Almost 96% of asking price.. Fair???

[HappyGirlNow]

Just that.. We're putting an offer in on a house tomorrow. The full asking price would really stretch our budget. So we're going in at just under 96%. This seems fair to me in today's market. Or is it too much as a starting offer? What do you all think? Oh and we're ready to go, not in a chain, we have deposit and mortgage approved..

Thanks.

Ooh, BTW - we only got that offer accepted after we thought we'd lost out to another higher offer - long story short, the other offer didn't exist got withdrawn, and within a few days the EA was calling me several times a day to see if our offer was still good. That offer was then accepted.

Hmm... whilst I don't necessarily agree with all this talk of cheeky offers, I think the vendor will be lucky to sell at just above the stamp duty threshold.
In your position, assuming you are very keen, I would go back with a round £125k "for a quick sale" and emphasise to the EA that you are eager to proceed, but this is your top limit.
The difference in commision to the EA between a £125k sale and a £130k sale will be b*gger all - they'll be keen to push the sale through if they can. Good luck.

The sellers are in exactly the position we were, just above the stamp duty limit.

We had 4 valuations, three of them talked enthusiastically about breaking the stamp duty ceiling. One said "you'll sell for the stamp duty limit" We ignored them as it's not what we wanted to hear.

After several weeks on the market (in what is a very fast-moving market) and with only one offer on the table - of the stamp duty limit, which we had rejected out of hand - we had to concede that the agents had been talking it up to get our custom.

We went back to the people who offered and luckily they were still interested.

I've seen other similar flats priced above the stamp duty threshold have still not a sold a couple of months later.

Of course your situation might not be the same, but I would bet the sellers have had a lot of flannel from the agents about how their property can break stamp duty.

£130K is a ridiculous price given the stamp duty limit, they well may come to see that!

I would offer £125K in your situation and not a penny more.

Agree 125k absolute maximum, stand firm!

I don't know what the agents are playing at anyway.

Ours was at the £250K limit. All the agents said there's no point in pricing it just over, no one will go for that. Either accept £250K or go for it - list it at £279K and expect to get at least £265K

Expecting to get £5K over a stamp duty limit makes no sense, does it?

Thanks all!! I know re stamp duty! It's just that they're so cocky at the moment and we don't want to lose it! Aaarrrggghhhh!!! If we weren't so sick of how we're living at the moment and if there were more houses like what we need then it'd be easier to stand firm..

There's one other option. It's a total project which we'd like but we'd need to get them down a lot on price. It's valued at £140k,priced at £130k but with amount of work needing done I wouldn't offer more thank around £116k! I know they're desperate to sell and may accept but we wouldn't have funds to make it livable quickly. You can't get money added to your mortgage for that any more..

Oh grr. I didn't think there was stamp duty under 250 not sure we can afford 2300 on top of fees and moving costs. Bit more saving !

I know.. Bloody stamp duty

I know we've been weak but.. WE'VE GOT IT! £127,750

Hooorraaayyy!!!!

Congratulations! Hope it all proceeds smoothly for you.

Fab news Happy - very pleased for you.

We settled at 96% of the sale price, but we knew it was on for a really good price anyway (think 15k under any other asking price minimum and much bigger house and garden). We should fingersstillfirmlycrossed be exchanging by Thursday and completing next Friday.

It is also our forever home, so am MEGA excited now.

Ah read all of your thread and I'm really happy for you. I do think that if a house is appropriately priced in the first place to reflect the recession then they are less likely to budge on price. Well priced houses around here are selling like hot cakes, those that are still priced pre recession have sat on the market for ages. Ours was on for 375k originally and lingered for over 10 months, we got it for 295k in the end which was way more realistic given the state it was in :)

Fab news, you are right it is not worth losing a home you could be very happy in for a few thousand pounds and you never know some uglies may come up in the survey and you may have to renegotiate to under the stamp duty threshold anyway [throws spanner in works!]

Thanks all

Apparently we can get rounds stamp duty by putting purchase price as just under 125k and rest as to purchase 'movable items' ie carpets, blinds, cooker etc. apparently that's common.

I'd be wary about that tbh. When we were pondering our stamp duty offer, I was advised by people here and on Money Saving Expert that the tax man takes a dim view of people trying to fiddle the tax by doing exactly that.

In your sellers shoes I'd be tempted to go for it, but not stretch the truth. They should give realistic values, so that if you/they are pulled up on it they can justify it. AFAIK it's them taking the risk not you I think, but you might want to check that.

Thanks aufaniae. It should be fine as the amount does equate to what we're getting.

I would echo the caution about trying to evade stamp duty by paying £2500 for carpets etc - "chattels".

"The HMRC urges buyers to be aware of the strict tax rules governing house sales. "Overvaluation of chattels such as fixtures and fittings is not a legitimate practice; it's tax evasion. Chattels are things which do not form an integral part of the land and buildings, which the seller may choose not to take such as curtains and furniture. Chattels do not include, for example, fitted kitchens and bathrooms." The HMRC spokesman warned that anyone trying to break up a sale into smaller ones to evade stamp duty will be uncovered."

www.independent.co.uk/money/tax/taxman-cracks-down-on-stamp-duty-evasion-6261309.html

Also, be aware that the value attributable to a chattel should be its open market value as at the time of the sale and not its value when new, nor the cost of a replacement.

£2500 for a few second-hand curatins, carpets and a cooker... are you sure?

Ooh I'll check with IFA. If its better to pay we just will. Just happy we have house

Have a structural survey and use it to negotiate down or to improve the place you're buying ie re-wiring or damp course.

I agree with others that you if have bought a place that was priced for a quick sale you may have done well even if you've paid over the SDT.

It's not that unusual for fitted carpets to go for £2-3 thousand, we're paying £4000 for carpets, curtains, lights, white goods etc. and a further £4000 for furniture including welsh dressers in kitchen. We're nowhere near a stamp duty threshhold so not trying to wiggle out of anything.