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JackieO

Accepting the first offer on a house?

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OK so we're selling my mums old place, she passed away nearly 2 years ago.

The property went on the market around 200k back in April without a sniff of interest.

We were going to reduce it to 175k this week but some ones put in offer below that.

Looking at prices sold in the area it doesn't look too bad a price. My brother the executor wants more but I was like why play games for a few K here or there?? I don't like playing games, maybe I'm naive?

Thoughts? WWYD?

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Tell him if he hangs about and prevaricates there may not be another offer in for months if not years. All that time there are still costs and the wrong place can deteriorate quite quickly, as well as the place getting musty/damp/water leaks if everything not properly shut off, insurance, rates, etc etc.  You've flown the kite at 200K, not a sniff so obviously not worth anything like  that, condition and updating don't faze people at the moment regarding price so no doubt it needs up dating. However in a quieter market it does as there is a lot more already done up going at near the same price. You are in good position in a way as you had not already lowered the price, it may be worth gambling a bit and in some ways you don't want to seem too keen but if you go for that offer confirm with buyer that you are will to accept that offer based on proceedability and no buggering about at the survey stage (unless of course something major that is not obvious comes up).

To put things into perspective this place was 60% of original asking price after languishing on the market for 2 and a bit years.

Edit - forgot to add, there's lot of internet history for house pricing now so if people see a place on the market a long time the buzz has long gone and people think lots of others have been round and not gone for it so there must be something seriously wrong with the place or automatically assume it is misplaced and / or has belligerent sellers. Result - even less interest as time goes on.

 

Edited by onlyme

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When you have one of a thing to sell price becomes psychologically important. When you have lots of a thing to sell (a commodity) it becomes more important just to get rid of them all. You each have two houses now, time to switch off the precious homeowner and get rid.

Think of SNACR and his warehouse, do you think he holds out indefinitely on price for a palletload of tat or just gets rid and dodges the bullet

Edited by Panther

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24 minutes ago, JackieO said:

OK so we're selling my mums old place, she passed away nearly 2 years ago.

The property went on the market around 200k back in April without a sniff of interest.

We were going to reduce it to 175k this week but some ones put in offer below that.

Looking at prices sold in the area it doesn't look too bad a price. My brother the executor wants more but I was like why play games for a few K here or there?? I don't like playing games, maybe I'm naive?

Thoughts? WWYD?

Personally I'd get shot as soon as possible. If it's been on since April and not shifted IMO it's priced too high or on the higher side. I'm currently looking at buying somewhere, overseas, but anywhere that's been on the market for more than 4 or more months would never be getting close to a full value offer, there is something wrong with it (relative to the rest of the market) or it's priced too high, clearly other buyers haven't gone near it and neither would I without a big discount. 

Really depends on you brother, I don't know him or how likely he is to respond to a persuasive argument. 

 

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Thanks for your replies :)

Quote

in some ways you don't want to seem too keen but if you go for that offer confirm with buyer that you are will to accept that offer based on proceedability and no buggering about at the survey stage (unless of course something major that is not obvious comes up).

Yeah I did think maybe accepting too quickly might not be a good idea as people do like to play games and of course some like to take the piss. What to do...

 

5 minutes ago, One percent said:

Similar position.  Parent's house had offer of 175.  Greedy brother thought/thinks it is worth 200k.  A year later, we still have it... 

That's my fear. Both my brother and sister have been "property developers" so think they know best 9_9

She's had her house on the market for without a sniff since June. She pulled it recently and put a smaller shed in the garden, to make the garden look bigger. She's then going put it back on for the same price. The estate agent didn't try hard enough apparently O.o

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1 minute ago, JackieO said:

Thanks for your replies :)

She's had her house on the market for without a sniff since June. She pulled it recently and put a smaller shed in the garden, to make the garden look bigger. She's then going put it back on for the same price. The estate agent didn't try hard enough apparently O.o

What's she going to do - install the agent in the shed with a megaphone/cattle prod?

 

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11 minutes ago, gilf said:

Personally I'd get shot as soon as possible. If it's been on since April and not shifted IMO it's priced too high or on the higher side. I'm currently looking at buying somewhere, overseas, but anywhere that's been on the market for more than 4 or more months would never be getting close to a full value offer, there is something wrong with it (relative to the rest of the market) or it's priced too high, clearly other buyers haven't gone near it and neither would I without a big discount. 

 

Problem is the style of house is not popular. It's a 3 bed cottage type on about 1/2 an acre out in the countryside built around 1930. People in the area (I kid you not) want more modern and bigger properties with more land.

 

7 minutes ago, onlyme said:

What's she going to do - install the agent in the shed with a megaphone/cattle prod?

 

Believe me she would if she could ;)

 

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4 minutes ago, JackieO said:

Problem is the style of house is not popular. It's a 3 bed cottage type on about 1/2 an acre out in the countryside built around 1930. People in the area (I kid you not) want more modern and bigger properties with more land.

Bungalow? Development opportunity? Outline planning permission to uplift the value?

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7 minutes ago, JackieO said:

Problem is the style of house is not popular. It's a 3 bed cottage type on about 1/2 an acre out in the countryside built around 1930. People in the area (I kid you not) want more modern and bigger properties with more land.

Bizarrely that's exactly the sort of thing I'm looking at, problem is my budget is about £50k 

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If the offer was for £170k or thereabouts I'd take it.

If it hangs around then you and your brother will need to maintain it, pay council tax on it, check on it, keep the garden up to scratch etc.

I know an elderly coupde who had to do loads of such work on a house because the selfish people who weren't the executors and weren't doing the work kept insisting that they wanted more and moaned when it was eventually sold.  It was a real burden for them.

And I had a workmate who priced their's to sell (co inheritor with her brother who I got the impression was useless as she had to do all the work) and it was all done and dusted in a few weeks.

 

I would however look at going for planning permission first as @Panther has suggested; it is rather easy to get these days and will give a five figure uplift.

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45 minutes ago, One percent said:

Similar position.  Parent's house had offer of 175.  Greedy brother thought/thinks it is worth 200k.  A year later, we still have it... 

Relatives eh?

When my dad died we had my mum and dad's main house to sell plus my mum had decided to become a "pwoperdy developer" and they had bought a whole village of ruins which they planned to do up. My dad was experienced in building but in his mid 70s we said they were biting off more than they could chew and every cent spent on the ruins would be a cent down the drain and then some.

It was very hard to get my mum to accept that a pile of stones in a field she'd paid 200K for was not actually worth 200K "but that's what I paid for it, I want my money back and a bit of profit would be nice"

Selling the main house was hard work too. Someone had told my mum it was worth 250K so it was hard to get her to budge down after years on the market. My mum's negotiating skills left something to be desired "I've told the prospective purchasers that my bottom line is 150K" - so how much have they offered "150K". Oh that's a surprise. Don't get my mum doing the Brexit talks is all I can say.

The main house was also full of junk from years of my dad's hoarding which my mum was convinced was "worth a small fortune" - a very small one, we had to hire 5 skips to dump the stuff although some 1920s Jazz records did cover the skip costs in the end.

Edited by davidg

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3 minutes ago, davidg said:

Relatives eh?

When my dad died we had my mum and dad's main house to sell plus my mum had decided to become a "pwoperdy developer" and they had bought a whole village of ruins which they planned to do up. My dad was experienced in building but in his mid 70s we said they were biting off more than they could chew and every cent spent on the ruins would be a cent down the drain and then some.

It was very hard to get my mum to accept that a pile of stones in a field she'd paid 200K for was not actually worth 200K "but that's what I paid for it, I want my money back and a bit of profit would be nice"

Selling the main house was hard work too. Someone had told my mum it was worth 250K so it was hard to get her to budge down after years on the market. My mum's negotiating skills left something to be desired "I've told the prospective purchasers that my bottom line is 150K" - so how much have they offered "150K". Oh that's a surprise. Don't get my mum doing the Brexit talks is all I can say.

The main house was also full of junk from years of my dad's hoarding which my mum was convinced was "worth a small fortune" - a very small one, we had to hire 5 skips to dump the stuff although some 1920s Jazz records did cover the skip costs in the end.

That made me laugh out loud. xD I feel for you but the delusion is strong with so-called pwopertee developers.  

I blame HTH and the likes.  Which has never seemed to have actually sold a house done up on the show.  When I am really bored, I try and find the sold data - it is never available.  

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3 minutes ago, One percent said:

That made me laugh out loud. xD I feel for you but the delusion is strong with so-called pwopertee developers.  

I blame HTH and the likes.  Which has never seemed to have actually sold a house done up on the show.  When I am really bored, I try and find the sold data - it is never available.  

My mum was mainlining on HuTH 24/7. It drove her potty. She made the mistake of seeing that she'd bought her first house in London for 500 quid (Dunbreck Road in '58) and sold up in 2004 for 415K and assumed it was down to her astute wheeler dealing. My dad had added value to the houses to some extent as he was a competent builder but he hadn't added 414,500 quid's worth of value.

It is always hard to accept a loss. Especially when you've "paid in all your life".

Edited by davidg

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1 minute ago, davidg said:

My mum was mainlining on HTH 24/7. It drove her potty. She made the mistake of seeing that she'd bought her first house in London for 500 quid (Dunbreck Road in '58) and sold up in 2004 for 415K and assumed it was down to her astute wheeler dealing. My dad had added value to the houses to some extent as he was a competent builder but he hadn't added 414,500 quid's worth of value.

It is always hard to accept a loss. Especially when you've "paid in all your life".

Weird how prices have diverged. My parents paid about 500 for a semi in North Yorkshire around the same time. Worth around 175.  So not the massive mad gainz of London. 

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Just now, One percent said:

Weird how prices have diverged. My parents paid about 500 for a semi in North Yorkshire around the same time. Worth around 175.  So not the massive mad gainz of London. 

London, Paris, New York etc are world cities and have decoupled from the local markets. There is some ripple effect to places that are commutable but not much beyond.

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4 minutes ago, davidg said:

My mum was mainlining on HuTH 24/7. It drove her potty. She made the mistake of seeing that she'd bought her first house in London for 500 quid (Dunbreck Road in '58) and sold up in 2004 for 415K and assumed it was down to her astute wheeler dealing. My dad had added value to the houses to some extent as he was a competent builder but he hadn't added 414,500 quid's worth of value.

It is always hard to accept a loss. Especially when you've "paid in all your life".

My Uncle lives on Dunbreck road. Prices still going strong as you are now getting a third wave from central London. 

Absolutely mental prices. 

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1 minute ago, gilf said:

My Uncle lives on Dunbreck road. Prices still going strong as you are now getting a third wave from central London. 

Absolutely mental prices. 

ah its Dumbreck Road, yes that's the one, near Eltham. I just looked on Google Streetview and it looks really nice. Can you imagine paying 500 quid for one of those places? I wonder what my dad's salary was? I know he bought an A30 for cash at the time, around 25 quid, which he used to get in to work at Welcome Labs or somesuch.

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1 hour ago, JackieO said:

OK so we're selling my mums old place, she passed away nearly 2 years ago.

The property went on the market around 200k back in April without a sniff of interest.

We were going to reduce it to 175k this week but some ones put in offer below that.

Looking at prices sold in the area it doesn't look too bad a price. My brother the executor wants more but I was like why play games for a few K here or there?? I don't like playing games, maybe I'm naive?

Thoughts? WWYD?

The market in my bit of Dorset is completely dead.

If you are dividing the proceeds, then you are dividing the "hit" too.

Take the offer.

Edit.

Its London. Who knows??

Edited by shindigger

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My initial thought is why not just make a counter offer of the amount you were planning to drop to?

Put yourself in their shoes..  house on market for £200k..  you offer £170k..   you expect the owner to make a counter offer and probably meet you half way.

I think if you just say,  look I can't quite do that but how about £175k I'd have thought they'd probably take your arm off..

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5 hours ago, JackieO said:

OK so we're selling my mums old place, she passed away nearly 2 years ago.

The property went on the market around 200k back in April without a sniff of interest.

We were going to reduce it to 175k this week but some ones put in offer below that.

Looking at prices sold in the area it doesn't look too bad a price. My brother the executor wants more but I was like why play games for a few K here or there?? I don't like playing games, maybe I'm naive?

Thoughts? WWYD?

Find a decent young couple with a family, and sell it to them for fifty thousand.

 

XYY

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There is a bit of expectation on both sides that there'll be a little haggling.  

If you've a decent estate agent, get them to advise on the haggling.

Otherwise, pick a point 1/3 up from the offer (to your £175) and return with that.  If they're serious they'll return with that minus a few k -- accept that.

But be fast -- there are no points for hanging around at this point in the market.

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5 hours ago, Panther said:

Bungalow? Development opportunity? Outline planning permission to uplift the value?

Would all be priced in by potential buyers as soon as it is on the market, developers and builders always know what a viable opportunity is, they don't hang around 6 months, usually sold the minute (for before it gets listed).

 

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4 hours ago, davidg said:

London, Paris, New York etc are world cities and have decoupled from the local markets. There is some ripple effect to places that are commutable but not much beyond.

Except that with most regions there are derivable areas and some highly desirable, London money definitely drives the top end of those and can drag up other pricing with it as locals themselves move/look further out than those hotspots. Last housing busts the  downward ripple started from London and worked its way out. 

If things carry on as they are London market is cooked IMHO, demand from high end investors, second base/working flat or living in will shatter. .

 

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