Offering less/first time buyer

[Snoutthematter]

Afternoon all

We're in the process of saving for our first house and are both first time buyers in rented accommodation. Just looking at what we can afford and what is out there

I just wondered:

1. How much less than the asking price you offered on your house

1. How much it's worth to the seller if the buyer is chain free

We offered £15,000 less and eventually settled for £10,000 less. But most people I know managed to get their houses for around £20,000 less. Guess it depends where you live though. We were told "Never be afraid to make a cheeky offer - they can always negotiate!" Didn't apply to us because we needed to move quickly and didn't have time to try and get them to drop more.

If the seller is in a hurry then being chain free and ready to go is a big plus - it's useful but I don't think it will necessarily mean you can make a cheekier offer.

The first flat I bought was on market for £96k and I offered £92k which was accepted and I reduced this by another £2k when survey revealed a big damp issue

Second flat was on at £116k and I ended up having to pay £121k as it went to sealed bids and I really wanted the property.

My friend is currently selling her house. It's on the market at £675k and they've just accepted an offer of £660k

We offered £10K less (was priced at £325K) and it was accepted immediately (had been on the market for nearly two years so I expect they were glad to sell, price had previously dropped from £340K).

Depends on all sorts of things - the pace of the market in the area you are buying, the system (it's different in Scotland), how desperate they are to sell, if you are near a stamp duty threshold, if you can offer flexibility (like being able to move very quickly, or not needing to move if they've not found anywhere), what the asking price of the property is - £10K is a smaller % of a more expensive house than a cheaper one, how long the property has already been on the market. Often, vendors will make an emotional decision when selling their home- it helps if they like you

There really isn't a hard and fast rule because it's all based on supply and demand and what other offers might, or might not, come in.
We didn't get a penny off our house, but we really wanted it and to be honest the price was reasonably fair for what we got. It grieved us to have to stump up the full asking price when we weren't in a chain and had everything set to go immediately, but we've never regretted buying it.

I think the main thing as first time buyers is not to get too emotional and to agree between yourselves what properties are actually worth to you. Take into account how quickly property is shifting in your area, travel costs to work and any ongoing maintenance costs or charges.
Sometimes you might pay a bit more on the property but save on other outgoings which offsets it.
All that said, if you don't try an offer, you won't ever know, just be wary of Agents who try and talk you up, they're obliged to pass on any offer you make even if they tell you they don't think it'll be accepted.

The 'rule' is to offer 10% less but it depends very much on how sought after the property is.

If a house was £150K then I might offer £142, and hope the buyer would accept somewhere between £142-£145.

If it was £200K then I'd try with maybe £180-£185.

What is the house like? You need a reason for offering less- such as pulling out the kitchen, double glazing it, etc.

Most houses are priced too high so your best bet is to go onto Right Move and look at the SOLD prices for the same houses in the same area and work out if that was a good price, as well as how long ago it was bearing in mind trends for prices rising or falling in the area.

Wow, thanks for the feedback guys. We're in a town with high property prices and houses are moving so quickly. One I had my eye on (just checking the market) sold in three days. We won't be in a position to buy for another few months yet but all the advice, especially checking Right Move for other prices, is great.

a house is worth what someone will pay for it, so making a "cheeky" offer may backfire. When you find a house, ask yourself how much do you want it, how would you feel if you lost it, how often do houses that meet your criteria come along. When you have answered these questions, then make your offer. We were FTB 18 months ago. Most of the FTB houses in our area are 2 up 2 down terrace with downstairs bathroom, and no off street parking. Then a house came on market, with both a garage, and an upstairs bathroom. It was slightly more than we hoped to pay, and we seriously considered a cheeky offer. However, in 2 years of looking, this was by far the best house we had seen, and it was exactly what we wanted. Therefore, to ensure we got it, we offered full asking price. In the 18 months we have been there, no house to match it has come on the market at a price we could afford, therefore, in our opinion, we did the right thing. So don't automatically assume you will get 10% off, it all boils down to do you want the house, or don't you. Good luck