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  • FIRST POST
    • sandyk01
    • By sandyk01 8th May 18, 10:37 AM
    • 23Posts
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    sandyk01
    What to offer on a 400k house?
    • #1
    • 8th May 18, 10:37 AM
    What to offer on a 400k house? 8th May 18 at 10:37 AM
    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

    Thanks
Page 1
    • SCDH
    • By SCDH 8th May 18, 10:52 AM
    • 8 Posts
    • 2 Thanks
    SCDH
    • #2
    • 8th May 18, 10:52 AM
    • #2
    • 8th May 18, 10:52 AM
    Is this a reasonable price for the area? What have nearby houses sold for?
    • davidmcn
    • By davidmcn 8th May 18, 10:56 AM
    • 8,052 Posts
    • 8,331 Thanks
    davidmcn
    • #3
    • 8th May 18, 10:56 AM
    • #3
    • 8th May 18, 10:56 AM
    So what would you offer on a 400k house?
    Originally posted by sandyk01
    Not nearly enough information to go on! We need more than just the asking price. £400k could be a bargain, or ridiculously overpriced.
    • Linton
    • By Linton 8th May 18, 10:56 AM
    • 9,409 Posts
    • 9,550 Thanks
    Linton
    • #4
    • 8th May 18, 10:56 AM
    • #4
    • 8th May 18, 10:56 AM
    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
    • By ReadingTim 8th May 18, 11:01 AM
    • 2,774 Posts
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    ReadingTim
    • #5
    • 8th May 18, 11:01 AM
    • #5
    • 8th May 18, 11:01 AM
    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
    • By Aylesbury Duck 8th May 18, 11:02 AM
    • 2,097 Posts
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    Aylesbury Duck
    • #6
    • 8th May 18, 11:02 AM
    • #6
    • 8th May 18, 11:02 AM
    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
    • By SG27 8th May 18, 12:35 PM
    • 2,297 Posts
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    SG27
    • #7
    • 8th May 18, 12:35 PM
    • #7
    • 8th May 18, 12:35 PM
    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
    • By ScorpiondeRooftrouser 8th May 18, 12:45 PM
    • 2,644 Posts
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    ScorpiondeRooftrouser
    • #8
    • 8th May 18, 12:45 PM
    • #8
    • 8th May 18, 12:45 PM
    Not nearly enough information to go on! We need more than just the asking price. £400k could be a bargain, or ridiculously overpriced.
    Originally posted by davidmcn
    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.
    Originally posted by Aylesbury Duck
    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.
    Last edited by ScorpiondeRooftrouser; 08-05-2018 at 12:49 PM.
    • DonPatch
    • By DonPatch 8th May 18, 12:50 PM
    • 41 Posts
    • 18 Thanks
    DonPatch
    • #9
    • 8th May 18, 12:50 PM
    • #9
    • 8th May 18, 12:50 PM
    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
    • By Alarae 8th May 18, 1:23 PM
    • 325 Posts
    • 334 Thanks
    Alarae
    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.
    Save 10k in 2018: #58

    £4,111.44 / £10,000 - 41.11%
    • ScorpiondeRooftrouser
    • By ScorpiondeRooftrouser 8th May 18, 1:44 PM
    • 2,644 Posts
    • 4,174 Thanks
    ScorpiondeRooftrouser
    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.
    Originally posted by Alarae
    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.
    • Crashy Time
    • By Crashy Time 8th May 18, 1:47 PM
    • 6,298 Posts
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    Crashy Time
    Go in at 425k, that way you will be in with a good chance of getting it.
    • cloo
    • By cloo 8th May 18, 1:54 PM
    • 1,076 Posts
    • 1,063 Thanks
    cloo
    I think most properties are selling under asking price at the mo. The way I've done things in the past is to knock off about 10k each if it needs a new kitchen and/or bathroom. Decor doesn't count so much, so if it's otherwise averagely priced for the area, I'd offer 380-385k?
    • robatwork
    • By robatwork 8th May 18, 2:00 PM
    • 4,464 Posts
    • 4,995 Thanks
    robatwork
    Care to name the town you're buying in.

    Just below your thread was one bemoaning the fact that every half decent house that comes up sells for asking price within 2-3 weeks.

    Your area may only sell one house every 3 months. So the answer is: Nobody here can really tell you anything useful.

    Crashy will probably give you the best advice on this one, which will tell you everything you need to know.
    • westernpromise
    • By westernpromise 8th May 18, 2:44 PM
    • 4,123 Posts
    • 5,365 Thanks
    westernpromise
    Go in at 425k, that way you will be in with a good chance of getting it.
    Originally posted by Crashy Time
    Nah, bid them £0 and demand that they also leave £120,000 in the house in a brown envelope.

    This will be a 130% discount, which is what Crashy needs to recover from having sold up in 1996 and rented waiting for a crash ever since.
    Buying a house, if you believe the market has a way to fall, or if you are paying sill asking prices ( like some sheeple ) or if you are buying in London, is now a massive financial gamble!!!!! - June 8, 2012 by TheCountOfNowhere
    • Crashy Time
    • By Crashy Time 8th May 18, 2:45 PM
    • 6,298 Posts
    • 2,389 Thanks
    Crashy Time
    Nah, bid them £0 and demand that they also leave £120,000 in the house in a brown envelope.

    This will be a 130% discount, which is what Crashy needs to recover from having sold up in 1996 and rented waiting for a crash ever since.
    Originally posted by westernpromise

    `96? Wasn`t that when you started spreading knowledge on property discussion forums?
    • westernpromise
    • By westernpromise 8th May 18, 2:54 PM
    • 4,123 Posts
    • 5,365 Thanks
    westernpromise
    `96? Wasn`t that when you started spreading knowledge on property discussion forums?
    Originally posted by Crashy Time
    No, it's when you sold to rent, you utter, utter mug.
    Buying a house, if you believe the market has a way to fall, or if you are paying sill asking prices ( like some sheeple ) or if you are buying in London, is now a massive financial gamble!!!!! - June 8, 2012 by TheCountOfNowhere
    • kingstreet
    • By kingstreet 8th May 18, 5:10 PM
    • 33,704 Posts
    • 18,281 Thanks
    kingstreet
    No, it's when you sold to rent, you utter, utter mug.
    Originally posted by westernpromise
    Hm. Pithy.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • gycraig
    • By gycraig 8th May 18, 5:41 PM
    • 445 Posts
    • 338 Thanks
    gycraig
    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.
    Originally posted by ScorpiondeRooftrouser
    Problem is a few percent is still a Tiny amount when you figure it over an average mortgage life span.

    People haggle to death over 2k when itís pennies on a mortgage
    • Reds-on-Sea
    • By Reds-on-Sea 14th May 18, 2:36 PM
    • 419 Posts
    • 353 Thanks
    Reds-on-Sea
    The other variable
    I'm also interested in the OP's question, although my query is more what would you offer on a £400k house that's been on the market for:

    3 months?

    6 months?

    over a year?

    I suppose like someone mentioned earlier, vendors will only accept what they'll accept, whatever you offer, but surely somewhere that's been on the market 6months is purely overpriced (let alone a year). I'm looking in an area where houses seem to be on the market for a LONG time.

    Thankses!
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