Anyone with a view on property prices etc, come and tell me what to do please!

[WideWebWitch]

Hi, Dh's dad wants to move to be near us. They currently live in a house with lots of stairs etc and don't need to sell that to move as they have cash to buy.

Dh saw a bungalow locally recently that he thought might suit them and sent down some photos. It's on at £239k and is, imo, worth about £150k.

DH's dad hasn't seen it but wants it and gave me permission to negotiate on his behalf so I offerd £160k yesterday on the basis that:

• It's only a 2 bed bungalow, not in stunning condition, ok condition
• it's got a lean to, almost certainly isn't watertight, may not have planning, ie is not a conservatory
• fil is a cash buyer
• there is no mortgage co involved, if there were I think they'd down value it tbh
• you can get a THREE bed terraced for £160k where we live.
• you'd probably get a 4/5 bed for £239k
• turmoil, recession, IMF saying houses are overvalued by 30% etc etc

Est agt says they want "between £200 and £215" - I think they are greedy and I don't want to offer it. One owner has died and other is in a nursing home so I think family are selling.

Dh's dad is desperate enough to offer £200k (although I haven't told him it's been rejected yet, will call him later) although has given me authority to negotiate on his behalf. I think there are LOTS of other houses out there tht will suit them really well and fil is panicking because he's desperate to move (alone, looking after mil, lots of stairs, doesn't want to spend another winter there etc)

What shall I do? I'm going to advice fil to offer £175k as final offer on Monday, eg leave the vendors to stew on all the doom and gloom on property over the weekend but I am scared he will say "offer £200k" and although it's his money and he's entitled to do whatever he wants I think that's £40k towards nursing costs, them having a nicer life, changing his car (he needs to, current one unsuitable for wheelcahir) etc.

and it makes me want to spit that people STILL aren't accepting the reality of the market. Grr.

Any wise words welcome. TIA.

[Lizzylou]

WWW, I work in an Estate Agents on a Saturday (am the "saturday lady", which means I am old, I think ) and the ONLY houses which are selling are either repossessions at knock down prices or people who have been realistic about price and realised that they aren't going to get last years price for their property.
I think offer £175k, tell the agent why and wait. Really try and explain to FIL.
IME (limited though it is) bungalows do tend to attract a higher price but they aren't selling v quickly at the moment.

[fortyplus]

The estate agent will want to sell it. He will be getting probably 1.75% of the sale price whatever it goes for. If it doesn't sell he gets nothing. It's in his interest to get the seller to drop the price as he will only be losing 1.75% of the difference between the asking price and the selling price.
Don't rush! Hold fire for a week. You might lose the property but you won't get ripped off. Prices are falling and mortgages are harder to come by. It's a buyers' market. If you think £150K is a fair price stick to that. Tell the estate agent that if they haven't accepted your offer of 160 within the next 7 days you will drop it to 150.

[PerkinWarbeck]

Nothing on the market here is shifting unless there is a significant price drop.

I would definitely offer £175k as a final offer and walk away. Should your FIL decide in a month's time that he really wants it, I'm sure it would still be on the market.

Nursing home fees mount up very quickly indeed (normally £500-1000pw), so soon a sale will be forced, at any price.

[fortyplus]

Why up the offer to 175 if it's only worth 250?

[Lizzylou]

Agree with Fortyplus, we are targetted on how many price reductions we get every week.
The Manager won't even take on new properties unless they are realistic about price

[PerkinWarbeck]

but if your FIL needs a bungalow, these do normally command a premium over houses.

[fortyplus]

That's definitely true, but a small bungalow wouldn't be worth as much as a 4/5 bed. Where I live a 2-bed detached bungalow goes for more than a 3-bed semi but less than a 3-bed detached house. Semi detached bungalows don't seem to be worth much more than the equivalent semi - det house

[WideWebWitch]

Thanks for all these views, very helpful, I'm calming down slightly now. Thankfully FIL has agreed I can wait til Monday ("you don't think we should do it today?" he said, NO I said) and offer £175k as final offer. Dh and I are going to see if we can see some more this weekend to compare and to show FIL there ARE other things out there as nice and less money or, if he REALLY wants to spend £200k, what loveliness he could get for it!

[fiodyl]

You say there are lots of other suitable properties available so why not put offers in on those as well. Only offer what its worth, you shouldn't be paying a premium, the vendors should be biting your hand off.

[Upwind]

"you can get a THREE bed terraced for £160k where we live"

Maybe it would be worth considering adapting a house with two floors by putting in a decent stair lift... my gran also has lots of stairs and hers curve in peculiar ways so not suitable for stair lifts, but most standard places are.

[KatieDD]

I think you should walk away at £175k of course the vendor would want £200k I want a Bentley and have about as much chance of getting it too.
However I would get the other house sold too asap for your sake as much as FIL, if anything happens you don't want to be watching all your inhertiance or money you need for nursing home fees vanish before your eyes and 50% by this time next year is looking very likely.

[WideWebWitch]

Good ideas all, I think we need to spend this weekend looking at other houses and possibilities and sending photos down to FIL. If he could only SEE what he'd get if he wanted to pay £200k he might change his mind on this one. I do understand he's desperate to move but I also feel a responsibility to not let him get ripped off and to get him a nice house/good deal combo.

[chisigirl]

I don't know where your FIL is buying but the local paper here (home counties) had an article quoting an estate agent (not usually the most bearish when it comes to house prices). He said that sellers have to be willing to sell for 2004/05 price levels. Hope that helps a little.

[WideWebWitch]

Thank you. I've offered £175k this morning, at FIL's request and I'm not going up any more, if he wants to pay more DH can negotiate.

I left my message of the offer with the woman who answered the phone and a partner in the agency rang me back and said "you need to know that they turned down an offer of £205k (they'd previously said £200k so this has gone up y £5k in 2 days ) and that I think it's unlikely they'll accept this"

I said "please will you put it to them" and he said "I'll mention that your offer has increased"

MENTION?
MENTION?

I said "I don't want you to mention it, I want you to put the offer to them" and I also said "are you telling me you're going to advise them not to take it?" and he said "that's there decision but I think it's worth more than that"

What a TOSSER!

[WideWebWitch]

That's THEIR decision, not there decision, apols, was distracted while typing

[edam]

Hello sweetie, was lovely to see you yesterday.

Estate agent clearly a tosser. Who won't have a job for very long if this is how he carries on. He knows full well he HAS to pass on any offers, by law.

Is this the house you linked to on the other thread?

[CarGirl]

I hope the estate agent has told them that your FIL is a cash buyer - I would double check that he has. They would be insane not to seriously consider it!

[WideWebWitch]

thank you, I MENTIONED to him

• we're heading for recession
• Lehmans
• that FIL has ACTUAL CASH IN THE BANK
• that it's MAD if 1 bedroom is worth more than £80k (eg 2 are worth £175k)
• that if it was my money I wouldn't offer over £160k
• that a 3 bed in our area is £160k

If I wasn't doing it on behalf of FIL I'd have said 'just for that stinking attitude I'm withdrawing altogether' but FIL wants the house (hasn't even seen it mind you)

Lovely to see you too Edam!

[edam]

How's your head?

[WideWebWitch]

erm, I had a lovely dinner and stayed in London so 'recovering', is the answer!

[edam]

I have taken an exec decision that meeting up briefly with no wine is not half as much fun as doing things properly. So next time...

[edam]

Oh, and go and look at my thread in chat, called if you want a giggle...

[WideWebWitch]

you're on!

[edam]

hurrah!

[WideWebWitch]

Update, wanker est agt has left me a message saying "you won't be surprised after our conversation this morning to hear they've rejected the offer of £175k"

I am not doing any more negotiating as I think FIL should walk away now. DH can do it because it's mad to pay more than that imo.

Greedy, greedy people.