Making an offer

[ywouldi]

Right, so the O/H and I have finally agreed on a house we like. The asking price is £168k, they bought it in 2008 for £163,500. I would be tempted to go in at £160,000 which affordability wise is ideal for us (in terms of not having to change our lifestyle at all).

However the house next door which is as far as I can see the same, in terms of size, garden, parking etc sold in October for £155k. Maybe that's a good starting point but it's a big drop from the asking price.

What sort of cut do people expect from their asking price? It seems that judging by next door's price it's well overvalued at the mo.

Ben

[jeevescat]

£155k is a good ending point, not starting.

[ywouldi]

jeevescat said:

£155k is a good ending point, not starting.

Mmm, good point.

How likely is it that a seller (I hate the word "vendor") will just think "sod them then". I wouldn't be insulted by lower offers but I know many might!

[pokethepope]

As above, and consider how long its been on the market - if they've been trying to sell for months, go in lower.

[hornetrider]

ywouldi said:

Right, so the O/H and I have finally agreed on a house we like. The asking price is £168k, they bought it in 2008 for £163,500. I would be tempted to go in at £160,000 which affordability wise is ideal for us (in terms of not having to change our lifestyle at all).

However the house next door which is as far as I can see the same, in terms of size, garden, parking etc sold in October for £155k. Maybe that's a good starting point but it's a big drop from the asking price.

What sort of cut do people expect from their asking price? It seems that judging by next door's price it's well overvalued at the mo.

Ben

Make a detailed offer to the Estate Agent with your reasoning (including next door selling price). What's your position? FTB? Need to sell?

[ywouldi]

hornetrider said:

ywouldi said:

Right, so the O/H and I have finally agreed on a house we like. The asking price is £168k, they bought it in 2008 for £163,500. I would be tempted to go in at £160,000 which affordability wise is ideal for us (in terms of not having to change our lifestyle at all).

However the house next door which is as far as I can see the same, in terms of size, garden, parking etc sold in October for £155k. Maybe that's a good starting point but it's a big drop from the asking price.

What sort of cut do people expect from their asking price? It seems that judging by next door's price it's well overvalued at the mo.

Ben

Make a detailed offer to the Estate Agent with your reasoning (including next door selling price). What's your position? FTB? Need to sell?

FTB, just having the agreement in principle produced now. The mortgage advisor is confident we'll get a loan. We are in no particular rush to buy either.

[Thankyou4calling]

ywouldi said:

jeevescat said:

£155k is a good ending point, not starting.

Mmm, good point.

How likely is it that a seller (I hate the word "vendor") will just think "sod them then". I wouldn't be insulted by lower offers but I know many might!

Many say they would but very few do.

Decide what your top offer is and go in at that less 5%. Don't forget 20% VAT on all fees.

Edited by Thankyou4calling on Sunday 9th January 19:27

[ywouldi]

Thankyou4calling said:

ywouldi said:

jeevescat said:

£155k is a good ending point, not starting.

Mmm, good point.

How likely is it that a seller (I hate the word "vendor") will just think "sod them then". I wouldn't be insulted by lower offers but I know many might!

Many say they would but very few do.

Decide what your top offer is and go in at that less 5%. Don't forget 20% VAT on all fees.

Edited by Thankyou4calling on Sunday 9th January 19:27

What fees?

Survey, conveyancing etc I assume? Thanks for the advice all!

[Thankyou4calling]

ywouldi said:

Thankyou4calling said:

ywouldi said:

jeevescat said:

£155k is a good ending point, not starting.

Mmm, good point.

How likely is it that a seller (I hate the word "vendor") will just think "sod them then". I wouldn't be insulted by lower offers but I know many might!

Many say they would but very few do.

Decide what your top offer is and go in at that less 5%. Don't forget 20% VAT on all fees.

Edited by Thankyou4calling on Sunday 9th January 19:27

What fees?

Survey, conveyancing etc I assume? Thanks for the advice all!

Yes. Plus solicitors dibursements and estate agent fees. Don't know if there is VAT on stamp duty or even if it applies at this level.Keep us informed of what he deal is done and and dont fall out over a small amount.

[scirocco265]

Thankyou4calling said:

Yes. Plus solicitors dibursements and estate agent fees. Don't know if there is VAT on stamp duty or even if it applies at this level.Keep us informed of what he deal is done and and dont fall out over a small amount.

FYI, Stamp Duty is not subject to VAT. Further, as a FTB there is no stamp duty under £250k

[GTO-3R]

scirocco265 said:

Thankyou4calling said:

Yes. Plus solicitors dibursements and estate agent fees. Don't know if there is VAT on stamp duty or even if it applies at this level.Keep us informed of what he deal is done and and dont fall out over a small amount.

FYI, Stamp Duty is not subject to VAT. Further, as a FTB there is no stamp duty under £250k

Not true if you have previously owned a home but are still classed as a FTB. I have recently found this out while my house purchase goes through

[rah1888]

scirocco265 said:

Thankyou4calling said:

Yes. Plus solicitors dibursements and estate agent fees. Don't know if there is VAT on stamp duty or even if it applies at this level.Keep us informed of what he deal is done and and dont fall out over a small amount.

FYI, Stamp Duty is not subject to VAT. Further, as a FTB there is no stamp duty under £250k

There won't be any EA fees for the OP to pay as he's a FTB.

[scenario8]

rah1888 said:

scirocco265 said:

Thankyou4calling said:

Yes. Plus solicitors dibursements and estate agent fees. Don't know if there is VAT on stamp duty or even if it applies at this level.Keep us informed of what he deal is done and and dont fall out over a small amount.

FYI, Stamp Duty is not subject to VAT. Further, as a FTB there is no stamp duty under £250k

There won't be any EA fees for the OP to pay as he's a FTB.

THe OP is highly unlikely to be subject to EA fees becasue he is a buyer (the FT bit is unlikely to be relevant).

However, some agencies are actually buyers' agents. See this as an example.

http://www.choices.co.uk/index.php?option=com_cont...

[scenario8]

GTO-3R said:

scirocco265 said:

Thankyou4calling said:

Yes. Plus solicitors dibursements and estate agent fees. Don't know if there is VAT on stamp duty or even if it applies at this level.Keep us informed of what he deal is done and and dont fall out over a small amount.

FYI, Stamp Duty is not subject to VAT. Further, as a FTB there is no stamp duty under £250k

Not true if you have previously owned a home but are still classed as a FTB. I have recently found this out while my house purchase goes through

That would make you an unencumbered buyer, would it not? The whole FTB/stamp duty exemption is a bit of a silly tax break. About as silly as most tax breaks anyway, since the withouts will always grumble about the withs and the perception of the arbitrary nature of the distinction between the two.

I hope your sale goes through without too much additional stress, though. Stressful times buying/selling homes. And expensive...

[Spudler]

For this budget i go in around 10% less than the asking price.
I purchased one Nov of last year for this price and iirc the fees etc came in at 2.7k.
Its still very much a buyers market.

[russ_a]

We brought April last year. House up for 240k got it for 208k and I still think we paid too much.

[Muzzer]

ywouldi said:

jeevescat said:

£155k is a good ending point, not starting.

Mmm, good point.

How likely is it that a seller (I hate the word "vendor") will just think "sod them then". I wouldn't be insulted by lower offers but I know many might!

If I was buying now, I'd be starting at minimum 10% off asking price, if not more if it had been on the market for a while.

It's a buyer's market.

If they get insulted, so what? You're not talking to them face-to-face and what are they going to do? Tell you that you can't raise your offer and to go away? Only if they're morons.

Worse-case-scenario, they say it's not enough.

[scirocco265]

GTO-3R said:

scirocco265 said:

Thankyou4calling said:

Yes. Plus solicitors dibursements and estate agent fees. Don't know if there is VAT on stamp duty or even if it applies at this level.Keep us informed of what he deal is done and and dont fall out over a small amount.

FYI, Stamp Duty is not subject to VAT. Further, as a FTB there is no stamp duty under £250k

Not true if you have previously owned a home but are still classed as a FTB. I have recently found this out while my house purchase goes through

How can you be a FTB if you have already bought a propety previously? I think you are confusing FTB with 'chain free'.

[Deva Link]

Do you know the sellers onward plans? If they're moving up then it may be that that's only possible for them due to falling prices compressing the step up to the next level.

My daughter just paid less for a house than the sellers paid themselves in 2005. But they were anxious to grab a bungalow that was being vacated by a lady going into care. I reckon they were first people I've ever dealt with who actually wanted to sell their house - most sellers seem like they're just messing about.

[ywouldi]

As it stands they haven't found anywhere but are apparent willing to move into rented accomodation which doesn't leave us in a strong position I suppose.