Advice: What would you bid??

Angelic123

Registered User
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24
How much should we bid?

2170sq ft 4bed bungalow approx 30yrs old. Needs to be replumbed & possibly rewired- asking 298k Price drop from 315k on 5th dec only on market since August 09.

All info gladly appreciated!
 
Difficult to advise based on info provided, but I'd suggest the following need to be considered during your thought process...

a) What's the drivers behind you wanting this particluar house - location? convenience? close to schools/amenities/work?

b) How will you fund purchase - have you cash? Will you have to borrow? If so, what % of purchase price will you need to borrow? Will your requirement fall within mortgage providers guidelines?

c) What's your current income - how secure?

d) What's your current balance sheet like - i.e. what other assets & liabilities have you ?

e) Have you costed proposed works you refer to - could there be more (reality is there usually are) - would suggest a full structural survey before entering negotiations? (Would only do this if you are really keen on property and fully intend to buy, as there will be a cost involved).

f) What is the market like in the area you propose to buy? Are properties moving currently? If so has any similar property sold to the one you are looking at? At what price?

g) Was this particular house purchased/sold in the recent past - if so at what price?

h) Is there anything else on the market, that could meet your needs - to compare with one you are currently looking at?

I haven't answered your question - but suggest you need to think about the above before you make an offer...

Best wishes...

pjmn
 
Difficult to advise based on info provided, but I'd suggest the following need to be considered during your thought process...

a) What's the drivers behind you wanting this particluar house - location? convenience? close to schools/amenities/work?

b) How will you fund purchase - have you cash? Will you have to borrow? If so, what % of purchase price will you need to borrow? Will your requirement fall within mortgage providers guidelines?

c) What's your current income - how secure?

d) What's your current balance sheet like - i.e. what other assets & liabilities have you ?

e) Have you costed proposed works you refer to - could there be more (reality is there usually are) - would suggest a full structural survey before entering negotiations? (Would only do this if you are really keen on property and fully intend to buy, as there will be a cost involved).

f) What is the market like in the area you propose to buy? Are properties moving currently? If so has any similar property sold to the one you are looking at? At what price?

g) Was this particular house purchased/sold in the recent past - if so at what price?

h) Is there anything else on the market, that could meet your needs - to compare with one you are currently looking at?

I haven't answered your question - but suggest you need to think about the above before you make an offer...

Best wishes...

pjmn

Thanks pjmn..
In responce to all your questions:

A) location size etc suits us both.

B) Mortgage is approved we have our savings etc.

C) Secure jobs as secure as anyones.. that is a risk that anybody takes!

D) No other liabilities or ties. Clear Balance sheet

E) As for getting in the surveyor.. we wouldnt do this unless we were sure we would be buying - no point wasting money unnecessarily.

F) Unsure about the market..have been watching a few houses in the area.. not much movement - could work in our advantage.both houses have dropped asking prices in recent times

G) House hasnt been sold since it was built.. neither have (local knowledge)

H) There is another house which we viewed up the road smaller similar house 1300sq ft, same age etc asking 265k not prepared to go under 260k. They didnt accept our bid. We would really like the house but the comparison between the two is huge, size, grounds amenities the house has - so we feel it might be better to spend more on the larger house now then put work into the smaller house to make it larger in the long run (if this makes sense)

Realistically would going in at 240k be advisable? would prefer to pay less then more on a house that needs repair.. Assuming it like the last has gun metal plumbing!
 
Fair play - lot of angles covered there...

Just an observation - you are proposing to offer less for a much larger house ...

As a negotiation tactic you are probably be right to start at say E240k - (in your own mind you'll need to know what your absolute max is)....

I'd suggest any offer is made subject to satisfactory survey... i.e. if an additional E20k of work was required over and above what you already know about then that would have to be reflected in price...

Best of luck with it...

pjmn
 
Fair play - lot of angles covered there...

Just an observation - you are proposing to offer less for a much larger house ...

As a negotiation tactic you are probably be right to start at say E240k - (in your own mind you'll need to know what your absolute max is)....

I'd suggest any offer is made subject to satisfactory survey... i.e. if an additional E20k of work was required over and above what you already know about then that would have to be reflected in price...

Best of luck with it...

pjmn

in regards to offering less.. the other house is asking 265k this is asking 298k. we went in lower to the 265k but they want 260k as they have reduced frm 379k in last 18mths. That makes no odds to me though. no point paying 260k for a 1300sq ft house if we can get the 2100sq ft for same price.. would start low and work up.. all depending on structural surveys etc. Thanks for your help
 
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