How much would you offer?

[Blueuggboots]

If an estate agent told you a vendor had said they would accept £500k or close to it, what would your opening offer be?

The old advice of offering what you think is best as you just never know.

I recently offered on 2 houses with the same estate agent built on the same housing estate in the 90s. They were priced as £30k apart and we agreed that one was worth £30k more but both were overpriced.

The cheaper property had been up for sale for 10 months and price had never been reduced, the other up for 4 weeks. We offered 10% beneath asking on both. Interestingly, the one up for 10 months said she was offended and wouldnt negotiate but the other even though only up for a month agreed a 7% reduction. Like i say, you never know how people will react...just have to go with what you feel is right but you dont want to feel you've overpaid

What's the condition like compared to this one and the total sq footage? How long has it been on the market?
Personally, I would wait to see this property unless it has obvious disadvantages that you haven't mentioned. It doesn't sound as if people are rushing to offer on the other house anyway.

General size is similar, plot is same size. Sitting room and kitchen bigger in original house, bedrooms slightly smaller. Both detached, both 3 bed, original house has double garage, second house has single garage.

I would wait for that one.

Sounds like a no brainer with all the advantages for similar price.

Viewed the house again yesterday and shown round by the owner of the estate agency. Mansplained his way around the housezzz
He clearly didn't know we'd viewed previously and told us they'd had an offer of £500k....but they need to sell their house.
It's a probate house.
We're ready to go....

I would wait and see the other one, although I don't think you commented on the comparative conditions of the two houses.
If you do prefer the original house, hopefully you can secure it for 475/480k as you have no chain and they now have 500k in their head.

Having examined the energy whatsits, the other one is 37sqm smaller......but looks to have a newer kitchen and bathroom...

Well that explains the pricing if the other one is smaller (though apparently nicer in some ways). Estate Agents do valuations largely based on square footage.

I would definitely want to view the second property if you don’t love the first one.

Odd that it’s sat there for 6+ months, and the day you go to view it’s suddenly had an offer at their new revised acceptable price.

If you do put an offer in, use property 2 as justification for a lower offer.

For example, offer £480,000, saying there is a similar sized property around the corner with more modern kitchen and bathroom for £495, you need to do work on the house. Also put in that you are in a good position to buy (if you are) chain free buyers are often more favourable than those in a long chain

@OneForTheToad - isn't it just?!!!
He was a total idiot. Mansplained his way around the house. My partner put him in his place a number of times - she hates estate agents!!! 🤣🤣🤣🤣

It depends on the area and what the market is like, how much you want the house and if it needs much doing to it that might cost money.

In our area most houses hit for asking price it above so a low offer would suggest you weren't a serious buyer.

@Pitstop1986 - we are chain free and yes, we'd need to do work to the house.

They said the 500k offer came from someone who needs to sell … that offer could have come in weeks or even months ago as it came from people not in a position to proceed.

@Longma - it's been on at this price for 6 months with no movement. It's £25k higher than one on the same road which is presented better and £55k more than one on the next road over that is slightly smaller but better presented.

But we like this one more than the others!!!

My partner is going to put the offer in today and mention all these things. It's her birthday tomorrow so it would be a lovely birthday present if we could agree a price!

That’s the crux of the matter.

Why not offer the 480k you were considering then? It’s not a figure they should be offended by though I expect the EA will try to talk you up a bit.

You can mention the other properties to show you’ve done your research. But bottom line is you like this house best so I would start with 480k but also privately have a top limit you are prepared to pay to secure this house, which could be 500k.

Negotiations will likely end with a price being agreed somewhere between 480-500k.

Surely at that point the EA would have been on the phone to the OP saying now’s the time to make a better offer?
I don’t believe in coincidences where EA’s are concerned.

I understand your cynicism towards EAs.

But an offer from someone not in a position to proceed is not really a serious offer as it could take months for them to sell their property.

Plus I don’t think @Blueuggboots has made an offer on the property yet so the EA won’t be pushing them to make a better one until they offer the 480k. At that point the EA will no doubt protest that the house has already attracted a higher offer but OP can answer that they are in a better position than the people who offered 500k.

Put the offer in this morning.....,heard nothing, not even an email to confirm the offer had been received.
Emailed this evening to confirm they'd received, which they did reply to.
Waiting now.....
We went in at £480k....

It shouldn't really matter what they want - find comparable in good nick, take off any renov needs doing and a bit for your time - that's the objective "what should you offer"

Good Luck with your offer @Blueuggboots

@Diplo - that's exactly what we did.
We also pointed out in the email with the offer that we're in a good position to actually move forward.

So the estate agent rang me today.

They said the family haven't yet refused the offer, but the EA THINKS they'll refuse it and would we pay more as the last offer was £505k but those buyers walked away?!!!

I pointed out that the family want a certain amount for the property and they can want whatever they want but it all depends what someone is actually willing to pay for the property??!

I've also said to contact me when the family have actually given an answer!

(I will also be asking WHY the previous people walked away....)

So we've had:

"The vendors will accept £500k or close to it."

"They have accepted an offer of £500k but the buyers haven't sold."

"They accepted an offer of £505k but those buyers walked away"