Quick offer advice needed!

[Becaroooo]

OMG!

Think we have found the perfect house!

Trouble is, think its a bit overpriced - as they all are atm

Its on for £185k

I would pay £170k (which is 3 x dh's salary)

Too much of a price drop for the vendors?

Its no chain.

We are no chain.

Arrrrgghhhh

[ChippingInToThePumpkinLantern]

Great news!! Keep us updated!!

[cowboylover]

Woohoo! I hope it all goes well through the solicitors ect.
Our offer was accepted last week so just feels like we are just waiting now.

[tawse57]

The banks are tending to substantially undervalue asking prices/offers at the moment so you might get a welcome surprise that the bank surveyor comes back and says that the property is worth less than your offer - which will be a sobering moment for the seller.

168 of 190 is just under 91% of the asking price - if the seller had any sense they would have bitten your hand off. According to the land registry on average most houses in the UK get 90% at best so the seller should have got down on their knees and kissed your feet for offering 168K.

Slacking9to5 is right - play it cool now. If you appear desperate they know you are hooked. If they think you might walk away the ball is in your court. Shame you did not offer 160K and say the offer was on the table till 31st Oct whilst, in the meantime, you look at other houses.

[Becaroooo]

Update: After much hmming and hawing the EA just rang back and they have accepted our offer as long as we complete at end of Nov



Blimey.

shakey Hopefully this is our forever house too - we only have a 10% deposit so the repayments are a third of our income and we have borrowed 3 x dh's salary but we have been so risk averse in the past and it hasnt been the best idea....

Thanks for all the advice x

[Shakey1500]

alabamawurley

Tis fine :)

Coincidentally my sister and BIL have bought the same house 5 doors down and paid £230. Theirs IS immaculate though and helped us make the descision to buy this one as I was able to see past the decor and see it's potential. They have let it go for a song (disclaimer- not had the survey back yet..) but all being well with that, we do have a good idea of the future value once done up. Fortunately it's our "forever" house until we retire and bugger off to Greece so we're not relying on price rises for any reason. But confident that when the markets do decide to rise again, be it 5, 7, 10,15 years, it will have been a good investment.

[Becaroooo]

OK.

So.

Have got a "decision in principle" from L&C mortgages (they dont do an AIP til you have an offer acceptance - I guess they dont want to waste their time going through the application unless we have had an offer accepted?)

That means we have an e mail confirming we can get the mortgage we need, a deposit and no chain.

Have upped the offer to £170k. We cant go any higher than that, so will let you know x

[befuzzled]

can you get your mortgage advisor/ifa to speak to the builders once he's looked over the finances? Ours did and they were suddennly much more interested I think once he told them we were good for it. He had done a feasability investigation or something with a lender but I don't think we had a full AIP.

[Slacking9to5]

That's a really good plan. It'll happen. Remember, they want to sell and you want to buy so there is a deal to be done.

[Becaroooo]

Our ifa still hasnt got back to me

Am getting dh to ring and get an AIP tonight over the phone (did that last time!) Have been checking out the 90% deals online and we have 2 or 3 options.

Will wait til we have an AIP and then ring back and make our best and final offer.

[ChippingInToThePumpkinLantern]

That's a shame, but you do need to back off a bit now. Let them stew on it. It's early days.

[Slacking9to5]

Yes, you are in a great no chain position but without evidence of a mortgage it's unlikely a vendor will take their property of the market.

[Slacking9to5]

Hold your horses and calm down. Do you have a mortgage offer? If not it may well be that rather than price.

If I were you I'd leave it there for now, get the mortgage deal done and then come back. You don't know exactly how much you can borrow yet which will be a deciding factor as to where you can go offer wise.

You have to play these things very cool, you have to put yourself in the best possible position.

[Becaroooo]

Offer refused (unsurprisingly).

Have offered £168k and made it clear we are in a very good position.

Dont want to offer more...so its not looking good

[Slacking9to5]

Have you got your mortgage arranged? Fingers crossed but lots of vendors are not accepting offers unless AIP, especially with a low deposit. Sorry for pissing on your chips but it's a helluva bloody market right now.

[ChippingInToThePumpkinLantern]

Oooh - this is as good as a live birth thread

[Becaroooo]

Quick update:
Have put in an offer of £165k.
Will see what happens.......

[RoxyRobin]

Hello, Tulip. I thought you lived on HPC?

[tawse57]

[Becaroooo]

Congrats cowboy

Dh and I were talking last night. We have been looking - on and off - at houses in this location for nearly 2 years and this is the best one we have seen.

We have a lease til end of Jan BUT we dont mind paying for 5/6 weeks if we arent here as we can use it as a storage base and take our time moving and cleaning it ready for the end of the lease.

I would imagine the builders would accept our offer of £170k if we make a big thing of beig serious, having a deposit and AIP and are able to get in by xmas??

Might even offer £165k!!!!!

[cowboylover]

We just had an offer accepted of £125k on a house that was up for £159k so it can be done.

Be clear of your position and firm with your offer so the builders will put pressure on to accept as they will be paying any fees and this is the nearly the latest you can go on the 'be in before Christmas' push.

Good luck

[Becaroooo]

We can get a 90% deposit, but obv it does limit us and we will pay a higher rate

I have some experience with part ex houses - we lost out on a house purchase in the summer (our buyer started playing silly buggers!!) and that was a sale from a building company on at £185K and they accepted our offer of £172K - and prices have gone down since then!

So, am hoping that will be in our favour i.e. they have no personal feelings re the property and just want to shift it!

It will mean a large mortage (£153K) but thats 3 x dh's salary which is pretty normal AFAIK???

I just need the guts to go for a tracker (we have been on FR for years and paid through the teeth for them as we are very risk averse)

[alabamawurley]

If it was a private sale I would agree entirely with the others who said wait a couple of months before making an offer. Think about it, if you jumped in now, the vendors think something along the lines of: "oooh an offer so soon, perhaps we've priced it too low, reckon we could even get asking price. Let's hold out for the other offers that are bound to come flooding in".

Now, if you were selling and hadn't had a sniff of an offer for a couple of months and then someone comes along with an (actually quite reasonable) offer, it would be very tempting, wouldn't it?

However you say this one is being marketed by developers as part of a part-ex. These will have a much better idea of the current market conditions than your average vendor and I would suspect be more likely to accept your offer this early, particularly if they need cashflow. So I would be tempted to go in quite early; if they say no, they say no - there'll be other homes.

Shakey, careful with your logic there - the house may have been worth £250K when banks were throwing oversized mortgages at anyone with a pulse, but given the results of that lending behaviour, do you think it's likely to return anytime soon?

[Shakey1500]

The house we're in the middle of buying was up for £187,500. Our first offer of £167,500 was rejected but our second offer of £172 was accepted. I'd have gone up to £180 personally because although it needs a lot of work it is mainly decorative and worth an easy £250 in a good market.

BUT it had been on sale for just over a year and they were pretty desperate to sell by this point. Good luck!

[befuzzled]

We had a similar issue (though sadly not in the same part of the country as you are as your prices sound incredible!) - we saw it soon after came on market (after being on with another agent since March very overpriced), first to see it. Really wanted it. We are no chain, vendor is no chain. We are renting, 20% deposit, mortgage agreed in principle.

We saw it begning of August, put in, frankly, a p take offer (85K under asking price), then a couple more (-60K, -50K) over a period of a few weeks. Then stopped, said we really want this house, offer remains on table, as suggested here. It cooled off for a bit, another buyer came in with slightly higher offer we continued looking with the same estate agent and others. We held back but continued to assert it was the house for us. September came and went. Other buyers chain collapsed. Estate agent indicated they would sell if we went up 15K to what they had, in fairness, been consistently saying was the bare minimum vendor was willing to consider (35K off asking price). We went to that early October and they ummed and aahged. Came back after the weekend and did the old "just 5K more and she'll go for it" routine.

We said no that's it, we're stopping here as we know we are comfortable with a mortgage for this amount, anymore and we dont want to risk comiting to it and then having finance issues. Handily, we had seen another property we liked with the same agent that weekend so we put a semi-serious offer in on that (as plan B really). This worked well as I think they knew we weren't going any higher, really wanted the house but could stand to lose it. Next day they said vendor doesn't want to lose you as a good purchaser (not many out there at moment I don't think!), you can have it for the last offer of -35K which was about 6/7% off.

So in short, if our experience anything to go by, it is possible in this market, but you may have to stand your ground and hold your nerve a bit and wait (and be prepared to lose it).

[Tizwozliz]

We bought the house after we made the offer 8 weeks later btw, just in case that wasn't clear. 15k under asking on a much cheaper house than you're looking at.