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leeroy221

How Much Should I Offer

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Hi all

after a bit of advice. We have found a house we like which is £129,950. The agent said a sale was agreed previously close to the asking price but fell through because they could not agree on a moving date. The seller is selling to move to another part of the country to be with family.

The house we think needs decorating throughout and new carpets etc.

A recent sale in the street, same size etc went through at 110k after being lister at 119k.

My wife want to put in an offer of 118k. Do you think this would be reasonable?

Thanks

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Hi all

after a bit of advice. We have found a house we like which is £129,950. The agent said a sale was agreed previously close to the asking price but fell through because they could not agree on a moving date. The seller is selling to move to another part of the country to be with family.

The house we think needs decorating throughout and new carpets etc.

A recent sale in the street, same size etc went through at 110k after being lister at 119k.

My wife want to put in an offer of 118k. Do you think this would be reasonable?

Thanks

Depends......

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Hi all

after a bit of advice. We have found a house we like which is £129,950. The agent said a sale was agreed previously close to the asking price but fell through because they could not agree on a moving date. The seller is selling to move to another part of the country to be with family.

The house we think needs decorating throughout and new carpets etc.

A recent sale in the street, same size etc went through at 110k after being lister at 119k.

My wife want to put in an offer of 118k. Do you think this would be reasonable?

Thanks

Sounds to me like the previous person was not interested. Nobody pulls out because they cannot agree a moving date.

If they really wanted to buy the house then they wouldn't have pulled for such a trivial reason.

If you really feel the house is worth £118k and recent sales in the area backup that figure then go for it. Do you have a list of them? A postcode? Put them here ten we can check the value for you (if you want)

What was the house last sold for and when? How much needs spending on it.

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Yes that is one thing we have said, less than 125k.

I believe 120 would be about right, which is what the average price for the street is, although that is slightly under the area average.

The agent said the boiler is old so would need replacing soon, although it works. It would need carpet throughout and papering. It is a 3bedroom, front room, dining room. The bathroom would need doing ttoo. The kitchen is fairly new. The owner has a couple cats so the carpet is pretty bad

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Yes that is one thing we have said, less than 125k.

I believe 120 would be about right, which is what the average price for the street is, although that is slightly under the area average.

The agent said the boiler is old so would need replacing soon, although it works. It would need carpet throughout and papering. It is a 3bedroom, front room, dining room. The bathroom would need doing ttoo. The kitchen is fairly new. The owner has a couple cats so the carpet is pretty bad

If the local house that fetched 119k had none of these defects then your offer should be commensurate - ie about 112k max. There's a lot more work and cost in carpeting/decorating an entire house plus a bathroom than many people think.

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If the local house that fetched 119k had none of these defects then your offer should be commensurate - ie about 112k max. There's a lot more work and cost in carpeting/decorating an entire house plus a bathroom than many people think.

+1 having just been through this particular pain. It will certainly cost more than you think and if they won't play ball then walk away and find something that doesn't need the work. Boiler - £5k, bathrooms at least £3k each by time you are finished (easy to spend more), carpet/flooring/decorating add another few £k depending on what quality you want, that's well over £10k for starters vs a property that's walk-in.

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Sounds to me like the previous person was not interested. Nobody pulls out because they cannot agree a moving date.

If they really wanted to buy the house then they wouldn't have pulled for such a trivial reason.

If you really feel the house is worth £118k and recent sales in the area backup that figure then go for it. Do you have a list of them? A postcode? Put them here ten we can check the value for you (if you want)

What was the house last sold for and when? How much needs spending on it.

The agent said they agree close to asking price ans wanted to move in end of Jan. The seller said this was not enough time to get her belongings together and ship up county so it fell through and was put back on market at original price. Maybe they had second thoughts on the work and cost as others have said and pulled out on those grounds. Perhaps another chat with the agent is worth a shout?

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The agent said they agree close to asking price ans wanted to move in end of Jan. The seller said this was not enough time to get her belongings together and ship up county so it fell through and was put back on market at original price. Maybe they had second thoughts on the work and cost as others have said and pulled out on those grounds. Perhaps another chat with the agent is worth a shout?

The agent will not tell you the truth (or at least 90% of agents wont). The previous buyer may have pulled out for a host of reasons - ignore whatever you are told.

The question is i) why was the seller willing to lose a buyer ii) what is to stop them doing the same to you

I'd go in at 112, explaining that you are worried by the fact the seller let down a previous buyer. Also say you have costed the boiler etc as being up to 5000 pounds all in. Use those emotive words to get a reaction. they'll prob push back to around 115-120. If you are happy, get some lock in or evidence the seller is committed to the move...

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Hi all

after a bit of advice. We have found a house we like which is £129,950. The agent said a sale was agreed previously close to the asking price but fell through because they could not agree on a moving date. The seller is selling to move to another part of the country to be with family.

The house we think needs decorating throughout and new carpets etc.

A recent sale in the street, same size etc went through at 110k after being lister at 119k.

My wife want to put in an offer of 118k. Do you think this would be reasonable?

Thanks

There possibly was no buyer, they possibly have had no offers whatsoever... could all just be talk, making you think there are willing buyers ready to compete with you.

The recent buyers in the street may of overpaid at 110k. Is it a sought after area/house or not? Another thread on here mentions that typical offers received by EA's are 30% under asking price. So start with 90k? seriously.

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There possibly was no buyer, they possibly have had no offers whatsoever... could all just be talk, making you think there are willing buyers ready to compete with you.

The recent buyers in the street may of overpaid at 110k. Is it a sought after area/house or not? Another thread on here mentions that typical offers received by EA's are 30% under asking price. So start with 90k? seriously.

No, start with 5% off the lowest sold price for similar property and stick to it 90 is going to make the agent and vendor think you aren't serious, even if lots of work needs doing.

So 105k?

Don't go up more than a few K, that is if you really want it. Be prepared to walk away. They won't get many offers if the vendor is not flexible about when they move out.

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Should have added: sales do fall though due to timescales of moves, but as has already been said, don't believe anything the ageny says. If it is true then it may mean the house is a no-no due to lack of willingness on part of vendor to make a reasonable compromise. On the other hand if the vendor says 'I can move out in mid Feb but not late Jan', then I would say that's reasonable and the buyer was a prize ****.

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A few simple rules / facts about buying houses:

1. The Estate Agent is not to be trusted - he is an agent of the dark siide

2. Previously failed sales mean nothing, zero, zip, nada. Only that the price was too high on mortgage valuation.

3. There are plenty more houses out there for sale. Unless you are in London la la Land, there is always a deal to be had somewhere

4. The Estate Agent is not to be trusted - whatever he says, assume the opposite.

5. It's only on Homes Under the Hammer where you can do all the inprovements as cheaply as you first thought.

6. The Estate Agent is not to be trusted.

At the end of the day (oh, I do hate that phrase), it's your money and your dream. No-one on here can advise you, because you seem to already be in the mental trap of framing an offer based on the asking price.

.

Edited by Stainless Sam

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No, start with 5% off the lowest sold price for similar property and stick to it 90 is going to make the agent and vendor think you aren't serious, even if lots of work needs doing.

So 105k?

Don't go up more than a few K, that is if you really want it. Be prepared to walk away. They won't get many offers if the vendor is not flexible about when they move out.

5% off lowest sold price *might* be in the region of 90k, need to compare a number of properties to get to that figure, and if sales volumes have been low that might mean looking at sold prices going back 5-10 years.

How do you define what is a serious offer in UK housing market?

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A few simple rules / facts about buying houses:

1. The Estate Agent is not to be trusted - he is an agent of the dark siide

2. Previously failed sales mean nothing, zero, zip, nada. Only that the price was too high on mortgage valuation.

3. There are plenty more houses out there for sale. Unless you are in London la la Land, there is always a deal to be had somewhere

4. The Estate Agent is not to be trusted - whatever he says, assume the opposite.

5. It's only on Homes Under the Hammer where you can do all the inprovements as cheaply as you first thought.

6. The Estate Agent is not to be trusted.

At the end of the day (oh, I do hate that phrase), it's your money and your dream. No-one on here can advise you, because you seem to already be in the mental trap of framing an offer based on the asking price.

.

Agreed - and just to explain the mental trap of framing - see Wiki: http://en.wikipedia.org/wiki/Framing_effect_(psychology)

Estate agents do it all the time. The asking price is irrelevant.

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Thanks for all the advice. The street is split, 3/4 of the street have postcode xxxxx and the property we like has postcode zzzzzzz

My wife is now thinking of an offer of well under the asking price as a house across the road with is a double fronted house, very large inside, sold in July for 105k

edited by moderator to preserve privacy

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Just found out its been on market since October.

Mental framing, a new one on me to be honest but the offer price had been established with the advertised price in mind. We are looking at it dirrerently now and think we will go in around 107k which is 2 above what the house across sold for last year

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Just found out its been on market since October.

Mental framing, a new one on me to be honest but the offer price had been established with the advertised price in mind. We are looking at it dirrerently now and think we will go in around 107k which is 2 above what the house across sold for last year

95k , if been on since October hardly much interest ;) stuff sells in hours not months round my neck of the woods.

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Just found out its been on market since October.

Mental framing, a new one on me to be honest but the offer price had been established with the advertised price in mind.

That's the trap. The offer price should not be linked in any way to the asking price (other than always being below it of course)

We are looking at it dirrerently now and think we will go in around 107k which is 2 above what the house across sold for last year

Ok - but did that other house need all the work doing that this one clearly does, and was it languishing on the market for months without being bought? Yes to either of those things should lower your offer more below 107k.

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Thought i would give you an update.

We went for the second viewing and took an extra pair of eyes. There was a viewer before us and one when we were leaving so intrest had ramped up it seems. Once finished i told the agent i would be in contact the next day. We all wet home for a coffee and a chat to discuss what offer we would submit, this was agreed and i was going to submit in the morning... Minutes later the agent called to inform us that an offer was placed by one of the couple for 'just under stamp duty' and that he would call the next morning.

We agreed we would not go that high so we were out. The agent valled the following morning to see if we would like to offer more as he believes the seller will reject and wants closer to asking price, i saidin all honesty i was not going to go as high as the other bidder so i was technically out of this one. Ok he said, there is no way they would accept anything under the other bid, maybe i said but i didt value the house at that much to which he replied, i am the agent and i know what these houses are worth, charming.

Have since had a couple more calls asking if we are still interested!

Have now seen another house that is on for 140k :-( 15-20k over my prefered budget :-(

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Thought i would give you an update.

We went for the second viewing and took an extra pair of eyes. There was a viewer before us and one when we were leaving so intrest had ramped up it seems. Once finished i told the agent i would be in contact the next day. We all wet home for a coffee and a chat to discuss what offer we would submit, this was agreed and i was going to submit in the morning... Minutes later the agent called to inform us that an offer was placed by one of the couple for 'just under stamp duty' and that he would call the next morning.

We agreed we would not go that high so we were out. The agent valled the following morning to see if we would like to offer more as he believes the seller will reject and wants closer to asking price, i saidin all honesty i was not going to go as high as the other bidder so i was technically out of this one. Ok he said, there is no way they would accept anything under the other bid, maybe i said but i didt value the house at that much to which he replied, i am the agent and i know what these houses are worth, charming.

Have since had a couple more calls asking if we are still interested!

Have now seen another house that is on for 140k :-( 15-20k over my prefered budget :-(

Seems a bit stage managed that there would be 'viewers' leaving just as you arrived. You tell him that you are out yet he calls you back twice.. there's probably no offer on the table and he's panicking. Put a offer in writing to the EA and leave him to stew, may come back to you in days/weeks from now.

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Someone will be along shortly to tell you to buy the next house you view at whatever it costs as you'll look back in a couple of years and laugh over being worried about £15,000 of debt.

I am not that someone.

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