We have seen a house we are interested in offering on and it is on for £425k-£450k.
It originally went on the market earlier in the year and an offer was accepted but (for a reason we don’t know) the sale didn’t work out, so it went back on the market a couple of months later with a new estate agent.
So, in May it was on for £475k and has dropped down roughly once a month since.
It has obviously dropped in price quite a lot but what do you think would be a good starting offer? The only issue we have with the house is that the third bedroom is small so we are thinking of moving the wall between that room and the second bedroom (which is larger) to even up the bedrooms a bit. And the kitchen could do with replacing at some point but certainly not urgent.
I just don’t really understand the price bracket, would they expect a minimum of £425?
What are sold prices for similar houses in that road and surrounding streets. It clearly hasn't gone like a hot cake. Have you googled that. I'd check that first. In the SE we're back in a buyers market except for specific hotspots and this isn't one of them.
Check what prices have been achieved and knock off 2/3%. "As we are proceedable and the house that sold in September and achieved £420 for three good sized bedrooms, we are prepared to offer £410,000."
A very similar house on the road (exact same layout, slightly bigger garden) sold for £470k in March this year. It was a higher standard of decor and kitchen was more modern (they are only small kitchens though) but I wonder why this house isn’t selling.
We can only stretch to £435k as an absolute max so worried they might want more than guide price.
If you really want to secure it I’d go in with 430k and say only and final offer. If you’re not that bothered if someone else gets it I would be tempted to go in a bit lower than 425 and see what happens.
I bought a house with a similar situation to what you describe OP in as much as it had previously sold but then fell through several months down the line at the point of exchanging contracts. So the house came available again but wasn’t shifting. It was also empty as had previously been tenanted but they had left ahead of the sale completing. We got it for 10% under asking price, what worked in our favour was that siting empty was costing the vendor, he’d had no other offers, we were ready to proceed and importantly the vendor had made a good deal on the house in the years since he’d bought it so still came away with a hefty sum even though he sold a bit under market value. I’d see if anything like that applies here and then offer lower than asking price to test water. Sometimes it’s a waiting game.
Based on your comparable of £470, then £425-£450 seems a reasonable price. As youre in a good position, its been on the market a while, and youre the only offer (or surely it would be under offer?), then Id start at the lower end. Actually Id probably start even lower at £415k.
We have just had an offer accepted on a house in exactly the same situation. Had been on at 485, reduced to 450-475. We offered 450 and were accepted. It does make me think that possibly we could have got a for a tiny bit less, but to be honest, compared to other similar properties, I think 450 was a very fair price so I don't feel hard done by!