Revised Offer

Following on from my entry for yesterday I spoke to the estate agent to put a revised offer based on our further calculations and estimates. It was an offer which gives us a 20% return on capital if our estimate on the sale value is correct but still gives a return, all be it much reduced, if house prices drop by another 10% over then next few months. I hope that doesn't happen.

I didn't enjoy reducing the offer as the person who will lose out (if the offer is accepted) is the person who 12 months ago would have had a nest egg of much greater proportions. It seems to me that this type of property has probably lost more value than other properties simply because of the difficulties of getting a mortgage on something requiring so much work.

So will the offer be accepted? I hope so but the vendors may not be able to accept such a reduction and will decline. Whilst I wouldn't blame them for doing so I am not sure that they will get many higher offers and it is unlikely the housing market will improve over the next few months. There was an alternative offer for the same value as ours a month ago but as we all know, so much has changed in a month.