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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:
FIMBOingaroundtheChristmasTree · 15/12/2008 13:21

Just say sorry £160k is your best and final offer reiterate about being first time buyers, no chain etc etc.

Fixtures - don't know, what has it got you would like? We asked for the water purifier to be left at our old house.

elliott · 15/12/2008 13:24

Just keep saying this is your best and final offer, and that it remains open.
btw I hope you have a reasonable deposit - I'm a bit worried that you talk about a 'mortgage' of £160k - remember that prices are likely to fall further.

retiredgoth2 · 15/12/2008 13:29

Andrews in the Bristol/Bath area are notorious for inflating prices.

I recently had three valuations on my house within a week, they varied from 220k (with a view to taking anything over 200) to a ridiculous 275k.

....yep, the 275 was Andrews. They value high because their fees are also high I think.

The house I was thinking of buying was also on with Andrews in Bath. Using the house price link above I have found out that the current asking price is £35k above the best price ever paid in that street, even at the top of the market.

...so don't be deterred. Put in your offer, it is at least genuine and not reliant on a chain, emphasise that!

I wonder if you might get a pleasant surprise...

wannaBe · 15/12/2008 13:32

did anyone see the piece in the news at the weekend about Abbey national mortgages? Will try to find link, but basically, there is a clause in your abbey mortgage that states the mortgage cannot exceed 95% of the property value. So if house prices drop they can demand you pay the difference in cash to bring the mortgage back to 95%.

Original poster
navyeyelasH · 15/12/2008 13:41

we have a 30% deposit thanks to generous, lovely MIL type, so by mortgage I mean we can spend this amount. You can't get a mortgage these days unless you have at least 15% deposit anyway. Even if market does fall I personally think we will be ok in that house

Both our parents are "in" property, so we have had a lot of advice. But our parents insisted we put the offer in ourselves as a learning experience .

thank you very much to everyone who has heled me, I will keep you all posted!

OP posts:
KatieDD · 15/12/2008 14:10

Good luck, I don't think there's any IF involved in the market falling and you will be affected but only if you sell, I certainly wouldn't increase the offer at all. There's always another house and what's for you can't go past you.
Have you got a fixed rate mortgage too ? If not, I would be very tempted to secure one.

Original poster
navyeyelasH · 15/12/2008 14:23

it's fixed rate and it's the repayment type. Regardess of the market we would ahve gone down that route as we like to know what our outgoings will be etc

OP posts:
Original poster
navyeyelasH · 15/12/2008 16:20

No news yet

I really need a crystal ball / mystic meg type!

OP posts:
Original poster
navyeyelasH · 15/12/2008 18:18

they said no and are hoping for nearer £200,000

OP posts:
BrownSugaSprinkledOnPumpkinPie · 15/12/2008 18:20

That;s a shame, but tell EA they know where to find you if they change your mind. You never know, if you're not in a rush, they could come back in a couple of months and take your offer.

BrownSugaSprinkledOnPumpkinPie · 15/12/2008 18:21

*their mind

KatieDD · 15/12/2008 18:31

Promise me you won't up your offer !

They won't get £200k, install propertybee and sit back and watch, it'll either be still sat there in 6 months time or £150k.
Don't waste your hard earned cash.

snoringnightmare · 15/12/2008 18:31

Ahh that's a shame. Abree with Brownsuga though it's a good idea to let the agent know that you really are keen but unfortunately are not in a position to go any higher.

Original poster
navyeyelasH · 15/12/2008 19:01

we basically told him 160k is our max and we wont be budging no don't worry KatieDD. I have property bee already it's amazing!

The EA seemed really keen to sell at 160k, so there may be hope, he said he's ring if vendor changes mind. Is it wrong to get a stream of people I know to go look round it and either say it's too much work or put offers in lower than ours!?

OP posts:
thenewme · 15/12/2008 19:02

Yes.

hertsnessex · 15/12/2008 19:07

a low offer is worth asking - but from 260 - 160 is cheeky!

KatieDD · 15/12/2008 19:13

Navy it's far better to let actions speak for themselves and let them get no offers at all.
Is it cheeky to buy a house for £60k, live in it for 5 years and then sell it for £140k ?

Original poster
navyeyelasH · 15/12/2008 19:16

hertsnessex - I only know about the 260k it was originally on for because I took the time to find out via 3rd party tool.

If I just went on what estate agent said, I've gone from an asking of £200 to offer of £160. I don't think it's cheeky and the vendor was not upset/cross but very reasonable apparently.

thenewme - don't worry I would never as I believe firm;y in karma. But the EA seemed to be hinting that I should

OP posts:
eekareindeer · 15/12/2008 21:26

Navyeyelash: "Is it wrong to get a stream of people I know to go look round it and either say it's too much work or put offers in lower than ours!?"

Of course it is wrong.

Why would you even ask? You and the stream of people would be seriously wasting their time. All that tidying up and hoping this might be the viewing that gets their house sold. FFS grow up!

God I am astounded you could even ask that question. Those people selling that house are normal people just like you.

Yuk yuk yuk at your attitude.

WeWishEWEaMerryXmas · 15/12/2008 21:32

I think she was joking?

Sorry they didn't accept navy - never mind though, you are the one in the strong position here, am sure you will find another dream home!

wannaBe · 15/12/2008 21:37

well, dh's auntie lives in Bristol, and they have just sold their house for the same price they paid for it two years ago.

so clearly not all prices are dropping like a stone.

KatieDD · 15/12/2008 21:48

Has it gone through yet ?

A lot of sold signs go up here and then come back down again when they are down valued by the building societies surveyors.

Although if it has only sold for the same price as 2 years ago then it has dropped actually because inflation means you can buy less with that money than you could two years ago, unless we have deflation which is denied by the government

critterjitter · 15/12/2008 23:28

Don't budge navyeyelash. This may be the first EA ploy to see if you have any more cash about and whether you can hold your nerve. If you are a FTB, they may think that they can pull the wool over your eyes. They've probably gone to the vendor and informed them of the offer and then said something like: "They're very keen FTBs, I'll see if I can move them up etc."

HOLD FIRM! Come the New Year, I would think that EA's will be repricing many properties (down) and reality will hit hard.

Original poster
navyeyelasH · 16/12/2008 10:10

eekareindeer read the thread properly and you will find the answer to your own question.

critterjitter we have to hold firm really because £160,000 is the most we can now lend thanks to Abbey's cock up! The EA rang me this morning to find out if we could offer any more.

wannabe ever single house we have looked at (over 30) has had a reduction in price. The EA himself has even said that property has dropped in the area by 20%. He also said in a good market he would expect the house we have offered on to go for £250,000 (so the fact it was on for £260,000 is a joke), the ceiling price on the street is £263,000 for 1 more room than ours.

I take offence at people making out I'm trying to screw others over! I started this thread because I was worried our offer was insultingly low so before people post is it too much to ask that you read the entire thread!

OP posts:
KatieDD · 16/12/2008 10:56

The fact that the agent is ringing you is a very good sign.

Tumbleweeds blowing in the background, chasing potential buyers, 2 years ago you'd never have heard from them again.
Can you tell I'm enjoying this ??