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    • bobsy852
    • By bobsy852 13th Jun 17, 3:18 PM
    • 11Posts
    • 1Thanks
    bobsy852
    First time buyer - competing with other buyers
    • #1
    • 13th Jun 17, 3:18 PM
    First time buyer - competing with other buyers 13th Jun 17 at 3:18 PM
    Hi All,
    I'm hoping someone can offer some advice, as my fiance and I are getting rather fed up with the process of buying a house having been looking for 6 months now.

    We are first time buyers with the fortunate position to have a decent £16k to put towards a deposit (MAX).
    This gives us 10% towards a reasonable deposit for a property around Bury/Rawtenstall in Lancashire.

    As a building surveyor myself, I like to think I know what I'm looking at when I view a property and therefore understand a bit more of what a property will take to put right etc. So I'm happy to take on a bit of work.

    We've lived in a flat for 4 years now though and so for us, the outside is more important than the inside. We'd ideally like a nice garden, off road parking and a garage would be ideal but not essential.

    We've found 2-3 big properties now which fit well within our budgets but require work. We put offers in on two. The first was accepted but then when the mortgage company came to value the property they valued it at less than our offer and so the seller refused to sell for that price. With no more money to put in, we had to pull out. Leaving us £370 out of pocket!

    The second we loved too! Again needing stripping out and re-doing but this time we have been out-done by a cash buyer who was willing to pay more than the asking price.

    I thought being a first time buyer without a chain would leave us in an advantageous position, but it seems like an impossible task.

    I wondered if anyone could offer any advice on how we get on this ladder? I thought raising the deposit would be the hard part!!

    (P.S; we don't want to buy new build, we'd rather take on a bit of a project with more character).
Page 1
    • ReadingTim
    • By ReadingTim 13th Jun 17, 3:24 PM
    • 1,816 Posts
    • 2,634 Thanks
    ReadingTim
    • #2
    • 13th Jun 17, 3:24 PM
    • #2
    • 13th Jun 17, 3:24 PM
    Sounds like you've been unlucky, but look at it from the sellers' perspective: why should they sell it for a lower price to someone just because they're a first time buyer?

    FTB's just ain't special when someone else has deeper pockets. Sorry if this isn't what you want to hear.
    • marliepanda
    • By marliepanda 13th Jun 17, 3:28 PM
    • 4,579 Posts
    • 9,209 Thanks
    marliepanda
    • #3
    • 13th Jun 17, 3:28 PM
    • #3
    • 13th Jun 17, 3:28 PM
    Echo the above. FTB can be an advantage in many ways, but if someone's not desperate to sell they will be quite happy to wait longer for a few more grand.

    Cash buyers will probably come ahead of you. Especially ones willing to oh above what you will. As will anyone willing to pay more than you in most cases.

    You will get there though!
    Survey Earnings 2017 - £163
    • Surrey_EA
    • By Surrey_EA 13th Jun 17, 3:39 PM
    • 1,009 Posts
    • 1,198 Thanks
    Surrey_EA
    • #4
    • 13th Jun 17, 3:39 PM
    • #4
    • 13th Jun 17, 3:39 PM
    Another echo here.

    Being a FTB is all well and good, but £££ is probably more important to most sellers.

    Be patient, you will get there.
    • david1951
    • By david1951 13th Jun 17, 3:55 PM
    • 348 Posts
    • 401 Thanks
    david1951
    • #5
    • 13th Jun 17, 3:55 PM
    • #5
    • 13th Jun 17, 3:55 PM
    Being at the absolute limit of your budget doesn't help. You need to be prepared for unexpected costs, including after you've bought the house (boiler breaks down on day 1 etc.). During the buying process all sorts of things can crop up that require more money (indemnity insurance, extra solicitor work, inspections from survey, etc.). Having a buffer also means you are in a position to withdraw your offer, e.g., if the seller starts messing you around, bed survey results, etc.

    What left you £370 out of pocket?
    • Rambosmum
    • By Rambosmum 13th Jun 17, 3:58 PM
    • 1,375 Posts
    • 1,834 Thanks
    Rambosmum
    • #6
    • 13th Jun 17, 3:58 PM
    • #6
    • 13th Jun 17, 3:58 PM
    Plus at the price you are looking at, there'll be a lot of first time buyers.

    We've just sold our house, we had 6 offers, all from 1st time buyers, some with very good deposits. Ultimately, it came down to who offered the most.
    • Surrey_EA
    • By Surrey_EA 13th Jun 17, 3:59 PM
    • 1,009 Posts
    • 1,198 Thanks
    Surrey_EA
    • #7
    • 13th Jun 17, 3:59 PM
    • #7
    • 13th Jun 17, 3:59 PM
    What left you £370 out of pocket?
    Originally posted by david1951
    Mortgage valuation I guess.
    • bobsy852
    • By bobsy852 13th Jun 17, 4:23 PM
    • 11 Posts
    • 1 Thanks
    bobsy852
    • #8
    • 13th Jun 17, 4:23 PM
    • #8
    • 13th Jun 17, 4:23 PM
    Mortgage valuation I guess.
    Originally posted by Surrey_EA
    Yeah mortgage valuation.

    I know I can't do anything about coming up against cash buyers. Just seems to be a lot of competition on the properties we like. Only one we didn't get competition on was one that was prone to flooding! But even we decided we didn't like that property enough to risk having to repair it every year!

    I'm just finding the whole process very frustrating. Estate agents aren't really flexible enough and my fianece and I work in different places and are available at different times making viewings difficult.

    The market also seems pretty stagnant in that properties don't change much so we struggle to find anything new we like!

    We'll have to keep looking. I'm just hoping it doesn't go on much longer! I can see why people buy new builds. A shame they don't offer what we want.
    • ReadingTim
    • By ReadingTim 13th Jun 17, 4:32 PM
    • 1,816 Posts
    • 2,634 Thanks
    ReadingTim
    • #9
    • 13th Jun 17, 4:32 PM
    • #9
    • 13th Jun 17, 4:32 PM
    I suspect from what you've said and the way you've said it, your frustration arises from the fact that your expectations tend towards the unrealistic, and may require a little management. Downwards.
    • LadyL2013
    • By LadyL2013 13th Jun 17, 4:34 PM
    • 146 Posts
    • 94 Thanks
    LadyL2013
    Been in the same position myself. ALWAYS lost out to investors who could always go well above the asking price, even when I was offering substantial amounts over. But I have my own feelings about investors being allowed to by smaller properties (but that's for another thread) and doing FTB's out of a house.


    Anyhoo, the current property that is currently going through the motions I only got because the sellers had a preference to give the house to an FTB over an investor because they struggled to get on the ladder and wanted to give it to someone who was in their position. I ended up having to go 10k above asking price (very common here) to get it and still the investor offered more than me.


    Now I'm worried about the valuation!


    But unfortunately in this market where stamp duty laws have changed and investors will now be setting their sights on smaller properties, it's going to be harder than ever. Money is king at the moment. The only thing you can do is keep going and eventually, it'll work out for you. But I really feel your pain, I do. Every single property I've gone for I've lost out to an investor.
    • Surrey_EA
    • By Surrey_EA 13th Jun 17, 4:37 PM
    • 1,009 Posts
    • 1,198 Thanks
    Surrey_EA

    I'm just finding the whole process very frustrating. Estate agents aren't really flexible enough and my fianece and I work in different places and are available at different times making viewings difficult.
    Originally posted by bobsy852
    Are you both available on a Saturday? Surely all EAs open on Saturdays?!
    • mouthscradle
    • By mouthscradle 13th Jun 17, 4:57 PM
    • 974 Posts
    • 1,122 Thanks
    mouthscradle
    I imagine you're more likely to be competing with investors/cash buyers if you're looking at properties that need renovation.
    Mother, wife, scientist, analyst.
    • LadyL2013
    • By LadyL2013 13th Jun 17, 5:40 PM
    • 146 Posts
    • 94 Thanks
    LadyL2013
    I imagine you're more likely to be competing with investors/cash buyers if you're looking at properties that need renovation.
    Originally posted by mouthscradle
    Not the case where I live at all. Everything from projects to showhouse standard starter homes get snatched up by investors.
    • Cakeguts
    • By Cakeguts 13th Jun 17, 6:59 PM
    • 2,656 Posts
    • 3,628 Thanks
    Cakeguts
    You won't get much in the way of a 3 bed house for £160k in that area. It makes me think that you are trying to do something that is impossible. A nice house in a nice area that needs work is likely to be more expensive than you can afford. So you must be looking at houses in not so good areas that need work which would bring you into competition with investors. What I would suggest is that you look for a small house in a much better area. Unless you can find a house that is too expensive for an investor to make a profit on you are going to always be competing with them.
    • KiKi
    • By KiKi 13th Jun 17, 7:29 PM
    • 4,904 Posts
    • 7,965 Thanks
    KiKi
    I thought being a first time buyer without a chain would leave us in an advantageous position, but it seems like an impossible task.

    I wondered if anyone could offer any advice on how we get on this ladder? I thought raising the deposit would be the hard part!!
    Originally posted by bobsy852
    I know how frustrating it can be, but "impossible task" because of two incidents?! You were outbid on one property by a cash buyer (will happen to anyone, not just FTBs) and the mortgage company didn't value the other as high (unlucky, but perhaps saved you overpaying).

    Best advice: don't get down over two things. Because once you find somewhere and it gets going it will continue to be frustrating!
    ' <-- See that? It's called an apostrophe. It does not mean "hey, look out, here comes an S".
    • Lauralou79
    • By Lauralou79 13th Jun 17, 8:00 PM
    • 81 Posts
    • 56 Thanks
    Lauralou79
    We lost out on two properties as we were outbid on the first. The second the vendors wanted more than we thought it was worth. However another came up that was the best one by far which I liked instantly just from photos, and we are now nearing completion. They actually accepted us over slightly higher offers as we were FTB with no chain etc. So it can help in some circumstances. Keep saving and looking it will happen!
    • ringo_24601
    • By ringo_24601 13th Jun 17, 8:13 PM
    • 16,856 Posts
    • 27,370 Thanks
    ringo_24601
    You won't get much in the way of a 3 bed house for £160k in that area. It makes me think that you are trying to do something that is impossible. A nice house in a nice area that needs work is likely to be more expensive than you can afford. So you must be looking at houses in not so good areas that need work which would bring you into competition with investors. What I would suggest is that you look for a small house in a much better area. Unless you can find a house that is too expensive for an investor to make a profit on you are going to always be competing with them.
    Originally posted by Cakeguts
    Not impossible

    Here's one for doing up!

    http://www.rightmove.co.uk/property-for-sale/property-48030309.html

    The OP never said they had a £160k budget either - I guess that's based on the £16k deposit? It is a small deposit and I hope they've got some extra for moving costs.
    • marliepanda
    • By marliepanda 13th Jun 17, 8:16 PM
    • 4,579 Posts
    • 9,209 Thanks
    marliepanda
    Not impossible

    Here's one for doing up!

    http://www.rightmove.co.uk/property-for-sale/property-48030309.html

    The OP never said they had a £160k budget either - I guess that's based on the £16k deposit? It is a small deposit and I hope they've got some extra for moving costs.
    Originally posted by ringo_24601
    If 16k MAX gives them 10% deposit, then £160k would be their budget...
    Survey Earnings 2017 - £163
    • sulphate
    • By sulphate 13th Jun 17, 10:55 PM
    • 1,060 Posts
    • 3,137 Thanks
    sulphate
    Our house is sold stc and almost everyone who viewed it was a first time buyer, which meant that none of them had an advantage over others in terms of position.

    I notice you say you have found "big" properties so I agree that you might need to revise your expectations downwards. When we were ftb-ers we bought a 50 square metre 2 bed terrace (the one we are now selling) and almost everyone I know bought similar for their first property. The ones that bought larger properties had huge deposits, high salaries, were buying in an inexpensive area of the country, or a combination of the above.
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