Advise - Selling house - Offer made....

[Andeh13]

I am selling my house! And I am 50:50 over an offer that has been put in.

It was bought for £194,000 2.5 years ago. Since then I have spent £9-£10,000 on new central heating, new bathroom, front door, internal doors and decking in the garden.

One estate agent valued it at £220,000 - £230,000 a second at £220,000 - £225,000. The average house price of the area is aroudn £180k - £190k. This house is more or less second most expensive.

Now, I wont be looking to buy another house until July, until then the money is going to be sat in a savings account. I already rent a cheap flat so the house is effectively empty.

It has been viewed 5 times since Nov 15th when it went on sale, no offers until this week. They offered £202k, £204k, £208k, £212k and each time I explained I wouldn't start thinking of anything until at least £215,000. Today they offered that, and are cash buyers.

Now the house needs around £500-£1,000 worth of work to replace two tiles in the kitchen, and some plaster work. I am too busy & far away to arrange it myself - redundancy, job move and new flat got me before I managed to sort it. Estate agent fees are 1.25% (so around £3500) after tax etc


What would you guys do? Just a shot in the dark asking, but I am swinging one way or another and looking for a third party view!

[GoNz0]

tell them £215k if they do the needed work, cash buyers are the best buyers, they are not to be snubbed as so many morons say they want to buy the house, offer what you want then turn round and drop the bomb that they have to sell there own house 1st.

we got arsed about several times, then a cash buyer knocked on the door out the blue as the house 3 doors down he came to look at had sold, he saw our sign and chanced it.

sold it a week later when the estate agent got what we wanted offer wise (he/she was a friend)

we then became cash buyers and got the house we wanted after the same old story of idiots with a house still for sale making offers they couldn't carry through.

also make it very clear you will not drop the price when they have the survey back.

[Willzzz]

Sounds reasonable, they have moved quite a bit.

Don't get hung up over what you paid for the house, you are making a profit and that isn't bad

[Andeh13]

That's the case with this one, they have asked for the type of tiles but they would do the work for £215,000. I always said to myself £215k is as low as I would reasonably go (I make a tidy profit, and have enough to cover my future plans)....but wasn't expecting to get iffered so soon....

And yes, first time buyers/no chain, wanting to move swiftly.

[Saracen]

Any market prediction is by definition a risk, but expectations are of about 6% in london and SE, and that's a p.a. figure, so assuming it's linear (dubious), you could expect about 3%.

Were it me, and given that you aren't in a hurry, I'd hold for either close to estimated market value, not a bit of a low-ball. But .... you could see a eurozone disaster, a failure of the US to recover, and a resultant drop here, and end up not even getting that offer again, or indeed, any offer at all.

So, do you want to hold out for more, and maybe end up with £225k, maybe £230k, or do you want cash in bank, get the stress and strain over with, freedom to move fast on the new place (maybe with a cash discount) and peace of mind?

Your call.

[Andeh13]

Your call.

daaaaaaaaaaamn!

I would say £220k-£225k is more realistic value then £225k+....but then your right, being a cash buyer for the next place in the spring vs struggling to sell this place and being stuck in a chain. Decisions decisions...

[Saracen]

daaaaaaaaaaamn!

....

I will decide for you if you want .... for a fee.

As it happens, I am in possession of a modern, sophisticated digital decision generator. Interested?

[Rob_B]

We took about 5k less on our flat that it was 'worth' simply to be able to move quickly and we wanted the certainty of a sale, it's still a buyers market (IMO)

If it were me in your position I'd take the offer (maybe even counter with 216k?) is an extra £5k worth the risk to you of getting no more offers/market falling and waiting another year to sell the thing? That's (almost) worst case of course but it's something to consider.

You said it's top end for the area, you've made a little profit in not so great times, you have a firm, no chain offer and bunging it in savings will gain you a little interest (ok so not £5k!)

[malfunction]

I say take the money and run - you've got most of the asking price / estimate and IMO estate agents always over value the property a little bit to push you to sign up with them in the first place

[Andeh13]

Appreciate the comments guys, it is greed I am wrestling with. I am in the fortunate position where £215k covers everything I want/need but... I wasn't expecting it to happen this early...

First world problems, aye?

[Willzzz]

A bird in the hand.. especially a cash bird

[stevie lee]

take the cash and dont worry about the work needing to be done in the kitchen. in all likelyhood theyll probably rip out the kitchen in a few months and start again. so you would have spent £1000 on something to last a few months and is only cosmetic anyhow.

and as they've alreaddy upped their offer 4 or 5 times, if you ask for more, they could just think you are being greedy for the sake of a few pennies and then just walk away.

just my 2ps worth.

[jim]

Just a thought Andehh, but if you get £215k and stick it in the bank, you'll have earned around £3k in 6 months' time.

So waiting 6 months for £220k is effectively more like £217k, and is that £2k worth the 6 month headache?

EDIT: Forgot tax, but you get the drift.

[peterb]

A bird in the hand.. especially a cash bird

This really, it is standing empty, so do you really want the worry of looking after it? House prices are tending to drift down (but no certainty of course)

I'd probably take the offer. They are cash buyers, so they can take their cash elsewhere. As you have moved out, you could get it all sorted within six weeks.

[petercook7]

Any market prediction is by definition a risk, but expectations are of about 6% in london and SE, and that's a p.a. figure, so assuming it's linear (dubious), you could expect about 3%.

Were it me, and given that you aren't in a hurry, I'd hold for either close to estimated market value, not a bit of a low-ball. But .... you could see a eurozone disaster, a failure of the US to recover, and a resultant drop here, and end up not even getting that offer again, or indeed, any offer at all.

So, do you want to hold out for more, and maybe end up with £225k, maybe £230k, or do you want cash in bank, get the stress and strain over with, freedom to move fast on the new place (maybe with a cash discount) and peace of mind?

Your call.

don't forget the change in benefits such as child benefit tax credits that will take a toll on house prices, plus we are going to hit a 3rd recession which will be longer than the other two that have pasted.

[peterb]

don't forget the change in benefits such as child benefit tax credits that will take a toll on house prices, plus we are going to hit a 3rd recession which will be longer than the other two that have pasted.

And a Happy New Year to the HEXUS resident eeyore!