What to do?

[AnnaCatherine73]

Hi all

Just wondering if any of you could advise please? We completed on the sale of our home in April and have been renting ever since. We had been looking for another property but hadn't really found anything suitable until this weekend. We have seen a lovely 3 bed detached on at what we feel is a reasonable price but what do we do? How much should we offer? It is on for only £200K and the vendors only bought it for £197K in Dec 2006.

Any advice would be most welcome

You are a perfect buyer so my instinct says offer low BUT the fact that this would mean that the sellers would walk away with less money than they paid for it will make it hard for them to accept a low offer unless they HAVE to. Most sellers don't even like taking a hit on their theoretical equity much less the money they paid out to start with.

I think it's a difficult one and depends on how "reasonable" their price is to start with.

TBH I would have thought that the vendors have already come to terms with the fact that they will lose money on this house - they won't be expecting an asking price offer, and will have to fork out for solicitors' and estate agents' fees.

I would offer low - you can always go up but you can't come down! Whether they accept depends on their position - they might be looking to upsize, in whcih case selling at a loss so they can buy a much bigger house at a relatively cheaper price, or they could be seperating or emigrating and therefore desperate to sell. Any number of things - offer low and see what happens.

Don't forget that your mortgage valuation may well also come in lower that your offer anyway, so again be prepared to negotiate if this happens.

Good luck!

165 and go up if you love it because it will likely be worth about 150k or less in a year or two.The news today suggest a prolonged downturn over a few years to return prices to affordable levels and there are apparently no first time buyers at all and no high loan to value mortgages so you are a perfect buyer

180 and go up. stressing your position, no chain,ready to go etc etc. if they really want to sell it they will. and maybe say thats your only offer.

Thanks all - really useful

I wish I hadn't checked what it was bought for to be honest - not that it should matter. I think they bought it for cash and are looking for a retirement home in the country and hope they will just off set any losses by negotiating a better deal on their next home too. They are a lovely couple and I don't want to be completely unreasonable.

You'll be doing them a favour buying their hosue in this financial climate!

(Says she who sold at the height of last summer for a stupid amount to a LOVELY couple, and have just found out that the council reassessed their council tax banding cos we extended and have upped it two bands. ).