Studio flat

[LadyHarrietdeSpook]

For various reasons DH and I are thinking about buying one in the city where his parents live.

The flat is on for £105K, although the owner bought it for £85k less than two years ago. There has NOT been that much price appreciation in the area nor - for what it's worth - has the vendor done loads work on the property. In fact it needs a little bit of work. To be frank, I given that most properties seem to be reducing, if I were in her shoes I'd be pleased to get what I paid for it.

I want to offer £90K.

But is this crazy unreasonable? What do you think?

Are estate agent's obliged to go back with any offer they receive? They seem to think it can shift for that amount, but frankly I doubt it. I even wonder if at £90K we'd be slightly overpaying. It's been on the market for over two months.

just offer, they usually say no first time anyway. what would your 'best and final' be?

I really would be wary of paying much more than £93K. Stuff does seem to be on its way down there. It's in a good location, but price appreciation is not moving at a fantastic clip! She's basically looking for a 24% increase on what she paid for it in 2010, which is nuts.

then maybe start at 15% under, final and best 93?

A property is only worth what people are willing to pay for it, so do not offer a penny more than you think it is worth. If she hasn't sold in two months her price is unrealistic. You won't do yourself any favours by over paying.

There is a house down the road from me that has had the price reduced by £450k and still isn't selling, because it is still way over priced. Some vendors are just unrealistic.

Yes, the agent is legally obliged to put every offer forward. Remind them of this if they say something like "ooooooooh, no, she won't accept a penny less than £100k". They need to put the offer forward, and in writing too.

I guess the point is, the agent may well just tell her to 'hold out' for better offers.

I mean, I'm not crazy thinking that going for a 24% increase in a property you've done no enhancements on, etc after two years, in this market, is fairly unrealistic???

I suppose it depends on what the vendor hopes to achieve.
If she had put it on the market in the current climate at what she paid, she would make an immediate loss. She maybe hopes that by asking way over she will make a modest amount. Or maybe she is hopelessly optimistic. You will not know until you make an offer - but start at the low end as you can always go up. What about £90k if you think it is worth it, then if that is refused then £93k last and final with a time limit?