what to offer?

[GloriaMumble]

Have found lovely house. Its been on the market for 4-5 months at the same price and I have a feeling the sellers are getting a bit desperate (its also on market to rent). They have so far had no offers. There are no other comparable houses around and I can't compare on what it sold for as its in a v small development and recently been completely renovated - it was completely uninhabitable when they bought it.

So, do I offer 20-25% below asking price? Even if that would mean £250,000+ below asking? It just seems unreasonable to offer such a huge amount below (afterall the difference is the whole price of our house 6 years ago!).

Do you think that working out how much to offer based on % off asking works for expensive houses - I have no feel for the property market at this level, we can only afford this place because of an inheritance so its not like we're selling a house at a similar level.

Offer 30% below asking and be prepared to go up slightly IF you really want it, can afford the mortgage even if int rates go up.

Check nethouseprices for what they paid for it too, might be useful. Although it's only worth what ANYONE will pay for it and if they're desperate they may just be relevied not to be in negative equity.

Has it been on at the same price for the whole 4-5 months (in which case 20% below might well be worth a shot) or has it been reduced already(in which case the sellers may be less prepared to haggle)

If you don't know you can look it up on propertysnake.com

this website www.zoopla.com gives valuations for specific addresses BUT it doesn't seem to take into account renovations so take with massive pinch of salt. But it might give you prices for other homes in the development whoch might help you...

hmm, looked on property snake and that says its been reduced by 10% as of last saturday (estate agent hasn't updated their website yet).

So i guess 10-15% below new price (?) Affordability of mortgage not an issue as we don't have one

Link please!

our neighbour had his on for a million last year. It just sold for £640k. Think carefully about how much further it may fall over the next couple of years. Have you looked on rightmove or similar for what else you could get for the price? It might give you a feel for the market - on the other hand often the asking prices in no way reflect the current selling price eg our neighbour's was reduced to £725k but accepted £640 for quick cash sale. You are in a v fortunate position.

not linking as (a) someone else might snap it up and (b) the sellers will know that I'm not as hard nosed as I'm trying to be

Not really too fussed about price drops in the next few years as this is our "forever" house and I'm sure prices will rise in the next 30 years Problem with trying to look at rightmove is that I've been looking on there for months and there's nothing I like even half as much (even when I've visited them in the flesh) so on that basis I should offer above the asking price - I may not be hard nosed but I'm not stoopid

DON'T offer only 10% below! It's a buyers market! They can only say no and you can go up if you want it that much.

ok, WWW so you reckon a further 20% below the 10% reduction they've already done?

I'd definitely offer 20% under the current asking price. Emphasise you're a cash buyer and in best Phil and Kirsty style if they refuse it just say you'll 'leave it on the table for the time being'.

I would think the estate agent will then ring you back and you can probably reach a compromise.

Good luck!

Don't worry either about 'insulting' the sellers and emphasise that you wouldn't then do any gazundering at the last minute.

Cash buyers are the holy grail and i would think they'll be fully expecting offers at 20-30% below the asking price.

Friend's mum has had offers of 30-40% below her asking price recently.

Yes GM, I do. Go for 20% under the 10% reduction. What's the worst that can happen? They say no, you go up a bit!

have a similar situation , i found reprocessed house the asking price is £285,000 i got 2 quote for builder which is £25,000 and more, i made an offer today with £200,000 which i found is reasonable, however the stat agent rejected as soon as i worded the offer. Then after 5 min!!! He called me back to confirm that he got the right offer or not and ask me to call him back if i changed my mind and make another higher offer , i love the house and i don?t want to lose it but i feel It's a buyers? market!

So if a house came to the market 8 months ago at 240,000 and is now still on the market but is reduced to 200,000, what would you advise WWW?

Would it appear on nethouseprices if you looked it up? You could see how much they brought it for, add a rough gestimate of how much they've spent doing it up. It would then depend on whether they want to hang on to in an attempt to turn a profit or, in this market, just want to offload it to release the capital.

Thank you Heated, i found my one, is been sold for £250,000 June 2003 it is now reprocessed bank who is the owner for this house now, so the so they need a quick sale.
Do you think that my offer is not reasonable!!!!!! And they know that I?m a first time payer.
GloriaMumble ,me too I'd definitely offer 20% under the current asking price. and try your luck

Sorky, I'd go in at 30% less to start with so start at £140k and work my way up but not be prepared to pay more than £160k tops. It'll be worth that in a year imo

Nefertiti, for reposessions, banks tend to have a fixed policy on what they will accept for a house often driven by how long it's been on the market. they have a duty to their shareholders and the person they repossessed the house from to get highest possible price and so are prepared to wait for a bit. Sounds like the agent knows exactly what they will or won't accept - why not ask him what the bank want? then you can sit tight and wait for them to come down to you, or you can see if you want to pay what htey want.

Like everyon says - make a cheeky offer then negotiate upwards. You WANT your first offer rejected!

I've just checked it out on netprices thingy and it was sold in 2004 and then again in 2006. That would make me nervous. I'm wondering if there is a reason in common like cruddy neighbours.
The people selling this time paid 156,000 for it so I can't see them agreeing to 160,000. But it might be worth a shot.

sorky, they may take it as it may be enough for them not to be in negative equity.

Its on for £3000 pcm - how do I work out a yield from that?

am doing another drive by of the area this afternoon and hopefully putting the offer in first thing tomorrow!

A yield of 5% gives a further 10% discount on the 20% I was going to go for (so 30% below their already reduced price). That really does seem a cheeky offer.... am I thinking about yield the wrong way?

It's a common misconception that reposessed houses are the bargains, they aren't because the banks can sit on them a lot longer than normal folk.
You are looking for the desperate vendor, once it's reposessed i'd walk away and forget it for now.