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Original poster

How much below asking price should I offer in the current climate?

19 replies

sparkleymummy · 22/02/2008 13:24

I think we might have found the house we want to buy. Its a lovely house although the area was not top of our wish list. We are "good buyers" since we've sold our house (exchanging next week). My problem now is knowing how much below asking price to offer in the current climate. The house was on for £800,000 but their sale fell through last minute and they had to put it back on the market. Its now on for £750,000. They are keen to move since they've found somewhere (and presumably also want to sell at the top of the market since they're downsizing). I've seen mention of 10 to 15 per cent but that's a lot of money at this sort of price level. Is that realistic?

What does everyone think? I'm so confusd about it all but don't want to get it wrong. DH thinks that since the location isn't perfect, and since this is supposed to be our "forever house" we should move into rented but I don't think I can face moving twice with two little ones. Plus I don't think the perfect house is out there in our budget.

Help. I'm extreeeemly confused!

OP posts:
helenelisabeth · 22/02/2008 13:30

If you weren't 100% happy with the location of the house there is no way you should spend £750,000 on it as the stamp duty and fees alone will be astronomical, you don't want to pay all that money out again if you decided you didn't want to stay there.

If you want a "forever house" you would be better doing what your DH wants to do as you then are basically first time buyers again, thus in an excellent position to barter when you do find your "dream house".

But if you do decide to make an offer, with the good position you are in, I would probably make an offer of £690,000.

Good luck!

Tutter · 22/02/2008 13:32

go in low

you can always increase

if you're a good buyer the agent will give you chance to increase your offer if anyone else joins th biding priocess

Original poster
sparkleymummy · 22/02/2008 13:35

The fees are astronomical. £38,500. My first house was less than that.

Its so hard when the house is so perfect but the location isn't quite right.

OP posts:
helenelisabeth · 22/02/2008 13:38

Sparkley, I have just moved three times in 1 year, sold our house, bought one to renovate, so moved to my parents, moved from there to rented accommodation when DD2 was 5 weeks old and then moved in December to our "forever house" when DD was 3 months old. It was hard but we managed!

Never again though!

Original poster
sparkleymummy · 22/02/2008 13:56

Blimey helenelisabeth you're brave. I'm not sure I can face it though. Going back to work after mat leave in six weeks, have to be out of this house in five weeks, have been reluctantly roped into being on the PTA and have a seven month old baby who still wakes up four times a night every single night. I'm on the edge as it is!!

OP posts:
helenelisabeth · 22/02/2008 14:11

Had no choice tbh, we bought our house to renovate before I got pg with DD2 (who was a surprise). Had I had known I would have ended up doing all that with a newborn, I doubt I would have gone through with it!

Poor you with your LO, my DD2 is waking up 3/4 times a night, last night just twice, it felt like I had had a full nights sleep this morning!

Smurfs · 22/02/2008 14:24

Hello sparkleymummy - if I was in your shoes I would get a rented property organised very quickly rather than buy in a hurry. The house may be fantastic but if it is not in the right location it is never going to move. In rented you are in a fantastic position as you can be flexible on timescale, make cheeky low offers and probably secure a bargain. Run to the phone and get a rental property organised

Original poster
sparkleymummy · 22/02/2008 14:35

Rented is looking like the best option. Just done a bit of internet surfing on financial sites and with the interest we would make and the money we would save in a year we could pay for DS1's school fees for four years.

The only danger is that prices rise but that doesn't seem likely does it

OP posts:
Smurfs · 22/02/2008 14:40

One of the downsides with rental is that you are at the mercy of a landlords decor! However you are then able to pounce on the right property when it comes along or maybe have work done before you move in. I am going against convential wisdom and do think that prices will rise in certain areas where there is always a high demand and low supply. Sit tight in the rental propertry when you get it and see what gems you can find. Keep us updated

Original poster
sparkleymummy · 22/02/2008 14:49

I'm in Nottingham so I don't think its a particularly high demand low supply area. Prices don't seem to be dropping but there seem to be a lot of properties which have been on the market for months and months and lots of buyers who are pulling out of purchases (presumably with cold feet thinking there might be a crash).

Whilst I do love the house to the extent that I have been dreaming about it at night(!!), I am concerned that the area isn't ideal (although it is regarded as quite a good area and its very close to town). Also we would want to update it and if we're concerned about spending so much on that road then others might have same concern.

I hate being sensible.

OP posts:
helenelisabeth · 22/02/2008 14:54

I would wait and see how the market turns, you would be gutted if you did buy and then the market dropped quite a bit. Who knows in these situations but you are better to be safe than sorry. I doubt the property market is going to rise this year.

Smurfs · 22/02/2008 15:16

Have you looked on Rightmove to see how much the most recently sold property in that area went for? What else is there in the area that is available in your price range? How about looking at areas that are maybe just a little out of your price range and see if there are any bargains to be grabbed in the current climate. I don't know anything about the market in Nottingham but maybe now is a good time to get your face very well known with the Estate Agents so that you get the first call on something fab!

Original poster
sparkleymummy · 22/02/2008 15:39

The road is actually full of big houses and there are houses there that have sold for £800k in the past year but at the end of the road is a very large dodgy estate.

Have just seen a gorgeous house on rightmove for £875 but £800 is our absolute tops for the perfect house. I doubt they'd consider that much of a drop. I shall keep an eye on it though.

OP posts:
noddyholder · 22/02/2008 17:04

800 is a fair offer not even 10% off

helenelisabeth · 22/02/2008 18:25

I think that £800,000 is a fair offer as well.

lalalonglegs · 22/02/2008 18:58

Rent, rent, rent. No point buying (a) when you are under this sort of pressure to move - bet you couldn't get into the new house in five weeks even if your offer was accepted (b) every indication prices are going to go down in next few months.

Jampot · 02/03/2008 08:53

fwiw I imagine there are few people wanting to spend 800k right now so I dont think you have anything to fear by sitting and waiting for a while. If you go into rented for 6 months and the house is still on the market in 3 it will likely have been reduced anyway. It can/will take about 3 months for conveyancing (you can string it out if it appears to be moving too quick) and you could well bag a bargain.

let us know

Jampot · 12/02/2009 11:41

i was just looking through some old posts and came across this one from about a year ago. What did you do in the end sparkleymummy?

Honeymum · 12/02/2009 13:48

£750,000 will be you a lot of house in Nottingham! I am interested in what happened too - I think I live right near to the area the OP is talking about!

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