How much would you offer?

[Pearls18]

We like the look of a house that is on the market for £160,000, it’s been on the market since July, it has had interest but I gather those interested are struggling to sell their own houses (that may be estate agent talk!) what do you think a good opening offer would be and what would you hope for? I appreciate that’s a hard one to answer without knowing all the details, to be honest that’s all the detail I have ha. We're first time buyers so ready to go. We’ve only looked at new builds before so don’t really know how it works in terms of the used market, I gather offering a lower price is normal? (It doesn’t state offers in excess and isn’t a terribly buoyant market where we’re looking which is why I want to be sure if we do go for it we get the right price). Any thoughts/musings welcome!

 

[xxmyheartxx]

Being first time buyers works I'm your favour as your ready to go so to speak, I've always being very cheeky when buying houses, plus the fact in being on the market since July, have the owners found anywhere they want to buy? I would start at around £145k and work upwards. The house is only worth what someone is willing to pay for it. Good luck xx

 

[lau86]

If they've overvalued their house (which it sounds like they have), it's awkward as the offer is always going to seem cheeky. Can you do a search on zoopla to see how much nearby properties have sold for? I would be inclined to offer 140-145. People offered 20k below for ours, we just said no.

 

[kbwebb]

i agree with the pp, look at what near by houses have gone for, the worst thing to happen is that they can say no, and then you can still offer a higher price anyway.

 

[Bevziibubble]

I would probably start around £145k. You're a first time buyer so they're more likely to accept a cheeky offer since you're at the end of a chain and that makes it so much simpler for a house seller. Good luck!

 

[Quartz]

I would start at 145 with the aim of compromising on around 152k. Around 5% under is normal I would say to compromise on (with a range of 3-8%).

 

[JumpingIn]

Where on Earth is this super cheap house and can I move there!? I'm guessing nowhere near here

 

[Pearls18]

Where on Earth is this super cheap house and can I move there!? I'm guessing nowhere near here

East England, it's a 3 bed overlooking open countryside with a good school down the road so we're keen but it is on the small side, smaller than what we have now so undecided.

Thanks for all the advice, that was kind of what I was thinking. Just waiting for my husband to get back from working away to see it, if it' goes before then it wasn't meant to be!

 

[broodymrs]

Ours was on for 160, we got it for 140. Started by offering 130 and worked up. Looked at what others nearby had sold for. She had overvalued it as our mortgage company said it was worth 145 so we couldn't have offered above that anyway

Good luck!

 

[Pearls18]

If a house states "offers in excess of" does that mean no chance in hell offering less than that? Even if it's been on the market 7 months?

 

[lau86]

No, go ahead and make an offer, they can only say no!

 

[Pearls18]

Hmm....will see what the broker thinks.

 

[Bevziibubble]

Good luck!

 

[broodymrs]

I'd still offer less. Ours was on for 120-130 and we still got offers for much lower

 

[Pearls18]

In regards to the second house I've spoken to the agents who said the seller won't go below £195,000 because he needs it for the house he wants....I just think he's priced it based on what he wants rather than what it's worth?! It's been on the market since May, it's an ex married quarter and in a predominantly military area he is asking way too much I think. Oh well I think we'll offer what we think it's worth and leave it on the table, we're in no rush.

 

[broodymrs]

Hold your nerve! If he's more desperate to sell than you are to buy he'll cave eventually

 

[lindseymw]

Before you put in an offer, do some research and present it when you put in the offer (look at sold house prices on Rightmove/Zoopla etc).

Unfortunately, it will depend on what he's paid for it & how long ago (Rightmove will tell you this!) If he bought at the height of the housing market, chances are he can't afford to sell it cheaper.

We have a few properties in the Estate Agents where I work that we consider overpriced but the vendors cant afford to put the house on for a lower price due to the mortgage.

 

[Pearls18]

He bought it in 2001 off the MOD (well their contractor) for £54,000, they sold a few off cheap,I know 15 years is quite a long time ago in regards to the housing market but I'm assuming £200,000 is still a good profit, they haven't done all that much to it either. It's tricky to compare prices because many of them are still owned by the military.

I appreciate sellers may need a certain price but what happens if the mortgage compay values it and it just isn't worth that? You'll lose your buyers. It's the risk of the housing market, if you can't sell it for what it's worth (unless you have a cash buyer I guess) then I guess you have to stay put?

 

[lindseymw]

The normal procedure we do is negotiate with the seller on the price if the surveyor devalues the house. It's in everyones best interest to be realistic on the house price if you want to actually sell it. Even a cash buyer (who would get a survey done) would be in the same position.

If he paid £54k for the house, then I would presume the mortgage (or a very good chunk of it) would be paid off! (Unless he's remortgaged for whatever reason) I'm guessing the seller is trying to get another house that is just out of his financial reach and hoping to gain as much as he can from the sale of his house.

For comparables, look at similar sized properties in the area. Doesn't necessarily need to be a military ones.

I would still put an offer forward. At the end of the day, the worst that can happen is they say no.

 

[Pearls18]

The normal procedure we do is negotiate with the seller on the price if the surveyor devalues the house. It's in everyones best interest to be realistic on the house price if you want to actually sell it. Even a cash buyer (who would get a survey done) would be in the same position.

If he paid £54k for the house, then I would presume the mortgage (or a very good chunk of it) would be paid off! (Unless he's remortgaged for whatever reason) I'm guessing the seller is trying to get another house that is just out of his financial reach and hoping to gain as much as he can from the sale of his house.

For comparables, look at similar sized properties in the area. Doesn't necessarily need to be a military ones.

I would still put an offer forward. At the end of the day, the worst that can happen is they say no.

Thank you, it's a 4 bed and the 3 beds of a similar type are £130,000-£150,000, I will try to find a 4 bed. We're not in any rush so I'm thinking cheeky offer and letting them stew on it! But yeah I hadn't thought of that, I would think their mortgage is paid off like you say.