Offer on property

[GlassCaseOfEmotions]

Hi all! Just need some advice on what to do please.

We desperately need to move to a bigger house (we've not let it be known to estate agents that we are desperate, just that we need a bigger property).

We have seen a house that we both like. 3 bed, 1 bath, converted garage, big enough garden and off road parking. Near to lots of schools/ shops/ easy commuting. In an area that would be ideal for us.

The house has gone through probate. It's been on the market for about 8 months and only had 1 offer. The price has recently been reduced by £15,000.

Negative points:

• it's excessively dated and needs modernised (kitchen and bathroom need full replacement, all carpets need ripping out, full redecoration needed)
• ex smokers property. The smell was very strong
• some houses on the same street are a little run down
• new boiler system required (currently has back boiler and immersion tank)

Estate agent said the vendors are keen to sell.

Property is listed for offers over £200,000.

Another property, same layout but garage hadn't been converted, sold in June last year for £202,000 on the same street. Properties currently on the market on that street are listed for £230,000 but require no work.

I'm of the mindset 'you don't ask, you don't get' and want to offer less than asking price, taking in to consideration all the work that's needed (as well as work needed that may not be immediately obvious). I was thinking of offering about £185,000 originally. My partner thinks we would be better offering £192,000. I'm not a seasoned buyer (current house is my first) but partner has bought a few houses previously. My current property I bought for just under 10% of asking price (after it had been reduced) and that was my first and final offer.

What do you all think we should offer based on what I have written?

The advert states that the price reflects modernisation that's required. It stated the same at £215k.

However, modernisation to most buyers is updates like redecoration. Mostly minor things. As a buyer, I don't expect a house that needs almost full renovation to be considered in the same bracket as modernisation!

Thank you. Can I ask why you say that? Interested to know the reasons!

Not being cheeky but if it is sitting for months and you said some of the other houses around were "run down", is it really that desirable, or has demand just dropped by a lot? Do you know the price history, that is important now as rates have moved so much.

Run down as in gardens need maintenance front and back, house next door is being renovated so has some bits piled up in their front garden etc. The area is very desirable, houses on the surrounding streets (and houses on the same street that have been renovated) usually sell quickly. It's also mostly elderly people occupying the houses. I was surprised at the lack of younger families given it has a nursery, first middle and high school all on the same street. This could also put people off!

The house was first bought for £30,000 in 1940's as a new build and been owned by the same people since then. I don't know if that's what you mean by pricing history.

I know when I first saw it, it was advertised at OIEO £215k. It was reduced just over a week ago to OIEO £200k and has been on the market for about 8 months.

you sound like you really like the property. Personally, I think you should try to get it for the price you believe it is worth only. Nothing more. Be firm and not to accommodating with negotiations. What location is it in, if you don't mind sharing? I'm in SW London.

If it's been on the market for 8months, I definitely wouldn't pay anywhere near asking price. It's a buyers market, even at 200k properties. They bought it for 30k.. they've made a lot of profit anyway!

It wouldnt have been 1940s at that price, you mean1980`s?

Yep, if they get 150k they have still done really well out of it.

From what I can see, it was 1940's and owned by the same people throughout. It's never been sold on previously. I'd need to check the deeds through LR for sale price, but housing history Of identical properties has them down for £30k in 1940! I've no idea what house prices were back then 🤣 so only basing that off other houses sale history!

It is in Staffordshire, West Midlands. God I can't even imagine what house prices are like around you currently!!

I assume it'll be part of inheritance, so the sellers have paid £0! I think we should be offering £185k and no more than £192k personally, it's DP I have to convince of this way of thinking.

Totally unrelated subject, how do you get a man to think something is his idea when it was yours? 🤣

Have you actually checked with the agent it's still available?
There's a house on our road which is sold, sold a while ago too, new owners very slowly doing it up and the agents have kept it on rightmove as still for sale?! When you call them they say it's not for sale, yet they still keep it up for over 6 months. I used to work in estate agents and know it was a trick used to reel buyers in for other properties

Just downloaded the title register from LR. It doesn't record a sale price (not the full deeds, compared to my own). It was definitely built and purchased in 1940's and has never changed hands.

I hope it is, otherwise the EA wasted theirs and our time only days ago by letting us view 🤣 it was also reduced in price 8 days ago and EA told us we are the only people to have viewed.

EA would be a bit silly to allow us to view and discuss possibly submitting an offer, as our house is also listed with them and a trick like that would badly damage the relationship. They are no sale no fee and a national company, so it's in their interest not to mess us around!

Prices have dropped since June

Start by thinking how much you're prepared to pay

Then offer £15k below that

We just sold ours and had offers well below asking price

Thank you, can I ask how much below asking yours sold for please? And what area you're in?

The basis for the £185k is taking in to account the only comparable property sold on the same street in June. However, as I mentioned, that was in far better condition and needed minimal work compared to this.

On the basis of offering £15k below whatever we are willing to pay, do you mean £15k below the £192k maximum that I've got in my head? That just strikes me as very low compared to asking. I'm not a seasoned buyer though, so happy to take all advice on board when it comes to this!

hahahha I love this question. Let me offer you my "expertise" LOL. Get him to explore the different options you have (inc your thoughts about the price), get him to say them out loud, and encourage him to think out loud so when he says "but 192k should be our max", tell him how amazing this idea is he came up with and how smart he is. Works on my hubby all the time haha. He is reading this as I write this LOL

I do agree with this.
185 - 15 = 170k (offer this) but in your email offer make sure you state clearly and politely why (reno project) and other issues.

I'm going to give it a go, thank you for your expertise 🤣 appealing to his ego might be my only option here!!

Don't let your hubby read it, you'll give away the few tactics we have available to use 🤣

Thank you. It may be more of a challenge to get him indoors to agree to £170k if he's struggling with £185k 🤣

I've already tried the 'it'll be me putting a larger % of the deposit down, and a lower price would reduce our mortgage payments' but he's having none of it 🤦🏻‍♀️🤣 I think it's pride, but I don't mind being a CF if it means we have more money to play with!!

https://www.propertyinvestmentproject.co.uk/property-statistics/nationwide-average-house-price/

30k would have been average price in about 1984.

I wouldn't make an offer until you've accepted a proceedable offer on yours. An offer from someone who isn't "sold" is not worth anything really to a vendor.
The position you are in is an important part of what a vendor will consider in terms of any negotiation - so how can they judge whether your £185k is or isn't a good offer if they don't know what length of chain and complications come with it and they don't know if the sale will start progressing next week or next year?

Not being mean, but if I got an offer on my house from someone who hadn't sold, I'd do no more than say "thank you, noted, feel free to open negotiations once you've sold"

if you haven't sold I'd tell you to f* off - wouldn't even take a full-price offer. You're not in a position to proceed so, I would be wasting my time could be months before you sell.

Yes, good points, unless you have sold your house OP there is little point in worrying about how they will take low offers, you are stepping too far ahead in the process I think.

They haven’t dropped in all areas so it depends on the local market OP is operating in whether prices have fallen, stagnated or even risen. Every buyer & seller has to know their local market.