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Original poster

House Purchase - Not sure whether to pay asking price or not?

19 replies

Outoftouch · 23/09/2006 23:23

I have changed my name for this thread, as I value annonymous posting on MN, however, I have been here since 2003 and am not a troll

Now thats over..

After a long time searching for the right house, in the right place, with sufficient space,within school catchments, etc I have found one, however, it is over budget on asking price.
We have not moved for 5 years so I am not sure if "desirable" houses at the moment, go for bang on asking price or below. After a week on the market and 20+ viewings,They have had an offer from someone proceedable and chain free, of between 5-1% below asking price, but are holding out for full price because of the level of viewings. We have an offer on the table to accept on our house, waiting for us to find somewhere but will be in a chain. Do people still gazump? I like the house, but resent paying the full price for anything these days, from a tin of beans to a coat. We can go to £170k, anything over will be on credit cards/my mum.
Should I pay the full price and stop months of further looking, when prices may go up, or should I stick to my limit and perhaps loose it?
Would someone please beam me up?

OP posts:

MoreTeaAnyone · 23/09/2006 23:24

Sorry can't help. I live in Scotland we have to pay more than the asking price every time.

Original poster

Outoftouch · 23/09/2006 23:25

Sorry, forgot to add, the asking price is £173995, and have been trying to do a link - see if this works:
here

OP posts:

Beetle73 · 23/09/2006 23:26

I know what you mean. I've never paid full price for a house before, but hunting this year it has been obvious that places are going for asking price and more. It's tough out there for buyers. I guess it's worth offering a little below asking price, as long as you move upto full price quickly if they reject that.

singledadofthree · 23/09/2006 23:27

Is not so much the asking price as how much you want it and are prepared to pay. so long as its not way overvalued then dont see the problem. the main thing is not to take on more than you can afford to repay, good luck.

notasheep · 23/09/2006 23:29

If you REALLY want the house offer the asking price

TheBlonde · 23/09/2006 23:29

Have you looked on nethouseprices.com to see what similar areas sales have been like recently?

Original poster

Outoftouch · 23/09/2006 23:33

I do like it, it ticks all the boxes. I have been driving myself mad looking at net house prices, the house next door sold recently for less than asking price. Am slowly driving myself mad. Thankfully haven;t taken my kids there yet, so they can;t add to the confusion!
It is the nicest, most spacious, in the quietest area, I have seen recently. Just need reassurance that paying the full price doesn't mean I have been had for a fool by the vendors or estate agents. it is at least £20k over the price next door fetched earlier this month. It is a lot of money to me and I can't afford to make a mistake.

OP posts:

Beetle73 · 23/09/2006 23:38

In a way I don't think you can make a huge mistake if you really like the house and think you'll be able to stay there for a good while. Also, as SDOT says, as long as you're not going to be struggling to pay for it every month.

Original poster

Outoftouch · 23/09/2006 23:40

I can afford £170K according to the bank, anything more will be on "tick", I can stay there for yrs+(as long as I don't have any more children) but I thought it was a buyers market out there and sellers were happy to get one offer??

OP posts:

Aero · 23/09/2006 23:59

I think if you'll regret not offering the asking price and someone else gets the house because of that, then you should offer the asking price. If it ticks all your boxes and you really like it, then I think you should go for it providing you can afford the repayments.

My parents have just paid £20,000 over the asking price for a house they really wanted. Big problem was thAT OTHER PEOPLE WANTED IT BADLY TOO WHICH PUSHED THE PRICE UP WELL ABOVE THE 'MARKET VALUE' (sorry for caps), but they'd sold a much bigger house and luckily for them they could afford the difference as they were down-sizing to get rid of their mortgage. They know they'd have very much regretted it if they'd not offered a higher price though.

hunkermunker · 24/09/2006 00:15

This time next year, if you're living somewhere else after a slog to find it, will you be wishing you'd just offered the extra and had the house you really wanted (it looks lovely, btw)?

AngelaChill · 24/09/2006 00:29

I would wait until the end of the year, interest rates are rising which will mean more forced sales. Right move have already reported a 10% increase in properties for sale, more choice drives the prices down.
I don't think you'll regret waiting 3 months.

DelGirl · 24/09/2006 00:37

swings and roundabouts though as outoftouch's house will be less too unless they go into rented.

For the sake of £4k, if you can afford it, i'd buy it. Doesn't look as if you'll need to spend a penny on it either, which may not be the case elsewhere.

fussymummy · 24/09/2006 00:50

Nice house.
Why don't you start offer at £167'950
Gives you a small amount to increase by, should that offer be rejected.

Would never get a house for that price here.

Original poster

Outoftouch · 24/09/2006 08:02

Still no more decided this am - hadn't thought of interest rate rises meaning possibly more on the market, angela chilll - good point.
delgirl, you are right, I wouldn't need to do anything to it, unlike lots of others I have seen.
I think I am veering towards offering on it! thanks for the opinions so far and bump for the morning people.

OP posts:

foxtrot · 24/09/2006 08:21

I think if you love it, go for it if you can without seriously overstretching yourself. Make your position clear,ie offer on table for yours, to the agent - he may want details so he can check with your selling agent. Go in a bit lower to start? Most sellers won't only go on price, they will look at your position too. Have you met the vendors BTW? I say this because some people also want their home to go to someone they think will take care of it/be happy there too.

Kaz33 · 24/09/2006 08:26

Go for it, as long as it is a long term investment. Friends of house have been trying to buy for yonks, despite having enough money they keep putting it off for the "right" house and in case the market drops. Two years later they are still waiting.

The neighbours house might have gone for £20K less but remember the price was probably agreed 6 months ago. The condition of the house is another factor, it might be dated inside.

Good luck

Twiglett · 24/09/2006 08:36

Well if I could afford it I would definitely offer asking price to secure a house I loved and could imagine still living in for 10 years minimum .. especially as you are not in as strong a position a the offer already on the table

HOWEVER .. if you have to take the difference on credit cards I would say there is no way I would go above my maximum

If your mother or the bank would lend you the money (on the mortgage) then do it

but not on credit cards

oh and if you're that much against make sure you get a long term fix (3 years) and get your finances back in order

and don't forget, not that you have, all the other costs of moving .. the stamp duty, legal fees, removal company etc will boost the amount of money you'll have to find by thousands

noddyholder · 24/09/2006 08:43

Offer 170 they may accept it as it is only 2% ish less than the asking price You have an offer and most transactions have a chain.Even when there is no chain there seems to be hassle and most house sales take about 12 weeks.If you can borrow from your mum just offer the full amount,you may be able to negotiate a little off when the survey/valuation is done Good luck!

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