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Original poster

putting an offer in on a house seriously below asking... HELP!

60 replies

navyeyelasH · 13/12/2008 16:52

Hi all I'm about to buy my first home and we have seen a house we love. BUT we have just had some awful news on our mortgage, which we had a provisional acceptance of 220k, but now it's been slashed to 160k (long story!).

The house is currently on for offers in excess of £200k, it was previously on for £260k (beginning of October), it does need some work (new kitchen, new bathroom, complete repaint and general update, possible new wiring, new GCH) and I think it's probably worth around £200,000 - £190,000 in current market.

I seriously doubt our offer will be accepted but we have nothing to lose so will put in an offer of £160k. But do I explain the whole mortgage situation to the estate agent (I don't want to scare the vendors into think people think that's all their house is worth TBH and have them all panic-ed over xmas) with the risk of him realising we were prepared to pay more a few days ago and thus someone else might be prepared to pay more in time.

OR do I just offer £160k with no explanation for my absurd behaviour?

The vendors want to sell quickly as they are looking to rent in Cornwall.

Anyone have any idea on how to play this? ta!

OP posts:

thenewme · 13/12/2008 16:55

your 3rd paragraph dooesn't make a lot of sense to me but put in your offer and don't tell anyone your business. they will either accept or not. worth a try.

Original poster

navyeyelasH · 13/12/2008 17:00

I'm worried about offended the vendors I suppose or having the estate agent laugh in my face, basically!

So I'll just offer £160,000. Will the estate agent ask me why I have come to that figure or anything like that?

OP posts:

Original poster

navyeyelasH · 13/12/2008 17:02

Oh to clarify, when we looked at the house it was within our price range, but we were anticipating spending £220,000 on our house but abbey are now saying they will not lend us this much.

So do I say this to the estate agent so as not to offend anyone and explain that I do not think the offer will be accepted but we thought we'd give it a shot. Or do I just put the offer in and keep my trap shut.

OP posts:

thenewme · 13/12/2008 17:04

stop worrying about offending anyone and just place the offer with confidence.

BlackEyedDogstar · 13/12/2008 17:07

no need to explain anything - and best not to. This is your offer: they can take it or leave it.

Don't worry about it, when I sold my house people offered silly amounts. I didn't care, I just said no.

BlackEyedDogstar · 13/12/2008 17:10

oh btw there is a site you can go on where you can find out what the sellers paid for it (mouseclik.com??? I think or you can google it). It will make you better about your offer when you find out the piddly amount they paid for it.

Original poster

navyeyelasH · 13/12/2008 17:11

Phew ok, I will do it on Monday....

Are you sure you 2 don't want to do it for me?

OP posts:

MegBusset · 13/12/2008 17:12

Put the offer in without explanation but do emphasise that as first-time buyers with a mortgage offer in place you are in a strong position as buyers.

27 · 13/12/2008 17:13

Dont make any explanations.

I dont really understand your third paragraph - if 160K is your offer then that is what you think the house is worth isnt it (or at least what it is worth to you at the moment).

critterjitter · 13/12/2008 17:15

Remember that house prices are set to go down by at least 15% next year!

I'd just put the offer in and wait. Some agents are better than others at trying to convince their clients that certain offers should be accepted. Just say that you've been told that that's the maximum you can borrow.

Can you tell us which agent it is?

Ros3 · 13/12/2008 17:17

I would explain to the vendor or EA in person taking all documentation with you. If you really want the house then do everything you can to get them on side.

Take all the family with you to the office and ask for EA to contact owners there and then.

Did the Abbey drop after the survey? If yes, take survey with you highlighting the reasons why it's been valued at 160k,

Politely suggest before they make the phonecall that if they reject your offer surely this issue will arise again in the current market and in the house's current condition with the next interested party....

fortyplus · 13/12/2008 17:22

If it helps there is a website where you can look up actual selling prices for any area. So you can put in postcode and see what similar houses were going for recently - then take off 25-30% to see if your offer is reasonable or ludicrous.

Hang on a mo...

fortyplus · 13/12/2008 17:23

Here you are

Original poster

navyeyelasH · 13/12/2008 17:27

Blackeyeddogstar Thanks I will check it out, they have been there for about 15 years so I doubt they paid anywhere near £200,000 for it!

megbusset good point, I will definitely do that!

27 I think in its current condition the house is worth about £190-200k. I can only offer up to £160k

critterjitter that's not a dead cert, but we acknowledge that it may drop by a further 15% (some are even saying 40%). We are buying it as a home not an investment and plan to be there for a good while. If we get it for £160,000 it wont matter what the market does (within reason!)

It's on with Andrews, I'm in Bristol.

ros3 Abbey changed their minds because I am part self employed and part employed. As I have been self employed for less than a year they will only consider my employed salary

OP posts:

Original poster

navyeyelasH · 13/12/2008 17:39

fortyplus thanks for the link, I have looked on there before and I know that one sold in Sep 2008 for £145,000 and another 4 doors down on the opposite side of the street sold in Jan 2008 for £263,000.

The problem with that site is that the condition of the home is not listed so you sort of have to gauge and assume things.

I know there have been 2 sales on the street in this last month, don't know what the houses actually went for as they are still STC. But one is very very good condition, neutral colours etc slightly bigger and was listed at £225. It had sold a few months previously (September) but for some reason came back onto the market (October). It originally went onto the market in August.

The other one that has sold in the same street this month was also in very good condition but the estate agent didn't advertise a price. I think it was in need of modernisation as there were no pictures of the inside and it was on the market for only 3 weeks and sold this week.

The two that have sold were on with CJ Hole and the one I'm looking at is on with Andrews. I was wondering why the one I like didn't go with CJ Hole too, especially as they managed to sell both of theirs quite quickly considering. Do you think Andrews gave the vendors a higher valuation so the vendors went with them rather than CJ Hole?

OP posts:

dinny · 13/12/2008 17:47

they may well take it, things will be a whole lot worse after Xmas

Original poster

navyeyelasH · 13/12/2008 17:53

I don't know why as I'm normally quite ballsy, but I'm scared!!

OP posts:

thenewme · 13/12/2008 18:07

What's a small amount of fear if it gets you the house you want?

critterjitter · 13/12/2008 18:35

NavyeyelasH
Just checking that its not one of the London estate agents who routinely price up at peak 2007 prices!

I'd say that your maximum price would probably be a fair offer given the dire state of the economy and house price predictions.

But beware that many sellers still haven't cottoned on that house selling nowadays doesn't necessarily mean making profits anymore, and that they're lucky to being getting out of the market without negative equity/ being repossessed etc.

Fizzylemonade · 14/12/2008 19:58

I like the honest approach, so I personally would admit the maximum you can pay is £160 otherwise the vendor may think you will come back with another offer.

Do the whole first time buyer bit, mortgage in place etc.

Vendors sometimes get told their house is worth X but decide to put it on for more. When we sold 4 years ago, 2 sets of estate agents brought the details of similar properties to ours to show that the price they were quoting was comparable with others on the market.

You are right about not knowing the condition of a property when it sells when looking at sale price websites. Ours needed gutting and we did it, fortunately we have photos of what it looked like before we gutted it. So when we go to sell we can show that it was cheaper than it should have been compared to others that sold at the same time.

Best of luck.

Original poster

navyeyelasH · 14/12/2008 21:38

I'm going to call the estate agent tomorrow and put the offer in and I'm still really scared!

I might jot down some nots so I don't miss the key points. We are FTB, no chain, mortgage in place, want to move as quickly as vendors, not interested in gazumping as we have been advised by our mortgage broker (!!), will be a family home not someone trying to make a few quid..... anything else I've missed?

I'm still in 2 minds about explaining the fact that our offer is so low due to abbey national messing us around. If I was the vendor I would just counter offer; but my plan is to stress to the EA that £160,000 is my max offer. The EA knows we don't mess around and always tell it like it is, I have caught him out on lies 3 times already and said as much to him!

ARGHHH I wish I had a crystal ball!

OP posts:

critterjitter · 14/12/2008 22:13

I wouldn't explain too much navyeyelasH. Just say you are chain-free, mortgage in place and your offer is your maximum mortgage offer. Don't go into too much detail or sound apologetic. You need to sound firm, otherwise the EA will start weedling about being able to get you a bigger mortgage from one of his advisers/ whether you have anyone you could borrow off i.e. mum/dad as its such a fantastic property/ how the housing market is going to rocket next week and didn't you know?

Original poster

navyeyelasH · 15/12/2008 13:06

Ok I did it, was surprisingly easy! The EA guides you through asking you stage questions then the offer comes last.

So the EA is going to let me know this afternoon. I think the fact that I don't think it will be accepted is a good think as I'm not giving out "please please say yes, we are desperate" vibes. [hopeful]

OP posts:

FIMBOingaroundtheChristmasTree · 15/12/2008 13:11

Good luck Navyeyelash - fingers crossed you never know.

Original poster

navyeyelasH · 15/12/2008 13:18

When they ring me back with a counter offer what's the best way to convey I'm not going above £160,000?

What fixtures should we ask for? All I care about are the original features such as fires etc...

OP posts:

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