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FTB_Bunny

What To Offer? How Cheeky Cani Be?

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Hi all

I was hoping you may be able to help me with your expert opinions and advice as I am new to all this house buying business.

Okay - so very keen on a house, it is in the area of Sale in Manchester. Specifically it sits on the border line of Sale and Sale moor - the importance of this is that Sale Moor is the less desireable bit of Sale and this house I would argue is Sale Moor

Its a 3 bed semi detached with garden and a double drive way, its on for 170k - the current owners bought it for 170k in 2007 - its in good condition, a neutral decor but the garden needs improving

the average house price for the road is:

2008 - 188,750

2007 - 177,680

2006 - 180,000

2005 - 168,500

2004 - 164,000

Zoopla says the property is worth 164,000 (not sure how reliable this is)

The vendor is not in a chain (still need to find out whats going on with them). As buyers I think we are a good prospect, it is me and my fella, we arent in a chain and we are not in contract on our rented property, although we havent got a mortgage settled yet, our financial advisor has said due to our deposit and earnings we wont have a problem getting one for the value we want to borrow.

I was going to start negotiations at around 150k, is this too low, too high?

Any advice appreciated!!

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Hi all

I was hoping you may be able to help me with your expert opinions and advice as I am new to all this house buying business.

Okay - so very keen on a house, it is in the area of Sale in Manchester. Specifically it sits on the border line of Sale and Sale moor - the importance of this is that Sale Moor is the less desireable bit of Sale and this house I would argue is Sale Moor

Its a 3 bed semi detached with garden and a double drive way, its on for 170k - the current owners bought it for 170k in 2007 - its in good condition, a neutral decor but the garden needs improving

the average house price for the road is:

2008 - 188,750

2007 - 177,680

2006 - 180,000

2005 - 168,500

2004 - 164,000

Zoopla says the property is worth 164,000 (not sure how reliable this is)

The vendor is not in a chain (still need to find out whats going on with them). As buyers I think we are a good prospect, it is me and my fella, we arent in a chain and we are not in contract on our rented property, although we havent got a mortgage settled yet, our financial advisor has said due to our deposit and earnings we wont have a problem getting one for the value we want to borrow.

I was going to start negotiations at around 150k, is this too low, too high?

Any advice appreciated!!

2007 was at or very near the peak. Knock off 15 % and your in the ball park. Then again we don't know if the property itself has been improved upon since they purchased. A shabby garden might make a difference but I doubt it will be very much. Of course some owners may now be feeling very confident following the rrecently reported price rises, they may even hold out for the full amount. So much depend on their personal circumstances. I'd be tempted to go in a little lower than the figure that you have given, stating the percentage decrease since 2007. I don't think that's unfair because there's a pretty strong case for NOT paying 2007 prices - unless of course you think it's going to climb again. Many on this forum think it's a minor blip before the real storm arrives ie. further continued falls in house prices. In many ways it's all a bit of a gamble and there are no certainties, just opinions.

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Volumes are still extremely low, don't let the EA intimidate you into thinking we are in a boom. Activity is 60% off peak. 15% off 2007 at the very least. Don't rely on just the valuation, get a proper survey done. Emphasise to the EA that you have finance in place, no chain etc etc. I would start off at around the £140 mark and perhaps go up to 155 depending on the condition of the house. Main advice, MOST (not all) EAs will lie cheat, scare, manipulate you to get a sale, forget that at your peril.

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Thank you guys, i think it is easy to be bullied into thinking an offer is 'ridiculous' by EAs so I shall watch that and make sure that I am armed with all the information I need to support my offer.

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You dont need to support your offer. Just make sure they know you are for real and make sure you can get the money quickly. That way you will be confident in your approach.

Lay your cards on the table and leave it with them. If they are not willing to drop to your price then leave them your name and number and walk away. If you give them a slightly higher offer then they have you where they want you.

Get the vendor to lower the price first.

PS: I think 150 is too high, there are lots of other houses which will come onto the market. If you are buying now Id make sure its a proper bargain...

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My plan was to get a mortgage in principle before offering so I can prove that we have the money for it.

Now when I get a mortgage in principle I was thinking of getting one for 160k, however what do you tell the vendor, that I have a mortgage in principle for 145k? one for upto 160k? I dont want them to think I will go that high but iwant one for more than my first offer?

Not sure if that made sense :unsure:

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Hi all

I was hoping you may be able to help me with your expert opinions and advice as I am new to all this house buying business.

Okay - so very keen on a house, it is in the area of Sale in Manchester. Specifically it sits on the border line of Sale and Sale moor - the importance of this is that Sale Moor is the less desireable bit of Sale and this house I would argue is Sale Moor

Its a 3 bed semi detached with garden and a double drive way, its on for 170k - the current owners bought it for 170k in 2007 - its in good condition, a neutral decor but the garden needs improving

the average house price for the road is:

2008 - 188,750

2007 - 177,680

2006 - 180,000

2005 - 168,500

2004 - 164,000

Zoopla says the property is worth 164,000 (not sure how reliable this is)

The vendor is not in a chain (still need to find out whats going on with them). As buyers I think we are a good prospect, it is me and my fella, we arent in a chain and we are not in contract on our rented property, although we havent got a mortgage settled yet, our financial advisor has said due to our deposit and earnings we wont have a problem getting one for the value we want to borrow.

I was going to start negotiations at around 150k, is this too low, too high?

Any advice appreciated!!

They probably can't afford to go below £170k because they won't be able to pay off their mortgage if they get less. On that basis, you are probably wasting your time.

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My plan was to get a mortgage in principle before offering so I can prove that we have the money for it.

Now when I get a mortgage in principle I was thinking of getting one for 160k, however what do you tell the vendor, that I have a mortgage in principle for 145k? one for upto 160k? I dont want them to think I will go that high but iwant one for more than my first offer?

Not sure if that made sense :unsure:

It is a good idea to sort out a mortgage in principle. Ask for the maximum you are comfortably able to afford. I would advise you to say you have a mortgage in principle agreed but DO NOT reveal this amount to the vendor or the EA. The EA will try every trick to drive the final sale price up to your highest mortgage offer if they think you are keen. Make an offer you are comfortable and stick with it. If the EA comes back and says the vendor would take X + £5K or whatever, just say something like "I didn't ask the bank for that much" and say you cannot afford the place. Sit back for 48 hours and see if the EA comes back to you with a counter offer. If not, decide if you really want the house - if so make a counter offer. If not, sit it out - the EA may come back in a week or 2 saying the buyers will accept in a week or 2 if nobody else makes a higher offer.

You are in a very strong position as a FTB if the bank will lend you the money, so don't be afraid to make a low offer. I personally would say £150K is a reasonable starting point.

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My plan was to get a mortgage in principle before offering so I can prove that we have the money for it.

Now when I get a mortgage in principle I was thinking of getting one for 160k, however what do you tell the vendor, that I have a mortgage in principle for 145k? one for upto 160k? I dont want them to think I will go that high but iwant one for more than my first offer?

Not sure if that made sense :unsure:

Yes, never tell and EA how much you have, no matter how matey they are. Get an agreement for something you can afford ,or even afford on one income.

Also agree with other posters , if they bought for 170 and are trying to sell for 170 they may not be able to go any lower because of their mortgage. Anyhow best of luck, it doesn't do any harm to stick a cheeky offer in. Do be prepared to walk away though.

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Have no mercy! Its buyers market today and for next few years. Tough sh@t if they paid 170K in 2007. Todays price is 20-25% less. You are in a very good position as FTB and you be surprised at your lenders low valuation! Your lender is unlikely to value it at 2007 prices! In my area properties are selling at 2004 prices, thats 2006 prices less 10%.

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