What would be a good opening offer in this situation ?

[CJMommy]

The house we are currently looking at is on at £269,995 reduced by 10k two weeks ago. It has been on market since beginning of April and there is an open day planned in two weeks. However, the people who previously lived there part ex'd it for a new build so the property is now owned by a company who apparently want it gone ASAP.

Would it be cheeky to offer 250k? We are prepared to pay more but would be a bonus to avoid the 3% stamp duty.

offer what you think it's worth and what you can afford. Check out what other similar properties have recently sold for.

I imagine if they've put it on at that price, they're expecting to sell it for under the SD threshold though. Not cheeky at all. Don't worry about appearing brass-necked!

Well, the worst they are going to say is 'no'. Not sure what area you're in but it's only about 7% under the current asking price, so not that far off anyway.

start at 245? Then 250 will seem more?

I would start at 240k, I think thats a reasonable opening offer based on the asking price and then you can go up

A company aren't going to be offended by a low offer, like a private seller might be, so offer as low as you dare. Make your offer look good by having your finances ready, a good solicitor appointed and tell them you can move quickly.

In our area houses are put on at 270 and reduced to 260. There's a big leap between under 250 or up to 250 stamp duty ones and 270. Usually extra bedroom or nicer house.

Nocake yes we have all of those things in place
Terrys Greenformica I didn't think of offering less than 250k but i suppose it may be worth considering. The estate agent haven't had any offers or done any negotiating with them yet so no idea what they want or what offer would make them laugh out loud
2nd viewing at the weekend so will decide then.
Thanks

the pxs company will probably have paid 20% at least under valuation. when you say it has had 10k taken off is that the new price as advertised since px co took over or did they have it higher and then bring it down?

Anyone putting a house on at that sort of price is going to realise that the 250k stamp duty threshold is going to be significant. I'd go for 245 and move up to 250.

I never accept a first offer (unless its asking price).

Crutchlow: it was originally on at 275,995 and then they knocked 10k off after a 7-10 days.

One of the things I don't know is what do these companies pay for these houses and who's valuation do they go off? I don't want them to think I am taking the piss and not serious about buying because I am but I suppose negotiations have to start somewhere!

Sorry, original price 279,995

If England they have probably had 3 agents out and taken an average of the 3 as a realistic valuation. They would probably offer the owner just 80 percent of that valuation, possibly less.

Try at the lower offer. You have nothing to loose. If they want rid of it quickly they may well just accept. Was £279995 realistic?

The px co could easily have bought that for 320k or thereabouts.

£230k that should have been. Even less.

Thanks Crutch. Well it's been on since beginning of April and round here houses seem to go either in the first week or take months. It was brought for 290 new build at height of market late 2006. Last year, one almost the same went for 255k.

I would start st £235 if I am honest. It will probably be a no but if a similar one went for £255 then I would expect to pay no more than £245 with a px co involved. Good luck and let me know how you get on.

Will prob offer tomorrow so will let you know how we get on. Thanks

Just to update.....240k refused. They want close to asking price so have asked for final offer. Agent thinks they will refuse 250k too. However, I think that's our final offer based on other properties of same/better standard in that area in the last two years.

i would go with 249995 final offer and mention the comparisons you found for the area.

how did you get on?