How much to offer

[Firsttimebuyer91]

Hi all,

First time buyer, please be gentle!

We’ve been searching since November and narrowed down the areas we want to live and accepted that we can’t get much for our money in these locations but area is our priority.

We’ve finally found this house https://www.rightmove.co.uk/properties/86818176 we’d like to make an offer on. It’s been on the market just over a month and £10k over our max budget at £750k.

We love the character but it’s been cheaply done in terms of laminate flooring, cheap pvc windows etc. which means they haven’t retained the character as well as other properties in the area. We’d also want to do a kitchen extension.

I appreciate this will be part of the valuation and the kitchen extension isn’t their problem but I imagine other viewers will think the same!

Obviously we want to get the the best price we can and don’t want to pay over our £750k budget but want the offer to be taken seriously. In terms of negotiation what offer would you start with?

Thanks in advance!

The Booths is closing down so I’d go low! I knew Hale was expensive but didn’t realise it was that expensive. Blimey.

A month is not that long for a property to be listed in this market.

I appreciate your comments about windows and flooring (I hate upvc and laminate) but frankly some buyers will appreciate the utility these products offer over the aesthetics/character so I don't think that's a major discount issue.

Rather what you want to concentrate on is the structure of the property. I've bought a fair few period properties over my life and my first piece of advice is do not scrimp on your survey.

I love period properties but they can be very expensive to fix if they have been poorly maintained. So many have been superficially upgraded (new kitchens/bathrooms etc) but left with old wiring/boilers and roofs not taken care of. So get the best survey and remember anything it uncovers you can use to discount against your offer.

To answer your original question, it depends on how much you want this property. It's easy to get hung up on figures and value for money but in reality an extra £10k over your mortgage period isn't a deal breaker in the way not securing the right property is.

That said, It is a buyers market right now so I'd be looking to offer something to show you are serious but not at the asking price.

I'd be tempted to pitch around £725- 730k. It's not an unreasonable offer especially as you are FTB's with no chain.

This would also give you leeway to offer more to secure the property without busting your budget eg if they come back with a counter offer of 750k you can offer to meet in the middle at £740k.

I can't see it's really worth much more than number 35 that sold at 625 in Jan 2023 ? I see it has maybe slightly more space downstairs due to small extension but prices have generally not increased since that one sold in most areas. I think they are kite flying with the price tbh. I would say starting at 650 is realistic with a view to maybe increasing another 10k before walking away.
Or you could just play the waiting game, I feel its likley they will have to reduce considerably to start getting offers. It's probably better to let radio silence soften them up for a while before you start offering.

I think the house looks lovely, it’s exactly the sort of thing I would buy actually. I don’t know the area but it’s obviously an expensive one. I don’t agree about other buyers also wanting a kitchen extension, I wouldn’t. This is not something you should mention to the EA. Or the laminate floors though I agree they aren’t right in a beautiful period house like this one. It’s not good to focus on small negatives, just offer what you think the house is worth.

They will end up getting a good price for this property because it is so appealing so I would start with a strong offer such as 725k and emphasis you are FTBs with no chain. If you have a decision in principle from a Lender then mention this too, plus any other things you have going for you. Like if you can move quickly or if you have flexibility over the removals date.

It looks like it's already been extended - but from the look of other houses on the row, so have they, so not sure a further one would be a bother. Your lack of chain puts you in a good position. The modern touches - whilst not aesthetically ideal for you - will make the house practical. Especially the double glazing (listed here, single glazed sashes. Can't get rid even like for like)
Reduce the house by exactly how much stamp you'd have to pay if you weren't first time buyers and go in with that as a first offer.
In terms of extending yourselves - the deposit is the least important thing. If the last few years taught us anything it's to make sure there's wiggle room in your mortgage payments - so you could eg comfortably pay a bit more or you can extend it another 5 years etc

I'm shocked at what they're asking, it seems massively over-priced to me. Even 630 feels generous!

Jaysus, that would go for max £290k in my area.

Prices here have also fallen, so I am struggling to see how the purchase price should be more than about £630k for OP's property, too.

How is it relevant what houses go for in your area? Don’t you know every area is different?

Interesting, I hadn’t noticed what number 35 sold for but it doesn’t seem significantly overpriced to us based on other properties we’ve viewed in the area over the last few months, especially given the size of the garden and the style of house.

It might have been that the vendors of 35 needed a quick sale or there was a structural issue with the property not immediately visible? Difficult to say but if we’d seen a 3-bed house like this for 625 in the area since November we would have snapped it up!

Manchester prices are crazy and it’s in a lovely area and the catchment for one of the best grammar schools in the country which drives up prices further.

Thank you for all the advice!

I think it looks lovely and they have staged it appealingly. (I agree with you about upvc windows but, as the owner of original wooden sashes, there are times when I’ve fantasised about upvc.)

I suspect that it will be popular. You could risk holding out and offering low if they haven’t sold within a few more weeks. Or you could go in now with £725k. Just that — no justification or argument.

Just one thing to think about. The house at the moment is REALLY empty. There is very little storage that I can see. If you’re FTB you probably don’t have much stuff yet, but it very quickly accumulates. If it were us, that basement office would very quickly become a storage room/dumping ground, and as soon as we had put up enough shelves the house would feel about half the size. Not a problem if you’re tidy and minimalist of course.