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luvadealme

Advice Need For Making An Offer

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Hi All,

Have been looking at a property for a while it is a 1 bed on at just under 300K and am tempted to make an offer on it. (yes it is a lot, but it is London.... lets not have this debate)

Now, personally I think it is worth about 250 as it is quite small and needs work on it, plus I know that I cannot get a mortgage for the full 300k (but 250 is certain and 260/270 might be possible with my deposit)

So obviously if I was to offer 250k I would be offering 16.6% under asking price, which could be a bit cheeky whereas 10% might be acceptable.

A friend of ours has recommended that we offer 260 for it, but I figure if I am going to drop approx 40k then why not 50k.

They reckon I should get a Mortgage offer in place before I make an offer, so that at least I know what my upper limit is and as I have got the mortgage 'in my hand' then they know I am committed and not a timewaster.

What do people think of this tactic? What about the 250 vs 260 debate?

Obviously at 260 I then incur stamp duty at another £7.8k.

Thoughts?

Anyone else been in a similar situation?

Thanks

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I'd probably start the bidding at £240k to land the fish at £250 and hold there for a while until it is obvious it wont be accepted if that is the way it goes. Is there any comparable evidence to support a particular figure? If several others have sold for around the same amount you will gave a fair idea what the vendor is expecting.

Forget getting an actual mortgage offer for now, they take ages and will require a survey, the best you can get is an agreement in principle - this will definitely aid your cause. Tell the agent you have one, but only show it to them or tell them the figure on it once an offer had been accepted.

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I'd probably start the bidding at £240k to land the fish at £250 and hold there for a while until it is obvious it wont be accepted if that is the way it goes. Is there any comparable evidence to support a particular figure? If several others have sold for around the same amount you will gave a fair idea what the vendor is expecting.

Forget getting an actual mortgage offer for now, they take ages and will require a survey, the best you can get is an agreement in principle - this will definitely aid your cause. Tell the agent you have one, but only show it to them or tell them the figure on it once an offer had been accepted.

My offer got rejected, the agent thought a 50k premium for small courtyard garden was reasonable versus other flats recently sold in the area.

I didn't agree...

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My offer got rejected, the agent thought a 50k premium for small courtyard garden was reasonable versus other flats recently sold in the area.

I didn't agree...

as others have said to me on here .... Hang on in there - they may come back to you yet. ( we are still waiting for some further agent contact though) Ifnot there will be another one.

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My offer got rejected, the agent thought a 50k premium for small courtyard garden was reasonable versus other flats recently sold in the area.

I didn't agree...

It's a buyers market, go an offer somewhere else. Someone will eventually say yes.

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It's a buyers market, go an offer somewhere else. Someone will eventually say yes.

That's what I figure.

Anyone think new builds if picked up cheaply are a good investment? (live in it for a few years, then rent it out).

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Depends where they are. I'm in a new build in London W1. It's a very popular development but quiet as most of the owners live abroad.

Have a look and see that other flats in the same development reach for rentals, sold prices, check the owner occupier/tenant mix. What extras come with the flat i.e. parking? What are the service charges like (ours are horrendous)? Is there a resident porter?

Also could you stretch to a 2 bedroom flat? When we looked at prices for one-bedders in this development in 1999 and compared to today's prices the 2 bedders have completely outstripped the ones.

Edited by Flopsy

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  • 284 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
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      • Even
      • up 2.5%
      • up 5%



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