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What to offer on a 400k house?

Hi all,

So we are looking at buying a house- been out to see a few and like one thats up for 400k. Its a nice house with potential to extend at a later date. It does need some work inside i.e bathroom needs updating, usual walls/flooring etc so definitely not a house you can just move into and not do anything.

So what would you offer on a 400k house?

Also- we have just sold and completed on our house- currently living with family and therefore chain free :j

Thanks
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Comments

  • SCDH
    SCDH Posts: 12 Forumite
    Is this a reasonable price for the area? What have nearby houses sold for?
  • davidmcn
    davidmcn Posts: 23,596
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    sandyk01 wrote: »
    So what would you offer on a 400k house?
    Not nearly enough information to go on! We need more than just the asking price. £400k could be a bargain, or ridiculously overpriced.
  • Linton
    Linton Posts: 17,064
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    Depends on how much you want the house, the current state of the local housing market and whether the house is grossly overpriced compared with similar nearby ones. The current price is presumably based on the current condition so you cant use that as a reason to make a low offer.. All other things being equal I might:

    If its a "must have" house, offer the asking price. If its a cheeky offer for a bargain perhaps £350K or wait a few months in case they get desperate to sell. Somewhere inbetween perhaps offer £380K and expect to pay £390K.
  • ReadingTim
    ReadingTim Posts: 3,970
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    Offer what you like, whether the vendor accepts it is another question.

    Being chain free is nice, but you still need a mortgage. So whilst you're in a slightly better position than some, you're still not an attractive proposition as a a chain free cash buyer, such as a property investor. Or merely someone with deeper pockets.
  • Aylesbury_Duck
    Aylesbury_Duck Posts: 13,877
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    It's difficult to suggest a figure without more information, particularly knowing what properties nearby are fetching in relation to their asking price and how long they're on the market for. Don't assume you can get a reduction for the work that needs doing - if the householder has done their homework it will have already been priced with that in mind. Your strength would appear to be your ability to proceed quickly (if the vendor wants that) so whatever offer you submit, you might sweeten it with that information. For example, a £390k offer from someone ready to proceed might be more attractive than a £395k offer from someone many months from being able to proceed.
  • SG27
    SG27 Posts: 2,773 Forumite
    I was considering offering £380k for a £400k house recently. But then saw that one 3 doors down sold for £385k (asking £390k) last year and was immaculate. This one needed some minor work and updating. Didnt want to stretch myself and end up over paying so decided against it.
  • ScorpiondeRooftrouser
    ScorpiondeRooftrouser Posts: 2,851
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    edited 8 May 2018 at 11:49AM
    davidmcn wrote: »
    Not nearly enough information to go on! We need more than just the asking price. £400k could be a bargain, or ridiculously overpriced.

    I think in this case the OP doesn't want advice on whether the asking price is correct; he wants us to assume it is. The question he is asking is more "what does someone who advertises their house for £400K actually want" which is dependent largely on how quickly houses are moving.

    Round here I would say anyone who has put the house up for £400K will happily take £390K, although of course they will try and get more if they can. I would offer under 390 with the intention of paying that - but that is is where I live.
    Don't assume you can get a reduction for the work that needs doing - if the householder has done their homework it will have already been priced with that in mind.

    This can't be stressed enough. The number of people who seem to think a house price is some sort of list price for a perfect house that you can make deductions from for wear and tear is extraordinary. Some houses may be over priced, of course, but most are priced according to condition; it is a fundamental part of setting a house price in the first place.
  • DonPatch
    DonPatch Posts: 55
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    You need to know the area, what current houses have gone for and what you are looking for in a house.

    I just viewed a house and I'd thought about offering less but after weighing everything up I went straight in at asking (£475). I know the area well and I'd been watching for the right house. It needs some work doing but price was about right I felt and I really wanted it.
  • Alarae
    Alarae Posts: 355
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    Depends on the market trends in the area, and how realistic the asking price is at the moment.

    We just completed on our house last week. I originally overlooked it due to layout and photos, which were actually a bad reflection of the house. It sold to someone else for full asking (425k).

    It had been a month since the house sold but then came back to the market as they couldn't get a mortgage. No other houses to look at so gave it a go, as our buyers had been waiting a while.

    Saw it the evening after it went back on market, full asking price offer the same evening.

    When you can see a house as your future home, I don't feel the need to quibble.
  • Alarae wrote: »
    Depends on the market trends in the area, and how realistic the asking price is at the moment.

    We just completed on our house last week. I originally overlooked it due to layout and photos, which were actually a bad reflection of the house. It sold to someone else for full asking (425k).

    It had been a month since the house sold but then came back to the market as they couldn't get a mortgage. No other houses to look at so gave it a go, as our buyers had been waiting a while.

    Saw it the evening after it went back on market, full asking price offer the same evening.

    When you can see a house as your future home, I don't feel the need to quibble.

    You didn't quibble over a few percent on a £425K asking price.

    Your signature says you are trying to save £10K in 2018.

    I am sure you can see where I am going here.
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