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Original poster

What would be your first offer on a house costing £1,150,000?

30 replies

PassTheKetchup · 28/01/2015 20:01

It's reasonably priced in comparison to similar properties, been on the market since October, the vendors are moving into rented accommodation so there's no onward chain. We want to pay as little as possible but don't want to be insulting or not seem serious.

Any advice on a sensible first offer?

OP posts:

CurlyWurlyCake · 28/01/2015 20:08

Link?

£1,000,000 I think under would be seen as too little unless a major project needed doing to it.

MincePieDiet · 28/01/2015 20:11

What's the max you actually want to pay from it? Would think around 950+ is serious but reasonable.

atticusclaw · 28/01/2015 20:12

950

Seriouslyffs · 28/01/2015 20:15

As Kirsty says you should be embarrassed. Isn't there a stamp duty tax jump at a million? I'd leave enough space for a to and fro and offer 950,000 and be prepared to go up to 999,999. Unless of course you love it, want it and can afford it in which case offer the asking price!

Apatite1 · 28/01/2015 20:16

Id go just under £1mill, this house is priced to achieve £1mill, so prepare to negotiate up to and over seven figures

SquinkiesRule · 28/01/2015 20:35

My oldest Ds made an offer on a house today, nothing as expensive as yours but he made one that was 20% under the asking price.
His Dad did say offer low and if you aren't a little embarrassed by the first offer it wasn't low enough.
You can always go up, but can't really go lower. I'd definitely go below a million.

bobs123 · 28/01/2015 20:44

Apparently those buying below £927,000 will be better off and those paying more will be more out of pocket with the new Stamp duty rules.

Before making an offer do a search on Rightmove for all houses within, say, a 3 mile radius (larger if in the country, smaller if in London) and see how many have actually sold in the 1-11/2 million price bracket in the past year. This should give you an ideaof the current market.

I realise they are offering vacant possession, but I would probably start with £950,000 unless houses are shifting in that price range in that area. Then it depends on how much you want the house..

bobs123 · 28/01/2015 21:00

Sorry - typo - £937,000 re the above

Original poster

PassTheKetchup · 28/01/2015 22:21

Thanks everyone, the general consensus seems to be go in just under £1m, I'm glad I posted because I'd probably have gone higher.

Bobs123 that was really good advice, I've found one round the corner with an identical layout sold for £1,200,000 in May 2014 but this is London and that was mid house price frenzy. Prices have dropped considerably since then. I've had a good look at a one mile radius and it's given me a much clearer idea of the market and made me confident to start lower. Thanks.

OP posts:

Original poster

PassTheKetchup · 28/01/2015 22:25

When I say mid house price frenzy, I mean in the middle of the house price frenzy, not a frenzy over mid house prices

OP posts:

Cacofonix · 29/01/2015 09:21

Work out your absolute max - say £1 million and start about £20/30 000 under that. An estate agent told me once starting way off what you intend to pay and then 'finding' more money to offer is silly as the vendors presume you have more in your pocket. So you should always start within striking distance of where you want to end up. I know others saying low but if you think the house is worth £1.1 and that is what you will pay then starting at 950 is way off. If you think 990 is what you'll pay and no more , then 950 is a reasonable starting point.

FunMitFlags · 29/01/2015 09:47

I'd be aiming to make a final offer of £1m and start a little below that.

bobs123 · 29/01/2015 10:22

Good luck. It's handy if you've done your research and can back up your offer with reasoning

GeorgieB89 · 29/01/2015 15:48

passtheketchup Be good to hear how you get on. I'm looking around that price point, too, and never know how 'cheeky' to be with offers. Are you looking in SW London, by any chance?

bigloads · 29/01/2015 18:52

why are stupid idiots saying offer this offer that , have you seen the bloody house yet ???

what road is it on what area what where the houses going for pre bubbles prices ???

Original poster

PassTheKetchup · 30/01/2015 09:40

Harsh!

I'm not sure people need to see the actual house do they? it's a conservation area in SE London, close to an outstanding secondary. The market has returned to 'normal' and the asking price is reasonable. I've done a lot of research into asking prices of houses currently for sale in a 3 mile radius and compared cost per sq foot and condition, transport links, schools etc.

What I hadn't done was as much research as I should have into sold prices in a wider area, I'd just looked at sold prices on that road. Pre bubble similar houses were going for around £900k.

Really I was after a WWYD straw poll in terms of first offer but it was a generic question to be fair.

OP posts:

housepicturesqueclub · 30/01/2015 09:45

You mustn’t insult the seller at any cost, best go in at around £1.3 MILLION to show them that you are really serious. Assure the estate agent that you will beat any other offers coming to the table, just offer as much as you can borrow at these rock bottom rates, because in a few years time it will seem like it was a bargain!

Don’t concern yourself with any repairs that need doing or future maintenance, the equity you will gain will pay for all that. Remember you can’t loose with bricks and mortar.

Original poster

PassTheKetchup · 30/01/2015 10:01

Also just to add, prices in the area aren't as high as peak spring 2014 but I don't think they dropped back to as low as pre bubble

OP posts:

bobs123 · 30/01/2015 11:01

Some interesting points on here - some, as you say, harsh, some, to my mind, frankly stupid! Why would anyone go in with an offer way above the asking price? The house has been on the market 3 months. Now you've done your research you need to find out how much interest there has been and if they have had any offers. Also how desperate they are?

There is a game to be played. Go in with 10-20% less and take it from there. The agent is duty bound to then tell you if someone has, say, already offered this, that or the other so you will know where you stand

Original poster

PassTheKetchup · 30/01/2015 11:14

Where's the yawn emoticon?

OP posts:

Original poster

PassTheKetchup · 30/01/2015 11:15

Sorry my last post was not at bobs123 but at housepicturesqueclubs sarcasm

OP posts:

bobs123 · 30/01/2015 11:17

LOL! no offence taken

Original poster

PassTheKetchup · 30/01/2015 11:17

At least I think it was sarcasm ??? If not then

OP posts:

bobs123 · 30/01/2015 11:19

Not sure - I didn't see it as sarcasm to begin with, just stupid - but then I'm a bit slow sometimes

MummyBarrow · 30/01/2015 11:21

I work in property and the rule of thumb I go by is to offer 10% under the asking price as your opening offer.

If you have no chain or are cash buyers really push that alongside the -10% offer.

If you have a chain then I would suggest you might have to move slightly on that reduction. It has been on since October so they must be keen to move, why are they going into rented do you know? It sounds brutal but if its divorce and they are keen to sell then you can play hard ball but its tough to do that emotionally.

Was it on at the same price when first marketed or have they already dropped significantly?

I am doing a property search around that price at the moment for a client and I would say that a million would be my first offer, but then they are cash buyers which is very attractive.

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