Sensible offer advice

[faraday]

Is it reasonable, right now, to ascertain what a property would have sold for at the peak of the market (2007?) and then offer a 20% reduction on that now? I'm talking a house that perhaps would have sold for 385-395 in 07 which has just gone on for 359.

Obviously being new to the market, I doubt the vendors would drop that low (310-315?) yet, so I wouldn't necessarily expect them to whoop with joy but we ARE chainless and cashed up!

I'd start off 30% below 2007 prices to cover yourselves, you can always increase your offer and you are in a very good position.
You'd be amazed the people I've heard take £100k less and be delighted still. Because they paid peanuts for it and are buying somewhere they intend to knock 30% off.
Check on www.ourproperty.co.uk to see what they paid for the house to give you an idea of their bottom line.
Good luck.

Have a look at this

www.nationwide.co.uk/hpi/calculator.asp

it is very helpful. Also second Sorrento about the ourproperty website it will show you what they paid for it BUT won't tell you what condition it was in when they bought it ie immaculate turn key property or needed gutting/re-wiring/new kitchen/new bathroom etc

All you can do is try. They can only say no.

Wow! Well discovered fizzy!

Many thanks. It actually does provide a bit of vindication for our belief that we can offer lower (as I'd hope the vendor might expect) without appearing TOO cheeky!

Yes, I can try (and probably will!) but I don't want to take the p** TOO much as there ARE people out there who might point blank REFUSE to sell to you if they think you're taking it to far!

One more question: Any idea WHEN the market 'peaked'? We're in Hampshire which the calculator sees as 'Outer South East' which IS pushing it a bit though I guess we ARE commutable to London if you're that way inclined!

Well if they refuse to sell to you then buy a different house.

I don't know about your area but round here it's flats that have gone down disproportionately (developers seemed to forget for a while that it isn't London). Therefore the reductions on houses are slightly less.

Honestly what people keep forgetting is that the price you pay for a property is extremely important, even if you are never going to move again and come out of the house in a wooden overcoat it is important. You pay back £3 for every pound you borrow, so on a £250k house that's a lot of money over 25 years, even if you can afford it, wouldn't you rather be paying that money into a pension or your children's education rather than a building society or bank ?