Should I offer asking price

[Buffypaws]

I’m interested in a flat in a town which is on cross rail and quick to London, nice sought after area.

flat is on for 325k. Vendor got it for 282.5 in 2019 and has done it up really well. Nice kitchen, built in wardrobes. currently tenanted but they are vacating soon.

last May a similar sized flat in this block went for 275 (not as nicely finished)

Zoopla suggests 305k is a high valuation.

I am very keen but I also don’t want to overpay. Sort of worried it’ll get downvalued by the lender.

so I guess my question is, based on this information is the lender expecting below asking price offers or is almost 50k increase in value normal for the past five years in a nice area and with home improvements?

it has been on a month and had no offers yet according to the agent.

I'd say yes, the lender (I think you meant to say vendor there) is expecting below asking price offers.

Make them an offer that starts with a 2. See what they say.

It sounds massively overpriced, bearing in mind that Zoopla valuations are usually unrealistically high. You’d be mad to offer asking.

Personally I'd offer £305k - 310k start low, say you're very interested, but you need to suggest that something needs work or consideration. That might compel them into thinking your offer is reasonable. They'll either say yes or no & then you can use it as a start point.
What do you want to pay for it?

Good advice I'd go a bit higher but I am just going on the fact that OP really wants the flat. Start low

Ah yes I meant vendor not lender.

@blackcatsruleok this is exactly what I’m worried about!

id like to pay 300 tbh… the agent said “reasonable” offers would be looked at but reasonable is open to interpretation

Sound massively overpriced. Offer 280, see what happens. No offers in 4 weeks means it seriously overpriced.

You'll just miss them off if you offer £280k. House prices have gone up in the SE since 2019 and they've done a fair amount of work on it. I'd start at £300k personally.

Yeah I don’t want to piss them off. I do think it’s worth 300k. So that’s a reasonable offer? Seems like quite a chunk off.

Last May one similar sold at 275. The prices are down since then, about 5% in London for flats over that period ?

Everyone prices expecting to take an offer.

Good luck!!

Don't go as low as 280k. There's no way you're getting it for that. I'd start at 305k.

I agree you won’t get it as low as 280k. I would offer 300k as you think it’s worth that. They probably expect to haggle a bit on price but they will very likely get more than the 275k the other flat went for if it’s a nicer property.

Online valuation do not account for finish... they are just the inflation rise since last sold.

High finished properties are worth far more than online values and do-er ups are usually worth far less.

The property has been valued at that price by professionals (if via traditional methods not purple bricks etc...) who have seen it and accounted for the work.

@Buffypaws "it has been on a month and had no offers yet according to the agent."

Go in with £280k and see if the EA 'laughs' at you that'll be a clue. ;) They have to put the offer forward.
If there's been no offers and they don't come back with a counter offer you could guess they are being 'unreasonable' and want too much.