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What should I offer on this house?

28 replies

critterjitter · 06/10/2008 02:43

A really good house has just come on the market.

The problem is that the owners and their agents know me. I used to live very near the owners and the agents sold my house. (This concerns me as they would know what I sold for and the agents might tell them who I am if they didn't know).

The house is on for 275k. They bought it for 250k in 2005. They rented it out for a year, then moved in and out of it within a year, put it on the market for 340k! with a notoriously pricey agent a year ago but didn't sell it, and then have tried to rent it without success for about the past 6 months. I know from one of the neighbours that they only tried to rent it in the end because they couldn't sell it (at the price they wanted).

Where would you start with offers? And what would you go up to?

My inclination is to think that they are trying to get their 250k back before the market does something awful??????

Up late tonight, unable to sleep!

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spookycharlotte121 · 06/10/2008 05:24

well i wouldnt offer the full asking price for starters. I would explain to the agent that you know the person selling and dont want your identity disclosed as you would find it enbaressing. They dont know your cimcumstances or financial status so the price you sold your own house shouldnt come into it. Im guessing that you sold your own house for more than 340k but that shouldnt matter as you could be selling to pay off debts or might want to downsize. your own personal finances shouldnt come into it. Perhaps you could speak to the agent and see what they suggest. I would go in with quite a cheeky offer. The worst that happens is that they say no, on the other hand they might be desperate to sell and you could bag yourself a bargain. Kinda rambled there but i hope you get the general jist of what Im on about! LOL.

Chocolateteapot · 06/10/2008 07:09

I'm assuming that you are now in rented therefore in a strong position. If I was buying now I would be looking to pay about 30% off the peak price ideally and start with an offer of 220, which I guess they will refuse.

I'd tell the agent that in this climate you have worked out the maximum amount of mortgage you are prepared to have and that given the current state of things and the fact that you feel there is a fair way lower for things to go, this is why you have offered that amount. The stamp duty bracket is 250k so they must know people are unlikely to pay more than that so I think you are right about them trying to cut their losses at that price but would definitely try to push them lower. A friend made a low offer on
My house once. I knew exactly what she could pay (ie. More) but appreciated that she was just trying to get a good deal, it wasn't at all awkward and we circumstances changed anyway so we stayed put. Ignore the fact that the vendor and agent know you and just do what you would normally do.

critterjitter · 06/10/2008 13:06

Thanks for your replies.

The vendor does know what I sold my house for (if the agent tells him who I am or the vendor might recognise me if he shows me around).

Don't know if they are just trying to get back what they paid for it in 2005 (250k) or whether they will take anything for it (within reason) as for the past few months it hasn't been rented out (despite being advertised with just about every rental agent), and they aren't living in it. So essentially, they are only paying out on it.

The initial 340k that they had it on for was massively inflated. Most similar properties were on at about 300-310k and that was last summer!

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noddyholder · 06/10/2008 13:50

What do you really think its worth and how much can you afford.I would prob offer 215

KatieDD · 06/10/2008 14:45

About £200 tops, seriously they have just come to the market, you need to let them sweat for a while.

critterjitter · 07/10/2008 22:12

Thanks. Will wait another week or so and then ring EA to view it. I've been in it before, so know what its like!

Difficult to know what its worth. It meets the Zoopla estimate. However, I don't know what to think about those estimates - they seem to base them on the price that the house last sold for minus a specific percentage. So if a house sold in say July 2007, its price holds up relatively well compared to the same type of house bought 5 years ago at a much cheaper price.

My feeling though is that they will want back what they paid for it in 2005. But if they can't get it rented out, they must be shelling out some serious dosh every month...

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critterjitter · 15/10/2008 09:16

Just checked the EA site this morning and its been taken off the market. Its only been on for just over a week! Wonder whats going on?

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sagacious · 15/10/2008 09:22

perhaps they MN ?

BTW
There are loads of websites now where you can find out what people actually paid for certain houses, you just need to know the postcode and sign up (free irrc)

GrabShellDude · 15/10/2008 11:01

Maybe they've managed to rent it out?

lalalonglegs · 15/10/2008 11:16

Zoopla utter bollocks - completely dependent on how much was paid for the house in first place. Ignore it.

Sounds as if they have managed to rent it but there will be others.

critterjitter · 15/10/2008 14:29

OK. Its back on with £10k off (after 10 days)! Next move?

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CarGirl · 15/10/2008 14:34

Ring the agent and make an offer, they can only say no! Start low you can go up, or not.

critterjitter · 20/10/2008 23:10

Saw it today. EA banging on about how the market won't go below 2005 prices -
which I took to be his pitch to not offer below 2005 prices (which equates to the 250k the vendor paid for it).

Its definitely on at 2006 prices (265k) at the moment. I'm confused. Offer 15% below this current asking price of 265k? Or would you offer less?

EA banging on about how if he hasn't sold it in 2 weeks, he'll be renting it out. Didn't mention that I'd seen it advertised for rent for the past 6 months with virtually all the agents in the area (and its still not rented out!) Apparently, the vendor lives locally (bought another house) and is having to pay out on 2 mortgages.

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FimboGotAxed · 21/10/2008 14:01

Start your bid at £200k and go from there.

AppleAndBlackberry · 21/10/2008 15:00

Have you seen the house price calculator on the Nationwide website? It's www.nationwide.co.uk/hpi/calculator.asp

From a quick search it says "A property located in UK which was valued at £25000 in Q2 of 2005, would be worth approximately £26221 in Q3 of 2008", although I think you can get it to be more region-specific.

Obviously prices have dropped a bit in Q4, but it seems like something around 250k would be a reasonable price.

BloodyStranglingwithBling · 21/10/2008 15:02

What happened with the stamp duty? I know they ditched it for lower amounts but surely there's no way you'd make an offer at 260 as that would push you over into a new bracket? Which would be a reason for me to tell the EA that I wasn't paying more than 249 in itself. Or did they change that when I wasn't looking?

jumpingbeans · 21/10/2008 15:11

Some of the comments on here are bloody ridiculous, someone actually said "make them sweat" wtf - I hope they have a house on the market sometime soon,or better still want to buy one once things have leveled out a bit and start to creep back up. peaks and troughs and all that.
You know what you can afford, if you want the house and want to live in and not just looking for a quick turnaround go for it, it will make money in the long run

critterjitter · 21/10/2008 16:09

Thanks everyone. There's no way I would pay stamp duty on this!

Just unsure whether I should have in mind that he was trying to sell it at the peak last summer at 340k (nice expensive estate agent at play at the time!). He then took it off the market for the best part of a year (rented for part of the time, empty for the rest) and then put it on for 275 and 265 with the new agents. So has he effectively come down 75k already, or should I be ignoring this and only taking notice of what his asking price is NOW (and taking a percentage of this)?

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critterjitter · 21/10/2008 16:10

Sorry, 'take a percentage OFF this?'

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1dilemma · 21/10/2008 23:25

make them sweat




personally I'm going for 50% off peak asking (but am in London) so that makes it worth about 170, would def. go in at 200 you need to be able to move up a bit if you want it

1dilemma · 21/10/2008 23:27

Things will level out and start to pick up real soon I agree

best plan is to do what the gov. is doing and just spend your way out of the crisis



disclaimer I do not think that is a good idea

critterjitter · 22/10/2008 08:28

Thanks 1dilemma. Think 200 sounds fair as a starting point. I'm just resigned to the fact that he is probably just after his money back - he bought it for 250k in 2005 - and so he is probably not going to go below that. However, I'm not so sure that its any kind of a bargain at 250k, so wouldn't proceed at that price.

Essentially, he's going to have to find the money to make up any shortfall if he sells below 250k, and he'd have to have very strong reasons for doing so. But if he's having to pay out for 2 mortgages at the moment, and doesn't seem to be able to rent out the property, then maybe....

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wendylanguage · 22/10/2008 15:43

have you made an offer critter?

critterjitter · 22/10/2008 23:12

Hi Wendylanguage
Going to give it a few more days before I start making offer. Really don't want to appear too keen, particularly as he reduced it by 10k within 10 days of it being on the market.

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critterjitter · 30/10/2008 10:28

Told estate agent yesterday that I felt price was too high, and to let me know when the price will come down. Didn't mention figures. Thought I'd leave it to him to bring the vendor down.

Typical response from EA (yawn, yawn): there's another couple interested and also the vendor has lined up some tenants (rental) - so I'll need to make my mind up soon!

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