Meet the Other Phone. Child-safe in minutes.

Meet the Other Phone.
Child-safe in minutes.

Buy now

Please or to access all these features

Property/DIY

Join our Property forum for renovation, DIY, and house selling advice.

Negotiating a price?

14 replies

SeattleGraceMercyDeath · 10/03/2015 13:52

This might be a long one so bare (bear?) with me.

We're currently living in rented accommodation in a lovely house that we are hoping to buy. We pay £725pcm for a 4 bed/2 bath semi in a decent area (NE so still have decently priced housing!), we've had a decision in principle from the Halifax that says they would potentially lend us a quite frankly staggering amount of money - well over 100k - what we had mentally said was our 'max'.

When we took on the rental (12 months ago) the house had been on the market for around 18 months, initially at £179,950 and then dropped to offers over £172,950 it obviously hasn't sold in that time and was empty when we moved in and had been for some time. The property is mortgage free.

The estate agents have today valued it at approx the £179,950 mark, ideally DH and I had come to the figure of £170,000, based on the fact it didn't sell last time (although I understand the market may have been different then) and the fact we will save them money in estate agents fees and they will get rent right up until completion.

Is that fair? The landlord/vendors are lovely people and we're all terribly British when it comes to discussing money and i really don't want to offend them. If it was through an estate agent we'd quite possibly go in a bit lower and do the hard negotiating through them where it's a bit impersonal but it's so much more difficult face to face with people you already have some semblance of a relationship with!

Any advice?

OP posts:
wowfudge · 10/03/2015 14:58

Was your tenancy arranged via an agency? If so, there is probably a clause in the LL's contract with them that if they sell to the tenants who have been introduced by the agent, then the agent gets a fee. Typically 1.5% of the purchase price so no different than if someone else wanted to buy the place.

wowfudge · 10/03/2015 15:00

This is whether or not the house is actively being marketed for sale btw.

Draylon · 10/03/2015 15:25

This reply has been deleted

Message withdrawn at poster's request.

wowfudge · 10/03/2015 15:35

After I'd posted I thought about this and actually rent continuity and no void period is probably worth quite a bit to the owners.

Make them an offer if you want the house - have a look at what comparable properties locally have sold for recently though first.

SeattleGraceMercyDeath · 10/03/2015 17:21

Tenancy arranged by ourselves as the house wasn't for rent, we just contacted them via a bit of FB stalking as coincidentally they are the parents of a boy I went to school with (many moons ago!) so definitely no fees will apply.

I think 170 is a fair price I just don't want to offend them!

OP posts:
SeattleGraceMercyDeath · 10/03/2015 17:23

Oh and to add, the house has been extended quite a bit and no similar properties have sold in the last few years so a bit difficult to gauge. 3 bed non extended house tend to go for 15-20k less than £170,000.

OP posts:
wowfudge · 10/03/2015 19:42

Go for it - tell them on what you have based you offer and see what happens.

SeattleGraceMercyDeath · 11/03/2015 10:47

We are awaiting a figure from them, they have intimated they are prepared to do a bit of negotiating so fingers crossed.

OP posts:
SeattleGraceMercyDeath · 11/03/2015 19:00

They've come back with £176,000 so I think they have taken the £179,950 and 'discounted it' in their mind with the money we are saving them. Argh. I think I need an intermediary as this is just excruciating.

It's also complicated as we can't buy for another 4-6 months due to saving the deposit we need so we don't actually need to agree on a price right now.

I've told them we were thinking more in the region of £170,000 but no decisions need to be made just yet. Tbf we could pay the £176,000 it's just the added deposit/stamp duty would probably take another couple of months to save.

I know it's probable no one is reading this but I'm just getting it all on paper as it were to try and order my thoughts Grin

OP posts:
wowfudge · 11/03/2015 19:33

Be open with your landlords. Have you accounted for your deposit in your calculations?

SeattleGraceMercyDeath · 11/03/2015 19:38

In what way?

fretting I've forgotten something massive

I think this whole transaction is going to be fuelled by wine Wine

OP posts:
PragmaticWench · 12/03/2015 19:08

Don't forget to factor in conveyancing costs (inc. searches etc.). Luckily you would save on removal costs!

SeattleGraceMercyDeath · 12/03/2015 19:25

Ah yep, I've got various solicitors quotes so have a rough idea of how much I need to have for that (and I used to work in a conveyancing dept so they're pretty competitive). I think I've accounted for everything, stamp duty on a 170k transaction is £900 plus solicitors fees, plus deposit, plus IFA fee. Think that's everything.

OP posts:
SeattleGraceMercyDeath · 12/03/2015 19:25

Although if you've seen my other thread it could all be complete pie in the sky now anyway!

OP posts:
New posts on this thread. Refresh page
Swipe left for the next trending thread