Making an offer on a house

[matt21]

Just spoke to the agent. They said the house had been for sale since September last year when it was first up for £209,000. (Now £188,000)

They also said that an offer was placed last week on the property which was too low and they would need around the £180k mark to pay off the mortgage even taking into account a bridging loan(?)

Just wondered your views on now putting in a low offer. Is it still worth it do you reckon? Should I either move on ask for up my offer. I do like it but not prepared to pay over the odds.

Any views appreciated.

Matt

[Hobo]

Put in any offer you want. Its not up to you whether they sell so don't see what you're messing around at.

Stop listening to idiots who spout the normal sh!te on hear. FFS texasjohn (or whatever his login was) has put two offers in of seperate properties, both at 12.5% under asking price. Where's the logic ? Not every house is overpriced. One could be a big developer who's trying it on at 50k over, the other a person wanting to sell to priced realistically. People who work on %'s are really really inept and are more than likely the people who find themselves in huge negative equity now as they would have been happy to pay asking price for something not really worth it before the downturn.

Do you're own homework, work out what you think its worth, how much you are willing to pay & simply take it from there.

[limpsfield]

matt21 said:

They also said that an offer was placed last week on the property which was too low and they would need around the £180k mark to pay off the mortgage even taking into account a bridging loan(?)


Matt

that is not your problem. Go with your original plan.

There are always other houses.

[Landlord]

matt21 said:

They also said that an offer was placed last week on the property which was too low and they would need around the £180k mark to pay off the mortgage even taking into account a bridging loan(?)

The agent is working on the vendors behalf - not yours.

He's not your friend and, whilst no-sale = no commission, the larger the sale price (typically) the larger his cut.

[michaeljclark]

I'll wade in here as I'm in the situation of wanting to purchase but also sell

The house we're purchasing was on the market last July at £295,500 and 3 weeks ago we looked at it and it was offers over £229,500 so we put an offer of £230,000 in. That was rejected but we were told that £240,000 would see it off the market. So we offered exactly that and it's off the market.

But as a vendor (as I have to sell my place to fund he new one)

Last year I had my house valued at £165,000 (1 bed, mid terraced, v quiet location, good transport lines etc etc). The house next door went for £158,000 in August and the one behind for £167,000. So the value on mine was about right. However at the time it was all a bit rushed. So I didn't do anything.

Now it's on the market at £154,950. I'll accept £150,000 for it. Thus far I've had 2 offers - £139,000 (from a retired lady) and £145,000 (from a young couple) Now I'd like what my house is worth, so feel that I should wait for the £150,000. The estate agent's think that £139,000 is taking the pee big time, and £145,000 is not really a fair price considering it’s had a new kitchen and high security double glazing (I work in IT and have some expensive kit ) which comes with a 25 yr guarantee.

So as to the OP's question - If I were in a similar situation as you I'd try my hand at offering under the odd's - because you may bag a bargain. But from a sellers point of view I'd like a reasonable offer. I guess it's down to if you have the balls to hang on for the right offer, or if as in my case I don't went to lose the prospect of selling my place for the sake of 5k (I can top the loss up from savings, but it's not really the point).

Just my 2p

Mike

[pdV6]

limpsfield said:

matt21 said:

They also said that an offer was placed last week on the property which was too low and they would need around the £180k mark to pay off the mortgage even taking into account a bridging loan(?)


Matt

that is not your problem. Go with your original plan.

There are always other houses.

Indeed. If they take that attitude and stick to it then repossession is around the corner.

[Paul Dishman]

matt21 said:

Just spoke to the agent. They said the house had been for sale since September last year when it was first up for £209,000. (Now £188,000)

They also said that an offer was placed last week on the property which was too low and they would need around the £180k mark to pay off the mortgage even taking into account a bridging loan(?)

Just wondered your views on now putting in a low offer. Is it still worth it do you reckon? Should I either move on ask for up my offer. I do like it but not prepared to pay over the odds.

Any views appreciated.

Matt

Point out to the agent that no one is going to buy a house at £180K with the stamp duty threshold at £175K

[trooperiziz]

Landlord said:

matt21 said:

They also said that an offer was placed last week on the property which was too low and they would need around the £180k mark to pay off the mortgage even taking into account a bridging loan(?)

The agent is working on the vendors behalf - not yours.

He's not your friend and, whilst no-sale = no commission, the larger the sale price (typically) the larger his cut.

Have you read Freakonomics? It may seem like that on the surface, but isn't strictly true, the larger cut is actually pretty small in comparison to effort and time expended. The agent is more likely to want to get a quick sale at a lower price.

[Landlord]

trooperiziz said:

Landlord said:

matt21 said:

They also said that an offer was placed last week on the property which was too low and they would need around the £180k mark to pay off the mortgage even taking into account a bridging loan(?)

The agent is working on the vendors behalf - not yours.

He's not your friend and, whilst no-sale = no commission, the larger the sale price (typically) the larger his cut.

Have you read Freakonomics? It may seem like that on the surface, but isn't strictly true, the larger cut is actually pretty small in comparison to effort and time expended. The agent is more likely to want to get a quick sale at a lower price.

Happy to conceed that!

[cslgirl]

The offer that was made (which was too low) - what buying position was that prospective purchaser in? I know that if someone had made me an offer without a chain, I would have accepted a lower offer than someone with a chain and perhaps a higher offer as our chain fell through when the offer was made on our place in March 08 and then didn't get come together again until August 08 so a lot of time was lost.

[wattsm666]

trooperiziz said:

Landlord said:

matt21 said:

They also said that an offer was placed last week on the property which was too low and they would need around the £180k mark to pay off the mortgage even taking into account a bridging loan(?)

The agent is working on the vendors behalf - not yours.

He's not your friend and, whilst no-sale = no commission, the larger the sale price (typically) the larger his cut.

Have you read Freakonomics? It may seem like that on the surface, but isn't strictly true, the larger cut is actually pretty small in comparison to effort and time expended. The agent is more likely to want to get a quick sale at a lower price.

If the agent is working on 1% then he will only get £100 for every £10k, if you then assume two-thirds stays with the estate agency firm it works out as a negligible amount in his pocket after tax. So they will want a sale, the amount of the sale does matter.

[rah1888]

trooperiziz said:

Landlord said:

matt21 said:

They also said that an offer was placed last week on the property which was too low and they would need around the £180k mark to pay off the mortgage even taking into account a bridging loan(?)

The agent is working on the vendors behalf - not yours.

He's not your friend and, whilst no-sale = no commission, the larger the sale price (typically) the larger his cut.

Have you read Freakonomics? It may seem like that on the surface, but isn't strictly true, the larger cut is actually pretty small in comparison to effort and time expended. The agent is more likely to want to get a quick sale at a lower price.

i can confirm that this is the case!

[trooperiziz]

Landlord said:

trooperiziz said:

Landlord said:

matt21 said:

They also said that an offer was placed last week on the property which was too low and they would need around the £180k mark to pay off the mortgage even taking into account a bridging loan(?)

The agent is working on the vendors behalf - not yours.

He's not your friend and, whilst no-sale = no commission, the larger the sale price (typically) the larger his cut.

Have you read Freakonomics? It may seem like that on the surface, but isn't strictly true, the larger cut is actually pretty small in comparison to effort and time expended. The agent is more likely to want to get a quick sale at a lower price.

Happy to conceed that!

Are you new to this internet lark? You're not supposed to change your mind you know, this was the point where you argued back and made insults about my heritage...

[ukwill]

trooperiziz said:

Landlord said:

trooperiziz said:

Landlord said:

matt21 said:

They also said that an offer was placed last week on the property which was too low and they would need around the £180k mark to pay off the mortgage even taking into account a bridging loan(?)

The agent is working on the vendors behalf - not yours.

He's not your friend and, whilst no-sale = no commission, the larger the sale price (typically) the larger his cut.

Have you read Freakonomics? It may seem like that on the surface, but isn't strictly true, the larger cut is actually pretty small in comparison to effort and time expended. The agent is more likely to want to get a quick sale at a lower price.

Happy to conceed that!

Are you new to this internet lark? You're not supposed to change your mind you know, this was the point where you argued back and made insults about my heritage...

[Landlord]

trooperiziz said:

Are you new to this internet lark? You're not supposed to change your mind you know, this was the point where you argued back and made insults about my heritage...

:schoolboyerror:

[Jasandjules]

Put in the offer, leave it on the table, in the meantime continue to look at other places.

You've told them that's the best you can do, that is it. They can leave it, and you can find somewhere else. I imagine in a couple of weeks if they haven't had a better offer they will come back to you.

[BigBen]

ukwill said:

texasjohn said:

^ good call.

BTW, OP, this has been on the market for a while (we've been looking for ages) and you might snap it up for 160ish:

http://www.rightmove.co.uk/property-for-sale/prope...

That house round these parts would be around £500k ish. Gotta love this country

I think its value is reduced because it is in a road named after a type of turd

[Hobo]

Plus the fact its got brown plastic windows & doors, artexed ceilings/walls, needs a new kitchen, on the corner of a road, and has some green sh!te growing all over it which is probably ruining the structure of the home.

Oh, and the only secure garden it has is directly overlooked at all side !!!

Still, it has its price & I don't know what it is, but whatever it was I wouldn't be buying.

[texasjohn]

Hobo said:

Put in any offer you want. Its not up to you whether they sell so don't see what you're messing around at.

Stop listening to idiots who spout the normal sh!te on hear. FFS texasjohn (or whatever his login was) has put two offers in of seperate properties, both at 12.5% under asking price. Where's the logic ? Not every house is overpriced. One could be a big developer who's trying it on at 50k over, the other a person wanting to sell to priced realistically. People who work on %'s are really really inept and are more than likely the people who find themselves in huge negative equity now as they would have been happy to pay asking price for something not really worth it before the downturn.

Put in any offer you want.

Exactly, FFS.

I don't see why I have to justify my submitted offers to you but I will explain for the purpose of the thread:

I based my offers for the properties I was interested in, with a lot of supporting data to justify the basis. It wasn't just an arbitrary percentage at all. In fact if you want to claim I have done so then I suggest you go back and look at the adverts I linked to.

The first was a new build (at 240k) and compared to similar in the village the asking price was too high, in my very humble opinion.

The other property http://www.rightmove.co.uk/property-for-sale/prope... was based on asking price for a similar property up the road which was priced at 180k but it is a bigger house with a detached garage:

http://www.rightmove.co.uk/property-for-sale/prope...

It wasn't even 12.5% because had you actually taken the time to look before making half arsed assumptions you would see that the asking price was in fact 190k (200k with 10k cashback for a quick sale). Either that or I hope you're not employed in any role that depends on basic mathematics.

Finally, while I am not sure if your final point was aimed at me or not, but I count my lucky stars that I am fortunate not to have experienced this 'negative equity', I bought my last property in late 2002 for x and sold in late 2006 for x +40%, sometime before the peak, but due to a job relocation.

I don't believe I will be in negative equity at any point in time going forwards unless some cataclysmic event should occur but if it is all the same to you, Hobo, I will keep the details of my exact financial position private.

Given that I'm ready to exchange in 28 days I will continue to submit offers on what I believe is a reasonable basis.

I hope this helps clarify

Edited by texasjohn on Tuesday 10th February 20:45

[Hobo]

You stated two offers:

1) asking 200k, offer 175k - 12.5% reduction
2) asking 240k, offer 210k - 12.5% reduction