To have no idea how to buy a house

[Cluelessbuyer]

Long time lurker first time poster penis beaker...

AIBU to be a grown woman with a husband and a child and have no idea how to buy a house. DH and I have decided to purchase our first home but we have no idea of what the buying process is. We have contacted estate agents and booked viewings but do we offer the asking price, higher or lower. What is the correct etiquette? Would we be CFs to offer £10,000 less? Also, do we be honest about our budget to our EA or say lower and negotiate up to our actual budget? It seems EAs are on the side of the seller to get the most amount of money our of us. I feel so silly but didn't know who else to ask.

Ah congratulations, a very exciting time. You offer whatever you think the house is worth, I am of the view (both when buying and selling) that there is no such thing as CFery in the house buying world, there is no relationship between you and the seller, you don't 'owe' them anything and certainly you don't owe them what they think their house is worth.

It can be hard especially at first to gauge how much a house is worth but you will start to get a better feel after the first few houses (this is why convential wisdom says never buy the first thing you see) and you can use Zoopla etc. to look up what average prices in the area are and what similar properties on the road or neighbouring roads have sold for recently.

It's reasonably normal buying etiquette to make an opening offer at somewhat less than what you think the house is worth in order to give you some headroom for haggling, but whether that's £1000 under, £10,000 under or £100k under really depends on loads of factors, how much the house is on the market for, how long it's been on the market for (if longer there is usually more room for negotiation), market conditions in the area, what you can afford, whether there are any other bidders in the running and also the circumstances of you as a buyer and the seller, so for instance if the seller needs to move quickly and you are a cash buyer you can usually use that as a negotiation point for a small discount. As FTB who (presumably?) need a mortgage you are not in quite as good a position as a cash buyer but next best thing as you're not in a chain...

I would be vague with the EA about your max. budget when just viewing, they work for the seller not for you remember so don't give them any advantage in negotiating. But of course if you are offering your maximum and can't offer any more then say so.

Any more questions do ask!

Estate agents act for the seller. Their role is to maximise the price.

In terms of what you offer, it depends on where and when you are buying and how much you want the house. In a hot market you might offer more than asking price, particularly if there are other interested parties. At the moment the market in most areas is pretty flat, so you could try offering under the asking price. Information on sold prices is widely available so you can see what other similar houses are actually selling for rather than the marketing price.

Hi op congrats on this exciting but I'm not gonna lie stressful time!!

My house is currently on the market. I am a realistic seller and would welcome negotiations from any interested party. Not because my house is a shack or anything it's actually perfect move in condition but I've seem my dream house and want to move on!

You never know your sellers position so offer what you think it's worth or maybe a little bit under that and see where negotiations get you!

Oh and btw if someone offered me 10k below my asking price id actually accept that

House buying depends on where you are in the country.
In Scotland the seller sorts the survey and it's up front, a solicitor has to put a bid in for you and its a silent bid process. Once solicitors agree letter exchange (usually a few weeks ) it's legally binding so can't be gazumped before exchange.

England and Wales you pay for the survey and the sale isn't binding in that it can be reliant on a chain and you can get gazumped.

In terms of what you offer this is dependent on the area. There is no harm in a cheeky offer. We originally offered 20k under the asking price and settled on 12k under. This is in Scotland where a alot of properties are over the asking price.

General tips don't be put off by empty houses you can get a good bargain. Visit the house at different times of day if having repeated viewings. Have a drive around the area etc

The seller pays the estate agent, so yes, they are going to try and get the best price. Don't tell them your exact budget, but you will need to give them a ballpark figure so they can contact you with suitable properties.
Do you have a mortgage in principle? If not, get in touch with a broker and get one. You'll be taken more seriously as a buyer if you have an MIP and are processable.
It's not really as simple as £10k less... That's 10% of a £100k property and only 1% of a £1 million property. Best bet is to look at the sold prices on Rightmove and see what local houses are selling for eg if another very similar house sold for X amount but the one you're looking at needs a new roof or central heating, that's a bargaining point.
Your first offer might be rejected but you can always offer again; when we sold our flat we accepted our buyers 3rd offer.
This website has a guide for first time buyers that is really helpful: hoa.org.uk/advice/guides-for-homeowners/i-am-buying/

Oh and btw if someone offered me 10k below my asking price id actually accept that

^I wouldn’t

You need to watch Location Location Location!

Go to see an independent whole of market financial advisor to make sure you are accurate with your budget, they can give you an idea and get you a mortgage in principle which makes you more attractive as a buyer, especially as you're chain free. I'd also make it clear when you offer lower than asking price you have no property to sell, can work to their time frame and have your mortgage agreed, that's quite a strong position to be in and may well make the difference between you and another buyer.

We do have a mortgage in principle so I think we're going the right way about it. I thought I'd see what other people think about the whole offering etiquette as I don't want to make the estate agents think we're not serious if we go in with a low offer. But your replies have helped a lot, thanks.

In England/Wales, there is usually room for negotiation of around 5-10% below the asking price, if it's not stated as 'offers over'. But obviously £10k off a £100k property is much more significant than off a much more expensive property.

Also depends on how the market is in your area. If it's slow, you might get £10k off, if properties are selling quickly, sometimes they go for more than the asking price, as people bid the price up.

But it also depends how realistically the property is priced, compared to similar properties in the same area, how desperate the sellers are to move - some are happy to wait until they get their desired price, others need to sell so are open to negotiation and how realistic the owners are.

We once viewed a property that was on for £135k, that had been redeveloped by someone who had spent far too much on it. We offered £125k because that was the stamp duty threshold at the time and realistically, no properties ever sold for between £125k and £130k unless you started messing about with extra payments for curtains etc and it was worth £120-125k at most due to the area etc. Not surprisingly, we were rejected. The property remained unsold for a year, after which it sold for £125k. So not realistically priced at all and this had cost the seller a year of interest either on a mortgage or money that could have been in a savings account.

Be really firm with the agents, they will push you on upping offers on the chance you'll give in. Make the most of being first time buyers and chain free! That can be a massive plus to accepting an offer you've made so keep reminding the agents you can progress fast compared to other offers.

Good luck!