making an offer on a house

[tibywibs]

Hi All,
So bit of a daft question here, but need a bit of hand holding!
DH and I have found a house we love, up for 99k. (on since FEB)
As FTB we need to know how to make an offer on a house! is it as simple as ringing EA and saying we offer this much? Do we start low and explain it's a starting offer and also, how low is acceptable? (We live in Lincolnshireand were thinking of 85k as a first bid
Thanks for any help!!

Look at land registry records for recent sales in the area. Try pitching your first offer at a much lower level than you are willing to pay- try £75K. Don't feel embarrassed about bargaining, the EA will be used to it.

Really? I'll need my brave head on!
So we just call up and say, we'd like to offer 75k on the property in .................
It's the smallest house on the street so prices are generally higher than 99. We would ideally like to pay no more than 90

I think if you offer a price which is three quarters of the asking price the buyers will not take you seriously and will consider subsequent increasing offers also as unrealistic. I would be thinking of first offer of offering 10-15% less (maximum) with a view to a second and last offer of the actual price this property is worth to you (irrespective of the market).

so littlepushka, your advice is to go in at 85 as i originally said and then make a second offer of 90?
i'll kick myself if they jump at 85 but i know the house is worth it!

The house is worth what someone will pay for it. It obviously isn't worth £99k.

I would say that is a reasonable plan which might get you your house at the price you feel it is worth or even slightly cheaper. Just because they accept £85k does not mean they would ahave accepted any less - so do not beat yourself up over that one

i honestly thought buying a house would be more fun!!

You have to ask yourself how much you want the house and how much stress you can live with.

If you go in too low, your offer may be rejected and they will accept someone else. Or you will have to wait agonising weeks whilst they mull it over. Then if they feel they have grudgingly got to accept you, you may run a risk of being gazundered down the line.

If you can take the stress and won't be too gutted if you don't buy it, then go low.

However, if you really like it and you can afford it, go as close to asking as you can. You are more likely to be accepted and they are less likely to dump you down the line. £5,000 is a lot of money, but think of it spread over a 20 year mortgage term.

House buying, and selling, is one of the most stressful things you will ever do. Fun doesn't even enter the equation. Try and calculate what you will pay over the years for every extra pound you pay over the odds now. I reckon its slightly over two to one.

The buying part is never fun, the decoration and moving in bit is though

Our initial offer on the house we're buying was 17% under asking, it wasn't accepted but our second offer of 13% under asking was so we didn't offend any one.

The key thing offer what you think it's worth and what you're willing to pay but bear in mind that if you want a mortgage the bank need to agree with that figure too.

I was unsure whether to go with our low first offer because it was so low but decided having room to increase and not be wondering whether they would accept less was the better option.

Are you making the offer today? My advice is to try to imagine it as a business transaction. Be very professional, and try to channel Kirsty.

As you are first time buyers you have a very big advantage in that you have no chain. When you make the offer describe your position and explain that it is a very strong position. e.g. Say FTB, no chain, we have a mortgage offer in place already, we have a solicitor ready to go, we can proceed straight away, etc. This will always make your offer more attractive than others, so make sure you use this advantage.

Then say 'On this basis the offer we would like to make is £xx.'

Don't say 'The first offer we would like to make is..'. !!

They will phone the vendor then phone you back.

If it is rejected ask them 'What figure would they accept?' You want their numbers to come down, and yours go up until you meet at a point you are happy with.

Good luck!

I once read on here 'if you're not a bit embarrassed by your first offer, then it's too high' - which I think is great advice!

Don't worry about offending anyone - just as they won't worry about offending you if they refuse.

Good luck!