97TURBO

We have been house hunting for a while now and have found a place we really want, our own property has had good interest, so we hope an offer will be not too far away.
Our situation is the place we have found is asking for offers over our exact budget limit. So yes, we are going to chance our arm and make an offer anyway, but what would be considered a reasonable starting point?
I keep hearing of buyers making purchases 10-15% below the "offers over" price, is this a reality or just small talk?


Also is Zoopla's valuations worth the paper/screen they are written on?

Thanks for any response.

cookstar

iTrader: (6)

How much of an offer would you accept on your house?

Dingdongler

Offer what you can afford and what it is worth to you. There is no real answer to what %age is acceptable to offer as none of us have any idea of the dynamics in your local area.

corradoboy

How long has it been on the market and how desperate do they seem to sell. It's a buyers market. A mate of mine walked into a new build priced at £187k a few months back, offered £137k and it was accepted on the spot. £50k off in an instant.

scud8

iTrader: (1)

You should be able to find out what other houses in the area have changed hands for, which should give some idea of whether an offer would be reasonable. In my experience whether an offer is acceptable or not depends more on the vendors situation than the value of the property. Developers nearing the end of a particular development are usually keen to clear the site so will be very open to offers in this market.

chris-boris

iTrader: (7)

When I bought my first house two weeks ago I used the following website:
www.houseprices.co.uk/
to get an idea of what the current owners would find a reasonable offer. If you know what they paid for it and when you can gauge roughly whats a decent offer as you will know yourself what you would do given a reversal in situation. As it goes I got 7% off but I doubt very much there is any exact science to it.

As has already been said, offer what you think is a fair price and one that you can afford. If they accept it then great but if not you will get some feedback from the estate agent letting you know what the vendors think is a more reasonable price. At that point its down to you if you want to negotiate or continue your search

stevebt

iTrader: (8)

The house may be priced with depreciation in mind so if you try another 15% I think there may only be one reply. Its the nw builds where haggling can be done.

paulr

I would say what price would you like to pay (sensibly) then offer that. See what they say.

FlightMan

Use PropertyBee for Firefox.

You'll see when the house was first advertised, and for what, then price your bid accordingly. I've just seen sone 4 beds now between £250 and £300 that were on in mid 2010 for £375 to £400k.

Good luck.

hodgy0_2

playing hardball the rule is

if you are not embarrassed by your first offer - it is too high

pslewis

Spot-on

The asking prices are building in a 15% over-price anyway.

Go in at 20% off ..... wait, and wait, and wait ...... chances are that you are the only game in town.

BUT - I wouldn't offer anything until you have secured a solid offer on yours.

What discount would you accept on your house? Is a good indication of what you should go in at (less, of course!).

BTW Zoopla Estimates are bang on the nail ... I have been using them for a few years ... they are getting much more accurate as the years roll on. It's uncanny actually how accurate they are!

Steve vRS

Sell yours first and then you are a serious buyer and more likely to get a good offer accepted. That's what we did, even rented for 6 months and got a good house at well below the original asking price. We could move to suit their needs!

Steve

g7prs

iTrader: (5)

Offer less than they are asking and take it from there! You can always add more if they don't accept! The problem up here in jockland is when it then goes to a closing date because they have several interested parties! Then its a case of offering what you can afford!

Mus

iTrader: (2)

Ive been an estate sent for over 10 ten years take it from me it's a buyers Market, look at net house prices see what properties actually sold for not what they were valued for. there is t enough qualified buyers out there you are in a strong position however now that your selling you are involved in a chain if you can get a first time buyer great try stay away from buyers that are in chains. the current Market buyers have no confidence and people are pulling out left right and centre. make sure your estate agent is on the ball. one way around it is you can ask your buyer for a non refundable deposit through the solicitor subject to survey and searches. that should tie your buyers in as last thing you want is to lose your buyer lose the house and lose all the money for legals and survey.

the deposit can be a few grand that can be held by any of the solicitors involved.

good luck mate

Mus

iTrader: (2)

oh yes just to add this Is the worse market I have come across with all the cut backs and inflation I thinkthings will be even worse this year and talks of intrest rate rising.

tony de wonderful

+1

f1_fan

iTrader: (9)

My friend just looked at a house that was 295K, she offered what she thought was a cheeky 245K, they accepted without drawing breath. Make of that what you will.

pslewis

As a cash buyer with no chain I certainly wouldn't be paying any deposit to any vendor - no need to, the buyer is king.

The market is seeing a lot of gazundering - offering on a property you want (even offering what the vendors will accept), then on exchange - offering what you wanted to pay in the first place (or you are walking). It is a very powerful tool .... wipes out any competition for the property early on and nails the place at your price.

Works best when there is a chain ... most of the chain contributes a drop in prices to allow the chain to stay viable. Of course, you need to be a hard nosed business man with cash on the hip and a willingness to walk.

The Agents will work their ***** off trying to keep their multiple commissions in line.

Dip Yer Bread

pslewis

Nothing is selling over £250k ..... so they say - which is a weird state of affairs.

stilover

The longer it's been up for sale, the more likely they'll accept an offer.

Unless they're greedy stubbon b.astards

Gear Head

iTrader: (2)

I know it is a little bit different with flats but here goes:

Purchased our 2 bed flat in August 2006 for £122.5k
Had it valued in June 2010 at £125k
Part ex'd for a new build for £120k in September 2010.
Still up for sale now but has dropped from £125k to £108k.
Zoopla value it at £109k.

Dingdongler

Mate of mine went to see a house for £500k and put in a very cheeky offer of £95.99p. They accepted! Not only that but the lady selling it gobbled him off for good measure!

DIP YEEEEEEEEEEEEEEEER BREAD!

Gear Head

iTrader: (2)

Coffin Dodger

Mostly because the stamp duty becomes a bit of a sting in the tail at £250k I'd have thought. It's got to be either under £250k or significantly over otherwise every potential buyer will be trying to pull the price down to £249,999.99.

They really should make it 3% on the bit over £250k not the whole sum, would make pricing in the current housing market so much simpler but stamp duty is a big earner for the treasury

Coffin Dodger

Seriously richer than you's

Gear Head

iTrader: (2)

Not at the moment it isn't!

What is the rate over £250k?

f1_fan

iTrader: (9)

Wouldn't that be dip yer wick?

Coffin Dodger

Ok my mistake, over £250k is 3%

So buy a house for £250k and pay (1%) £2500 in tax, buy a house for £250,001 and pay (3%) £7500 (i.e. £5k more!). What a stupid system

Dingdongler

Damn, wish I'd thought of that!