Realistic Offer for Bank Sale

Mondo123

Hi there,
I'm guessing this has probably been done to death on this forum but unfortunately I'm new to this game an somewhat trying to learn how to play it...

Viewed a house recently that has an asking price of 195k, really really liked it however as its drastically out of my price range I put it to the back of my head (my upper limit is 167k to be exact), the viewing agent also mentioned that the would probably not accept much lower?...
Today on contacting the estate agent about another house for a viewing I found out that said 195k property has had no offers (its roughly 3 weeks since I viewed)? As a result I was thinking of going in with an offer of 160k?

Am I being unrealistic? - Does bank sales have set amounts that they wont sell below?
Thanks in advance for any replies...

Mezcita

Mondo123 wrote: »

Hi there,
I'm guessing this has probably been done to death on this forum but unfortunately I'm new to this game an somewhat trying to learn how to play it...

Viewed a house recently that has an asking price of 195k, really really liked it however as its drastically out of my price range I put it to the back of my head (my upper limit is 167k to be exact), the viewing agent also mentioned that the would probably not accept much lower?...
Today on contacting the estate agent about another house for a viewing I found out that said 195k property has had no offers (its roughly 3 weeks since I viewed)? As a result I was thinking of going in with an offer of 160k?

Am I being unrealistic? - Does bank sales have set amounts that they wont sell below?
Thanks in advance for any replies...

The agent will want as high a price as possible in order to maximise his fee. While the bank will want the property off it's books but only at a value which they feel is the market rate.

If the property had been on the market for a few months with no interest you could potentially get lucky with a low offer. However, as it's been only available for a short time they would probably be willing to wait, especially if it's in an area where houses do sell for the listed price.

By all means put in an offer and try and structure it in a way that they could see that it would mean a quick sale. But be prepared to get knocked back. Key thing is to only bid what you can afford and what you feel it's worth.

Seamus1964

You've a great chance to get it with 165000 if there will be no other serious "bidders".
So go ahead and place your 160000 offer, will do no harm to give it a try.

Mondo123

Cheers for the replies guys... yea I'm going to chance it I guess all that they can say is No?...
Its a terrace house but with a separate apt on top so not everyones cup of tea... Excellent condition though... Fingers crossed

Ray Palmer

Mezcita wrote: »

The agent will want as high a price as possible in order to maximise his fee. While the bank will want the property off it's books but only at a value which they feel is the market rate.

Actually this is a false assumption. The difference to the estate agent between the two prices is pretty small so they aren't actually that bothered. High turn over is generally their goal not the top price. Banks do tend to stick to the valuation they decide the property is worth and tend not to have a problem waiting due to how book keeping is done. By selling it below the prices they expect they have to write off another amount on their loss and they don't tend to want to do that as it devalues other property they have.

Plek Trum

Great bit of advice - "If you are not embarrassed by your offer then its not low enough...."

Worked for us , saved 65k off asking price in a premium area Best of luck, its your offer and what you are willing to pay. All they can say is no sure, no harm there. Push the positives if they apply (first time buyer, no chain, finance in place, approval for mortgage sorted with bank etc etc) The more you can put on the table with your offer, the better

Best of luck!!

amazingemmet

Go for it, my friend viewed a house priced 105k and got it for 81k so they'll off load in some cases.

Woodville56

Mondo123 wrote: »

Hi there,
I'm guessing this has probably been done to death on this forum but unfortunately I'm new to this game an somewhat trying to learn how to play it...

Viewed a house recently that has an asking price of 195k, really really liked it however as its drastically out of my price range I put it to the back of my head (my upper limit is 167k to be exact), the viewing agent also mentioned that the would probably not accept much lower?...
Today on contacting the estate agent about another house for a viewing I found out that said 195k property has had no offers (its roughly 3 weeks since I viewed)? As a result I was thinking of going in with an offer of 160k?

Am I being unrealistic? - Does bank sales have set amounts that they wont sell below?
Thanks in advance for any replies...

Interesting post Mondo123. In a similar position, we have viewed a house (one of four) being sold by the banks in a country housing estate. We like the house but EA says the bank insists that asking price is non negotiable . We haven't put in an offer in the hope the prices might drop if the houses remain unsold. Our " hold off" position is a bit weakened now as we hear that 2 of the 4 houses have sold at the asking price so it's unlikely the remaining 2 will sell for less ! It's a bit if a gamble I guess, do we buy or hold off ?
Any boarders advice welcome ! The houses appear sound and are a decent size in a fairly new'ish estate.

The_Conductor

Banks are more inclined to sit things out- and in the longer run, are likely to get their asking prices, other than in rural areas, or areas with high vacancy rates.

OP- by all means offer your 160k, however, its highly unlikely they'll even get back to you.

D3PO

am I the only one wondering why the hell anybody would view a house that is in their own words "drastically out of their price range"

I just cant fathom the point. what a waste of time.

riclad

IF you are the only bidder at 165k,
they may accept your offer.
BANKS don,t like to have an empty house ,on the market indefinitely.
the estate agents tell the bank its worth x amount,
they,ll wait and see what offers they get on it in the first few months.
What are similar houses in the area going for?
maybe wait 1 month ,put in the offer.

Mondo123

D3PO wrote: »

am I the only one wondering why the hell anybody would view a house that is in their own words "drastically out of their price range"

I just cant fathom the point. what a waste of time.

Thanks for the useful reply... can't see how it impacts the question :rolleyes:

But anyway to explain in case anyone else is losing sleep over why I should view so much outside my price range :cool: I was viewing a duplex in same estate and the EA told me I should view the house to as he had the keys on him, I had the time so I did... I didn't actually ask the price of the house till I was in it...

Woodville56

Mondo123 wrote: »

Thanks for the useful reply... can't see how it impacts the question :rolleyes:

But anyway to explain in case anyone else is losing sleep over why I should view so much outside my price range :cool: I was viewing a duplex in same estate and the EA told me I should view the house to as he had the keys on him, I had the time so I did... I didn't actually ask the price of the house till I was in it...

Worth a punt if you can get it at reduced price Mondo ! Nothing ventured nothing gained !
Good Luck !

riclad

NO harm to view 10 houses IF YOU want to,see whats on the market,

what do you get for 100k, 150k etc
Most people will view a no of houses ,before they even put in a bid on anything.
dont say to agent i can afford 165k,

put in bid ,see what happens .
if they ask for more ,say my bid is 165 ,thats it .

liam7831

How do you know the bank owns it? Is it advertised that way or what?? Just wondering cos in the market for a house myself

Woodville56

liam7831 wrote: »

How do you know the bank owns it? Is it advertised that way or what?? Just wondering cos in the market for a house myself

Most EA's will tell you if you ask about vendor. The property we looked at (and owned by the bank) was one of a number in the same estate, put up on Daft at same time, same EA , so we had a good idea they were bank houses.