Help me work out what to offer?

[Muddywellyboots]

We're moving out of the area we have lived in for 15 years. We've sold out house and don't know what to offer on a new one we've found. Reason being the markets are so different. Our current area is very 'hot'. Sealed bids etc and things going for 20%+ asking price. It's rural where we are going. Things are slower but nice stuff does go. Do you go in 10% below the asking price and see how it goes??

The vendors are trying to get you to pay for the difference in stamp duty for whatever they're buying..... And the estate agent is working for them, the more you pay the more commission they receive.

If you can, play hard ball!

I think Full and Final is quite a bullying stance, unless there are other buyers actually offering at this moment in time. They are trying to panic you into offering £550k.

I would also question the level of profit they will be making if they have only been in the property for a year.

What does Zoopla value it at? Zoopla should be able to throw some light on property inflation in that specific area.

I worked with someone years ago who taught me never to want something so much at the negotiation stage that I couldn't walk away. It works. Nine times out of ten if you keep your cool, offer only what you want to pay and show you will walk away if necessary, you will achieve a deal. I have used that approach for my last three property purchases and each time bought at a price I was comfortable with.

Good luck.

woopsie offers great advice.
This is a business transaction, try to detach your emotions from the deal.

The regret, and resentment you will feel, if you overpay for the house will last with you for as long as you live there.

There is NO way property prices in that area have risen 20% in 18months.

Unless they've totally refurbished the house (and I'd want to see proof via receipts) attached is the zoopla estimat.

overinvested

They have done some refurbishment but no more than £10k I'd say. It's definitely a sellers market. The other factors is that it's a desirable village where property doesn't come up very often. In fact property like this doesn't come up very often at all. We do think it's over valued at £575k (EA also admitted that). This will be our home for a significant amount of time as our children start school next year. We are worried about paying too much for it but struggling to value it ourselves as there isn't much on the market to compare it to/similar property sold recently.

We'd be more comfortable paying £540k...but I just think it will be rejected!

Then I would tell the estate agent that..... Your final off is £540k, you want to move quickly, otherwise you'll walk away. They have until 5pm on Friday to let you know.

Don't let your emotions about this house cloud your better judgement.

Your stamp duty costs on £540,000 is £17,000 !!!

I agree - go in with an offer of £540k or £545k. You can offer the £550k straight away if it does get rejected, but they may well take it.

£545k rejected. £550k submitted. Waiting to hear!!! Soooo stressful!

Unless there are other parties bidding I wouldn't go higher than £550k without leaving that offer on the table for a while.

If I was the vendor and you'd gone from £530k to £545k to £550k in less than 24 hours I'd reject that offer initially and push you again.

If they accept £550 ask them to immediately take the property of the market.......

EA called. It wasn't rejected but it's not accepted either! Apparently there are 2 other interested parties but they are not proceedable but the vendors want to 'wait and see'. They said £560k would secure it but we can't go higher than £550k anyway. So hubby is calling EA as he thinks we're not being taken seriously. I hate this process!

So they are money grabbing -

Sit it out and ask to view some other properties -

I'd leave £550 on the table, and keep looking. If they accept it before you find something else then great, but you may also find something you like equally in the meantime.

If they've already found something they'll be under pressure themselves before too long.

Yes, greedy so and so's!

That's what we're doing. Thanks for all the help everyone.

Muddy don't feel too disheartened. Keep looking for other properties. It doesn't matter if someone bids them the asking price if that buyer is then not in a position to proceed!

then when they come back to sell to you, tell them your best offer is £540

What is meant to be, will be

That sounds like the people selling one we offered on the other week. So annoying. We are keener on something else now and mid-negotiation on that.

But they might do what the people who sold our current house to us did and come back to you in a few weeks. You never know.

It's such a horrible process

Got it! But for £555k. Combo of them being stubborn and us being suckers! Fingers crossed it goes smoothly now!

Yay! It is beautiful, and I'm sure that you'll be very happy there. I have everything crossed.

Meanwhile we are in the middle of our third bidding war and getting very dispirited as I think we'll lose this one too. I hate this!