Overpriced property- should we bother?

[Annon379]

Me & My partner are FTB, we were planning on focusing on the buying process in a couple of months, but a property came up, it ticked our boxes, so viewed it.

Problem is it's been on the market over 9 months, reduced once.
They smoke indoors (which they made no effort in hiding) so a lot would need replacing, it has been added a 2 bed, and added later as a 3, but the 3rd bed we could only use as a study as the window for the room is in the internal garage if that makes sense (no natural light), all walls and ceiling need plastering (which is probably good due to the smoking issue).

we think the lines maybe blurred to local property values due to these issues. we don't believe they've any other interest, the estate agent is naff.
we don't know whether it would be worth offering what we think its worth considering it's still high end bracket for the area, even after being reduced. were worried it would come across rude to mention these issues & maybe discuss it.

would you maybe see if discussing it could open doors to reasonable how much they're looking for based on the issues/ not bother?

I'd go with what you think its worth anyone who smokes inside their house would be stupid if they didn't think that would reduce the value, although the bedroom into a garage is a bit odd so really it's only 2, if the estate agents should be suggesting they reduce if its still not got any interest in all that time, however they may have done that and the seller is waiting for a certain figure. The worst thing to happen is they say no then negotiate from there and stick to your top price, if they don't accept walk away.

You have nothing to lose by offering your top price but depends how much you really want the house. How would you feel if you walked away and someone else snapped it up ?

I may of watched too much location , location - however could you make an offer you think it’s worth but then leave it there.

You will never know if you don’t

Make an offer, but bearing in mind there is a recession, it sounds as though you know it is overpriced, so offer what you feel it's worth. But go in low. The house remains on the market because it is overpriced and they have refused reasonable offers.

I would think of a figure you would be happy to pay for property given the market and its condition. I would then make a first offer below that as in my experience first offers under asking price always get rejected. If they ask why its a low offer give your reasons though it's best to be diplomatic, would say it needs a lot of work.

If I were selling I would much prefer to have a low offer than no offer but some people do take offence to low offers. In that case I would just walk away, you've lost nothing. In this market and being on 9 months they would be sensible to at least consider a low offer.

What is the asking price? Why do you think it is too high? What is the lower asking price of other similar properties locally (and why aren't you interested in them?) What are you thinking of offering?

Just wanted to warn you about going in too low straight away with no dialogue. I would talk to EA say you love house, exactly what looking for, but just can't offer asking price....can they do anything?....any movement etc etc.....ie keep friendly....

We were looking in a particular city. Focused on 6 roads. Knew exactly price according to sq foot, which way it faced, size of garden etc etc.

One house came that they were asking way too much. Am making these figures up but just so you know....came on at 750, we knew it was only worth 600-625...so we offered 600. Pissed the vendors right off and they refused to deal with us ever again....it sold...not to us 15 months later for 625....after market had already moved up. Moral of story was we were way too ballsey and pissed them off. We should have been a bit nicer and more subtle and played the long game.

Good luck!

If the 3rd bedroom is internal, does it have the correct planning permission?

The old rules about peeing off sellers probably don`t apply any more, many of them will be desperate pretty soon IMO, they will need to be careful not to annoy anyone who might buy from them.

I would seriously consider holding off making probably the biggest purchase of your life so far. The majority of predictions all point to a sharp decrease in house prices. It's been on for 9 months. There's a good chance it still be there in 3 more. You may find in the coming months better properties at cheaper prices. Good luck with your search

How much differential is there op between what they want and what you wish to offer.

They will think it’s priced to reflect the condition, as will the agent, you think it’s not.

Don’t mention the smoking issues it could cause offence, and if the third bed can have a bed in it, then you can’t really say it can’t be used as a bedroom due to the window.

just do what is normal say it needs some internal work Ie re plastering, etc and this is the max you can afford. They either say yes or no. And leave it there. Your justification is actually irrelevant to them, they don’t give a shit if you wish to replaster or use the third bed as a sex dungeon, and they may think it doesn’t need replastering, doesn’t smell and the third bed is fine, Ie these are your issues not theirs...what they care about is how much you wish to offer.

I’d also not pay attention to anyone saying rhe market is about to drop, it also might jump drastically and have suffered its drop already, what with pent up demand.

None of us know, so as are all said, play nicely.

Prices will go down so make offer on what you think house is worth. Do not risk ending up in negative equity.

@Bluntness100

I’d also not pay attention to anyone saying rhe market is about to drop, it also might jump drastically and have suffered its drop already, what with pent up demand.

None of us know, so as are all said, play nicely.

Bank of England predict -16% and Nationwide who have a vested interest - 13%.

They have a better idea on which way prices are heading. I would hate anyone to start home ownership and go straight into negative equity.

Fat spanner I’m assuming you’ve actually not read the banks statement ?

That was a stress test, they have suspended the house price index currently due to Covid as sales were effectively stopped. They have stress tested and worse case with mass unemployment they have said they could drop by 16 percent as repossessions occur. They have said that as economic activity returns as we exit lock down they expect them to return to normal and if any unemployment is reduced or mitigated house prices will escalate .

As such, they give corridors. In addition, estate agents are saying they are seeing low ball offers and sellers refusing them. They are not budging.

So yes they may drop in the next few days or weeks but as we come out of lock down, as we are doing now, they will bounce back and then some. That’s what the bank has said, it depends on how long it takes to come out of this and how bad the unemployment is.

I suggest reading the reports properly and not just the daily fail.

We are coming out of this now, the economy is returning, the bank in no way predicted a house price drop that would be sustained, they stress tested, predicted reasonable worst case for a short period Ie weeks, and then said as society opens again they will bounce back

I wouldn't count on prices falling. Headlines recently say things like 'biggest drop for 11 years' which turns out to mean something like 1.5%.
Normally a property is priced taking into account its condition. However if you've done your research and think the property is worth X, then offer it. Doint worry about being rude or insulting. Negotiation is part of the process. You can go with best offer straight away. Leave it on the table if they refuse it and keep looking.
As for the third bedroom, I don't believe there is a legal requirement for an external window. But it's not going to be a very nice room.