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Original poster

Housebuying advice please!

23 replies

Frieda · 06/02/2006 16:38

Well, we've finally found a house we all like (after 8 months of searching ). The sort of house we've been looking for seems to be very few and far between - we must have sifted through 100s of possibilities. Although this house isn't 100% my perfect dream house, it is about 90% of the way there, ticking a lot of the boxes as far as location, setting, garden, etc. go - and dh likes it, - only the 2nd time that's happened! It has, however, been 'done up' within in an inch of its life (albeit not exactly to my taste, but not unliveable with) which is why it's at the top of its price bracket. What I want to know is this: Do we go in initially with a low-ish offer, then expect to edge up? Or do we just put our cards on the table and say "this is what we're prepared to pay - take it or leave it?"
MIL tells me the house-buying market has changed since last year when nothing was moving, and things are now going for their asking price, and even more .

Any experience, advice, tips etc would be eagerly welcomed

OP posts:

cece · 06/02/2006 16:41

not sure but we are about to embark on house hunting so will be interested to find out.

spoke to an ez today who said things were shifting unlike last year. whatever that means! think it might be bs though as the house i will be viewing has been on for a few months i think!

Belo · 06/02/2006 16:47

How long has it been on the market? If its been on for a while, then mabye its safe to go on with a lowish offer, and work your way up if necessary.

If it has only just come on the market, then what you do depends on how much you want to gamble. What have you got on your side? Are you chain free? Have you sorted out your mortgage? Those are things that would make you more attractive than another prospective buyer to the seller.

Don't know if that's any help...

Skribble · 06/02/2006 16:53

They might of priced it a bit too high, thinking that the decor will add value. As Belo says it will depend if its been on the market a while.

If you go in low they can only say no, but if you offer the asking then you can't go back. Not much experience as we are in Scotland and it is always "offers over" or "fixed price". We were lucky as this house was fixed price it was just a race against time to get the offer in first.

Twiglett · 06/02/2006 16:56

you need to know

how long its been on the market
how quickly houses like it go
how many people are looking in the same area

always be prepared to negotiate .. so dependent on how much they're asking go in 5 to 10K less .. but be prepared to meet them halfway

LIZS · 06/02/2006 16:57

If it is recently onto the market(last month or so) or the price has just come down the seller will probably expect close to the asking price. If it has been around a while and not been reduced or the vendor is already suited and ready to purchase and a lower offer may be considered. Things that would work to your advantage are being chain free ,as a cash or ft buyer, having a purchaser on your property who is a cash or ftb and being able to get a quick exchange if the vendor is already suited. That might tip the balance in your favour on a lower than asking price offer.

Personally I wouldn't edge up as that will pss the vendor off and lack credibility. Offer what you think it is worth to you, allowing a little room for manoeuvre should they say no if you really want it. Good property is* selling atm so you may find that they will hold out.

Twiglett · 06/02/2006 16:57

check out that site that gives you the prices houses have actually gone for .. try to find ones like it that have completed recently .. can't remember the site name .. then you can judge based on that

Twiglett · 06/02/2006 16:59

this one I think (I googled)

LIZS · 06/02/2006 16:59

You mean this site, I think Twiglett.

LIZS · 06/02/2006 17:00

looks similar !!

Original poster

Frieda · 06/02/2006 17:00

It's only been on a week, Belo , so I think they may prefer to take their chances and hang out for a better deal if we made a really low offer. But you have to start somewhere, and we are in quite a strong position, being chain-free and only needing a small mortgage which is agreed in principle. Apparently, they sold it last year close to the asking price (according to the agent) and the sale fell through because they didn't have building regs for some work they had done, but they've now sorted that out.

Thanks for your input, anyway.

OP posts:

Twiglett · 06/02/2006 17:02

house prices

Original poster

Frieda · 06/02/2006 17:03

Good suggestions, Twiglett. I have looked on nethouseprices, which was v helpful, only the trouble is the houses in that area are very different from one another, so it's not comparing like with like.

OP posts:

LIZS · 06/02/2006 17:06

That is the problem with these sites Frieda, sometimes it is hard to generalise . Has the doing up been done since the previous sale or was that what the buildings regs were needed for ? tbh I doubt you'll get much off atm, especially if it a bit of a one-off.

Original poster

Frieda · 06/02/2006 17:13

Mind you, that site is strangely fascinating. I can see myself spending hours trawling around it - very probably to the detriment of my mental health .

OP posts:

Skribble · 06/02/2006 17:17

Argh I just had a look at the price my own house was previously bought for and the other houses in the street. I WAS DONE!!!. I hope those are the ones where they get a discount for buying their council house.

Belo · 07/02/2006 09:52

Are the sellers part of a chain? If they are, they will be very keen to find someone such as yourselves who are chain free. That might mean something to them. You could make your lower offer now, and wait for there response. It will give you time to up it before the weekend, and probable other potential buyers seeing the place. Good luck! I'm starting to feel nervous and tense for you! My friend put in an offer on a house yesterday which was immediatly accepted. She's now wondering if she should have made a lower offer....

tracyk · 07/02/2006 09:58

I'd make an offer lower than asking esp if you are chain free. or you could offer full asking price and then negotiate down a bit once it's been surveyed/valued if it turns out you've gone too high.
But if you really want it and can afford it - go for full asking price, get it off the market and move quickly. esp if you haven't seen many you like.
We are haggling over the last £5k with our new house - and we haven't seen anything nice for ages. But there are loads of properties coming onto the market now - but also loads of buyers - ready to snap them up!

mythumbelinas · 07/02/2006 10:03

Frieda, we were in a very similar situation as you are in now. We opted to go with a lowish offer, which was rejected, then giving another offer. In the end there was another potential buyer, so it went to final (highest) offer.
We thought about whether we would be devastated if we didn't get the house, and the answer was 'yes' so offered full asking price.
We got the house (which i am sitting in right now), but i was pretty upset about having to stump up that bit extra of cash too.
Houses around were going very quick, but it has slowed down recently.
Just go with how you feel and what feels right hth

golds · 07/02/2006 10:07

it really does depend on how much you want it. I sold my house recently to the first viewer on the first day, no way was I willing to accept lower than the full asking price, but then again I was realistic in the first place and put the house on for a price that I knew would sell it. They knew that they had to offer this or loose it, as I had another 5 viewings lined up. We offered the asking price on our new house too, didn't want to risk missing out. I move next week.

littlemissbossy · 07/02/2006 10:23

Frieda, you MIL is correct. I think because the market has slowed, people are automatically expecting that prices should be slashed however, IME (I work for a property developer) this is not the case. An estate agent would recommend that the vendor of a hold out for the asking price or as close to it, they are working for them to get the best possible selling price.
Are you in a chain?? if you are chain free you can use this as a big negotiating tool. Good luck

Original poster

Frieda · 07/02/2006 12:28

Thanks again, guys.

Well, I went to see it again today (2nd viewing), and it's amazing how different are the things you notice the second time. Although the house looks superficially very nice, on closer inspection I identified a couple of windows that need replacing (they'd painted over the rot) a nasty-looking leak in the roof which the vendors obviously know about as it's patched up with tarpaulin , a couple of funny looking holes in the bathroom ceiling (where they've hung a chandelier - seems an odd choice of bathroom lighting to me) and lots of woodworm holes in the roof timbers, which may or may not have been treated.

Apparently the vendors (who seem to be small-time property developers, by the way )sold it last year, but the sale fell through because they didn't have the neccessary building regs ? tho' I subsequently gleaned from the Agent that the buyers pulled out 8 weeks after accepting the offer, which means they must have spent quite a lot of money on survey and legal fees by that stage. I'm guessing their reasons for pulling out possibly had to do with what came up on the survey as well.

My plan is to go back to the agents with a list of observations and queries before putting in a lower offer. I'll let you know how it goes. Although it's a lovely house, I'm glad I didn't rush in with an asking price offer. Someone may well be willing to pay that, but if there's a substantial amount of maintenance work to be done it would really stretch us.

OP posts:

littlemissbossy · 07/02/2006 12:46

Oh dear Frieda - tarpaulin on the roof
It may be as they are small-time property developers that they have done some botched up DIY jobs themselves, so I see your point about negotiating on the price.
However, be warned - if they accept a lower offer and your survey comes back with things that need repairing/treating, the timbers for instance, they may not be willing to come down further on the price.
HTH good luck

tracyk · 08/02/2006 08:38

Can you take a builder back with you or pay for a survey before you offer?

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