Buying a house - help!(19 Posts)
I posted a few weeks ago and got some great advice so I'm back again.
We've found a property. Viewed it twice, know the area and neighbours well (same road as MIL- who is lovely and had excellent boundaries so no worries there!)
We're going to make an offer tomorrow which we are pretty sure is going be rejected but it'll open negotiations. It's on as offers in excess of X but we're offering below that as there's work that needs doing. Any experience of offers over? I know in some parts of the country it can be a bidding war but this property has been on the market a while and the vendors want a quick sale as they've already bought and move into a new house and we're first time buyers so we think that's in our favour. They can only say no can't they?!
Should we have already have instructed a solicitor? I keep reading things about the estate agent wanting to know our solicitor's details immediately.
We've started looking around and getting quotes.
Basically what should we be doing now? Any advice greatly appreciated as this is all very scary!
If the vendor has already moved then perhaps they don't need the money, so they may be happy to wait until a higher offer comes in. However, being a FTB puts you in a good position.
Your EA will want to know which solicitor you will be using for their records. You don't need one at his point, not until you have an offer in place and are proceeding with the purchase.
Do you have a mortgage agreed in principle?
Yes we have a mortgage in principle.
Apparently the vendors are wanting a quick sale. Price was reduced a month or so ago by a fair chunk to stir up more interest.
We have never appointed a solicitor until sure that our offer has been accepted.
Agents and banks will often also have a list of solicitors, but do your own research too.
Get through the offer stage first, but have a solicitor in mind for when/if you do.
Offers over usually means just that (I work as PA to owner of an EA so don't hate me!)
You will be asked for:
Proof of deposit funds
Proof you have a mortgage agreement in principle
Details of your Solicitor (you can instruct them later but you are more "ready to proceed" if you have one
Proof of ID (photo and address for each of you) not everyone asks for it but it helps verify your offer.
Thanks Diamogs we thought it might be. We will go in at the offers over price but thought a cheeky offer wouldn't hurt and is what people have told us to do. We're expecting it to be knocked back.
Hadn't thought about proof of deposit. Some of it is being gifted by MIL so I assume we'll need proof of that plus her word that it's a gift not a loan. Will isa statements be enough?
Wombat, I'm just a little bit further along in the process than you (offer accepted last week). I had to take a copy of the decision in principle, our driving licences and council tax bill into the estate agents. They said to let them know as soon as I know which solicitor I am using (they arranged for a few quotes for me). They never asked about the deposit.
Make sure you pick a solicitor who is on the panel for your mortgage provider.
We had to use a solicitor from a list our mortgage provider gave us. Our EA also recommended one he worked with regularly and luckily that solicitor was on the list. We were moving well out of area, so no risk of choosing same solicitor as our vendors but I believe you shouldn't use the same one.
Might be worth asking your mortgage provider if they require you use someone from their list?
my last house was on at offers over 190,000 and I sold it for 187,500 - it's worth putting in a low offer (buyer offered 180,000 at first) - I lowered it because she was a cash buyer moving out of rented and wanted a quick move - I was buying an empty property .
she actually turned into a nightmare it took months to move and she demanded another £500 off the price because SHE fucked the completion date up and mad to pay another months rent!
You can use the same firm, but different person. We have accidentally picked the same as our vendors, but as we haven't paid them or told them all our details yet we are finding another solicitor to use. I dont think I feel comfortable using the same one.
We are at a similar stage to the OP. Why would we need proof of deposits? That's our own business with the mortgage company/broker? (Assuming not a new build etc).
Our house was on at offers over, we offered what the house was worth to us, which was under the asking price. The vendor can say no if they don't want to take it (ours eventually said yes, still some way below the "offers over " price.
In my experience unless there is a bidding war then the offers over price is the price the vendor wants, they don't actually expect offers to be over it.
We are slightly ahead of you OP and when our offer was excepted we had to show proof of deposit (savings account statement and a signed letter from my dad saying he was gifting us X amount), Id for me & dh, proof of address, mortgage in principle. We didn't instruct our solicitors until that point and then we have since had to change as the seller was using the same one. It hasn't slowed anything up though so far.
Our house was also offers over, we got it for £1k over that price but there was another bidder. They chose us in the end because we are first time buyers and in rented accommodation so no chain.
*Our house was on at offers over, we offered what the house was worth to us, which was under the asking price. The vendor can say no if they don't want to take it (ours eventually said yes, still some way below the "offers over " price.
In my experience unless there is a bidding war then the offers over price is the price the vendor wants, they don't actually expect offers to be over it.*
See this is what I don't get, why not just put an asking price? I get it when you live in London or somewhere where a property is in high demand. If there is no bidding war why would someone offer higher than the offers over price? Maybe I'm just naive.
As a PP said, we're offering what the property is worth to us (5k under the "offers over price") but expecting it to be rejected at first.
Definitely just bid what you think it's worth. We bid well under the offers over price on our place in London last year. They had no other offers and two months later we bid 10k more (still 40k) under they're original offers over price and got it. We then knocked 12k off with survey. Houses are only worth what someone will pay.
A house is only worth what someone is prepared to pay for it and the 'offers over' may be what the vendor wants, not what he will get.
If they've already moved out, are wanting a quick sale and have reduced the price, I'd guess they are keen to sell and you're in a good position as first timers. They might even have a ruinously expensive bridging loan.
The people who bought a house from us initially offered £40,000 less than the asking price. We refused and they upped it by £10,000, which we still refused. Hey tried another £10,000 increase and eventually we settled for £5,000 less than the asking price. We weren't in a hurry though, didn't need a mortgage and were buying a new build which wasn't ready, therefore no chain.
You could offer a lower price than you will ultimately be prepared to pay- sometimes that works, sometimes not. Ultimately you will have a price beyond which it's not possible for you to go, but that's your decision.
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