What to offer on perfect house...

[IncognitoBurrito]

Hello wise mumsnetters.

I am looking for some advice on what kind of offer to make on a house as DH and I have different approaches which don't seem to meet in the middle.

We are in a large city and have focused in on one area that we want to live in. Stuff doesn't come up too often. Have been living with my parents since September as it took ages to sell our flat and we didn't want to be in a chain and it all fall through. Ideally would like to be out of parents house soon for their sake as much as anything - our family of four totally take over.

A house has come on the market that would be great for us. We lost a similar one last summer when our sale fell through. That one was £450,000. This one is being marketed at £525,000 The estate agents selling it usually do an open house and best and final offers by Monday. This time they have done an open house and not had as much interest, so no mention of best and finals by Monday.

Our issue is that £500,000 is our absolute ceiling on price, which is 25k short of the ambitious asking price. Record price for the street was £460k in Dec 2014 for an end terrace with larger garden, this is a mid terrace.

We really want the house. It would be perfect. I want to be in to plant my veg for summer (maybe wishful thinking!).

DH is of the opinion that if your first offer doesn't embarrass you, it's too high, and wants to offer £480k with the option of increasing so the vendor can feel they've got something out of us - he thinks that even if we end up at £500 the vendor will be happier about the sale as they feel they've got something out of us. I want to put our cards on the table and say, we have £500k, we can move fast, here it is if you want it. And pray no one offers £510! Because I don't want to mess them around and frankly I'm desperate! There's nothing else on and we need to move or compromise on area!

So which approach would you pick? That was a bit of an essay, perhaps I'm over thinking it a touch? Thanks!

[Wishful80sMontage]

Worth a try I'd go with your Dh's suggestion- offer lower initially leave yourself room to go up to your maximum.

[Wishful80sMontage]

Just check with estate agent its not 'best and final' situation you don't want to miss out on an assumption

[BasinHaircut]

I don't know where you are but round here, there isn't any point in going in under asking price at the moment. Houses are being snapped up in days and everything is up for 'offers over'.

Saying that, if you can't go over £500k then offer the full amount. If they decline, leave it on the table but walk away. £480k is too low IMO

[cosmicglittergirl]

I would put forward your best offer making it clear it's your best offer and emphasising the fact you are chain free and ready to move. That is very attractive to a vendor.

[CurlyhairedAssassin]

I always think that if you go in with an offer a lot below the asking price then it just makes the seller think you're taking the piss and gets them ready for a "fight" to get as close as they can to the asking price.

500 would still be 25 less than the asking price. If you both really want this house I would be honest and just say that you are a serious buyer who really wants the house - you don't want to muck around bargaining with them backwards and forwards, 500 is absolutely the top of your budget and you want to offer that and that will be your only offer. And on condition that they take it off the market. And depending on survey of course.

[Ridingthegravytrain]

Property is going fast where I am (se) but only if it's priced properly

Depends if you are prepared to pay more than you think it is worth, which you seem to think it's priced at

I wouldn't but that's just me

Try and gauge the estate agent on Monday

[IncognitoBurrito]

Thanks very much for your thoughts. Looks like the consensus is go in at our max, emphasise strong position re no chain and hope for the best! I do think it's probably worth £500 given the way prices are going in this area, if not £525.

[Didiusfalco]

Go in with 500k. If you're trying to buy in a property hotspot then 480k is a piss take.

[Airfixkitwidow]

We moved last year. The house we loved was 530,000 and in a fast moving part of the South East. Like you we were in rented and ready to go. We offered 507,000 and told the agent that was our best and final offer. We also said we wanted completion within 8 weeks. When they tried to barter we said no and booked two viewings of other houses through the same agent. They accepted our offer the next day and 8 weeks later we were living in our lovely new house. I know we were lucky because we were cash buyers and renting and they had found an empty house they really didn't want to lose. But it can be done.. Good luck.

[Lonecatwithkitten]

Very fast moving area here and I am in strong position, but very flexible on timings. Made offer 3.7% under asking price Friday morning eventually agreed at 1.8% under asking price on Saturday morning.
Some of your offer needs to tie in with what the vendors want have they found somewhere to go and want speed or have they not yet found anywhere and would appreciate no pressure.

[IncognitoBurrito]

That's a good thought lonecat re her situation. She hasn't found anywhere so we could say we will wait really don't want to wait
DH is coming round to my way of thinking now!
Glad to hear it can be done airfix!

[bilbodog]

Agree with others who have said go in at 500k and lay your position on the line - the fact you can move quickly or give her time to find needs to be stressed as well. Good luck!

[NoTimeLikeSnowTime]

I would put an offer down at something like £487,000. That makes it clear you are making a serious offer, not just trying to knock X off the price. I would strongly emphasise your chain free situation and the fact that you can move on their timescale. Good luck!

[MaryPoppinsPenguins]

I would offer lower. We live in a very fast paced housing market and I want to offer the asking price on our dream house but DH wouldn't hear of it, and made me go in 35k under... I was actually in tears thinking that they would be offended and that would be that, but it turned out that they liked us, and our kids, and how excited we were about it and said if we stretched 5 more they would take it off the market.

So we did, and feel like we got it at a steal

[NorthernLurker]

I think you need to think whether the vendors REALLY expect to get 65 more than ceiling price for a less attractive house?

Personally (unless it's going to best and final) I would offer 10% lower. So 472, 500. Obviously pointing out how ready to move you are, offer exchange in 6/52 etc. Then go up.

However if they already have an offer I would go for 490 and go up once to 500.

[Bearbehind]

I'm with your DH. Start low and go up if necessary.

I really can't see the advatage, in this situation, of making your best offer from the outset.

If people were queuing up for it then it would be different.

If you offer low, and it's the only offer, they'll likely have to reconsider what they thought it was worth.

[IncognitoBurrito]

Hi, I just thought I'd update to let you know what happened. We offered £490,000, emphasising our chain freeness and saying we could move on her timescale. She found a house she was keen on on the Saturday.

Estate agent said that someone else had offered £500,000 so we matched them and she went with us because we had offered on houses in the area before so were seen as a safer bet.

I have no idea if we were played by the estate agent to get us up to 500 but I'm really happy about the house, been looking since last April, things keep going up, so we were about to get priced out of the area.

Now for the mortgage, yikes!

Thanks for all your advice.

[poppet131]

Congrats! Great news! X

[CurlyhairedAssassin]

Great news - good luck with the mortgage! Be prepared for a long appointment - we increased our mortgage the year before last for an extension and we were there nearly 3 hours!!! Was the same mortgage provider as we'd had for 15 years and never missed a payment but they still went through everything with a fine toothcomb like we were brand new borrowers. Hadn't realised how long it would take this time round and took the kids (with Nintendo DS each!) to save organising someone to look after them. Was a tiny office with no seats for them so for nearly 3 hours they had to sit on the floor, poor things.