Making an offer on house, with potential to extend.

[Alli]

We are very keen on making an offer on a house we have viewed. Asking price is 330k (Dublin West - 5 mins to train). Was going to start at 280k with no intention of offering over 300k: have just been advised by friend to be straight and upfront - offer 300k, one bid, take it or leave it. We can go no further.

First question - which is the wisest way to offer?

Our reasons for wanting this house is the potential it gives to extend down the line. (Also like the house, area, etc).

Had a builder look at the property and is currently pricing an extension. We would not be doing this work for a year or more. Planning permission seems to be fine in area ie. lots of neighbours have extended and Fingal Co Council website have not refused similar extensions from info available.

Second question: Lets say the extension costs are 60k. How do we raise the finances? What is the norm? Personal loan? Credit Union? Savings? We will have no savings if we buy this property and will have to start saving again.

Thanks,

Alli

 

[patftrears]

Was going to start at 280k with no intention of offering over 300k: have just been advised by friend to be straight and upfront - offer 300k, one bid, take it or leave it. We can go no further.

How do you think that is a good idea ?
Say you offer 280 and they accept it, will you throw in an extra 20k.

Offer 280k, if it's rejected then think about your next move, offer more or call their bluff.

 

[sadie]

Is this your dream house, or is it only your dream house with the extension.
You might find it hard to raise the 60k to do the extension, if you are already stretched to the max on the mortgage.
A personal loan of 60k will be a few hundred extra in repayments a month.
And consider interest rates going up in the next couple of years.
I'd hang on another bit - at least till the New Year and see if another house that you wouldn't need to extend comes up for the same 280k.

 

[robd]

I'm going to just keep this on topic an answer the original question. Whether to buy nor not to buy is a different question.

Take it or leave it is not considered to be a good negotiation strategy. Essentially when two people agree a buy-sell transaction both need to feel that they have won something. Take it or leave it is considered hardline and generally doesn't work. This is despite the fact that it is a buyers market.

280k would be you best bet. Then you can add +10k, the +5k, then +2k, then +1k then 500 as a final offer. Then you walk away as in truth not all sellers are actually motivated to sell.

Never ever ever up you offer immediately upon a previous offer being refused. Say you need to discuss with other half. Wait at least 2 days (prob 7 in the case of the 1st offer) before upping.

Good luck.

 

[Alli]

Thank you for your replies - much appreciated - and a lot of good info to consider.

Going to have a good think and will let you know how we get on.

Alli