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Original poster

Making an offer on my first house

12 replies

Elenajc86 · 20/12/2018 22:27

Hi everyone,

Just looking for a bit of advice. I’m a first time buyer, I’ve found a house I love its just a bit out of my budget. I’m looking to buy a house no more than 100,000, the one I’ve fallen in love with is on at 110,000. It states the guide price is 110,000 to 120,000 however I did a bit of research and the last three houses sold on that road went for 95,000 (2018), 100,000 (2017) and 105,000 (2016). It was put on the market in October and reduced in November. He bought the house two years ago for 100,000 and nothing has changed inside or out.

I have no house to sell and no one is living in the house I want to buy.

Just curious what offer i should go in for? Any suggestions or advice would be great! I really haven’t got a clue when it comes to house prices and offers. What were your experiences with buying/selling? What would you offer first given the circumstances?

Much appreciated

Elena

OP posts:

mumsy27 · 20/12/2018 23:10

it doesn't matter how much it cost them or how much similar houses were sold,more or less.

isn't far from the asking price and a fair offer.
don't over stretch yourself.

BackforGood · 20/12/2018 23:11

With any offer, it depends
a) how much you want that particular house
and
b) how desperate they are to sell

If you like the house, and have all your finance in order, I'd start with a lower offer - something like £93 000 and see what the response is.
I'd expect that offer to be either rejected or for them to come back with "I'm not going below £X" and you start negotiations from there.

If there is something that makes it the one, you are in a different position from if it is one you 'like'.

maxelly · 20/12/2018 23:14

Ooh very exciting. I assume the other properties on the road were roughly equivalent, same number of beds, same condition etc?

I can't claim to be a master negotiator but I would probably go in at £90 or 95k as an opening offer, expecting to possibly go up to £100k as a best and final offer... make sure the agent knows you are a FTB, chain free etc. as that is a good selling point.

Why is the owner moving on so quickly, is he a 'developer' in which case I'm afraid he might want to hang on for a price closer to £110k to make at least a small profit/cover his costs (I suspect maybe so from the fact no-one lives there ATM)... but nothing ventured nothing gained.

On the plus side the fact that similar properties have sold within roughly your price bracket should give you confidence that you can find something even if this one doesn't work out...

Ponsietta100 · 20/12/2018 23:15

We recently bought our first house. Asking price was £225k but we offered £210k as we were like you. First time buyers. No chain. Ready to mover straight away and they accepted first offer. So go for it. Worst that’ll happen is they say no!

OlennasWimple · 20/12/2018 23:24

Have you spoken to the agents about the seller's situation? It's unusual to have a guide price, so the agent may know whether the seller is completely unwilling (or unable) to entertain offers below £110k. It's worth having the conversation before making the offer

mumsy27 · 20/12/2018 23:28

also, you don't know their circumstances,desperate or want a quick sell.
it often happens seller takes lower offer if it comes from ftb.

Original poster

Elenajc86 · 20/12/2018 23:39

Thanks everyone I really appreciate the advice. I guess I didn’t want to go in there and offend them with a really low offer when they stated 110,000-120,000. The estate agent told me ‘they’re looking for that price but it can’t hurt to try, you’ll only know if you make an offer’

The other properties were the same just a bit nicer inside decor wise but I suppose thats down to personal taste. The owner has apparently moved away that’s as much as I know.

But thanks I’ll go in mid 90,000 and see what they come back with. Fingers crossed that they just want a quick sale then I will have an advantage. Very excited!

OP posts:

HeddaGarbled · 21/12/2018 00:03

£93,000-£95,000 is a bit low for an asking price of £110,000 and there’s a risk of coming across as a CF. I’d only do this is you aren’t fixated on this particular house and are OK to keep looking, but fancy taking your chances on a cheeky offer.

If you really, really want this particular house, I’d offer £100,000 and make it clear this is your first-and-final top-of-your-budget offer. You will need to stay strong and refuse to get involved in any further negotiations if that offer isn’t accepted immediately.

TV programmes like Location, Location, Location encourage us to think that cheeky offers are the way to go, but there is a very big risk of alienating the vendors if you try and screw them over. Honesty and likeableness and reasonableness and trustworthiness do still matter to more real-life people than you would think.

Original poster

Elenajc86 · 21/12/2018 00:28

Hi Hedda.

I did consider just offering the 100,000 and saying I won’t be able to move on this price as that’s as far as my mortgage will take me. Which is the case. I also considered offering 98,000 so there was room to negotiate slightly. But with xmas/brexit and the seller only paying 100,000 for it 2 years ago maybe a cheeky offer of 95,000 might not be out of the question. Not sure which would be the best way to proceed. I’m going to speak to my mortgage advisor next week as he’ll be doing the negotiating see what he thinks. Thanks for the response

OP posts:

Original poster

Elenajc86 · 21/12/2018 00:30

I do really want the house, it’s ticked all of my boxes and I’ve seen a good few. If I don’t get it, it’s not the end of the world they will be others but I’ve not seen anything else I like as much.

OP posts:

OlennasWimple · 21/12/2018 00:36

I completely agree with Hedda

A £93k offer on a £110k asking / guide price is 15% below what the seller has said that they are looking for. And I'd imagine psychologically i will be hard for the seller to look at an offer that is a) below £100k and b) below what they paid for it.

Don't be afraid to make a best and final offer upfront, emphasising your positive points, but be prepared to walk away and leave the offer on the table if it's not accepted straight away. It might be accepted after a while, if no-one comes along with a better offer

jemihap · 21/12/2018 06:01

Vendors and agents always like to think they've ''won'' when it comes to negotiations so I'm not sure going straight in at £100k as your absolute best and only offer is the best tactic.

I'd start at £95k and if rejected go up to some random number like £97,350 (to make it look like you've really squeezed every last bit of funding you can find)

If still firmly rejected then go up to £100k as a final throw of the dice and make it VERY clear that this is your absolute maximum.

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