How much to offer on property?

[Mbstarz]

Im looking to purchase a residential property to live in. It's on the market for £254k. The last sale was at £230k some years ago. What would be a sensible offer?

Thanks

 

[moonloops]

Do your research on the market in that particular area. Some places you have to put bids in above the offer price. Look at what other similar properties are selling for in the same area. Also helps if you know what the sellers situation is also to guide what bid to put in.

 

[Deleted member 37751]

Offer £5-10k less than you're prepared to pay and that will give you room to manoeuvre.

 

[Giantvanman]

Unless you are paying cash, what difference does £5k make on a mortgage payment? It really does depend on how much you want it and how how long you are prepared to keep the property i.e. quick flip or long term home?

 

[John Jones Jr]

24k difference is somewhat meaningless. It really is a difficult question to answer as only you know the property & area, plus the market value of similar properties. Of course if it's the home you want and you're happy to pay the asking price, then it's worth it.

 

[Timster]

Less than 250 puts you in the 1% stamp duty bracket rather than 3%.

At least in scotland it does. Don't know about England.

I'd offer 249,995 if it was me. Save a fortune in duties.

 

[A-AvantGarde]

Don't forget that there is a Stamp Duty threshold at £250k. If you pay any more than £250k then you have to pay 3% of the entire sum.

If your accepted offer is £250k or less it's just 1%. So on the figures you've suggested, if they accept £250k you'd pay £2.5k and if you paid £254k you'd be liable for £7.6k.

Without knowing the area and how much other similar houses are going for it's difficult to say what it's worth. Considering the threshold, it's a really odd price to list at and would suggest that something like £245k should do it. I'd suggested you should be prepared to go to £250k.

When did it sell for £230k?
Have you tried any of the property websites to check the sale prices of similar properties in similar areas?

 

[Ian_Mac]

That's the kind of price bracket we were looking at when we moved last year. Any house just over the £250k our first thought was to get it into the 1% tax bracket and I'd put money on that's what the sellers are expecting.

 

[boxbrownie]

I am not sure anyone puts a house on the market expecting to get what it's offered at.

Do you not haggle at car dealers?

 

[Mbstarz]

I will be paying cash. Borrowed some from close family rather than banks so no interest to pay and good terms.

It was last sold at 230k in 2005.. So not a huge increase. However there are new builds (look nice but smaller sq.m) in the area between 240-280k which may be diverting attention off this property and generating less interest.

 

[MicB]

No-0ne will pay £254k plus 3% stamp duty (£261.62k).

£250k plus 1% =£252.5k

The difference is £9.12k

Stamp Duty is ridiculous in itself but the way it is applied is plain daft.

Mic

 

[Harrythedog]

Whatever you do try and do the deal with the homeowners and not the estate agents

 

[ioweddie]

Its got to be below £250 make an offer as a cash buyer of £240-£245 if no good then walk. there are tons of houses out there and buying chains can take month and months of grief.
Don't forget the offer is subject to survey, where you can then offer even less to cover any remedial work required.

 

[KillerHERTZ]

A property is only worth what someone is willing to pay.

If you lost out to another buyer by say £5k would you be gutted about it? or not that bothered.