How do you decide what to offer on a property?

[suebfg]

We're looking to buy a house and have looked at lots of properties. But I'm finding it difficult to decide if a house is worth what is being asked for it. I look at houses in the same area, zoopla etc but it is really difficult.

I've started doing a square footage calculation to work out the price per square foot. Maybe I'm over-analysing. What are your tips please?

[MedicPeso]

I don't know either! DH and I may be starting to get more of a feel for what houses are worth, but we haven't suddenly morphed into trained valuers .

It's really difficult - you don't know how realistically a house has been priced, so it's difficult to know what to bid. We fell in love with a house that we thought we could afford, but apparently it was priced to sell, and then it sold for practically the asking price.

We use Zoopla etc. as well, but it's not always hugely informative.

In Scotland, the house is valued and this info is made available to everyone, who may then bid accordingly. It sounds (to me) like this is less backwards than in England.

[suebfg]

We've had a couple of near misses in the past where we have offered based on asking prices of other properties, then found that the other properties have actually sold for a lot less. We want to get it right this time as we've found a house that we really like!

[nocake]

Use the land registry site to look at sold prices of similar houses. Then use a couple of different price calculation site to come up with current valuations. Nationwide has a fairly good price calculator.

The more similar houses you can find the better your estimate will be as it will even out the effect of extensions and changes in the condition of the houses.

[Notyetthere]

Yes go with nocake's idea.

Use past sold prices and valuation tools ( with a pinch of salt). We too are in the process of buying and I used the recent sold prices in the same street and within 1/4 mile of the house we want. You have to compare as close to like for like as possible. I looked at all 3 bed semis with a drive within that mileage and then offered close to that.

E.g the house we are interested in is on for £225k and it needs updating and stripping due to 20yrs of smoking indoors. Last 3 sold houses in the area in the last 1.5yrs of the same spec sold for an average of £188k. The highest on the same rd is currently under offer with original asking of £244k but this is extended and updated throughout.

Our offer of £190k was rejected on Monday bse they have only been in the market 1 week and they have viewing for the rest of this week and weekend. Hopefully they dont attract any interest by Monday next week then we shall up our offer to £195k. Our top limit is £205k and if its also rejected then we shall have to walk away from this one.

[Notyetthere]

Also bear in mind how long they have been on the market. If like ours they have just come on the market then they might want to wander too far from asking price, yet.

[gaelicsheep]

You offer what it's worth to you surely. Or the lowest you think they'll accept.

[Wishiwasanheiress]

Blimey. I walk in and see if I like the feel of it. Then worry about £.

Property holds well. Also sellers don't want to lose, I just lop about 20k off price for 'true' purchase price approximation. And check that's in line with zoopla.

[AliceWChild]

It's worth what someone's willing to pay. You can only go so far with zoopla, calculators, square footage comparison etc. There are also the unmeasurables of their situation, your situation etc. You can see on zoopla the variation in what people pay that demonstrates that. So you basically offer what doesn't embarrass you too much and work up to what you can accept paying. Alas there's minimal science to it. Although I do have a spreadsheet that does compare square footage as I like a good spreadsheet.

[MrsBucketxx]

zoopla can be a bit if a false indicator, I bought my last home as a wreck totally renovated it, and added 90 grand to the asking price,

we had some very cheeky offers because of this, and they didn't seem to understand the work undertook etc, and just looked at the price we paid.

generally if you view enough houses youll get an idea of what the house should be,

I always try and be a bit cheeky at first and see what the response is.