How much to offer

[BertyFlanter]

I am currently divorcing and have found a new house that I love and I’m ready to make an offer. But although it’s not my first time buying, it’s my first time alone and I’m worried.

So the property is in the nw and is on for £160k. Not many comparable houses in the area but of the three or four that are, 2 have been on for quite some time and reduced and 1 is up for auction. All of them are bigger and detached but up for around the £175-200k mark. The one I’m looking at is a mid terrace.
I have seen it twice now and have a good rapport with the seller, and don’t want to offend but I’m unsure what to go in at. In all honesty I probably would pay the asking price if I had to, would be comfortable at £155 ish and over the moon at anything less than that.

I don’t know the area too well, and a close friend of mines brother had a house on this estate. It took an age to sell (years) apparently because it is an isolated area rather than anything dodgy. I’m not so desperate to move that I’d over pay and I’m sure more will come on the market over Easter but as I’m currently living with the stbxh I am eager to secure.

So would an offer of £149k be too cheeky as an opener?

GO For it x

If you'd be happy with 155k, I'd probably start at 150k or 151k. Sounds much better than 149k.

Offer £148! It's worth a try and they know you'd increase it anyway .... then go to £151

Leave it on the table to think about it -

How long has it been on the market?
How much have other houses on the same street sold for? (Check rightmove sold prices)
How much interest has it had? Have there been any other offers?

I wouldn't come up with a figure until you know the answers to those questions, TBH.

Thanks all. This one has only been on since the beginning of feb. The neighbour (end terrace) sold for £148 in 2014, next nearest one of the same type of house was £178 but way back in 2005 so pre 2008.
It’s in with an online agent so can’t talk to anyone about interest or offers unfortunately.

I’m torn! I have a couple of days to mull it over. Any advice appreciated 😀

I’m keeping in mind the phrase what’s meant for you won’t go by you. 😬

Unless prices have risen in that area over the past 3 years, I'd make the lower offer and be ready to increase a little. Unless it's a significantly better house than the end terrace then it's probably not likely to be worth more than that would be, if up for sale now.

My mistake. It’s mid terrace too. Looking at the pics it isn’t massively different. The one I’m looking to buy has been decorated recently but any house is going to need a stamp so that’s not a big deal. The fundamentals are equal (bathroom kitchen garden and space). Don’t know about prices in that area. Got lots of research and thinking to do!

If you want it and can afford it, offer over £150k, maybe £150,500? Make it sound as though you've costed it out rather than you are trying to bag a bargain.

You can always go up but you cannot go down, so my advice is to offer low and see how that is received.

I think I'd go in at 5% under (so £152,000).

Id offer 150k

Thanks all. I think I’ve settled on the £150500 suggested above. Fingers crossed it is the start at least of some negotiation

Ooh - any update yet OP?

Hi @wowfudge
The offer was rejected straight away, but was followed up with a phone call from the estate agents. I’m thinking about my next offer carefully, head not heart head not heart 😄

Okay - has the EA indicated what they are likely to accept?

She is looking for the asking price no counter offer. He said she passed her thanks for the offer, which I’m glad about as I was worried about the offending her thing. We got on well during the viewings so don’t want to marr the relationship just in case. Also said lots of viewings no other offers.

I also spoke to another estate agent who said his valuation diary was full for the next three weeks so lots going on the market. It gives me some thinking time. I’d be remiss not to hang fire until the traditional influx of properties at Easter

Well did you say your offer will stay on the table for 3 weeks?

Nothing to lose

Never thought of that! I did think my offer was cheeky but I was hoping for a counteroffer to gauge reaction. I may go in with a closer to midway offer (but not midway, maybe £153,900) and say the three week thing.
More tactics to consider! I think her not giving a counteroffer was a tactic too.
Thanks all for the replies any thoughts on that offer appreciated!

I think I'd probably go in at £155k at this point, and maybe try to sweeten the deal if possible by saying you can be flexible re: moving date or something (if indeed, you can be).
~

Just say you'll leave the offer on the table - up it if you want to and say why you have pitched the offer where you have. You really like the house, but there are others you'll be looking at and ask the EA to let you know if they get any other offers. You could even ask what is behind wanting an asking price offer. It might be that they need every penny in order for both of them to buy new places in terms of LTV, etc.

I'd make the midway offer and tell them that it's on the table for a week. Agree with reiterating that you're effectively a ftb and are in a position to instruct a solicitor/arrange a survey etc immediately.

Update for @wowfudge and others on the thread. It looks like I’ve just had £155k accepted 😄 ‘tis a very happy day for me!

So exciting! Congrats!

Congrats!

Oh great stuff - fingers crossed for everything going smoothly x