how much to offer

[bananasarebeautiful]

Very pessimistic but never mind! Offered just below stamp duty (249 something) for property at offers over 255. They refused and it's gone to closing date. (Valuation is 260.)
We can't really afford to got above closing date but thinking about it in order to try and get it. Do you think 255 is a reasonable offer (I know it's impossible to say!)??

[oreocrumbs]

I think 249 is an excellent offer on a house at this price. When you are marketing a house around a stamp duty line IMO you pretty much expect to drop to a smidge under the SD for the sale price.

Is this in england (rather than Scotland's offer over pricing)? If so I would think 255 is a very good price.

If this is a home you really want and are going to stay in for a while then as long as you can afford it go that bit higher, but there are lots of house sales falling through, so don't get swept up into paying too much! You might get a call in a few weeks offering you it again

[Rhubarbgarden]

I would hold your nerve too, and stick. They could well come back to you. But it does depend how quickly things are moving in your area and how hard it would be to find another property you like if another buyer outbid you. It's always a gamble.

[bananasarebeautiful]

Hi, sorry yes but in Scotland so a bit trickier. Have upped offer slightly and am partly hoping not to get it (stamp duty might bankrupt us!) but at least we've tried........will find out in a couple of days.

[bananasarebeautiful]

Oh-and the problem is that there is very little for sale and although we held our nerve they have held theirs too!

[Fimbo]

Have they said how many are offering for it? My parents were selling their house in Scotland and the solicitor (where they are mainly solicitors are also estate agents) and they said as soon as they got one offer in, it would be put to a closing date. So it maybe that there is no-one else interested in it apart from you. Which if is the case I would stick at the 249. Your solicitor/estate agent should be able to find out how many more people they have potentially offering for it.

[seb1]

Roughly whereabouts are, what are other houses round about going for, how long has it been on market?

[emdelafield]

Last statistics I read indicated that average price was 20% below the Home Report valuation .

Many sellers have not caught up with the post credit crunch market and are still thinking fondly of the old "offers over" days.

It is also true that high percentages of sales fall through as lenders pull out of mortgages ( even on the day of completion)

You could try to find out how many Notes of Interest there are but again in today's market that won't mean much.

I would take the time honoured route- offer what you can afford and what the property is "worth"to you. Remember to factor in likely increase in cost of borrowing to your affordability calculations.
If you are a cash buyer/ can be flexible on entry get your solicitor to mention that in the offer.
Good luck!

[seb1]

When we sold a property 2 years ago the EA said the home report was max you would get but I suppose it may be different in some areas of Edinburgh, Aberdeen etc.

[bananasarebeautiful]

It very much depends on where you are-and how desirable the property. Apparently two others are interested (thought you needed minimum of two for a closing date?). I am a bit worried about finances to be honest but have put the offer in so don't talk me out of it now!!

[seb1]

Is it in a very desirable area and is it new on the market?

[seb1]

Also have you sold yours?

[bananasarebeautiful]

Yes, quite new unfortunately and seems quite a good area. Ours is under offer.

[Fimbo]

I always thought you needed two for a closing date, but not according to my parents solicitors, may they try to be crafty nowadays to push you to put your offer up?

[bananasarebeautiful]

That is very crafty if true!
I am kind of hoping we don't get it now-this is madness. I knew I was indecisive but this takes the biscuit.

[Fimbo]

I spoke to my mum again and she said that the solicitor/estate agent said to her that as soon as they get one concrete offer in, they put it to a closing date, so that any other interested parties can offer if they so desire.

[Sinkingfeeling]

Good luck, bananas - hope it goes the way you want! Is this a different property to the one you wanted previously?

[bananasarebeautiful]

Thanks Sinking, tis the same one but we can't really afford what we are offering. Have gone a bit mental with desperation! (Having said that it might still not be enough-who can ever tell with a closed bid system.)

Does anyone know if you can alter a bid you have submitted if it is still before the closing time that's been set (longshot!!)?

[Sinkingfeeling]

Ah, OK - it did sound like the ideal house for you though. Not sure about altering a bid, I'm afraid (not familiar with the Scottish system) but I would have thought it was worth a shot if the closing date hasn't passed? Have you agreed a mortgage in principle by the way?

[bananasarebeautiful]

We did get a MIP, can't remember the amount but think we are inside it-still feel sick though!

[bananasarebeautiful]

update-we felt so worried we lowered the price again! haven't heard yet but have thankfully got a backup property to offer on next. wish they would phone to say yes or no!

[bananasarebeautiful]

another update-well we didn't get it but we wouldn't have got it anyway-went for above the valuation! we happen to really want the other one now though (fickle) but haven't heard yet whether it's been accepted. pray for me!

[tricot39]

Hi. I am curious - how is it possible for the sale to proceed if the offer is higher than valuation? Is it buyers who have a low loan to value ratio & because the mortgage is agreed before offer? The scottish system seems tricky!

[bananasarebeautiful]

Yes, I guess it's all about how much you need to borrow. So if you've got the equity/cash you can offer as much as you like. Have to wait until Monday now to find out if we've got the other one. Am nervous they will want us to go over the stamp duty threshold as we keep having bad luck on that account.