Making an offer - advice please

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Hi there

We have seen a property that we'd like to make an offer on. Mine is on the market with an open day of the 14th and 8 viewings booked in after being on Rightmove for 24hrs and still over a week to go so I'm fairly confident. We also have a mortgage agreed in principal.

The property we've seen is on for £595,000. It was on at £620,00 last year and the owner accepted £600,00 last June. However, that sale fell through and there have been no offers since and it dropped to £595,000 early December. The man selling is 91 years old and looking to downsize. It needs about £30/40K spent on a small amount of building work, flooring, redecoration, kitchen and bathrooms. We have budgeted for this. My house is on with a different branch of the same agent.

My question is how much would be a reasonable offer? I wouldn't want to offend the man as he's a really lovely old boy, but it has been sitting on the market for almost a year now and if mine goes under offer chain free after the open day we'd be in a great position?

Many thanks

We had a similar situation recently, a lovely vendor and a fairly priced property. On top of it, it was new to market, we were the first to view the house and got worried that if we do not pay the asking price, she might reject our offer and choose to wait on for other buyers.

In the end we offer around 2.5k lower and it was accepted. I think you should figure out if you're ready to pay the asking price. Although we were ready to pay the asking price, we wanted to have room for negotiation, hence didn't go straight to it. It's good to think we've saved 2.5k on it. :)

If I were you, I might offer 588k and negotiate from there. Many said you should offer 5-10% lower but if it's a nice owner and a property that you like, I'll pay what I think it's worth. :)

I'd go for £585k.

Is there really no-one else interested in his house (yet you have 8+ viewers lined up for yours)?

Thanks both

Youngadult, that was lucky for you, especially being new to the market. well done!

Pinkje, there are two others (including the original ones) but they have yet to sell their (apparently) overpriced houses. Mine is the only 4 bed house in my town under £300k, 5 minutes walk to the station, near good schools and 15 minutes from Gatwick. The one we're interested is in a hamlet with no transport links....

If no-one else is interested, my gut feel for a starting offer would be around £560k and see what the reaction is. I would expect to go up in stages and maybe get it for £580k, but whatever you do don't tell the agent you are prepared to go any higher - don't babble on just make the offer and be serious and keen but not desperate. Disclaimer: I don't really know what the market is like in your area so you probably have a better gut feel for what would be appropriate. But I always think that if your first offer is accepted then you went in too high.

Have you looked at nearby sold prices, is it definitely worth asking price with so much work required?

If you are not willing to offend, you will overpay.

Treat it as business, your not going to see the vendor again once a sale is agreed, so why worry? If he's 91 years old he hardly needs a huge sale price, and hasn't got the time to wait around years for his asking price.

A year on the market and a sale fallen through, it's way overpriced. The sale may of fallen through because the surveyor valued it at less than the agreed price.

I wouldn't offer any more than a round £500k (16% under) to start with. Be confident with the agents, don't show any weakness.

Thanks for all your advice.

I've had a look on Zoopla and one sold in August 2014 for £745k and one a year before at £705k, but they were houses, this is a bungalow (with potential to turn into a house)

The agents know we're interested, but we haven't offered as yet, we're going to wait til we get a offer on ours. I've love to go in at £500k housepicturesque but I think that's probably too low.......