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Smousie

How Much To Offer On This House?

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I'm interested in a house which is currently for sale in my local area. Originally priced at £235k, it went on the market in 2010 and didn't sell, so a year later the seller reduced the asking price by 10% to £211,500. The house has now sat on the market at this reduced asking price for the past three years with no further reductions.

When I viewed the house, the seller said I was the only person to view it in over a year. She is keen to move, has a location in mind and her bedrooms are packed with stuff she's bought for her new house. She actually told me it's cruel to view someone's house and get their hopes up if you have no intention of making an offer. So I'm wondering if she's so keen to move, why hasn't she reduced her house price further in the last three years to secure a sale?

I can see why her house hasn't sold - it hasn't been decorated since the 80s and is absolutely filthy (reeks of dog urine so bad I was nearly sick, while I was viewing the house I saw her dogs urinating on the carpet and walls). It needs to be gutted and needs new boiler and windows etc, and the partially collapsed conservatory is sealed due to being a death trap and needs to be demolished. The place is disgusting, but it's in a good location which has higher house prices - two houses in the same street are for sale at £280k each, and other larger houses nearby are priced up to £400k. So I can see an opportunity to cheaply acquire a house in a nice area and do it up over several years.

I spoke to the EA and suggested an offer of around 75% of current asking price due to the amount of renovation required. The EA said the seller has already declined offers around that level and I shouldn't waste my time, so I didn't make a formal offer. I said the seller seems keen to move, and the EA said yes but the seller 'needs' a certain price to be able to buy another house, so she thought the seller probably wouldn't go below the current asking price as she's already knocked off 10% from her original price. Apparently the seller paid £190k for the house so is 'only' making £20k on the sale.

I'd still like to make an offer on the house but I don't know how much. I can't afford the asking price but could probably stretch to 95% of asking, which would leave me with no money for renovations until I save up again. I'd prefer to pay 90% of asking price (roughly how much the seller paid) but don't know if the seller would accept, and I really want to secure this house as it's cheap for the location. On one hand, the seller seems keen to move, the house has been on the market for four years and the price hasn't been reduced recently. On the other hand, I'm wondering if perhaps the house hasn't sold because it's overpriced and the seller refuses to accept offers? (suggested by the fact that she seems keen to sell but hasn't reduced the price in the last three years).

Advice? How much would you offer?

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Offer whatever you want, that's what an offer is. She wouldn't break even at 190k though because of stamp duty and fee's she paid. However she did live there for 3 years and the pound is worth less today than 2010 so its swings and round abouts

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The seller bought the house for £190k around 2002. It's been on the market for 3 years priced £211k but hasn't sold. I'm debating how low I can offer while still being reasonable enough so the seller might accept. What would be a reasonable offer considering the state of the house?

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I would say if it's priced at £211k then the vendor is looking for £200k, but then who knows? It sounds like the vendor is your usual boomer-dreamer time waster who thinks they can swap their shitty house for an identical good one. I have seen this many times before. The vendor will be skint, but wants a 'new' house with everything done, exactly like the one they're selling.

I bet if you make an offer they accept the sale will never go through. They will pull out because they can't find anywhere else (aka they can't afford somewhere else)

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Advice? How much would you offer for this house?

Does she live all alone in this house? Is she elderly? I'd offer £150K. If she's just playing the market she can refuse, but perhaps she wants to downsize, and will accept vs bills of running a house alone (if she lived alone) and maybe fewer offers given condition of the place.

Welcome back Smousie. I feel your pain. How depressing, here we are in 2014, with more House Price reflation + help for the VI, to protect them, and many a VI rubbing their hands together expect more HPI next 15 years, and others claiming all buyers paying silly prices are victims.

Until sentiment changes, very few opportunities for value, but perhaps one or two, occasionally.

2010: I'm pushing thirty and have been left university for seven years. [..] I feel betrayed, and lied to, and ripped off.

http://www.housepricecrash.co.uk/forum/index.php?/topic/136229-potential-ftb-but-prices-arent-dropping/

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Its a no-brainer. Offer 10 % less than what she bought it for and put the offer in writing. If she wont sell it to you for that, she wont but then she might come back with something. If she doesn't, then she isn't desperate to sell actually. You got to have some patience on these things in my opinion. The entire buy and sell is hinged on how much you react emotionally and get into a panic mode to return with offers.

If she comes back, make a final offer of £5000 less than what she bought it for, again in writing and put a time frame , like the offer stands for two weeks, STS. Wait again for a response or no response.

I have bought before and don't care for making excuses for my offers. Just tell them the offer is what you see as the value of the house and don't bother to take too many phone calls from the agent. The agent will usually have a negotiator who will try to get you to become desperate, suggesting a middle ground to make you feel like a winner etc etc. Ignore all the noise, make up the number in your mind and stick with it.

Doesn't seem like there is a big risk of the pisspot being grabbed by everyone from your description of it.

Good luck

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The seller lives with a partner, I'd guess she's around 45-50 years old. She wants to move to a different style of house; her house is Victorian with period features (which I love) but she feels it's old fashioned and wants something more modern. So I think she wants to move but doesn't need to move. It sound like she wants a nice clean new build so isn't bothering to do anything to her current house, hence the dated decor and carpets soaked in dog urine.

As a non-forced seller, I doubt if she'll accept less than the £190k she paid. To be honest, that would still be a good price for a house in that area (it should be worth at least another £50k or more). In fact, if I could afford the asking price I'd pay it. The house is a state and the price has obviously been discounted to reflect that. But I can't afford the asking price so I'm trying to figure out how much I could reasonably offer and what my strategy should be. What should be my first offer, how much should I increase it if rejected, etc. I don't know whether to offer less than she paid and let her bid me up a bit, or whether to start by offering what she paid?

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Think about what it's worth to you.

Also, if you have no money to do it up due to making an offer too high, do you really want to live in a stinking house for several months / years?

Dog urine is likely to be soaked into the carpets and thus the floorboards, walls, plaster etc. It does not go away, although you may not smell it, others will (and on you). Think about a house warming party where no-one will go inside (!)

It's not a right that prices always go up - if the owner sold at asking price, they have effectively had rent-free living for years.

Offer what it's worth to you, plus have aside however much you need to make it habitable and comfortable (before "improving" it), plus a decent pot for "hidden horrors" such as a new boiler / cooker / electrical work and maybe roof repairs.

Don't forget if it's solid wall, it's likely to be an inefficient house to heat until the windows / doors / loft insulation is upgraded etc.

If it's been abused by the owner where you CAN see, what about the gutters / damp / roof / etc etc?

IMHO of course.

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The seller bought the house for £190k around 2002. It's been on the market for 3 years priced £211k but hasn't sold. I'm debating how low I can offer while still being reasonable enough so the seller might accept. What would be a reasonable offer considering the state of the house?

why do you want to buy a house that has been on the market for 3 years and realistically has not gone up a £1 in value since then renovation or no renovation

it`s a dud forget it and buy something else.

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