wrote: »

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.

I agree with Nenen, you can always raise the offer later;)


Remember PeteW you are in a very strong position in the current market:D

PeteW

OK, viewed the house again today with the wife, who also loved it, and we're ready to start the bidding!

So...anyone any more comments/suggestions before I stick in an opening bid of £230k? I'm a bit nervous at putting in an offer £40k below asking price!

budget_counsellor_shaz

PeteW wrote: »

OK, viewed the house again today with the wife, who also loved it, and we're ready to start the bidding!

So...anyone any more comments/suggestions before I stick in an opening bid of £230k? I'm a bit nervous at putting in an offer £40k below asking price!

We did it:j

Remember the market is on your side:D



All the best;)

Phil_rich

just remember, If your not embarraced by your first offer then its not low enough.

narced

PeteW wrote: »

OK, viewed the house again today with the wife, who also loved it, and we're ready to start the bidding!

So...anyone any more comments/suggestions before I stick in an opening bid of £230k? I'm a bit nervous at putting in an offer £40k below asking price!

Don't be! Make sure the vendor and the EA know you're a FTB and you have mortgage sorted out. You need to know 2 figures in any negotiation: what your entry price is (230K) and what your walk away price is (I assume its 250K but I'd have thought 240K max as that's about 10% off). You don't want to disclose the latter of course.

Expect them to say no to your first offer (if they say yes it was too high!). The EA will try and get you to up the offer, do not immediately, say you are looking at other properties, keep up the pressure so they buckle and accept a lower offer. I'd wait a week or two before offering more. Remember, its a buyers market and the number of people viewing is small and the number making offers smaller, and the number able to complete on their offers smaller still...

themaccas

I would also add to make your offer late in the day - just before EA closing time that way the vendors have a chance to sleep on the offer and not say outright 'no', you'd be amazed what a sleepless night does!! We got offers accepted twice by this way.

PeteW

Thanks for all the help guys. I did actually ring up the EA 5 mins before closing today to make the offer but nobody answered the phone!

Nenen

PeteW wrote: »

Thanks for all the help guys. I did actually ring up the EA 5 mins before closing today to make the offer but nobody answered the phone!

awwwww heck! What a pain for you. Now I'm on tenterhooks too! Let us know what happens Pete!

Loose_Cannon

PeteW, I offer my own story as encouragement to you in negotiating a lower price. I saw a place go on the market for £300k in October, which was out of my range. When it didn't shift, they dropped it to £290k in January - I saw the place late Jan and decided I was interested, but it would need a fair bit of work, so I offered £280k and was accepted! Completed at Easter.

PeteW

Nenen wrote: »

awwwww heck! What a pain for you. Now I'm on tenterhooks too! Let us know what happens Pete!

Well I phoned up about an hour ago and put in my offer of £230k. The agent got back to me fairly quickly to say the vendors had said no. He did however, say that they might be willing to take something 'closer to the stamp duty threshold' which sounds promising.

So the next question is how much should I offer next, and how long should I wait to make it?