What should I offer?

[Crash123]

Ahh! I found a lovely small garden flat that I'd like to make an offer on. It's near Norwood Junction in London - it's 2 bedrooms (but the second one is tiny), has a garden (with train tracks that run right behind so it's a bit loud), nicely done up, etc etc. Minus the loud garden, it's exactly what I want. And i think the neighbourhood has a chance of gaining some value in the next few years. But more importantly, I think it's somewhere I could happily live.

It's on for 300,000 which is the VERY top of my budget. It's been on the market for a couple of months, and was recently dropped from 325 to 300k, and they're now asking for offers over 300k. They're moving because they have kids and the space is too small for a family that size.

I'm chain free, and I know the vendor hasn't yet secured a place to buy.

I'm inclined to offer a squeak over 300k, just to secure the place now. Friends have said I should go in lower, but I'm afraid if I do I'll get outbid and it'll go to someone else.

I'd offer 290 and be prepared to go up to 300 as your final offer. That way, they'll feel they've got a bit more out of you and you won't be paying above the odds. I doubt it'll go before your offer is in and they'll probably be thrilled to have an offer (if you're proceedable, that is?)

Do sellers generally ask people to up their bids, or could they just give it to someone else straight away?

Generally there’s a bit of negotiation. I’d go in at 288 then come up abit. Hope to settle at 295.

Even though they're asking for offers over 300k?

My friends flat was on for offers over 250- she offered 235 and got it.
means very little- it’s worth what someone is willing to pay. Nothing to lose by low balling, it’s your market. 285k- if they push 290- chain free and ready to go- if they ask you to up the offer agin say you’ll think about it but you have other flats to see.

I seriously doubt there will be people queuing up to offer on it in the current climate!

Yes, sellers would usually give people a chance to make a counter offer. But I don't think you should worry about that- offer what you'd like to pay and have in mind the figure you're prepared to go up to, and stick to that!

PP's suggestion which could end up with you getting it for slightly less is a good idea, although if you're nervous about losing it, can afford it and prepared to go up to 300, I'd still maybe have that in mind

The market isn’t great at the moment and they probably really want to move. When I sold in the covid boom the offer started very low and they just crawled up to what I would accept. I don’t think that’s an insulting offer but I do think £300 is probably a bit much. They should managed to knock something off their next purchase

Offers over is pretty meaningless in this market. It does tell you they are unlikely to accept 250k though.

I would go with what @TheYear2000 said.

It's been on the market for a couple of months. They are unlikely to have people queueing up.

I'd go in under 300, and increase.
Yes you can go back with higher figures. Just don't tell the estate agent that 300 is your max until your offer is 300.
We got offered 240, but the estate agent had been told 247 was their max. So we rejected until they offered 247!

<checks rightmove> It's unlikely there are queues of buyers so if it was me I'd put in a lower offer (and if necessary up it later). Though it depends how urgently they want to move - and by the time they've found somewhere to buy, how urgently you want to move!

And it's a bit of a weird market in S London... it feels as though places are either selling in a week or never. So you never know - maybe are the only potential buyer and they really need to move.

Ahh, I lived there when I first moved to London 20 years ago! A tiny place just to the south of the station of Stanger Rd, but I loved it. Nice memories :)

I agree with others - go in under £300k explaining that you're right at the very top of your budget. You're chain free which automatically means your offer is more valuable than others, and it is definitely a buyer's market.

Good luck!

Thanks so much folks!!! Eeeeekkkkk!!!

£292,500

It sounds cheap for a 2 bed in London. What are comparable flats with the same square footage going for?

I would offer £290,000 as your position of not having anything to sell is attractive to vendors. Have you got a mortgage AIP?

I'd go 290 and wait a bit with the offer on the table. A lot of it will depend on what they can offer for the home they find. If they can offer lower on the next house they might be glad of your £290 because you are chain free and make it all more straightforward.