What would you offer?

[cooper44]

Thinking about buying a cottage. It's been on the market for almost a year and has been reduced by 50k. It's now 450k. It needs a lot of work. Everything infact. I can see why it hasn't sold as at the moment it's very unappealing but it has a ton of potential. I feel like its still over priced looking around locally. That maybe they should have it on for 425. Is offering less than 400k a bit cheeky?
Sorry for typos. Am typing on phone.
The agent I'm selling with says to go in way lower but I feel like its a bit rude. This is why I'm not a millionaire.
Should also say that the farmer next door has a planning application in for 15 dwellings. Doesn't bother me too much but I think that will also put other buyers off.

Politely offer what you think its worth "I really like the house, can see the potential, would make a lovely family home etc etc....but I cant afford more, I would need to do this and that, would need to spend £50k, have compared it to x etc..."

Its not rude, the vendor can always say no. Why would you consider paying more than its worth and being stuck in negative equity for years?

Great thanks. I'm so used to London where everything is close to or over asking. I think it's clouding my judgement.

Don't feel embarrassed about putting a low offer in. Generally most people think of a first offer as a figure that will be increased.

At least if the vendors have an offer put to them, at whatever level, it is for them to accept or reject but which means that they may actually be in a position to move house and therefore forward with their lives. They don't need to take the offer. But it gives them an option to move/have money on their pockets. Does that make sense at all?

You should offer what it's worth, as it is, to you. If the seller feels it's worth more to them, they needn't sell. There's no accurate, objective measure of what a house is worth, though it can be useful to look at projections from, eg, Zoopla, based on historical sales or similar properties.

I don't think cheekiness is a helpful concept in making offers... You're not in it to make friends, and if the seller doesn't want to hear low offers, they should tell the agent to filter them. Go with your instincts.

You can always increase an offer, but you can never decrease it. Think how you would feel if they accepted straight away. You would always wonder if you had paid over the odds.

Think about the maximum amount you would want to pay for it. If that's say, £400k, I'd start at £380 and increase in 5k's. I wouldn't up the offer more than twice though else they'll sense you're keen and keep refusing.

The house we're in now started at £250k. I'd been keeping an eye on it. After a year it went down to £230k, £199k, then £187500. I offered £167,500 (like yours it needed everything doing to it, think previous buyers were totally put off by the state of it). The £167500 was refused so I upped it to £172500 stating that it was the absolute maximum I was prepared to pay and would walk away. It was accepted.

Truth be told I'd have paid £180k

Good luck! If it's meant to be etc...

thanks Shakey - thats a really useful illustration. I have such a clear idea in my head of what the house can be and I need to really focus on what it is now and work out an offer from that.
thanks for everyone's advice - it's really helpful and much appreciated.