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How Much Should I Bid On A Fixed Price In Scotland


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#1 drukuk

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Posted 14 March 2012 - 01:50 PM

Just viewed a property in Scotland, it's on the market at a fixed price of 250,000, it has been on the market since last March, the price was dropped from 270,000 at the end of last year, the proberty is needing a lot of upgrading including a re-wire, the windows are double glazing but are old type which were installed in the mid 80's and they have a very small gap in between the glass, the house has loads of windows from floor to ceiling it also has a lot of flat roofs.
The home report stated a present value of 300,000, there has been 3 or 4 other viewers, the people that are selling are in their early 80s and would like to move to a smaller house in another area with easy kept garden as the garden on this property is large and takes a bit of looking after at present.
We like this property but don't have a clue what price is normally acepted with a fixed price in Scotland, we also would't pay the asking price due to the amount of work that would need done as this would take us way out of our budget we also think that this is the reason other people are being put off.

#2 peter_2008

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Posted 14 March 2012 - 08:47 PM

Just wait the vendors to die. Their kids will then have sell the property in a rush, because they are near bankrupte and inheritance would be the only way out.

On a serious note - have you checked what was the 2002 price around the area? I always recommend 2001 price +20% or 2002 price.

But if you want to be mugged, you can offer 250,000. That's what "fixed" means. It means vendor doesn't want bargaining and doesn't want a bidding war neither. They just want a quick sell, because, well, because they are dying.

#3 pyracantha

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Posted 14 March 2012 - 08:56 PM

Just viewed a property in Scotland, it's on the market at a fixed price of 250,000, it has been on the market since last March, the price was dropped from 270,000 at the end of last year, the proberty is needing a lot of upgrading including a re-wire, the windows are double glazing but are old type which were installed in the mid 80's and they have a very small gap in between the glass, the house has loads of windows from floor to ceiling it also has a lot of flat roofs.
The home report stated a present value of 300,000, there has been 3 or 4 other viewers, the people that are selling are in their early 80s and would like to move to a smaller house in another area with easy kept garden as the garden on this property is large and takes a bit of looking after at present.
We like this property but don't have a clue what price is normally acepted with a fixed price in Scotland, we also would't pay the asking price due to the amount of work that would need done as this would take us way out of our budget we also think that this is the reason other people are being put off.


Welcome.

What's it worth to you? Your offer should be based on that, not what someone (you will never see again) wants/needs/thinks it's worth.

You could get some friends to put in low offers, see what sort of response they get and then put your offer in. You'd be daft going a penny over 249,999 and could probably go in lower.

If the sellers are in their 80's - let's face it, they can't afford to wait too much longer to sell.

#4 catmandu

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Posted 15 March 2012 - 01:44 PM

I find the home report valuations to be too high - houses are often selling for 10% below them - surveyors should be reducing their valuations by this amount, but they don't.

#5 wurdoomed

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Posted 15 March 2012 - 05:46 PM

Just viewed a property in Scotland, it's on the market at a fixed price of 250,000, it has been on the market since last March, the price was dropped from 270,000 at the end of last year, the proberty is needing a lot of upgrading including a re-wire, the windows are double glazing but are old type which were installed in the mid 80's and they have a very small gap in between the glass, the house has loads of windows from floor to ceiling it also has a lot of flat roofs.
The home report stated a present value of 300,000, there has been 3 or 4 other viewers, the people that are selling are in their early 80s and would like to move to a smaller house in another area with easy kept garden as the garden on this property is large and takes a bit of looking after at present.
We like this property but don't have a clue what price is normally acepted with a fixed price in Scotland, we also would't pay the asking price due to the amount of work that would need done as this would take us way out of our budget we also think that this is the reason other people are being put off.



Its easy, the number is just a combination of the following :

for You
What price will leave you feeling you have got a good deal and can move in and move on in your life
What are your views on where house prices are headed
What can you afford without feeling that your life will be dominated by your repayments (a little tension is to be expected, but not so much you can no longer live)

For the Sellers
What number do you think will force them off this 12 month wait
How much are they looking at spending
What mortgage remains (just cos they are antiquities doesn't mean to say they haven't taken out a few secured loans)
how much have they promised their offspring

for the market
At what point does the house become a bargain to the BTL vultures invariably waiting in the wings, you want to offer just above that subject to the bullet points above

Oh and last thing, as there does not seem to be a plethora of buyers out there make sure you come at it from the low side, and work up

Good luck

WD

#6 drukuk

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Posted 16 March 2012 - 11:51 AM

Thanks guys, the whole thing just goes round and round my thoughts without a decision being made, i think it's due to it being a fixed price as this tells me that this is the price they expect, one thing i do know is its not worth the fixed price they are asking as it will caost a lot of cash to refurbish it. cheers.

#7 Jie Bie

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Posted 22 March 2012 - 10:48 AM

Thanks guys, the whole thing just goes round and round my thoughts without a decision being made, i think it's due to it being a fixed price as this tells me that this is the price they expect, one thing i do know is its not worth the fixed price they are asking as it will caost a lot of cash to refurbish it. cheers.


It's been on the market for a year, so it's hardly likely some other buyer is going to come along and become enamoured for it just now, so I'd have thought somewhere around 15% below asking would be a reasonable starting point.

It's the places that are (genuinely) just new to the market where you are unlikely to find a low offer is accepted, so that element is in your favour.




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