How much to offer on a 750k house

[whatafineday]

The property was first listed six months ago then got taken off from RM by the agent, and reposted as new listing with a lower asking of 750k this month. We did the viewing after the price reduction. It checks most of our boxes. Though inside and outside do require some work. It's been a rental so not in the best condition. But since we have been looking for more than half a year and do have a deadline, need to move before the school term, we are keen to make an offer. But unsure of where to start.

How much can you trust valuation estimates from websites like on the move? It has it down at 700k.

Recent transactions are either much bigger houses or smaller flats. One similar one has gone under offer but the agent refused to say at what price. and because of this, we worry that there could be competition looking for similar properties.

Do you think 700k is a good start or we will be dismissed? Part of me wants to try 680, 10% below asking. But anything under 7 could risk offending the seller. We are a cash buyer. Do feel that we are at a strong position in this market. But do not want to over pay. The agent has hinted that he has at least 5 viewings scheduled for the weekend....and he said no interest earlier due to tenant being there and not supporting viewing. Now no more tenancy so presumably more interest. This is making me anxious!

I doubt prices in that area have risen 40% from 2013 to 2023

Do we know what that area is?

Some areas have risen that much in the last 5 years, let alone 10.

If there are other viewings booked I would wait until after they have been to see if any offers are made, if there are then go in with a lowish one so you get told at what level of offer the other people have made and then work out how much it is worth to you.
If I was a seller and had 5 other viewings even if you offered I wouldn't accept/decline until those viewings had happened and would be grateful that you had lit the fire under everyone else to make them think they are missing out.

How much do you want it? That should help you decide how much to offer..

serious motivated buyers are still out there offering full asking price, we are selling a probate property and are under offer for 3rd time since October, this time at FAP, we've been messed about terribly by the 2 previous buyers (first one who pulled out right before exchange at Xmas is kicking himself and came back with a new and very good offer a few days ago but he's likely missed the boat if the current buyers carry on as I hope they do).

Pre or Post Truss £775k?

If Pre, then surely they understand the landscape changed. 10-15% less than that I’d say.

Presuming there is an upwards chain? Assuming their onward property is probably similarly cheaper and if upsizing then they don’t need as much equity

The landscape hasn’t changed everywhere. You’ve made the assertion that prices can’t have risen 40% in 10 years and multiple people have said you are wrong for their local area.

Our area has not seen a dip from pre-Truss/post-Truss. I had two valuations on our property in March 2022 and then another two again in January 2023 when we went on the market. The January 2023 valuations were higher than March 2021 by £10K. We went on the market £10K more than the lowest valuation from the EA and we have sstc for over asking at the top of the valuation range. It’s much more about what happening is locally. OP has said not many of these type of houses come up and that is reflected in 5 viewings after dropping the price by £25K, a lot of people are obviously interested in the property at that price.

OP - they will wait to all the viewings have happened. You need to just work out what is your top limit. What is the highest you are prepared to go based on what you think the house is worth and what it is worth to you? It is worth slightly more to you because there isn’t much coming on that is suitable for you and you want to move as soon as possible. However, that doesn’t mean you need to go silly levels if that isn’t what works for you. Give yourself a range and stick to it. I would say given they have had an offer at £725K that they haven’t accepted, you might be more around the £725k mark than £700k. You could try £700K as you’re a cash buyer but if there isn’t anything else coming on then they might be prepared to wait with a higher offer because it then gives them some time to find somewhere they want to move to. I think £700K would be too low and they will accept the £725K (or above of one comes in) and just wait for them.

Only you can know what it is worth to you, because there are so many issues that can be factored into its value.

The only thing outsiders can really do is confirm whether or not it is or isn't overpriced for the current market, by looking at the house and valuing it against other sales that have happened recently on similar properties in the area.

It always fascinates me that some people can make such confident sweeping statements, without any idea where in the country the property is located!

Whilst I agree it's advisable to hold fire until the other viewings have been held, you do risk a buyer saying "I'll offer X amount, but only if it's taken off the market and nobody else sees it".

If you really want it and would be gutted to lose it, I'd offer 725k and say the above. I overpaid for my house. The vendor had someone pull out last minute and his purchase was about to fall through, so I could have taken advantage. I'd already lost out on it once though and was devastated for months, so I didn't want to risk losing it again. He made a massive profit in 6 years and barely spent anything on it, but I've never seen anything since that I'd rather have bought.

It also very much depends how much you want it and what you can afford.
IMO buying a house is not just about getting a bargain, it is about finding a home you will love and live in for many years.

I first noticed the listing at the end of last year at 775. no upward chain. seller is an investor. price dropped to 750 two weeks ago. there are two similar properties in the area listed at 800k. Internal area 5-10% smaller but garden bigger. and renovated to extremely high spec both inside and out as they are owner occupier. both are motivated sellers with no chain according to their respective agents. to renovate the 750 one based on the 800 standards will probably cost 100k (garden 50k and house 50k) in today's market. hence am leaning towards a 700 offer. But worried that i may end up bidding against myself....

I’m not convinced it works like that OP, in that you don’t always make back renovation costs. In fact often there is a premium paid for projects because you get to put your own stamp on. There must be a reason why you’re not just buying the 800k properties and other buyers will be in the same boat as you. That said, while I don’t think you can deduct the full 100k from the 800k and get a price for your house, the 800k properties may sell for less in practice. I would say don’t offer 700k if you would be devastated not to get it.

Whatever happens OP, can you come back someday and tell us what it sells for? (To you, or otherwise).

It’ll be interesting to see what happens in the end.

EA has just emailed to say i need to provide proof of fund if i would like to make an offer. And that they will continue the viewing unless my offer is accepted. Maybe I'm over analysing it. But such deliberate reminder seems to suggest a playing hard to get tactic when in fact i could be the only bidder.

I will put in an offer tomorrow. Need a bit more time deliberating on the number. Most likely they will only provide their feedback after the weekend.

Will keep you posted and entertained : )

It's worth what someone is willing to pay for it. It's the EA's job to highlight that there are viewings happening etc. If you are happy to offer 700 and no more, just do that (or even lower) and if they don't accept it, that's up to them. I wouldn't be offended though, as the seller.

So there’s a viewing tomorrow? Do you trust this EA?

I’d ask to view again, and to be helpful you’ll do it either side of the other viewer. (If you can spare the time/effort). If they are telling the truth they’ll jump at the chance to start a bidding war, if they won’t let you…well, then they are lying.

How exciting!!!

I don’t suppose we could have a link to the house so we can have a look?

and of course it is ok to put a lower offer in - chances are these people have found something they want and are desperate to move

cash buyers means no chain hopefully?

I think you’re over analysing it. All EA we have spoken to on the houses we’ve viewed have said they will only be able to take proceed able offers. They won’t take it off the market until you have offered and shown you have the funds in place or mortgage in principle to proceed. If you weren’t a cash buyer they would also be asking you to prove that your house had sold. They will obviously continue with viewings until you offer, they’ve checked it’s a proceed able offer and the seller has accepted it.

There’s two properties on for £800K that are done to a higher standard and have bigger gardens, you want to move by the beginning of the school year. So what is wrong with those two houses? It sounds as if you really want this house, for whatever reason, so even if it is just you bidding you have to pay what it’s worth to you. It seems like it’s worth a lot to you because you want it and you want it quickly (conveyancing is taking an average of 3-4 months at the minute so you need to get an offer accepted soon to be in for whew school year). An investor can most likely wait you out. Will you be devastated if you don’t get this house?

I don't trust this EA. There was no viewing last Saturday - we asked him to send us a video first before committing to a few hours travel. Suggested that he could just take a video on his next viewing and he said nothing planned on Saturday and urged us to come in person. Maybe his other colleagues had viewings lined up just not him and he didn't want to bring his colleagues in. I have no knowledge of the practice of these firms. Last Saturday was day 10 after price drop and repackaging as a new listing.

Another red flag is on our first call he said buyer had rejected a 750 offer and today's call he said 725 rejected.

I think there should be viewings set up this weekend. If none it can also be a red flag - am i missing anything?😳

But we have no way of finding out how much interest is out there.

Such fun game!

Repackaging as a new listing is scummy.

God we need laws to stop this bullshit. Estate Agents should be legally bound not to be arseholes, but then that would mean laying 99% off them off!!

We had an estate agent round to do a free valuation, and we discussed what renovations, redecorations we might do to boost value. He said 'One word: DON'T'. He suggested £360-£380K for our 3 bed terrace in a quirky suburb of north Bristol. He said 'You could spend 10 grand on a new kitchen and buyers will mentally price up the cost of ripping it out and putting in one that they like'. By the way, we bought it for £40K in 1995. It was on offer at £45K but we'd done our sums and thought £40K was the biggest mortgage we felt happy with. The then EA said 'you won't hear back, not at £40K'. We kept looking and 3 weeks later the phone rang.

@CharlottenBurger

Ahhh the halcyon days of the 90s. Where holding tight meant a 11% discount weeks later!

also, is “don’t” one word?

A contraction is a word made by shortening and combining two words. Words like can't (can + not), don't (do + not), and I've (I + have) are all contractions.

Online "valuations" mean absolutely nothing.

Only you know how much that house is worth to you. It's "worth to you" includes, its size and location in respect of your personal social requirements; the end of househunting stress and uncertainty.

Imagine a scenario where you're beaten by a better offer, and in another 6 months or a year you find another house.... which is less appealing and costs more. You'll be kicking yourself.

I would have just put in an offer of £700K (which is entirely reasonable) and leave it on the table. Did you make an offer in the end?

went in at 9% below asking and got rejected. i can raise. but am not sure if i will end up bidding against myself. any tips for negotiation?