What to offer on this house

[Wineoffthevine]

I’ve seen a house I really like, it’s on at £700k, but the owner bought it for £530k 18 months ago. It is similar to other properties at that value, but I can’t get over how much the current owners have made on it.

Can I put in an offer at £610k on the basis that we split the difference in the profit? Is that fair? What would you offer?

So if in theory you buy it now at £610k, when similar houses are going for £700k, so that you 'split the profit' with the current sellers, are you going to sell it for below market price when the time comes, so that you aren't making an 'unfair' profit from your buyers? I think not...

This is really not the way the property market works, OP. They will laugh you out of the estate agents' office if you try it. The current owners got a bargain - lucky them - but they have no obligation to share their profit with you.

House prices rise and fall, they are just selling at the right time and I presume it is a sound valuation from a qualified estate agent. I think your offer would be seen as a little more than cheeky, but it depends how desperate the are to sell it.

They are not making the profit out of you they are making it out of the property market. If you were to buy this property and sell it on in 18 months, and you found the value to have gone up by another £150k, would you split the profit with the purchaser? I highly doubt that,

I would maybe go in at £660k and see where you go from there, but without seeing the property it's hard to judge. If someone wants the house they will pay what the vendors will accept.

Then don't offer!
As I already said, do your research and see whether the asking price is fair compared to similar properties selling locally or not. Perhaps they were incredibly lucky and paid below what others would have done as they could move quickly. Perhaps they have wildly over priced the property, as many people are at present. You need to find out. If you object solely on the basis that they might make a large profit from no work, don't offer and find another house.

why an earth do you think you are entitled to 'split their profit'.

With entitlement like yours I doubt they would even entertain any offers. What they made on it is absolutely nothing to do with you.

Your offer is beyond cheeky too... don't buy it if you don't like what its up for.

Welcome to capitalism - you honestly sound a bit knocked off - of course it’s annoying but so is a system that values profit over people

If they’d paid market rate when they bought instead of getting a good deal, would you pay £700k for it?

House prices where I live have doubled in the last decade so, when we were trying to buy, we saw lots of houses where the owner was going to make 100%+ profit. They weren’t charging above the market rate so that’s what we paid, the alternative was we offered much less and lost out to someone else.

This is absolutely hilarious 😂

Do not suggest you split the profit with them, I think that'll wind them up if they've had a genuine valuation it worth around that park.

You offer what the property is worth to you. If the profit is really getting to you, then if you feel £610k is right, then offer it. However, be prepared for it to be rejected. Also, if you really like it, don't mess around too much with a low offer if there's a chance someone else could be interested.

You are being ridiculous. They got lucky, that's all.

You're reasoning on this is bonkers. Previous sold prices are interesting but it's really not relevant to how much the house is worth today. Presumably other people will view it and make an offer based on what they think it's worth and if that's more than 610k then you will lose out. That's not to say you should offer more but simply to say that if you want this house you need to think about what it's worth, not this 'splitting the profit' nonsense.

Why do you think you are entitled to half their profit?

What are the houses either side selling for? Look on eg Zoopla for the road/estate/area. Look at the listing , is it comparable like for like or did the ones that have sold in the past year?
Then decide for yourself its worth. So if the highest priced houses sold nearby are similarly £700k BUT have a massive extension/extra bedroom or study, garden room etc above the one you are looking at , take a chunk off and offer what you think it is worth. If the one you are viewing is bigger/has extra rooms etc then consider if 700k is a good price (in which case 5% off/10% off perhaps for starters) & is where should put your offer
Ignore what they paid. It's only worth what a buyer offers and pays.

To be fair they would not be making that money 'off you' so much as off the increase in value for that type of house in your area, and/or the fact that they got it cheap. But like you I would be a bit annoyed! No harm in offering lower and citing the big jump in asking price as a reason. They can only say no.
FWIW, in my area the estate agents are grossly overvaluing many properties on the basis that similar properties are listed for that amount - not based on actual sale price. Something similar might be going on here.

So it sounds like they got a very good deal because the people They bought it off, wanted a quick sale. Fair enough.

Not quite sure why you expect them to share their good fortune with you. Bonkers really. You don’t need to buy the house from them, after all.

This is such a bonkers thread. i cant imagine ever being 'annoyed' that sellers were making a profit. The OP doesn't know why the sellers are selling. Maybe it was their dream home and one of them has just been diagnosed with a progressive condition (like MS) that means they have to down size. If the OP had bought the house from the divorcing couple she wouldnt have offered £700,000 and offered to split the costs with them would she! House prices go up and they go down. That's just the way the cookie crumbles.

They won't be making their profit "off you" - any extra profit they make is off having paid less to the people they bought it off, so they are the ones who could be deemed to have missed out.

I think this is a good way of looking at it, thank you. I guess they have just been lucky, but I’m a bit sore I can’t find such a lucky house!!

The reason provided doesn't hold water. Nobody would accept a >20% discount on a property because of a divorce. Even auctions get better recoveries. Something is likely off.

That's just silly. No one is forcing you to offer or pay the asking price.

I would have thought that if you are able to buy a £700k property, that you would have a better understanding of how the market works!

Either bid on the house or don't. If they make £150k on it, it's not at your expense. No one is forcing you to buy it. How much have you made on your own house?

Markets fluctuate a lot.

My first house, I was in for 10 years and it only went up in value by £20k.
My second house, I was in for 2 years and it went up by £70k.
My third house I was in for 5 years and I made a loss on it.
My current home, I've been in for 12 years and it's gone up by £125k.

Take the personalisation out of it. If it's now valued at £700k, then that's what it's worth. Your lender won't approve your mortgage if it's over valued, so there is a safety net.

They're not making £150k off you - they've already made it from the previous sellers-in-a-hurry. You would just be paying the fair price for the property.

Don’t buy it then , have you owed/sold any property before? what a horrible way of thinking

Are you selling your current home at more than you bought it for? Would you be happy to ‘split the difference’ with your buyers and hand over 50% to them as a gift? That’s absolutely insane!

To your original question @Wineoffthevine you can offer whatever you like. The seller can take it or leave it. I suspect they'll leave it.

Why should you profit on their good fortune?
Offer what you want but please address your thinking, it is jealously and that is no good for you.