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Two properties - what offer to make?

OH and I are in the process of looking at houses.
Have seen loads and saw two today that are pretty much identical in terms of size, what needs doing in the house etc.

Both are up for £187k, but both would require about £10k of work doing.

We are in a good position in that we like both houses and both sellers want a really quick sell as both have been on the market for some time. One has made an offer on another house and is worried they won't sell theirs in time and might lose the one they want.

What I would like advice on is making an offer. What would other people in this situation do? We don't really mind which house we get, as they are so similar. We also don't mind walking away if our offer is not accepted, as there is plenty around that we like and we are determined to not be emotional about choosing a house. I was thinking of making a pretty low initial offer on the one that we have a slight preference for. I don't want to insult either seller, but people keep telling me it's a buyers market and we have to think of ourselves and how much we would need to 'do it up.' I wondered if there was like a general rule of thumb "never offer less than 10% of the value of the asking price" kind of thing.

Thanks

Comments

  • The best advice I have had is to buy the house that you do get an emotional tug from, because you don't get it very often.

    Don't be afraid of making an offer at least 10% less than asking price, remember, you have to pay the mortgage and it is a buyers market. If your offer is rejected you can bid again or move on (unless its THE one).

    Good Luck
  • Red_Elle
    Red_Elle Posts: 476 Forumite
    We did get an emotional tug for the house that we had a preference for, but what I mean is that I have seen all too often people set their heart on a house and want it so much that it's hard to be objective and they end up making a higher offer than they can either afford or that is above what would have been accepted in the first place.

    10% of it would be £18,700, so 10% less than the asking price is £168,300, which to me just seems like a massive amount less than the asking price. I just wondered if I could get away with offering that or if I would get laughed down :o

    I wondered whether others, if they were desperate to move and hadn't have much interest in their house, would consider such a low offer. We have told agents that we would go up as high as £200k, but realistically, having seen what is on the market, we would rather go for £170k max and use the extra money (have a fair bit of equity in this house) to pay off a loan of £7k and have some to redecorate the house.
  • claz
    claz Posts: 179 Forumite
    if you think that £10,000 worth of work needs doing then offer them a lot less, quoting what work needs doing then if that offer is turned down offer a little more

    i would offer on both properties and do the same with both and also make it clear that you have made an offer on another property and the first people to accept the offer you will go with

    this puts you in a much stronger position, if you think that the agent thinks your bluffing book more viewing with lower priced properties and similar priced ones, so you are still looking at the markert and they see your serious about buying

    i did this with the property i have just purchased, i even took in the particulars of another property and lied and said it was in much better condition and it worked the best thing that seemed to work through was leaving about a week between making an offer and then returning to the property

    if an offer is accepted then say, i will also wait and see what the other vendors say, never show all your cards to them
    Well we finally did it got a house not on a main road, next a railway line or any other werid and wonderful things that get on my nerves!!!

    :beer:
    :dance:
  • Red_Elle
    Red_Elle Posts: 476 Forumite
    Thanks, didn't know that you could make an offer on two houses. They are with two different agents, so I suppose that is better, as one might manipulate the situation.
  • mummytofour
    mummytofour Posts: 2,636 Forumite
    I would start at 175 and I would be happy paying 182, you have to bear in mind that at the end of teh day the seller has a min amount that they cna afford to take to enable them to move up the ladder.
    Debt free and plan on staying that way!!!!
  • We were on the market for 9 months at £130K without any real interest. We dropped our asking price £10k and sold at new asking price within a week. The woman that bought had been looking for months and liked the look of ours but decided against viewing as it was out of her price range.

    Your not being cheeky, you are offering the vendor a choice. They don't have to accept, and you can always go up a bit. But you'll be paying the mortgage.

    They also might have an eye on property that they can do a deal on. It is all relative after all.

    Keep us informed & good luck
  • Meeten
    Meeten Posts: 236
    First Post
    Forumite
    If there is £10k of work need doing, then discount this price.

    £187k now becomes £177k

    Offer them a lower price, and state in your terms of offer that the reason is because x & y & z need doing, and that is why you are offering such an amount.

    I agree with claz and offer on both ( you don't seem toooooo concerned which one you get) and let the EA's know that you are willing to complete on the place that acts the fastest. This puts the onus on the seller to get the legals carried out sooner, and they also know that you have another place that you are willing to go for if they want to play hard ball.

    Good luck
    One day I want to be the pigeon...... and not the statue!
  • Red_Elle
    Red_Elle Posts: 476 Forumite
    Thanks for the advice everyone. Update is that we have seen another house that we really like, although tbh, all three are on a par with each other. It makes it a lot easier that there is loads we like (we're not too picky!!)

    This new house is on for £169,999. It is well worth the money to be fair. The house over the road, which we don't like as much, is £12k more than that. It was on for £179,999 until recently and I have been told by the agent that the most important thing for them is to move quick, rather than get full asking price.

    Will keep you posted on progress, but keep the tips coming - they're great :D
  • quatro
    quatro Posts: 197 Forumite
    I usually only view properties with no chain as it cuts out a lot of situations like making the chain longer than it needs to be, and keeps the time factor shorter.

    I would consider a property IF the vendors had a clear idea of where they are moving to. Some vendors are just seeing what happens [hoping for the top price for their property and not being flexible] and some may not find what they want for ages, get into an horrendous chain - or change their minds about moving at all if they are halfhearted about it.

    I saw 2 houses that I liked [both lovely, both with no chain and I was torn, but 1 needed much more work than the other] and let one vendor know there was another in the running to gauge her reaction - she thought I was bluffing and wouldn't drop much though some money needed spending on it [it is still on the market, as it is overpriced for the position it is in].
    I went for the other one as they accepted a lower offer and it is empty. Sometimes circumstances dictate which house is the better buy. I have lots of work to do but looking forward to it as I have funds to do it.

    I accepted an offer on my sale of £1,500 below the asking place - its very up together but I was lucky not to have to drop any more.
    Good Luck with your search......
  • Red_Elle
    Red_Elle Posts: 476 Forumite
    Good point about the chain. The one we like the most is not in a chain. It was being rented, but they want to sell now (already live elsewhere). One of the others is also vacant, so we have been quite lucky with what we've seen.
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