How low can we go?!

[flow4]

Here's an odd one... Went to see a house yesterday... The owner showed us round and was very chatty... He told us they've lost two sales and are now desperate very keen to move... He also said, at least twice, "Don't be afraid to make a very low offer"...

It's very pleasant and I might well be tempted, tho it's in an area I hadn't considered before (but that's a whole other thread!)... It's on at £150k, and my absolute max budget is £140k...

So, if a vendor gives you such clear encouragement to offer low, just how low can/should you go?!

Does it need work? Do you love it? How long has it been on?

I'd suggest £120k. But don't offer on it at all unless you are absolutely sure about the area.

No work needed.

I liked it, some bits very much indeed, but didn't love it. (I haven't seen any house I've loved tho, except one that's on at four times my budget! )

It has been on for over a year.

Unless it has some hidden flaws, it's fairly priced; but our local market is very, very slow, and not necessarily at its lowest.

And thanks noddy :)

Over a year! Yes offer 120k and when /if they say no do nothing for a few days.

Thanks minty. It's a pleasant, generally desirable area and a pleasant street. My reservations are about moving away from our current area, where our friends and connections are...

120 feels very cheeky! I know they bought it for 130 and the most recent sale in that street was for half a million!

Well, yes, it's around 20% under the asking price but nothing ventured and all that. You can always up to £130k - £135k if necessary.

Best of luck!

Thanks Moon :)
It's hard to make a decision: I've been house-hunting for 3 months now, and can't find anything suitable in my 'preferred' areas, so have started to look further afield. This house is 'better' than others I have looked at, but it is somewhere I haven't considered before... Unlike my current area and the places I've been looking, which have a 'village' or 'community' feel, this area doesn't have a focus, like a cafe or library or even a row of shops - tho' there is a park - it's very suburban! And most importantly of all, I don't know anyone in the neighbourhood, so there's no-one about to 'pop in' for a brew, etc... Whereas I'll be leaving behind an area where I've lived for 20+ years and have dozens of friends. It's like comparing apples and oranges anchovies! It's very confusing!

I can sympathise with that - but, go for a wander or two around on foot, re-visit the house and then decide what/if you want to offer. The vendors may well have got to the stage of being fed up of waiting to even get into the negotiating process and just want to move on.
Don't offer your best up-front though - being able to add even a few thousand in for round two could make all the difference. (Although fingers' crossed you won't have to.)

We managed to negotiate money off our last house in the boom due to similar reasons (although the fact that the house was structurally sound, but cosmetically a tip helped), so it is possible!

whatever you think it is worth - do check for a 'but'.

it is a business transaction, not a garden party. If the offer is too low he just refuses, he doesn't send the boys round.

"If the offer is too low he just refuses, he doesn't send the boys round." Haha special, I like that, and shall try to remember it!

When you say "do check for a 'but'", do you mean beware of hidden catches? Bodies under the patio, sewage works at the bottom of the garden... I'm aware their loft room doesn't meet building regs and isn't advertised as a bedroom, and there is a conservatory which opens straight from the house and may not have had approval either... Obviously a survey would throw up whether there are other issues...

flow4, do you know why the other sales fell through?

If there are planning issues, I'd be very concerned about proceeding.

I only know what the vendor told me, Peter - which was specific enough that I think if I gave details here, someone might identify one of the parties concerned! But in a nutshell, both related to a change in personal circumstances of the potential purchasers... I have no reason to disbelieve the vendor... But it seems reasonable to ask questions and proceed carefully.

As far as I can see, there are no planning issues - the work they have done would be 'permitted development' - but there are building reg issues - e.g. only a ladder up to the loft, no doors between the house and the conservatory...

My sister viewed a house at 165k and was encouraged to put in a 'cheeky' offer by the estate agent. She offered 150k and it was accepted straight away.

I'm glad loft room wasn't described as a bedroom, we had a pull out of a sale for that very reason

Do they have troublesome neighbours? I would be worried when they sound that desperate to sell

I would be worried when they sound that desperate to sell

Probably because they've been trying to sell for over a year!

yes, that kind of 'but' is exactly what I mean, along with the noisy neighbours, the school run which means you can't park and have a garden full of litter, the rough pub down the road etc etc.

and unapproved extensions are definitely part of those - although easier to solve with money.

Thanks everyone. :) The house backs onto school playing fields, so I guess it may be worth loitering around in the street in/around school hours! They told me the names of their neighbours - middle aged couples with teens/kids at uni on both sides. (The teenagers might bother some people, but since I have two of my own... )

I didn't think their desperation was particularly suspicious... If they don't sell this summer, they could easily be on the market for two years! For one of the lost sales, they apparently waited 8 months for their buyers, only to have them drop out!

Sera, that's encouraging... I'm thinking I'll probably go in at £15k under asking price, if I decide to offer at all... I'm going to go and have a nosy round the area tomorrow...

If 2 previous offers fell through. Make sure you get a full survey.

Do you know why they want to sell or where they are moving to? Might give you an idea of what they think of the area because it sounds as though you have doubts.

Thanks not and samuel. I don't have doubts about the area - it has a very good reputation - better than the one I live in at the moment! It's just not one I know, and we have no friends there. It's a suburb, rather than a village. He's lived in the area all his life, and likes it.

He told me their plans: they're moving to another part of the country to set up a holiday/tourism-type business, as they've dreamed of doing for years.

Second viewing tonight, anyway. :)

"I'm thinking I'll probably go in £15k under the asking price"

I'd go in lower than that- probably £125 for stamp duty. They have told you to make a cheeky offer- use it. They can only say no! You may resent it later down the line if you could have got it for less. Good luck with your second viewing.