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Original poster

Help! I want to offer but how much?

53 replies

cheesypleasy · 31/03/2023 17:11

This house I just visited is my ideal kind. The tenants are still there, but they served notice apparently.

I was going to buy a house in cash, but I will need a mortgage to buy this one.

How much is a 50,000 or 70,000 mortgage at the moment? I have most of the money but need about this much.

Should I offer because they have already put it down by £25,000 and I would like to offer 25,000 less than that.

Only fools rush in they say, so I need a good talking to! Advice welcome.

OP posts:
CellophaneFlower · 01/04/2023 07:57

cheesypleasy · 31/03/2023 17:11

This house I just visited is my ideal kind. The tenants are still there, but they served notice apparently.

I was going to buy a house in cash, but I will need a mortgage to buy this one.

How much is a 50,000 or 70,000 mortgage at the moment? I have most of the money but need about this much.

Should I offer because they have already put it down by £25,000 and I would like to offer 25,000 less than that.

Only fools rush in they say, so I need a good talking to! Advice welcome.

There are lots of mortgage calculators online.

How much is the property currently up for? The fact it's just been reduced makes it less likely they'd drop by the same again so soon. It really depends how long it's been on for in total/how keen they are to move. Ultimately you can only offer what you can afford, but if you can afford more, just offer what it's worth to you.

Original poster
cheesypleasy · 01/04/2023 08:02

There are tenants living there and they have served notice on the landlord seller.

I have looked at the mortgage calculators and it is so much more to borrow now. I feel further drops are coming in the next couple of years, as property is still being put on for very high prices post Truss! So, it is wise to do what you said and just offer what I feel it is worth.

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Mercurial123 · 01/04/2023 08:08

The price has been reduced by 25K, and you want to offer 25K below? How much is the house worth, and is it fairly priced compared to recent sales?

CellophaneFlower · 01/04/2023 08:14

If you're not willing to pay what it's up for, then by all means offer whatever you want, it just depends how much you want it.

Perhaps check some comparable recently sold properties to get a clearer picture if it is actually overpriced.

Original poster
cheesypleasy · 01/04/2023 08:15

The thing is recent sales don't mean a lot to me in a falling market. The market has changed and judging by Right move and properties sticking around even after reductions, I don't want to overpay.

The property has bad points that would put many people off. I guess with everything continuously going up I really want to find the best deal I can. If they accept, they accept, if they don't, they don't - I will just have to have that attitude and keep in looking.

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Original poster
cheesypleasy · 01/04/2023 08:18

Nothing is that recent in the property market due to lags in official data. Besides I have seen properties being put on for well over the peak in 2022. Ridiculous. They are just sitting there unsold.

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Original poster
cheesypleasy · 01/04/2023 08:19

I like it but I think I should think with my head in these times. They'll always be another property that suits us.

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Sundaefraise · 01/04/2023 08:21

I would ask for the price reduction - they can only say no. It’s a landlord so they’re unlikely to feel emotional about the property but will probably have a clear idea of what they want. I’m not convinced that property is going to continue to drop and drop. I think inflation will stabilise and there will be some stagnation.

mrsfennel · 01/04/2023 08:22

I think if you really like the house then put in an offer that you can afford and you are comfortable with. I would not miss out on the property just because you think the market is going to drop further, it may well, but why risk missing out on a house you love that it sounds like you can afford.

Meandfour · 01/04/2023 08:26

You sound like you’re talking yourself out of it,L. I would stick to houses within your budget and keep looking.

bookish83 · 01/04/2023 08:27

what are the bad points?

I would worry about those first. How have you overcome those?

Original poster
cheesypleasy · 01/04/2023 08:29

@Sundaefraise I take a different view. The cost of living crisis has seen prices of practically everything go up. Now they have done that they won't put prices right back down again. Plus the cost of debt is so much more now that a lot of people just cannot/will not offer what they offered pre Truss. As I have just started looking and am in no rush, I am talking myself out of offering the full price. I like the property but they'll be others.

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friskybivalves · 01/04/2023 08:30

And also ask to see confirmation that the tenants have given notice.

Original poster
cheesypleasy · 01/04/2023 08:30

@Meandfour yes I think I am too! I have my dream of retiring somewhere hot and don't want to overpay!

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EyesOnThePies · 01/04/2023 08:31

I would have a go at 5-7% under asking price.

EyesOnThePies · 01/04/2023 08:32

Did you meet the tenants?

Have the tenants given notice or have they been given notice? It could take months and months to get them to leave if they have been served notice.

Original poster
cheesypleasy · 01/04/2023 08:33

@friskybivalves good point. I must say I found it strange that the tenants served notice, especially as it is not easy to find rentals here.

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MairzyDoats · 01/04/2023 08:33

If you can be that level headed about it, offer the 25k below and see what they say. Nothing ventured, etc ..

Original poster
cheesypleasy · 01/04/2023 08:33

Apparently tenants have just served notice.

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Original poster
cheesypleasy · 01/04/2023 08:35

Bad point is it backs onto a motorway and has a block of flats in the close with no allocated parking.

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Sundaefraise · 01/04/2023 08:38

No, I actually agree with you. If you’re under no pressure i would wait and see what actually happens. Even the best economists (not me!) have struggled to actually predict market trends.

DrySherry · 01/04/2023 08:44

As always with offering property offers its hard to use your head rather than your heart. I would say you have two advantages with this one. The first is that many people hesitate to offer on property with a Tennant in place even though you say they have been given notice. It adds an extra layer of complexity and possibility for non completion. Secondly your not dealing with a home owner but a business investor, who may well be in distress with the new normal costs of borrowing. Business investors are much less likley to close the door to a possible negotiation. So start at another 25k under, definitely. Prices are falling and they will be very aware of that. Good luck whatever you decide.

Itsonlyagame · 01/04/2023 08:50

I took out a 25 year 60k mortgage at the height of the Truss shit show when fixed rated were higher. I pay £350 per month. I would definitely offer lower, they can only say no.

Original poster
cheesypleasy · 01/04/2023 08:54

@DrySherry Interesting, thank you for that advice. If I want a second viewing they are only allowed on Friday evening as per the tenant's request. I will have to wait a week to go back. It may have an offer by then but I am determined to remain unattached in this market. The bigger dream is retiring somewhere hot!

Interestingly it was apparently the tenants (who have children) who served notice on the landlord according to the EA.

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Brexiteermorons · 01/04/2023 08:56

Offer what it is worth to you. They can only say no and you can then up your offer. A house is only worth what someone is willing to pay for it