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The house is £5000,000 but estate agent hinted there is haggle room.
Personally my wife and I have approx. 200,000 in liquid funds but her mum who was thinking if relocating near us in a year or two could sell her house now and move. Its not a very big house (would be 60,000 where I live) but its in a an area outside which has very high prices and is in the is in the 280-300 k range. The house next door to her sold very recently for 325. Exact same house except it is a 3 bedroom and my mum in laws is a 2 bedroom. Would that difference betweeen a 2 and 3 bedroom house seem reasonable? The houses in my mum in laws area sell normally within 3-4 weeks when the seller is a motivated one. Her next door neighbours sold within 3 days.
If we can agree a price with the house we are interested in what would be the best way to proceed knowing that we are relying on the funds from the other house sale which will sell quickly.
5000,000 is a very high price for the area I live and I don't think it could be sold to a person requiring a mortgage for certain reasons.
I don't want my mum in law selling her house unless we can agree with absolute certainty the seller of the other house is going to honour the deal if we can agree one.
I am viewing the house this week as its just come onto the market which is another question I would appreciate some advice on. Without knowing circumstances of the seller I personally think it would be best to wait and put in an offer once its been on the market a while to convince the seller our offer might be the best he will get.
I would appreciate any advice.
Personally my wife and I have approx. 200,000 in liquid funds but her mum who was thinking if relocating near us in a year or two could sell her house now and move. Its not a very big house (would be 60,000 where I live) but its in a an area outside which has very high prices and is in the is in the 280-300 k range. The house next door to her sold very recently for 325. Exact same house except it is a 3 bedroom and my mum in laws is a 2 bedroom. Would that difference betweeen a 2 and 3 bedroom house seem reasonable? The houses in my mum in laws area sell normally within 3-4 weeks when the seller is a motivated one. Her next door neighbours sold within 3 days.
If we can agree a price with the house we are interested in what would be the best way to proceed knowing that we are relying on the funds from the other house sale which will sell quickly.
5000,000 is a very high price for the area I live and I don't think it could be sold to a person requiring a mortgage for certain reasons.
I don't want my mum in law selling her house unless we can agree with absolute certainty the seller of the other house is going to honour the deal if we can agree one.
I am viewing the house this week as its just come onto the market which is another question I would appreciate some advice on. Without knowing circumstances of the seller I personally think it would be best to wait and put in an offer once its been on the market a while to convince the seller our offer might be the best he will get.
I would appreciate any advice.
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To be honest I would buy the house we presently rent yesterday if I could as I absolutely love it. Its nothing fancy at all but its got a beautiful wrap around garden on a corner plot in a small cull de sac which is surrounded by trees making it very private. Perfect size too. We have the money to buy it and even pay a bit over market value but I disovereed last week the negative equity on it is such the owner is not going to be able to sell it within any kind of short to medium term and possibly longer than that.
meant to say obv my mum in laws house is near London hence its high valuation.
A good mortgage broker would be able to arrange a short term bridging loan which would advance you the monies until the other house was sold.
If a 3 bed sold for 325 I would expect 2 bed for around £265-£270k.
Most properties in that sort of range are 3 bed and that is the most in demand so the gap between 2 and 3 is usually higher than people think. Also if you need a quick sale they can generally knock a few quid off obviously.
Most properties in that sort of range are 3 bed and that is the most in demand so the gap between 2 and 3 is usually higher than people think. Also if you need a quick sale they can generally knock a few quid off obviously.
p.s surprised your house has negative equity given house prices have never been higher? Which area is it in?
The house with neg equity on it which I presently rent is in n.ireland. Had hoped we could buy it at some point in near future with owner taking a manageable loss and us paying a bit over market value but discovered last week the neg equity on it and the type of maortgage (%only) means that does not seem possible at all.
Yes, I did think the difference between a 2 and 3 bedroom house would be a little bit more than my mum in law said but its in such a desireable town that I thought she might be more knowledgeable. You don't normally know the exact selling price of a house but due to knowing next door neighbours price she does in this case. I think she might be judging her price on other two bedroom houses in very close proximity when she only sees the for sale price and that's not a selling price.
Thank you for advice, and yes I was thinking along the lines of a bridging loan. Not sure how one works though. If one could be arranged and the period was say 6 weeks or so what would you expect to have to pay for that.
Yes, I did think the difference between a 2 and 3 bedroom house would be a little bit more than my mum in law said but its in such a desireable town that I thought she might be more knowledgeable. You don't normally know the exact selling price of a house but due to knowing next door neighbours price she does in this case. I think she might be judging her price on other two bedroom houses in very close proximity when she only sees the for sale price and that's not a selling price.
Thank you for advice, and yes I was thinking along the lines of a bridging loan. Not sure how one works though. If one could be arranged and the period was say 6 weeks or so what would you expect to have to pay for that.
You may find this useful. Google experts near you for further advice. Interest rates vary due to a number of factors but are obviously high. However, in a position like yours it's essential.
http://www.moneysupermarket.com/loans/bridging-loans-guide/
http://www.moneysupermarket.com/loans/bridging-loans-guide/
I think the house the house we are looking at could be bought for at least 10% under asking price. We could not compete with anyone else bidding on it in competition which I hope and think might be the case. Because for certain reasons it will require a cash buyer. On the one hand there are not many people in my locality who would be in that position but if just one did put in an offer it would obviously not be a case of them raiding the piggy bank to get the funds.
Your advice is much appreciated Charwell. Thank you very much. I just want to be in a position when we view the house to show we might not have all the cash but the rest could be got easily.
I might ask for more advice during the week. Knowing the position of the seller is going to be an important factor. Do they want a quick sake and are realistic about the price. Its not an easy house to value in the area where I lives as you have no comparables to go by with this particular price so it might be a case of them waiting a few months to see what kind of offers if any come in to lower their expectations of what might be an asking price higher then it should be.
From previous experience the only other house we put a bid on it was in hindsight not the best strategy to put in an offer within a week of it coming on the market. It only served to raise the owners expectations. In the end 2 other people put bids in and it turned out one of them was never a real bidder in the first place as they needed a mortgage and they could not get one for the price they bid. Obviously the estate agent told us they pulled out for other reasons but I know for a fact their mortgage was rejected as the bank did not value the house at the price they were asking the mortgage for.
I might ask for more advice during the week. Knowing the position of the seller is going to be an important factor. Do they want a quick sake and are realistic about the price. Its not an easy house to value in the area where I lives as you have no comparables to go by with this particular price so it might be a case of them waiting a few months to see what kind of offers if any come in to lower their expectations of what might be an asking price higher then it should be.
From previous experience the only other house we put a bid on it was in hindsight not the best strategy to put in an offer within a week of it coming on the market. It only served to raise the owners expectations. In the end 2 other people put bids in and it turned out one of them was never a real bidder in the first place as they needed a mortgage and they could not get one for the price they bid. Obviously the estate agent told us they pulled out for other reasons but I know for a fact their mortgage was rejected as the bank did not value the house at the price they were asking the mortgage for.
Be very wary of bridging loans, particularly when you are relying upon events in the future to clear the loan. They can get very expensive and if the market turns as it can at any time you can be left in an impossible position. Your mother in law's house is near London and any price drops will be felt in the SE first. I dread to think how many times I've been told that a house will sell quickly as houses in that area go in a matter of weeks. It's not as simple as that and there can be lots of reasons why when you put your's up it doesn't sell.
I remember a solicitor friend of mine going bankrupt as a result of taking on a bridging loan and then not being able to sell quickly. He should have known better. A simple thing like a buyer pulling out at the last minute can set you back months and then if the market turns and interest rates go up you can really be in big trouble.
Look on Rightmove for the selling price of houses near your Mother in law.
I remember a solicitor friend of mine going bankrupt as a result of taking on a bridging loan and then not being able to sell quickly. He should have known better. A simple thing like a buyer pulling out at the last minute can set you back months and then if the market turns and interest rates go up you can really be in big trouble.
Look on Rightmove for the selling price of houses near your Mother in law.
Some advice from an older man (me).
1/ A betting forum full of fantasists is not the place to go for advice.
2/ Sounds an extremely expensive house at £5000,000! I think you mean £500,000.
3/ Do not get your commas in the wrong place if you put in a bid!!!
4/ If something looks too good to be true, it almost always is.
5/ DO NOT touch a bridging loan. They are generally for people who really understand money.
1/ A betting forum full of fantasists is not the place to go for advice.
2/ Sounds an extremely expensive house at £5000,000! I think you mean £500,000.
3/ Do not get your commas in the wrong place if you put in a bid!!!
4/ If something looks too good to be true, it almost always is.
5/ DO NOT touch a bridging loan. They are generally for people who really understand money.
A bridging loan can be useful but the itfalls could be a dip in the market after making a commitment before the second action occurs. We amy well be ina bubble and the run up to xmas often sees the market go quiet. There is usually a cycle which sees more property come onto the market in january as holidays focus the minds of people wnating to move for schools,divorce afetr xmas stresses,etc.This gives plenty of time for economy to change direction.
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