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Lycaeus

Is This A Realistic Offer?

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First of all hello everyone :) Im new to the forums and would really love some advice.

My husband and I are first time buyers and have been waiting for over 3 years now to see this blinking market go bust! Now that its pretty much slap bang in the middle of it, we have decided to start house hunting. We were actually hoping to wait another 6 months before we start to put any offers in, but a beautiful house in a prime (and very rare) position has come up...One problem.. its overpriced (imo)

I have done some research into the house and it has had 2 owners since new. The sale prices are below.

2000 - £106,000

2005 - £215,000

We are able to get a mortgage for 4x my hubbies income which puts us at 140,000 and we have a hefty deposit, so all in all at a push we could go up to £190,000.

I was thinking about putting in an offer of £180,000. This doesn't give us room much to maneuver, but basing that offer on 15% below 2007 peek i think its fair - Hubby and FIL think we should offer less?.....

The link for the property is below..

Property Listing

So after all that wind, am i aiming to high with my offer or should we go lower?...

Thanks

Sam x

ETA

Incidentally the mortgage and house are with the same agents (Halifax and Lloyds TSB) so this may be to our advantage??.....

Edited by Lycaeus

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Welcome to the forum.

Why not try 10-20,000 lower. It might be a bit cheeky (it might be realistic of course), but you can then guage the reaction to your offer. It also has the benefit of helping to set seller expectations that they might be lucky to get the same as they paid in 2005.

If it's a motivated seller, this is certainly the best way to start. Even if not, it's easy to increase your offer and it looks to the seller that you've made bigger increases than if you start higher...purely psychological of course, but sometimes psychology helps.

Let us know how things progress and good luck.

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Have you used the Land Registry stats to see how much property prices in that postcode fell Oct 2007 to Oct 2008 and then Oct 2008 till the latest available LR stats?

£180k seems a fairly reasonable first offer - but why not try £5k to £10k below that?

You will need to play hard ball and don't be taken in by the old and tired cliche ridden responses that the Estate Agent will come out with - e.g. we have a higher offer on the table - are you serious? - the vendor will be insulted by your offer - I thought you were a serious buyer, obviously you're not - etc., etc.

Stick to your guns and decide what you want your last/final offer to be before submitting your first offer and make sure all offers are subject to survey, contract and the property being taken off the market immediately.

You may be about to engage with a stubborn vendor who will not accept your offers. If so you can tell the EA and vendor that your offer remains on the table for 2 weeks after which you will remove the offer, although if they want to re-open negotiations in the future they are welcome to approach you to see if you are still interested in their property.

If you don't try you don't get ... and all that.

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Thanks for your swift replies :)

Alfie, we got the previous sales figures from houseprices.co.uk which i believe are correct??...

The advice you have both given will be valuable to us :) We are aware of some of the tactics used by estate agents and are willing to "play ball" so to speak! LOL We are in no desperate rush to move, its just that this particular property is the only one to tick all of our boxes so far, but if they dont want to sell at a realistic price - to hell with it, we will wait for it to drop to £150,00 and but it for £130,000 LOL

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I don't know the city (or the market) however just a quick look at rightmove in the surrounding area which shows a lot of 4 and 5 bed properties cheaper then this which have been on the market for a long time. This gives me the impression that this property has a pretty high asking price.

Average sale-prices for detached properties in that neighbourhood give the same impression, see http://www.upmystreet.com/properties/house...in-cw7-2lj.html showing detached properties topping at 180k, consistent with the sold prices for Wenworth Grove, see http://www.houseprices.co.uk/e.php?q=WENTW...NSFORD&n=10

Note, similar property in the same neighbourhood: http://www.rightmove.co.uk/property-for-sa...D4%26index%3D60 on for 215k

By using firefox in combination with the property-bee plugin you can see how long properties have been on the market to find "realistic" sellers. The property for the link above has been on the market since february....in contrast to the one you link to which just came on the market apparantly.

ps) You can rent a similar property for GBP 825 btw, see http://www.rightmove.co.uk/property-to-ren...p;x=60&y=15

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First of all hello everyone :) Im new to the forums and would really love some advice.

My husband and I are first time buyers and have been waiting for over 3 years now to see this blinking market go bust! Now that its pretty much slap bang in the middle of it, we have decided to start house hunting. We were actually hoping to wait another 6 months before we start to put any offers in, but a beautiful house in a prime (and very rare) position has come up...One problem.. its overpriced (imo)

I have done some research into the house and it has had 2 owners since new. The sale prices are below.

2000 - £106,000

2005 - £215,000

We are able to get a mortgage for 4x my hubbies income which puts us at 140,000 and we have a hefty deposit, so all in all at a push we could go up to £190,000.

I was thinking about putting in an offer of £180,000. This doesn't give us room much to maneuver, but basing that offer on 15% below 2007 peek i think its fair - Hubby and FIL think we should offer less?.....

The link for the property is below..

Property Listing

So after all that wind, am i aiming to high with my offer or should we go lower?...

Thanks

Sam x

ETA

Incidentally the mortgage and house are with the same agents (Halifax and Lloyds TSB) so this may be to our advantage??.....

It takes a lot of practice to negotiate correctly and get the best deal.

One thing you have to be careful of is the body language you are giving off when you look round the property. Remember the ea works for the seller, and his/her aim is to get a high price for the property.

You need to show the ea the right level of interest - ie you could be interested if the price is right. You don't want to show complete disinterest, or that you love the place. Neither will get you the best deal.

You need to be careful with this. Successful EA's, like all good salespeople are good at watching out for the signs, both verbal and physical. They can figure out when someone really likes a place unless you are very careful in how you act and what you say.

If they figure out you love the place, then they're not going to lower the price.

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Once again thank-you :)

I have property bee installed on my firefox ( i got the link from here abut 18 months ago ) A very useful tool.

The area seems to be holding onto prices quite well - We are seeing on average 10% drops over the past year, although newer houses are coming on at better prices.

We went to see the house yesterday and it is immaculate and is more than likely one of the best on that estate. We do feel that they are asking far to much for it and get the impression they want back what they paid for it in '05. We were not shown around by the agent, it was the present owners. We were very formal and matter of fact about the house (like you say - dont give to much away) which was hard given that its the best that we have seen so far! However that said, we refuse to pay through the nose for it. The owners did actually let slip that they paid an extra 20k for the house in 05 because they didnt want the same house further up opposite the park! -

We have discussed at going in for a bid of £180,000/£175,000 and then we have 10/15k to play with if needs be. I doubt that they will go for that price, but as hard as it will be, we will leave the offer on the table for 6 weeks then walk away..

I will keep you all updated.

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Hubby is off the see the EA tomorrow afternoon im unbelievably anxious - I know that they will turn their noses up at the offer, but i want it over and done with. Im so not cut out for this house hunting thing - Found i have not got the time of dy for an overpriced market , yet im still so eager to buy so we can get on with our lives!

Edited by Lycaeus

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Hubby is off the see the EA tomorrow afternoon im unbelievably anxious - I know that they will turn their noses up at the offer, but i want it over and done with. Im so not cut out for this house hunting thing - Found i have not got the time of dy for an overpriced market , yet im still so eager to buy so we can get on with our lives!

That house went SSTC today on Rightmove. Was it you or did you get flat turned down and they have found someone willing to pay more?

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