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BSW89
Posts: 87 Forumite
Hi all,
I am thinking of making an offer on a property which will need some work. Some smaller but more necessary things e.g. dodgy door handles, old/tatty carpet in one room; some bigger but less urgent things e.g. 15 year old kitchen and bathroom which are liveable but slightly dated and worn; some potential issues e.g. a 15 year old boiler which works ok now but for how much longer?
I've looked at quite a few properties in the area and think the guide price is about right considering just the size/location etc but perhaps a little steep once the above is taken into account. The property was on the market earlier this year for £10k more than the current guide price but had no offers, and since then house prices have fallen for the post code.
I'm thinking of offering about £10k under guide price and mentioning the things detailed above, just wanted a sense check on whether that seems reasonable?
I am thinking of making an offer on a property which will need some work. Some smaller but more necessary things e.g. dodgy door handles, old/tatty carpet in one room; some bigger but less urgent things e.g. 15 year old kitchen and bathroom which are liveable but slightly dated and worn; some potential issues e.g. a 15 year old boiler which works ok now but for how much longer?
I've looked at quite a few properties in the area and think the guide price is about right considering just the size/location etc but perhaps a little steep once the above is taken into account. The property was on the market earlier this year for £10k more than the current guide price but had no offers, and since then house prices have fallen for the post code.
I'm thinking of offering about £10k under guide price and mentioning the things detailed above, just wanted a sense check on whether that seems reasonable?
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Comments
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You offer what it is worth to you and the vendor either accepts it or they don't.0
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It's all relative. Are you offering on a £1M or a £100k?0
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You offer what it is worth to you and the vendor either accepts it or they don't.
This seems a common response but isn't that practical - I've made offers on two properties recently based on what I felt those properties were worth to me, but was outbid, so am trying to get a more grounded perspective on what to offer.0 -
AnotherJoe wrote: »It's all relative. Are you offering on a £1M or a £100k?
Guide price is £260k.0 -
This seems a common response but isn't that practical - I've made offers on two properties recently based on what I felt those properties were worth to me, but was outbid, so am trying to get a more grounded perspective on what to offer.
That may be telling you then that perhaps you are underestimating the value of the properties you are offering on.
If someone is going in at a higher bid then I doubt its them that are pitching the price wrongly.
Every situation is different and it really depends where the vendors flex point is...I under offered by 15% on one property I bought never expected them to take the offer seriously and surprised both myself and the agent when the vendor accepted.It was just a case of the timing was right for all of us.
The most recent property I bought I had to go straight in at asking price and even then the vendor tried to squeeze more.
Its difficult when you are a FTB to see the whole picture.
Imagine you in 10 years time when you come to sell that house,how would you feel about the then FTB's lowering their offer because they wanted to update the very functional kitchen that was bang on trend when you paid a fortune for it!
Carpets handles and decoration are perhaps enhancements you want to make and in someways the vendor shouldn't be subsidising your choices.
The real number crunch is when the property is valued for your mortgage purpose that's around the figure you should be thinking of offering not a lower figure that allows you to upgrade to your requirement.
All you can do is try your offer and be prepared to up it if its truly the property you want to secure or walk away and keep lookingin S 38 T 2 F 50
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need_an_answer wrote: »That may be telling you then that perhaps you are underestimating the value of the properties you are offering on.
If someone is going in at a higher bid then I doubt its them that are pitching the price wrongly.
Every situation is different and it really depends where the vendors flex point is...I under offered by 15% on one property I bought never expected them to take the offer seriously and surprised both myself and the agent when the vendor accepted.It was just a case of the timing was right for all of us.
The most recent property I bought I had to go straight in at asking price and even then the vendor tried to squeeze more.
Its difficult when you are a FTB to see the whole picture.
Imagine you in 10 years time when you come to sell that house,how would you feel about the then FTB's lowering their offer because they wanted to update the very functional kitchen that was bang on trend when you paid a fortune for it!
Carpets handles and decoration are perhaps enhancements you want to make and in someways the vendor shouldn't be subsidising your choices.
The real number crunch is when the property is valued for your mortgage purpose that's around the figure you should be thinking of offering not a lower figure that allows you to upgrade to your requirement.
All you can do is try your offer and be prepared to up it if its truly the property you want to secure or walk away and keep looking
Many thanks - this is helpful.
It is tricky, one of those properties hadn't had any offers in 5 months when I made my offer (just below guide price), for the other property my final offer was £10k above guide price and it still got rejected, so it's beginning to feel like a stab in the dark.
I do understand it comes down to the vendor, their circumstances and general outlook, and - to some extent - luck, i.e. what other offers are made at the same time, so am trying not to get too disheartened, but also trying to be proactive in ensuring I'm making reasonable offers without going overboard and paying too much.0 -
I would never offer more than 90% of the asking price.0
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You don't get money off for your taste in kitchens and bathrooms. They aren't your taste. You don't get money off for that. Door handles are minor repairs and carpets you would probably change anyway so an old one isn't going to change how much you offer. So all you have to do is decide whether the asking price is reasonable compared to properties that have sold recently in a close area.
A 10k reduction is too much if it is based on repairing door handles and a boiler that might break down in a couple of years time.0 -
There isn't a one size fits all. I've always sold at asking price and have bought 1 at asking price and 2 at varying amounts under.
If kitchens, bathrooms etc are old, the property may have been priced accordingly. If kitchens, bathrooms etc are not to your taste, that's subjective and isn't something that is the vendors problem and I wouldn't agree to a reduction for.
If the boiler needs replacing, that's not worthy of a £10k reduction. It may be a servicable boiler. Just because it's 15 years old it doesn't mean it's worse than a newer one. Some of the boilers developers install these days are cheap rubbish. I always expect to replace carpets regardless - carpet in one room isn't worthy of a further £7k reduction (if a boiler were to be £3k).
That's just house. The vendors position can also determine any reduction. They want to sell then maybe they'll accept a reduction. If they're putting it on the market and aren't in a rush to sell, they may not accept a reduction.0 -
Anyone putting their house on the market should expect to negotiate. I think 10% less than asking price is a perfectly reasonable offer. Surely there isn't any savvy seller who puts their house on the market without room for maneuvre?0
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