Advice on making an offer

[SabaliSabali]

I’ve found a house I’d like to make an offer on but as a first time buyer, I’m not sure how to best play it.

It’s only been on the market less than a week. It’s on at £220k which I think is a little overpriced when looking at comparable properties but I would be happy to go over the asking as I will probably stay there forever (I get really attached to houses and hate moving!). How much should my initial offer be?

I have a second viewing arranged for tomorrow but I also know that there are viewings booked in over the weekend. Do I make an offer straight away or wait until Monday? The E.A. hinted that offers would not be considered until after these viewings.

Finally, is it worth using an agent for the offer process? Has anyone else used one and think they’re worth the expense?

Ok, after researching buyers agents, it’s not something I can afford

Anyone got advice on how much and when to put in an offer please?

If it was me I would view again tomorrow looking for issues and defects like damp or cracks.
Then if you still want it make an offer to the estate agents possible starting at about £202k and when it is rejected ask agent what they are willing to accept. Then decide if you want to offer more and go from there.
Not being an expert or knowing where you are I assume they want to get £215k so anything you can get under that would be good.

Good luck

You need to know your market and offer what you want think it's worth, tell them that's best and final.

I had a situation around a month ago where we viewed a house that we 'loved' at the time, they had a few viewings the following day. We offered £170k on a £180k house and because someone else had offered slightly more, the seller wouldn't even entertain another offer at full asking. They either had us down as piss takers or the EA bad mouthed us.

Be wary of going over asking if you are buying with a mortgage as it may get downvalued at survey and the vendor may not agree to drop the price

Thank you all.

I’m a mainly cash buyer with a good MIP which means I can be flexible on the price.

My main worry is that someone else will get it so I’m having to think tactically. My worry is that too low an offer and they will refuse to accept any further bids as @Scholesfan experienced.

My plan A was to offer £202k but I’m thinking I should offer £215 to be in with the best chance and go higher if necessary. Does this sound like a good plan? I obviously want to get it at a good price but the main objective is getting it.

Personally, if you love the house that much then I would not mess around with silly offers and go in nearer the asking price. Ask yourself the question - how gutted would you be if you didn’t get it because of a low offer.

I think if they have only just come on the market they won’t accept much lower than asking. But by all means offer what you think it’s worth. Not sure if it’s wise to go over asking if there are actually similar houses that are cheaper as you say.
I would wait until Monday with an offer as otherwise the agent may use your offer to drum up competition at the viewings over the weekend.
Similar happened to us. We viewed a house we liked on a Friday, were the first ones to view it. We were keen on the house but had not quite made our mind up. The agent really tried to get us to offer on that Friday as they would then (agent’s words) ‘be able to tell the other viewers that there is already an offer on the house’. How would this actually help me?? Anyway, we found a different house..

These replies demonstrate exactly why I feel so conflicted about ‘tactics’ and the best way to handle this. There are comparable houses on both sides of the spectrum price wise. Although a house on the same row sold for £205k a year ago.

Properties are selling generally for slightly less than advertised but I’m aware a bidding war could push the price up a lot and whilst I can afford to go over, that money could be used for other important things.

I read a thread on here this evening about a property being sold before the op had a chance to view. I don’t want that to happen either.

I’m totally overthinking this and have no idea how to play it.

If the similar property was 205 a year ago add on price rises for your area then a little as you really want the house. I'd say 210 therefore sounds a good bet as an opener. I'd offer before the other viewings, holding off won't do you any favours. Also remind the EA you are mostly cash and if possible can be as quick or slow on moving as the seller desires.

If you love it, it’s your forever home and you can afford it. Don’t mess about. Offer what you would want for it. With a little bit of wiggle room for negotiation. I would start at 210k and expect to go up to nearer the asking price. Good luck

It may depend on the seller- if they are uptight a "too low" offer will mean you won't be dealt with again.

With offers quite near the asking price what is the point of messing about for say £3,000 on £215,000?

There is of course the survey/and or any defects found, which is a sightly different matter- though as a FTB do you want to buy a house and have to do work on it? I wouldn't, other than decorating.

Is there a feeling from buyers that they simply must somehow get one over the seller? And vice versa I suppose.

According to Zoopla, house prices are falling in the area - around 2% for this street and 5% for the area. This property is showing as worth £222k and the one that sold a year ago as £190k despite being bigger I can also see that the property was purchased 7 years ago for £185k and that no major alterations have been made - same bathroom and kitchen etc.

The house itself isn’t that special although is exactly what I want, however, the location is unusual and may attract other buyers which is my fear. It could put people off though as well as there are compromises to be made living there.

I’m torn between offering £210, £215 or just going straight in at asking and I really don’t want to get into a bidding war.

*@SabaliSabali * in my experience, even if you go in at asking price, if there are other viewings, they may want to wait and see if anyone else will go higher than asking. If you go in at 210 and they say no, 220 or nothing you can have the option to meet them halfway at 215. ANY offer that you make HAS to be put forward by the agent. Even when mine was removed from the market as I had agreed a private sale, the agent who oversaw the one other viewing had to put forward the two offers those people made, even after I'd told them I wouldn't consider them as it wouldn't be morally or ethically right(although I was sorely tempted!!!).

Make sure you promote yourself to the agent as a good prospect ie MIP in place, FTB, willing to complete asap etc.

So zoopla are saying that prices in the area have fallen by 7% in a year and the last sale was at 205k
Only problem with using zoopla for logic is if the buyer got a great deal or paid too much then the value will be skewed
If they are getting lots of viewings then others obviously think it is fair value
Offering anything other than full price wont stop other viewings going ahead in my experience.
Couldn't really advise on what to offer as dont know anything about area etc but 210k would seem a fair offer based on asking price, definitely not too cheeky at all

I looked with a more critical eye this time and I don’t love the house as much as I thought. It needs some work for sure - new kitchen etc. I put an offer of £210k in when they told me they’ve had another offer but couldn’t say what it was obviously. So I immediately increased to £215k.

I’ve been so nervous about this and stressed but feel ok now. I thought I’d be gutted to lose it but I feel more sanguine knowing it needs some work and is already overpriced. It’s the location that is pushing its price up.

What's meant to be will be, we offered on a house round the corner to where we now live, accepted then gazumped by a cash buyer (buy to let Iandlord), I was really upset. Then two weeks later I got an unexpected promotion, increased our mortgage potential and bought a forever house in the same area which we couldn't afford before. The first house I loved would've only been a five year ghost really.

Don't mess them around by low balling. If someone offered us 20,000 less I'd never take there offers seriously.

So, third viewing now done which has made me love the house even more but the fact still remains that it is overpriced at £220k for its size and condition. But I really want it. I’m feeling so pessimistic about my chances despite my strong position.

I need to start game planning for (when?) if they decline my initial offer and I guess that will depend on if there are other offers besides mine and the one I know about. It’s frustrating because it’s supposed to be a buyers market but it’s not feeling that way over this house! There’s nothing comparable to it on the market right now purely down to the location.

Could I PM a couple of people the listing to see what you think I should do/should reasonably offer? I’d be so grateful.

Also, I would cringe massively doing it but should I write the vendor a letter? I’ve seen others say it has worked but aware it could backfire.

If you really want it then it's worth £220k. A house is only worth what someone is willing to pay and you already said you'd pay £220k.

Please don't mess people around. £20k off is nearly 10%, which is a large amount. Ours in on the market at the moment and someone offered us £18k less, I was really annoyed. We then got an offer at full price, and £5k under. When the full price dropped out we went with the £5k and didn't go back to the £18k less. He viewed our house 3 x and to offer that - I was infuriated with him.

Just from a sellers point of view.