Opening bid

[FrodisCapering]

There's a house we like very much.
It's not perfect but nothing massively wrong.
It's on for 900k (NW).
The highest comparable house nearby in terms of size sold in November for around 740.
There's a house within a mile away in for 850k and it's in good nice, with a massive garden and no renovations needed. It's an older house though. Almost 1000sqf bigger
Would an opening offer of 800k Ben cheeky in these circumstances?

So if £900k your genuine budget….. do searches for higher, find a property that you truly seem enthused about and desperate to get and then get negotiate to get to your budget. If you’re so willing to let this one go, it’s really not the one for you

This is the most expensive house in the area.
The highest price paid was 736 at the end of last year.

Why is it the most expensive house in the area?

There is something you aren't telling us about this house to explain why it attracts such a high valuation. On the surface, it is an ordinary house very over valued ... yet you are interested in it. Why?

Would be interesting to see a link to it.

I'm sure there must be something special about it like the decor is perfect and the garden is south/west facing and it's in catchment for the best schools in the area.

It's not in catchment for the good schools.

It's a very, very nice house. I like it a lot.
It needs some decoration and the garden is fine but needs some work. Structurally it's really good.

As I say, my friend lives a out four doors down in a house that's slightly smaller, but not much. She also thinks it's over priced.

I'm not holding anything back, I was just interested in what would be a reasonable opening offer.

I’d offer 795 if similar had gone for 750. And when asked I would say thats the price point for the area plus extra for square footage.

top end is very slow so likely to be around for a while and may be open to negotiations.

I wouldn't necessarily agree that period houses always attract a premium- I had expected that to be the case, but round here ("east urban Dorset") they don't for a couple of reasons - caveat- my comments are based on this area and what I've seen. Experiences may vary. Terms and conditions apply.

• 1. they often have "mature" high maintenance gardens which people don't really want when they're working and have youngish DC- they want a nice sunny terrace and a lawn with some token beds which they can turn over to a "mow and blow" guy. 2. You're inheriting 100+ years of other people's renovations and patch ups which means that any you do yourself nearly always throw up surprises which would not have been detectable on a survey and cost money. Retrofitting modern stuff like underfloor is never as good as if it was installed during construction 3. Layout often isn't what people now instinctively want - most people want a large eat in kitchen, often with room for soft seating too. Unless they've already been knocked about most period houses wont have that. 4. Period houses tend to have a lower bedroom/bathroom ratio - I know ensuites divide MN like nothing else, but generally for a 5 bed here people would want 3 bathrooms plus downstairs loo. Plus period houses often have more unequal bedroom sizes . 5. EPC ratings. 6. Stress about getting hated on for destroying original features even if they're fugly.

I love period houses and I did buy one but it's a good job I love it because it's bleeding me dry and I would have been financially better off buying the newer house down the road at a premium purchase price.

This may explain the price difference between the period house and the one the OP saw, especially if she hasn't actually viewed the period house.

But I agree the OP needs to be cautious about paying a price well above the ceiling price for the road/ area.

It’s going to be a waiting game. We are SE and the properties here that are selling are way below what they first went onto the market for.

It may well be over priced as lots of EA will over value to try to win the new business.

But you seem to be implying it's worth less than 800k though you would be prepared to pay up to 800k as you really like it. Why you really like it is unclear as you aren't saying anything positive about it beyond that you like it.

Assuming that most people would consider it to be worth about 775k in your opinion, it seems strange that the EA would list it at 900k because it just won't sell at that price.

If you're right then it will inevitably be sharply reduced at some point as won't be getting any viewings/offers. That is the point at which it would be worth offering what it is worth to you, which seems to be about 800k.

Apologies, I may not have been clear.
I don't think I it's worth 900k but I'm not saying 800k is the limit. Obviously we all want as good a deal as possible, but I was wondering what a good opening offer would be.

I like it because it's detached, pretty private at the back, very well-built and big enough for what we need. It's a really nice house, but it's a lot of money and I think there is a ceiling for that area.

I think you should have a straight talking conversation with the EA who is listing it. Tell them your concerns about this house being above the ceiling for the area and ask politely what made them think 900k is justifiable.

They can either explain it logically in a way that makes sense to you or they can't. They should be able to explain it by referring to comparable sales. If they can't, then I wouldn't get sucked into making an offer at this stage - even a low one. I would just say you are interested in the house but not at the current price but if it gets reduced you would like to be kept informed.

In the 5/6 weeks on the market… how much interest in the property? Do you know anything about sellers circumstances ie had they found somewhere?

@FrodisCaperingUsusally a very high price is all about them needing the money for another house or divorce - so 2 houses. If it’s above area norms, then offer the area norm. They might well be kite flying.

The more you say, the less likely it seems that anyone in your area will be interested in paying anywhere near 900k. Property above 500k is probably unusual, nevermind 7 or 800k. The sellers appear to be kite flying.
I think you have made the right decision to wait and see. Just because you have plenty of money, inheritance, etc, it doesn't follow that you want to over pay.

I do know that there's divorce, so that makes sense.
I've just chatted to an acquaintance in Pilates and she lives in the area and also agrees it's prices too high. She's not viewed it but has seen the photos.

I don't think they can have had much interest.
We've not sold ours yet (estate agent has said 20-25 days is the average for our area/price point of around 600k) and usually estate agents won't let you view unless you're ready to roll, yet they were fine with us seeing this.

Yes of course, your offer is fine. They'll likely say no and you'll get an indication of what they would take (eg agent might say, you know if you could get to 850 that would work).

As your house isn't even on the market you are not in a great position, so I guess if you are actively looking and anticipate finding other houses which you want to take a punt on, it would be better to get yours marketed so you can have a better bargaining hand going forward and prove you are serious.

Edited to add: *Apologies - you said you were not sold (so you are on market?) But yeh, still think your offer would be fine!

No, you're right, ours isn't on yet.
We've delayed because the road outside our house is currently being worked in by a gas company...not a great look!. It'll all be done next month so that's the aim

As your house isn't even on the market yet @FrodisCapering there would be even less point making a low bid at the moment. If you do so, all that will happen is that the EA will use the bid to tell other potential buyers that the house already has an offer, thus making it seem more appealing to them. They won't mention that it's a very low offer from someone whose house isn't on the market yet.

Wait until your house is at least on the market and preferably has a buyer. By that point the sellers of this house will be more realistic, assuming the house is currently over valued to the tune of 100k plus.

Hope the timing works out for you.

I really appreciate everyone's advice and comments.

We are worried that we'll sell ours and have nowhere to go, although I guess we'll have to bite the bullet!

My tip is use the same agent as the one you want to buy and make it clear you’ll only sell if you get it. Might work out perfectly

If you sell yours and nowhere to go always remember that you don't have to move.

Will you only allow viewings from those you have sold?

not even on the market yet and you want to go in with a very punchy offer on a property that’s been on for 5 weeks?