First time buyer help on offer

[Thesecretnewsagent]

Hi, would anyone be able to advise? I’m a first time buyer in a privileged position of buying outright due to inheritance. I’ve found a property I like, it’s been on the market for a year. I don’t think there’s any issues just that’s it’s a niche property but it ticks all my boxes, obviously subject to survey and checks.

Do I offer the full asking price initially? It does need a few things updating but not anything major.

I’m just not sure what to do in this initial step, I will offer what I can afford but it does seem a little overpriced for the area. Sorry if I left any important detail, I’m pretty new to this. Thanks.

If it’s been on the market for a year it could be overpriced. Have you checked what other similar properties in the area have gone for recently? What kind of condition are they in compared to the one you want? Has the asking price been reduced at all over the last year in line with any changes in the area? Prices are starting to go down lately. Do your homework on Zoopla and Right Move.

Personally I’d offer less than asking purely because it’s been on for a year - there’s unlikely to be stiff competition - and when you make the offer, spell out that you’re in a strong position, chain free and ready to go. But how much less depends on your homework!

If you’re a cash buyer you’re in a really strong position so would offer under asking.

Also echo what Starseed said - be wary of properties that have been on the market for a long time and not sold. Even if it’s simply because it’s niche, bear in kind that when it comes to selling, you may similarly struggle to sell.

Okay, that makes sense, I appreciate the replies. Thanks!

@Starseeed Not reduced, it is marked appropriately compared to others in the area that are similar from my research. It’s in good condition but maybe could do with a few modernisations but nothing really major or urgent. I wouldn’t be selling again due to terminal condition and it marks my boxes for my illness.

Offer under the asking price. Youre in a strong position plus if its not accepted you can always offer more. Also make sure you're clear on what your offer is e.g. £300k which includes the lights, curtain poles etc etc all the extras can quickly add up so if you want them ask for them now

It would be unexpected to the vendors if after having their property on the market for a year, a cash buyer came in with an asking price offer. I would make my initial offer about 10% below asking price then expect to be negotiated up a bit.

Also make sure you include curtains in your offer as it’s a lot easier using the existing ones than having to faff about buying new ones immediately and it seems most people are happy to leave their curtains & poles behind because they are unlikely to fit the vendors new property anyway.
You don’t need to mention curtains at this stage though, only when you get close to agreeing a price.

You can always go up but you can never go back down! Definitely offer under and see how you get on 👌🏼

Disagree with @Twiglets1 about not mentioning curtains at this stage. If you want them make sure you ask when you put in your offer and also disagree most people are happy to leave curtain poles. Presume they will be taking everything so if you want it in with the price you're offering, say it 😀

It will be overpriced if it hasn't sold in a year, even not selling in 3 months means likely over priced (or something else serious wrong).

Maybe offer 10% less as other have suggested.

If it has been on the Market for a year it is likely that it is either overpriced or there some kind of issue with it or the sellers are unreasonable somehow.

Have you had a look at things like crime stats for the area and long term flooding risks? or if there are any new developments planned nearby?

I always do that for every property I view to try to work out what could affect it.

What do you mean by ''niche''?

is there something wrong with the way it was built (maybe it not possible to raise a mortgage on it because of that)?

I would offer 10% under asking price but as I said I would do a bit more research before committing to anything.

Make sure you are looking at sold prices not asking prices for comparable properties. There is often a considerable difference!

Ignore the curtain question for the moment. Leave that for when you get to the haggling stage.

Decide what you think the property is worth then offer a bit below, in the expectation that you will be negotiated upwards to somewhere between their asking price and your first bid.

First of all, visit the property at different times of the day. School times, pub closing, etc is their any public right of ways next to the house that could be a nuisance, what’s the neighbours houses like, gardens messy, old cars, vans parked up. Check planning for any developments in or around area that may blight the property. Then if that’s all ok for you, I would offer the asking price, if accepted I would go ahead with a full survey, including timber and damp, and electrical. Then based on those make your offer.
Quite honestly if your perfect forever home, I would concern myself with condition and the local environment than price. Best of luck.

Thanks all, I know the area well as lived there before a couple of houses down but have checked up to date stats on crime and planning developments; all okay. But there are a few things to think about from the posts above so I appreciate the help.

I think I’m more niche than the house!

Thanks all, I’ll have a think today and I really appreciate your replies.

If it's been on the market for a year and not sold it's either overpriced or there is something wrong with it that has come up in surveys causing sales to fall through. I think you need to do some carefully quizzing of the estate agents

Go on to soldhouseprices and see what similar houses have been sold for. Then offer 5 percent below actual sold house prices. Stress you are cash buyer with no chain and want a quickish sale.

You're a cash buyer and its been on a year go 10% under, you are in an incredibly strong position and the EA will want to bite your arm off. Take your time if they do a counter offer.

Once they accept make sure they take the property off the market.

To get a price history go to houseprices.io also listen to some of the Twitter or YouTube "movinghomewithCharlie" who has intimate knowledge of estate agents and markets.

Thanks all, I will go away and do the above and post back, I’m a bit concerned that it might be a case that the vendor just wants to wait it out or something for a great offer above asking, can’t blame them I suppose but don’t think it’s good to shoot too beyond my budget as it will need a bit of modernising.

@Thesecretnewsagent -the seller may be a bit deluded and still imagine that they will be able to wait for a great offer over asking. However, if the house has been the market for a year (see above suggestions from @RollerCoaster2020), it needs significant work and the market has fallen and is continuing to fall, the realistic chances of that are close to zero.
It doesn't mean that you should overpay because the seller is unrealistic/ greedy.

Even if that's the case, you stand to lose nothing by making an offer below asking price initially.

Thanks again for your replies, a huge help and keeps me logical.