Landlord has asked me to make an offer for the house...
Discussion
Bit of background: The property in question is a two bed cottage in the middle of a terrace of three. Located about 5 miles south of Jct 12 on the M4 the location is excellent. The house isn't in too bad condition although there are a few bits that need sorting.
We would be happy to stay here for a good few years but as kids are planned in those next few years it would be a pain with only two rooms and no scope to extend upstairs.
The LL put it on the market back in June/July, for £365k which was dreamland. There has not been one bit of interest or viewing. We thought that at the time, £300k would have been about right (but still generous) compared to what else was in the area.
Now that the market has obviously gone the way it has even that £300k is way over priced now.
They have come to us and as we had expressed interest, asked us to make them an offer if we want to. I'd initially thought of offering around £200k but I'm now questioning if even that's still too much?
Our plan was to just keep saving until mid/end of 2009 and buy something then. Obviously I'd like to get the house for as little as possible so I'm a little unsure how to play this.
Any thoughts or advice?
We would be happy to stay here for a good few years but as kids are planned in those next few years it would be a pain with only two rooms and no scope to extend upstairs.
The LL put it on the market back in June/July, for £365k which was dreamland. There has not been one bit of interest or viewing. We thought that at the time, £300k would have been about right (but still generous) compared to what else was in the area.
Now that the market has obviously gone the way it has even that £300k is way over priced now.
They have come to us and as we had expressed interest, asked us to make them an offer if we want to. I'd initially thought of offering around £200k but I'm now questioning if even that's still too much?
Our plan was to just keep saving until mid/end of 2009 and buy something then. Obviously I'd like to get the house for as little as possible so I'm a little unsure how to play this.
Any thoughts or advice?
I have to pop out later so may try that one. I know that she couldn't remortgage when her fixed rate ran out as no Estate agents would value it high enough for her to have "enough" equity though.
If it helps I know her mortgage payment has gone from around £1000 to £1600 and as I said she couldn't get a new mortgage that was better than that?
If it helps I know her mortgage payment has gone from around £1000 to £1600 and as I said she couldn't get a new mortgage that was better than that?
Check for recent sale prices in the same area on www.houseprices.co.uk
Then offer him about 20% less.
Then offer him about 20% less.
Edited by Baby Huey on Saturday 15th November 10:27
Baby Huey said:
Check for recent sale prices in the same area on www.houseprices.co.uk
Then offer him about 20% less.
Then offer him about 20% less.
Edited by Baby Huey on Saturday 15th November 10:27
We're currently paying £1050p/m in rent. I'd been toying with telling them to drop this a bit too.
We do like the house and would happily live here, it's just the long term plans and the size of the house that make me unsure.
Not far from Woolhampton no! It's the Sulhamstead/Aldermaston area.
I'm just not sure how to phrase my response to them. "We are interested but my offer would be way below your asking price" or, to hint at the rough price my offer would be etc?
We do like the house and would happily live here, it's just the long term plans and the size of the house that make me unsure.
Not far from Woolhampton no! It's the Sulhamstead/Aldermaston area.
I'm just not sure how to phrase my response to them. "We are interested but my offer would be way below your asking price" or, to hint at the rough price my offer would be etc?
hornetrider said:
How about popping into an estate agent and getting them to value the place? They won't know you don't own it.
I was in same situation 10 years ago. LL suggested a price for the two-bed flat I was renting, I got couple of agents round to value, realised the LL's price was very good and subsequently bit his hand off! No hassle of moving or chains or anything! Added bonus of discovering it had a garage too - one garage alongside eight flats, and it belonged to mine!Sounds like he wants (needs?) to sell more than you need (want?) to buy. As above, get a rough valuation from an EA and then go in £x K below that.
Not entirely sure it would be a great buy for you though, given that it doesn't seem (from your OP) to have an awful lot of room for a family. I'm no financial guru but I'd say the housing market could be in the doldrums for the next 5 years - you may be better off continuing to rent and saving for a larger house. Therefore you only have one set of associated costs, rather than 2 in a potentially short space of time.
Not entirely sure it would be a great buy for you though, given that it doesn't seem (from your OP) to have an awful lot of room for a family. I'm no financial guru but I'd say the housing market could be in the doldrums for the next 5 years - you may be better off continuing to rent and saving for a larger house. Therefore you only have one set of associated costs, rather than 2 in a potentially short space of time.
Some more good ideas, thanks guys and yes, they NEED to sell far more than I want to buy.
Another bit of info... They tried to sell at the end of 2005 for £325k and had no interest back then. I can only assume that this was due to it being over priced.
We're trawling rightmove today and have found something similar in size, but finished to a FAR higher standard in Sonning (for those that know the area) for the same money as this place is up at which only proves to me that they are crazy wanting so much for this place.
We are currently leaning toward saying "thanks but no thanks" and sticking with the current plan of waiting until Q3/Q4 next year to see what our money will buy us then.
Another bit of info... They tried to sell at the end of 2005 for £325k and had no interest back then. I can only assume that this was due to it being over priced.
We're trawling rightmove today and have found something similar in size, but finished to a FAR higher standard in Sonning (for those that know the area) for the same money as this place is up at which only proves to me that they are crazy wanting so much for this place.
We are currently leaning toward saying "thanks but no thanks" and sticking with the current plan of waiting until Q3/Q4 next year to see what our money will buy us then.
I would carry on renting.
Doesn't sound like it's the house for you, there's work to do on the property and it's too small for a family.
All things that will make it more difficult for you to sell when the time comes.
Rent and save towards the "right" place.
Doesn't sound like it's the house for you, there's work to do on the property and it's too small for a family.
All things that will make it more difficult for you to sell when the time comes.
Rent and save towards the "right" place.
Or bid him in the b
ks at 175K
ks at 175KNolar Dog said:
Or bid him in the bks at 175K
ks at 175K
If I do say I'm interested then that's the region I'd be offering to take account of the drop it will suffer over the next 12-18 months.The problem is that they owe a s
t load more than £175k though.Edited by _daveR on Saturday 15th November 11:35
So you are paying the landlord £550 LESS than the mortgage payment and the landlord wants to sell?
Is the loan interest only? If so, the loan has to be in the order of what,£150,000 - £200,000? On an asset worth around £250,000 today and, if you believe the houseprice bubble has burst fraternity, perhaps £200,000 in three years time?
Can't imagine why the landlord wants to sell. Oh no.
I'd be tempted to sit tight for a few months and see how the land lies then. You might get the property at a steal of a price.
Is the loan interest only? If so, the loan has to be in the order of what,£150,000 - £200,000? On an asset worth around £250,000 today and, if you believe the houseprice bubble has burst fraternity, perhaps £200,000 in three years time?
Can't imagine why the landlord wants to sell. Oh no.
I'd be tempted to sit tight for a few months and see how the land lies then. You might get the property at a steal of a price.
Percy Flage said:
So you are paying the landlord £550 LESS than the mortgage payment and the landlord wants to sell?
Is the loan interest only? If so, the loan has to be in the order of what,£150,000 - £200,000? On an asset worth around £250,000 today and, if you believe the houseprice bubble has burst fraternity, perhaps £200,000 in three years time?
Can't imagine why the landlord wants to sell. Oh no.
I'd be tempted to sit tight for a few months and see how the land lies then. You might get the property at a steal of a price.
The LL had told us a while ago that they were subsidising the mortgage payment by £600pm so they must be paying around £1650pm I am not sure if this is interest only or repayment. On a "roll over rate" (sorry, not too up with the terminology) for a BTL mortgage what Loan amount does a payment of this indicate?Is the loan interest only? If so, the loan has to be in the order of what,£150,000 - £200,000? On an asset worth around £250,000 today and, if you believe the houseprice bubble has burst fraternity, perhaps £200,000 in three years time?
Can't imagine why the landlord wants to sell. Oh no.
I'd be tempted to sit tight for a few months and see how the land lies then. You might get the property at a steal of a price.
if you thought the house was worth 65k below what it was being marketed for in Jul, what makes you think the LL would be in the remotest bit interested in an offer 165k below his original selling price of only 4mths ago?
Yes the market has dropped - in some areas more than others. But 165k or even 100k drop on a 2b terrace in 4mths? I don't think so.
Yes the market has dropped - in some areas more than others. But 165k or even 100k drop on a 2b terrace in 4mths? I don't think so.
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