Did I screw up buying a house?

[Ivyday]

A house went on the market yesterday, nothing here is avaliable for more than a few days. Asking price was 180,000 and above. I offered 177,000 on advice of family who said you never offer asking price. But I really like this house and I've not heard anything about my offer. First time buyer and worried I've messed up and should have just offered 180. Should I call tomorrow and up my offer? I've never done this before and I feel really out of my depth.

It’s a reasonable offer, don’t bid against yourself. Wait to see what the estate agent says.

@Ivyday

Yes I think they are probably waiting to see if anyone offers more. I think it's very likely someone will though. Houses are going at breakneck speed here. I was hoping if higher offers are made I would be able to counter offer. But I suppose they could just reject my offer and accept someone else's. This all feels like a game I'm trying to play but I don't know the rules.

Your relative gave you poor advice, or advice for a different market. If houses are selling quickly then the vendor may well be expecting asking price at least. You probably won’t be given the opportunity to counter bid and to be honest, I would stay away from that scenario anyway.

I would increase the offer now, if they get asking price offers this weekend your offer will be dismissed.

When we recently sold offers over 180,000 we had to wait until all our viewers had been round before we could accept an offer.

We had several offers one at 180,000 then two over. The estate agent told us to wait for feedback from each viewer. Then they went back to the 3 people who had offered and asked for best and final offers and proof of purchase. We then made a decision not just based on price, but on whether they had a property to sell, how big was the deposit and if the house didn't get valued at the price offered whether they would be able to proceed with the sale. 2 buyers were pretty even at that point so it was difficult to choose. But one of the couples were really keen and so excited so we went for them and it all worked out well.

Perhaps just check if there are viewings ongoing and whether they will contact you to discuss best and final offers. Don't up your offer yet. Yours might be the only one.

With the house we bought, we offered under and I expected it to go to best and final but as the house needed work doing it must have put people off so they only had our offer. It took some time to hear back as they lived abroad and it was difficult with the time difference so I just kept checking in with the estate agent for up dates

Good luck!

It has been nuts where we were for 6m (SW England) but a lot of properties are now coming back on the market as people realising they offered too much in haste and are pulling out

Have you even seen it if it came on yesterday???

The agent will be waiting for other offers to come in. If it goes to best and final you will have an opportunity to increase your offer.

It's tough but hold your nerve, I think you're first offer was too high and you haven't allowed yourself enough wriggle room, they know you want it and will make you sweat. Sellers are always attracted to 1st time buyers especially if they want to sell quickly. The estate agent should come back to you if a better offer comes in and if you're offer is rejected but they'll be waiting to see how long you can hold out for. Good luck! It is 1 of the most stressful things in life. Fact.

My mum buys and sells houses for a living. She's just sold one for sixty thousand more than she bought it for two years ago and all she did was a new kitchen and bathroom.

£120000 when she bought it so it's not some one off amazing house. It's completely ordinary!

She got at least ten offers on the day it went in the market and the only person who got a viewing was the person who offered the most.

She's been doing this for at least thirty years and she used to be an estate agent before she started doing this and she says she's never seen anything like this.

@RipleyBelieves

My mum buys and sells houses for a living. She's just sold one for sixty thousand more than she bought it for two years ago and all she did was a new kitchen and bathroom.

£120000 when she bought it so it's not some one off amazing house. It's completely ordinary!

She got at least ten offers on the day it went in the market and the only person who got a viewing was the person who offered the most.

She's been doing this for at least thirty years and she used to be an estate agent before she started doing this and she says she's never seen anything like this.

Your mum is pricing younger generations out of the market. Obvs it's not just your mum, but how very greedy.

We moved house in the summer. Someone offered us 8k below asking and our agent said hold out for full asking price in this market and told them no. So they increased their offer immediately to asking and we accepted. We didn’t want to mess about with multiple offers as we had asking price so that was it done

I don’t see what she can do about that though! She can’t sell it vastly under the market value it’s not her fault the market has shot up. She couldn’t believe it when she got the estate agent’s valuations back.

She doesn’t sell them to young people anyway, it’s bungalows she does, for old people.

We are in the process of buying and selling at the moment (In Scotland so slightly different process). We’ve been constantly outbid on house and we are putting in way over asking price. We’ve finally had an offer accepted which was £30k over asking price (offers over here). Ours is going on the market soon and I’m hoping for a similar value over, I’m also not expecting it to be on the market for long. We lost out on one that went £45k over!

In terms of your mortgage I believe they will only allow a mortgage to the surveyor value less minimum deposit and anything else has to be paid as if it was deposit so do bear that in mind.

However that’s just my experience of where I am and the current market. You could have a different experience if market conditions are not the same where you are.

No one here can possibly tell you unless you say exactly where the house is, as we don’t know the local market. Where I live, a property selling for offer over 180 would expect to sell for between 214 and 230.

But that won’t help you if you don’t live here.

Why haven’t you asked your solicitor - that’s what you are paying her for.

I don't know how then people have the deposit to go 30K over. On a 180k house we can just scrape 10%. Obviously we can go to a 95% mortgage but that only really adds 9k to our budget. And we are looking to buy at the very lowest end of avaliable houses so can't look for cheaper to stretch our deposit money more.

We are in Pembrokeshire which has a crazy market at the moment. People buying things for Holiday Lets etc.

Hai you even viewed the house yet if it only went up yesterday? I would wait. See what they say. They may want a few more people to view it first. Don't automatically increase your offer.

Yes we viewed it yesterday

They may just be waiting for a reply from their client. Moat likely they’re waiting to see if any more offers come in before replykng to you.

That said, I’ve never managed to buy a house for under asking price and I have tried a few times.

If you love the house, call up the estate agent and have a friendly chat with them. Agents love to chat and often give away stuff tbey shouldn’t - one I spoke to even told me her client’s bottom price without me asking! (Although I later got gazumped 🤦‍♀️)

£3k is nothing compared to the total house price. I’d ask the agent very clearly “at what price would the seller be willing to take this house off the market and take all adverts down.”

I house came on the market in my area yesterday at a really great price for a perfect road, very unusual opportunity. 2 hrs later I tried to show my husband and all of the adverts had been taken down. When a house is good in a sellers market things can move very fast.

So as way of an update the agent has called to ask me to send DIP & proof of funds for deposit. Agent says vendor will then consider all the offers that have made. Makes me think if there are multiple offers I should go up? Or still stick to guns? She said they may then consider best and final offers....

@NannyAndJohn

I'd be expecting it to go for in excess of £200000. Can you stretch to that?

This is stupid 'advice'. What on earth have you based this assessment on??!?

You have no idea what area the house is in or what the market is like in that area. Or whether the house was very competitively priced, or the vendors were pushing their luck with asking for 180k.

@Ivyday

So as way of an update the agent has called to ask me to send DIP & proof of funds for deposit. Agent says vendor will then consider all the offers that have made. Makes me think if there are multiple offers I should go up? Or still stick to guns? She said they may then consider best and final offers....

If multiple offers have been made, I'd offer asking, but stress what a good position you are in to proceed quickly as FTBs.

"If multiple offers have been made, I'd offer asking, but stress what a good position you are in to proceed quickly as FTBs."

I would do the same as this.

Sorry I’ve probably misled you by giving you £ values rather than % as the houses I’m looking at are higher priced, I was more wanting to demonstrate the ridiculousness of the housing market just now. Houses around us are going for 10-15% more than the offers over price.

I guess it depends how much you want the house and how much you can ultimately afford. Is this the first house you have put an offer in for? We found it has taken us having offers rejected and understanding why to be able to get to a position where we were able to offer and be accepted.

Don’t be disheartened if you don’t get this one but if you can and are willing to offer more then I’d consider just doing it.

Good luck! It really is one of the most stressful things you can do!

That's a good sign they asked for that information. Reiterate your position. Many people who offer more are in chains.

Don't take too much notice of what family say. House buying isn't something most people do very often.

It will very much depend on market conditions e.g a few years ago properties in parts of London you'd need to offer over bidding are etc. Now they are offers under. Houses in the south east which would have been offers under at that time now are very much offers over.

If this is a house you’re really passionate about, fits the bill for you perfectly then let the EA know. Let them know you’re planning to make it your family home.

Don’t tell them you have more budget - they’ll make their own assumptions from what you already said - also make sure you’ve told them you’re a FTB and ready to move quickly.

You might end up offering more to secure the property (we’re actually buying a house for £10k more than the property value as we’re so keen on it) but don’t jump the gun.

Good luck!