Do we offer more?

[Custardcreams35]

Currently looking to buy a bigger house. We are under offer and ready to go.

we have seen a house we really like but it’s needs work - new carpets and floors and a new bathroom. So mainly cosmetic. It’s been rented for years and it shows and needs some TLC.

originally went on in May for silly money at 625k, reduced a month ago to 575. Houses in a similar condition went for 495/500 during last summer, one went for 530 but it was considerably bigger (almost a third size again with a big corner plot).

we offered 510 which got rejected, there has been one other offer at 500 but nothing else since May according to the EA. Seller is abroad and wants their money out of it.

we like it, but really don’t want to overpay. Especially given what the 2022 prices were and how things have changed since then.

we need to just move on don’t we? Trouble is there is nothing else coming onto the market. We could go to 520 but no more as we do need to spend money on it, and I don’t think they would even accept that. For reference lots of reductions around here, and many houses not selling or selling for considerably under. EA said last two houses he sold were on for 650 and sold for 550 and 600 went for 520.

I think you should tell them you will leave the offer on the table but that obviously you are still viewing.

Do not overpay. Eventually home owners with overpriced properties will have to come to terms with the new market reality.

Could you go back to the EA to restate your original offer and remind them that you're under offer, good to go, are very motivated and have all your finances/solicitor lined up.

You could also ask the EA to put it to the vendor that we are in the doldrums of the market, the school holidays are on and people aren't viewing. If the vendor is abroad they might not know that and it might be enough to make them proceed.

Alternatively, do the above, if no joy up your offer by a token amount and say this is our final offer - this or nothing.

We did all of the above and the vendor declined. A week later he came back to us having thought it through and said OK, it's yours.

Good luck.

@BunnyBetChetwynnd is right. And I bet they don't have property doom in their news feed all day if they are abroad. A timely example:

Savills profits plunge as interest rates hit transactions

but adjusted profit before tax tumbled by 72 per cent to £16.3mn.

https://www.investorschronicle.co.uk/news/2023/08/10/savills-profits-plunge-as-interest-rates-hit-transactions/

Thanks for the advice. I just looked up where the seller is, and the property market is rebounding there. So I am thinking he really needs to hurry up and sell here before things get any lower and hurry up and buy there before things go any higher!

we have said we will leave it on the table. It’s not perfect, but I just have that feeling it’s the right house for us. We’ve looked at quite a few 😂

I think you’re both being a bit stubborn - you and the vendor. You have said you could go up to 520k and it is the best house you have seen for you. You’ve looked at quite a few so it sounds like it is the best one in your area that you could (maybe) get within your budget.
I would offer £520 and say that is your absolute max budget and you won’t be increasing it. And stick to that.
The owner had a dream ( fed by the EA ) of getting about 600k initially so they need to also manage their expectations by accepting that 520k is the best offer they are likely to get for a long time.
But it’s also true that Buyers need to accept that they won’t always be able to get a bargain and that some Sellers would rather not sell at all than go too low.

If it's the ideal home and you can afford to splurge £20K then go for it. However, if you have your financial sense head on then run away. You've already offered £10K more than its worth (based on your comparative properties). Why would you offer another £10K? I mean, it's easy money for some, but I worked hard for mine and won't throw it away.

I would stick to your original offer in a falling market. It sounds more than fair compared to Summer 2022 considering that prices have fallen since then.

Perhaps email the agent stating your offer again and why you think it is fair and then wait (unless you are in a big hurry to buy for some reason or this is your dream house and you have money to burn).

I think I would.offer another £5-7k max and say this is your absolute final offer and if not accepted you will walk away. I would also talk to the estate agent and ask them to keep him up to date on the local market. Good luck op.

I'm adding you to my list of special buyers, to promote my house to when it goes on the market.

Just offer another 5/10/15K! It's only money.

If the option is lose it or overpay £10k as suggested up thread I thought it was a reasonable mid ground?

I know. That's why you're on my list! (Teasing)

I'd go £520k if it's the right house, especially if the work is cosmetic rather than structural

It was a reasonable suggestion seeing as the current situation has left @Custardcreams35 at stalemate.
There must be something special about the house to have been previously valued at over 600k & for OP to like it best of all the houses they have viewed.

Of course it’s hard for anyone to advise without seeing the house but it’s a reasonable suggestion to offer slightly higher if they can and if it’s the best house currently in their budget. Maybe the Seller only needs a small nudge to get them to accept, who knows?

I’ve also got a feeling that the estate agent didn’t put our offer forward. He came back and said ‘the seller will reject that’. I don’t know what he has to gain by not putting it forward, I guess he looks a fool for overpricing it but still, it’s in his interest to sell too.

He is legally obliged to put forward your offer. So if you really think he hasn’t I would question him on that point.

Just to update on this, I went back to the EA and followed your advice @BunnyBetChetwynnd and he just responded saying the seller won’t accept. It sounds to me like he didn’t put the offer forward. Probably knows he well overpriced the property and now can’t manage the sellers expectations. It’s been on for 3 months and the EA even tried to change the pictures around to generate some interest.

not much more we can do, but we keep looking and seeing what there is.

@Custardcreams35 Oh well that's a bugger. I'm so sorry it didn't work.
Keep your eye on it as you never know, you might be able to swoop in and buy it for even less when the seller finally wises up. Something will come up. Very good luck.

Thanks @BunnyBetChetwynnd I have a feeling that it will all work out in the end!