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Advice On Offer To Make...

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I am considering an offer on a place. It has been on market for over 12 months at same asking price (£248K).

there have apparently been 2 offers and the subsequent agreed sales have fallen through during this time frame.

I am considering an offer of £210K and incresing to £215 (I could go higher but in current market want best I can achieve....

Is that realistic or not. I have no linked sale etc. This is just a straight purchase for me.

The agent has said that he thinks I would need to offer £230 to get it. (but then he would as he is trying to keep sale price up!)

The current owner obviously agreed to purchase property in Dec 2006 (sale on LR site is shown as Jan 2007 at price of £218K)

What advice would anyone here offer me please on negotiating ...... (we are having a viewing end of this week - so I got 72 hours etc yet to seek advice here)

As some background info: In June of last year I offered on another property in the same area - on that I offered £200 and increased upto a top figure of £212 and then walked away and at that time the respective agent said the seller of that property would not accept that offer and wanted more but gave me no idea of what they sought only that they wanted more! Eventually that property did achieve £232 in July of 2010, (and sale is shown on LR site in Sept figures)

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The last but one Land Reg figures in Sept/Oct said that the average house is getting 91% of asking price. Let's keep this simple and say 90%.

So 10% off 248K asking is £24,800. But this was before the market went South in Nov and before sentiment changed.

I think offering 210K to begin with is generous. I would go in at 200K and perhaps go up to 210K tops. But then for 5K cutting off your nose - only you can decide.

Ignore the agent - his wages depend upon you paying more.

At which point I read that the seller paid 218K in 2007 at the peak of the bubble and immediately retract part of the above. They are obviously trying it on now asking 249K when they paid 218K in 2007 - cheeky, greedy sods.

I would perhaps pay their 218K if I really wanted to live there but not a penny more.

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I would perhaps pay their 218K if I really wanted to live there...

...for the rest of your life

(assuming of course that you don't have a significant (>75%) deposit).

Edit: My / your basic error... :doh:

Edited by Lepista

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"I am considering an offer on a place. It has been on market for over 12 months at same asking price (£248K).

there have apparently been 2 offers and the subsequent agreed sales have fallen through during this time frame.

I am considering an offer of £210K and incresing to £215 (I could go higher but in current market want best I can achieve....

Is that realistic or not. I have no linked sale etc. This is just a straight purchase for me.

The agent has said that he thinks I would need to offer £230 to get it. (but then he would as he is trying to keep sale price up!)

The current owner obviously agreed to purchase property in Dec 2006 (sale on LR site is shown as Jan 2007 at price of £218K)

What advice would anyone here offer me please on negotiating ...... (we are having a viewing end of this week - so I got 72 hours etc yet to seek advice here)

As some background info: In June of last year I offered on another property in the same area - on that I offered £200 and increased upto a top figure of £212 and then walked away and at that time the respective agent said the seller of that property would not accept that offer and wanted more but gave me no idea of what they sought only that they wanted more! Eventually that property did achieve £232 in July of 2010, (and sale is shown on LR site in Sept figures)

"

If you are not embarrassed by the offer you are making, then your offer is too high.

As others have said, it's too soon to get into the market - lots of falls to come in the next couple of years,

but if you really want the house, and it's not going to stretch you financially, put a very cheeky offer in.

Personally, I will be waiting 2-3 years before I start looking to buy a home.

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I am considering an offer on a place. It has been on market for over 12 months at same asking price (£248K).

there have apparently been 2 offers and the subsequent agreed sales have fallen through during this time frame.

I am considering an offer of £210K and incresing to £215 (I could go higher but in current market want best I can achieve....

Is that realistic or not. I have no linked sale etc. This is just a straight purchase for me.

The agent has said that he thinks I would need to offer £230 to get it. (but then he would as he is trying to keep sale price up!)

The current owner obviously agreed to purchase property in Dec 2006 (sale on LR site is shown as Jan 2007 at price of £218K)

What advice would anyone here offer me please on negotiating ...... (we are having a viewing end of this week - so I got 72 hours etc yet to seek advice here)

As some background info: In June of last year I offered on another property in the same area - on that I offered £200 and increased upto a top figure of £212 and then walked away and at that time the respective agent said the seller of that property would not accept that offer and wanted more but gave me no idea of what they sought only that they wanted more! Eventually that property did achieve £232 in July of 2010, (and sale is shown on LR site in Sept figures)

Jan 2007 was near peak! If they paid then £218k, in a couple of years prices should be at least 20% below that.

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You could offer something daft like £175k, and leave the offer on the table.

In a years time, when they come knocking at your door, lower your offer.

Alternatively, offer the £210k, and when they say no, offer £209k, when they say no, offer £208k...

Such fun!

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You could offer something daft like £175k, and leave the offer on the table.

In a years time, when they come knocking at your door, lower your offer.

Alternatively, offer the £210k, and when they say no, offer £209k, when they say no, offer £208k...

Such fun!

:lol:

Very good idea.

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Agent works for seller not you.

You could ask before you make their offer

Ask how ready they are to move, have they found somewhere already. Whether they need more time to be ready to move etc.

Then:

Make offer of £215.

Say it's your best and final offer.

Say in light of the worsening economic climate you think it's a good offer, you've got a mortgage in place/cash ready. Have solicitor chosen (tell agent who as it shows you're keen), say you're flexible on completion but would prefer quick move forward and say you want to get a surveyor in as soon as possible.

Say there's a deadline of end of January for them to accept your offer and after that it's withdrawn.

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When I seriously start looking I will probably use the average UK house price graph as my guide.

Look back to JAN07 and the average price was 184,143.

Now look at todays average (most recent being OCT10) and the average is 163,244.

That means that there has been an "average" drop of just over 10% since they bought.

I would say this to the vendor, and say that following the offical market data their house should now have a value of around 196k.

Then you can ask them what they would accept, and ask them to explain the uplift above the "correct" price if there is one (i.e. if they have extended, etc)

I assume it would be very hard for this seller to justify the 52k uplift.

It would probably be hard for them to justify more than 10k unless they have done something major.

No idea what response (if any) you would get, but it does demonstrate to the vendor that you are just trying to pay market rate.

Edited by ScrewsNutsandBolts

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Isn't the game to get the other party to state a price first. The point is that the stated price becomes a delimiter.

So they are asking £xk. Tell them that that is too high and do everything you can to say what offer they would accept....don't give up by feeling forced to put in an amount.

Then once that is set, go below that and then you have your re-stated negotiation delimiters.

Yes, the thing to do is to go and do the viewing, be friendly and then out of the blue look them in the eye and ask them:

"Bottom line, what price are you prepared to sell for?".

When they respond their nonsense price you smile and laughingly, in a friendly not patronising way, say:

"Come on, I checked on the land registry that you paid X in 2007 and that was the height of the housing bubble. Everyone knows that prices have fallen since then. Come, what are you really prepared to accept?".

...and wait for their response. I guarantee it will stump them for words.

It will be a moment of realisation for them and you could cap it all by saying:

"Look, I am genuinely interested but prices have fallen since 2007 and everyone knows that the housing market is only going to get worse. When you want to sell give me a call.".

Exit.

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I am considering an offer on a place. It has been on market for over 12 months at same asking price (£248K).

there have apparently been 2 offers and the subsequent agreed sales have fallen through during this time frame.

I am considering an offer of £210K and incresing to £215 (I could go higher but in current market want best I can achieve....

Is that realistic or not. I have no linked sale etc. This is just a straight purchase for me.

The agent has said that he thinks I would need to offer £230 to get it. (but then he would as he is trying to keep sale price up!)

The current owner obviously agreed to purchase property in Dec 2006 (sale on LR site is shown as Jan 2007 at price of £218K)

What advice would anyone here offer me please on negotiating ...... (we are having a viewing end of this week - so I got 72 hours etc yet to seek advice here)

As some background info: In June of last year I offered on another property in the same area - on that I offered £200 and increased upto a top figure of £212 and then walked away and at that time the respective agent said the seller of that property would not accept that offer and wanted more but gave me no idea of what they sought only that they wanted more! Eventually that property did achieve £232 in July of 2010, (and sale is shown on LR site in Sept figures)

Keep your cool. It sounds as though you really like the house. Somewhere on this forum today I read that prices are back to 2004 levels. (still too high), so your offer of 210 is very generous. Try 30 per cent off their asking, see what happens, bide your time if you can. If there is no more intervention from the government et al trying to keep prices high

then prices should fall some more,

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Oh, and why don't you tell us all where it is so that HPCers in the area can all arrange viewings and we can all go round and offer even lower offers than you?

When you quote the 2007 sale price, and the market since then, be prepared for the Estate Agent to counter with their favourite phrase.

"Yes but that's a National trend. This house is in a special area that has seen real increases."

Ask him to explain the special local factors such as new schools, new rail links etc. If indeed there are any.

Also, if you can, find other properties that have fallen in price since 2007. It pays to do your homework.

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I am considering an offer on a place. It has been on market for over 12 months at same asking price (£248K).

...

The current owner obviously agreed to purchase property in Dec 2006 (sale on LR site is shown as Jan 2007 at price of £218K)

Do you know why the owner is asking for more than the 2006/07 price? Is he just trying it on or have there been major improvements?

This impacts what a "fair" price might be

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I can only comment on my one and only offer recently. House on for £150k i offered £120K, cash. This was refused and went SSTC about a month later. The house has just come back on the market.

Now i have been thinking what happened. the house was SSTC for a month, i would have thought in that time it reached the survey/valuation part. The property was newish built in 1996. Interesting.

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I find that putting an offer in writing and mailing it (with a stamp) to the EA is the most effective way to do it.

It allows you to clearly state all the facts (worsening market conditions, too high compared to recent sales, need work doing, you have a mortgage already approved etc.).

It is an effective way to make sure that your offer is bullet proof, that you have not forgotten to say anything. You can also state that you are happy for then to show the letter to the seller.

I also believe that writing, rather than just talking, will put pressure on the EA to really pass the offer. I believe they are obliged by law to pass any offer but don't know if they really do. If there is written proof, it may put more pressure on them to do what they have to do.

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I can only comment on my one and only offer recently. House on for £150k i offered £120K, cash. This was refused and went SSTC about a month later. The house has just come back on the market.

Now i have been thinking what happened. the house was SSTC for a month, i would have thought in that time it reached the survey/valuation part. The property was newish built in 1996. Interesting.

I have too put some low offers on a few house end of last year that have since been sold STC. I can't wait to see the sold price on Houseprices website but it seem to take forever to go through. Incidentally, how often are sold prices released and websites like houseprices updated?

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When you quote the 2007 sale price, and the market since then, be prepared for the Estate Agent to counter with their favourite phrase.

"Yes but that's a National trend. This house is in a special area that has seen real increases."

Ask him to explain the special local factors such as new schools, new rail links etc. If indeed there are any.

Also, if you can, find other properties that have fallen in price since 2007. It pays to do your homework.

Even better check the land registry house price index for that postcode. Starting January 2007 print it off and when you get the usual "this area is different" rubbish from the agent, whip it out (the printoff that is) and ask him to explain why he just lied to you.

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I have just bagged a bargain. Made a real cheeky offer on a place we really wanted. The only contact we made with the agent was via email, do not give any other contact details until the offer is accepted. I just have refused to talk with estate agents face to face or on the telephone, I don't particularly like them, they amongst others created this mess we are in today. It's a buyers market!!!!!, the tables have turned.

Happy bidding

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I have too put some low offers on a few house end of last year that have since been sold STC. I can't wait to see the sold price on Houseprices website but it seem to take forever to go through. Incidentally, how often are sold prices released and websites like houseprices updated?

Once a month from the land registry. It generally takes three months for sales to appear but can be longer.

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I have too put some low offers on a few house end of last year that have since been sold STC. I can't wait to see the sold price on Houseprices website but it seem to take forever to go through. Incidentally, how often are sold prices released and websites like houseprices updated?

Wasn't really in the market in 2009 as my money was locked away. I noticed a house that needed complete modernising appear at £95K on a fairly nice road. Looked at nethouseprices last week to compare prices and noticed the house had indeed sold for £82K then resold for £157K 9 months later.

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I have just bagged a bargain. Made a real cheeky offer on a place we really wanted. The only contact we made with the agent was via email, do not give any other contact details until the offer is accepted. I just have refused to talk with estate agents face to face or on the telephone, I don't particularly like them, they amongst others created this mess we are in today. It's a buyers market!!!!!, the tables have turned.

Happy bidding

Don't you need to view the property before you can make an offer on it.

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