Been house hunting for quite a while now and there’s a nice semi-detached we’ve seen that’s just come to market but listed by the agent as £240k ‘Fixed Price’.

Now ideally we didn’t want to spend more that £230k but this house is the first we’ve seen in ages that’s had everything we’ve been looking for. We know this because we looked at an identical property two doors down in spring 2012 but (stupidly) thought it was too expensive at the time (listed at £225k). This property sold for £210k.

So going to look round on Monday, the vendor is showing us round, but don’t really want to spend £240k, but would be happy to go ahead at £230k.

I know if we offered the full £240k then the property would be ours (the vendor has another property that they want to buy that depends on this house being sold), but we know it’s going to cost us around £10k to re-do the current owners dodgy taste in decor/garden design so would like to keep this £10k in hand if possible.

So has anyone been in this position before? We’re aware that a house is only worth what someones prepared to pay for it, but ‘Fixed Price’ kind of implies what it says. We also would’t want to p*ss off the vendors by sighting their dodgy interior taste as reason for discount – I’m sure they think it’s lovely!

We’re first time buyers with no chain if that helps, but then so might some of the other people viewing.

Any tips for getting a good deal in this situation?

£10k to decorate??

Anyway, are you in a position to move now?
You need leverage

No problem in bidding £230k for it and telling the agent that it is your best and final offer.

Keep it friendly and say that you will leave the offer on the table if they refuse it but say that you are actively looking at alternatives.

The agent will actually welcome the offer as it shows their customer that they have managed to get someone seriously interested in the property

Check in with the agent a couple of weeks later to see if the vendor is feeling any more flexible but do not pin all your hopes on it.

£10k to decorate??

Anyway, are you in a position to move now?
You need leverage

For what we’d need to do to it/replace/improve then £10k probably realistic, although yes, agree it does sound a lot.

Currently renting so could move right away.

Use your leverage then
Offer £230K with the promise of completing in x weeks

The vendors are showing us round on Monday – do you think we’d be best discussing this directly with them, rather than with the agent (who’s a trained negotiator at this sort of thing)?

Also concerned we don’t have that much levarage at present if it’s only just come on the market.

I would say it is worth making the offer. They can only say yes or no. They may feel it is worth holding out for their price, they may just want to get on with selling it.

Just don’t do what my ******* buyer has just done, wait until 3 weeks before keys are exchanged then try to drop the price £5k cos a minor repair job is needed that I forgot to put in the home report. Meaning, having lost two months of potential sale time, I may have to move all my stuff back in and start again. (or hopefully, get the repair done)

People can be really nasty over house sales, don’t be one of them !

Estate agents are meaningless if the vendor is showing you round speak to them direct workout what you actually want to pay for the house and offer them 2k less than that and a genuine time frame for completion .You then have so room to manoeuvre and direct meaningful contact with the vendor.

What’s £10k – nothing the way house prices are rising currently. It’ll be £350/400k in a few years and you’ll wonder why you were quibbling over such a small amount. If it’s the place you want it’s worth paying the extra.

Who says it’s fixed price? Up to you to offer what you want, there’s no law that requires you to pay what the seller’s hoping for.
Right now, I suspect sellers are hoping to force FTBs to overpay based on sentiment like Teef’s above (fear they’ll miss out) … which may or may not turn out to be the case…

What’s £10k – nothing the way house prices are rising currently. It’ll be £350/400k in a few years and you’ll wonder why you were quibbling over such a small amount. If it’s the place you want it’s worth paying the extra.

Good point but the indices are all over the place. There’s plenty of reasons pointing to the fact the market could have peaked again. No one knows really I guess.

In the grand scheme of things and spread over many years £10k is not a lot of money, but right now it’s the difference in being able to afford to renovate as we’d like it, or not.

Apart from being first time buyers with no chain, any other good reasons why we can justify a lower offer, or why the vendor should take ours over other bids?

Take a look at land registry (actual selling prices, not Zoopla made-up prices) and other similar properties in the area and what they’re priced at…
Also, look at what they bought at and think about whether the increase is justified when compared to general inflation, or even overall house price inflation over the years.

The fear amongst FTBs that prices will keep rising and rising is leading to sellers overpricing. To me, the way it’s been labelled ‘fixed price’ tells me they know they’re overpricing and lack the confidence in a negotiation (or have offered more than they can really afford on their own place), which actually puts you in a stronger position than them…

As you say indicies are all over the place. Every other economic indicator in the UK suggests we’re hard up and getting harder up. Only house prices are running counter to this. Sellers will be worried they need to sell now in case the market resumes it’s fall…

Is this in Scotland? Never saw fixed prices until I moved up here, has it become common in the UK 😉 too?

Looked at a few houses recently and at everyone either the estate agent or the vendor said there was room for movement on the price.One estate agent explained that the current “house market optimism” meant that vendors were listing their houses for sale at the more optimistic end of the valuations but were prepared to accept a lower more realistic price if no sale transpired within the first 6 weeks. If they get the first asking price then all the better.
Offer what you can realistically afford if you really want it and plan on staying there for a good few years.Being nice ,friendly and complimentary to the vendor always helps and they may well open up to you about their plans and expectations.

My next purchase negotiation will be to offer what I want to pay and explain that because not buying is causing capital expense for me I will have to reduce the offer by £500 per month if they later on come back to me .

We got our house well under the fixed price. The vendors had let slip they were desperate to sell.

One estate agent explained that the current “house market optimism” meant that vendors were listing their houses for sale at the more optimistic end of the valuations but were prepared to accept a lower more realistic price if no sale transpired within the first 6 weeks.

That doesn’t sound like optimism, that sounds like scared the market’s going to drop and they want to sell within 6 weeks. I suspect there’s more than a few sellers now who were going to sell earlier in the year but decided to hold off on the basis they could get more if they waited a few months. Now the sentiment is that prices are beginning to fall and the outlook’s not so positive, they want to get rid asap before any crash…

Suppose it won’t hurt to go in with a lower offer to see what happens.

Wonder whether it would be best to go in first in the region of £220-225k, knowing that’s going to probably be rejected at this early stage and then give some negotiation room upwards if needed, or just not mess around and go right in at the £230k but state that that’s a final offer, take it or leave it?

Might also mention in passing to the vendor when I go to view that I’m also looking at a couple of other properties later that week.

Offer what you think it’s worth, tell them your ready to move and it’s subject to a full survey. If you check what they paid before you go you will know if your wasting your time.
Example is the place I’m renting now owner paid 290 half finished a load of renovation work badly and wanted 350,then 340 most of the builders who have come round to inspect reckon 300 max but that is a huge loss so not an option for the seller. Though it now turns out the foundations and roof are not solid and the house is moving so he won’t even get what he paid back. Be very careful if you are over paying. I assume you have considered the chance of a 2% rate rise.

Talk to the neighbors. Offer them a percentage of the amount the price is reduced below 230 once they (temporarily) turn into the neighbors from hell! 😈

£10k less on a £240k asking price? That’s only 4% less than asking. A “fixed price” is still negotiable.

You are in effect cash buyers, with no chain, that’s a really strong position. If they really want to sell so they can get their next place, then that’s your lever.

I would start at an initial offer 10% or 15% less, then come up to your max.

When you view don’t appear to keen. I don’t think not liking someones decor would really offend them. We are talking about hard cash here, don’t forget.

Do people actually use zoopla as a guide price and if so is it that accurate??

Zoopla is an estimate based on some unrevealed calculation isn’t it? Land Registry is factual data…

I thought Zoopla is based on past prices + % rise nationally? With this being the case it does not take in to account work that’s been done on a property e.g. I bought a house that needed gutting and did the work to a high standard but Zoopla based their estimate on the knackered version so was way out.

If this is the house for you and you don’t want to lose it, pay the price. If you are happy to risk not getting it offer less. Simple as that really.

Checked on Mouseprice and the vendors paid £230k for it back in 2006 when it was a new build. Cant see them wanting to accept less than this can you?

They may not want to accept less, but why should they be immune to the principle that if you buy a house at peak price prior to a slump, you may not get more than that as the market starts to recover? And the house may actually be worth less.

As you say, identical house sold for 210 two years ago. Depends where you are, really, but in many parts of the country, prices haven’t gone up that much over the past couple of years.

If you really, really want the place, start at 225, ready to slide to 230.

“Fixed price,” or “offers above…” Are just estate agent marketing tools. There is no fixed price, offer what’s it’s worth.

Fixed price,” or “offers above…” Are just estate agent marketing tools

+1

There is no such thing legally apart from a marketing device in a sellers market. It’s still a negotiation.