FTB Advice - The 'offering' process, help please! (long post sorry)

carolt

BTLNEWbie wrote: »

Nice to see that you are finally accepting your situation, now you can move forward and grab that future you are so desperate for.

Not yet - see posts elsewhere. Property round here definitely does not cost 70K for a 4 bed! Or I would have bought years ago!

Instead I shall enjoy property prices falling - can't wait for next set of Nationwide results, BTLNEWbie, can you?:p

MrDT

BTLNEWbie wrote: »

I dont think you are being greedy, in my early days I used to rent out other rooms in my house as it more than covered my mortgage.
It meant that I used to be able to wine and dine and still save most of my wages.
If you rent out the rooms to girls you never have to cook or clean as well.:T

Having space for a lodger has always been a backup plan. In fact, even if I didn't really have to get one sharing with a housemate might actually be more fun than living alone (though I do like living alone)!

The plan is to buy somewhere I can afford comfortably on my own. A lodger would help with overpayments or if things go horribly wrong (eg redundancy). I'd like to be mortgage free in 10-15 years, should be doable

The extra rooms also incorporate some future proofing if things go horribly wrong another way too and I unexpectedly become a daddy :eek::eek::eek:

Gwhiz

Maybe I am missing something here... but... just tell the EA that you only believe the house is worth £70K in this market and that's it. Only the vendor knows if that's enough or not so all you have t do is make your offer and stand back. It will either be accepted or it won't!!!

Buying houses in not rocket science!!

MrDT

Gwhiz wrote: »

Maybe I am missing something here... but... just tell the EA that you only believe the house is worth £70K in this market and that's it. Only the vendor knows if that's enough or not so all you have t do is make your offer and stand back. It will either be accepted or it won't!!!

Buying houses in not rocket science!!

Hi,

The reason I asked was because I was under the impression that vendors expect the first offer to be a 'tester', a starting point from which the haggling can begin. I think most vendors expect the sale price to lie somewhere between the initial offer and the asking price.

This is how it worked for a mate of mine last year:
asking price 110k
asking price reduced to 100k
initial offer made at 70k
olive branch by vendor offering quick sale at 85k
finally settled on 80k - sold

I don't think this kind of exchange is too uncommon?

So, should I go in with an offer below what I am willing to pay and 'play the game', or do I just give them the offer of 70k take it or leave it with no room for negotiation?

Most people here are suggesting cards on the table, so I'll go for that.

Sorry if my idiocy offended you, I'm not in the habit of buying houses too often so figured I'd ask advice from people who have more experience than me

Thanks everyone

m00m00

prepare your case as to why you think it's worth 70k and how you are in a position to proceed, then make the offer.

if you come across as a serious and motivated buyer, in the current market, that's worth more than 10k extra from a speculative 'well I might be able to get X for mine' punter, in the current market.

chrisandanne

Good Luck MrDT.

Anne

MrDT

Been to see the financial advisor today. He congratulted me on being realistic etc, the people he deals with day in day out seem to be oblivious as to what's going on. His previous client was after a 140k mortgage on a low single income with no deposit saved

Anyway, the figures all stack up, I'd be borrowing less than 3x salary, paying out less than a third of my monthly take-home (10yr fix), and have money left over each month to do the required work slowly.

It looks like it's a go! :eek:

The advisor suggested I go in with a cheeky 65k in the ear of the EA and take it from there, though a straight talking 70k first and final offer is a perfectly valid way to go about things too. Still the same old quandry lol! I'm gonna arrange a second viewing this weekend, and take it from there I think.

Thanks for all your input guys and gals!

geoffky

Do Not Get Sucked In By Both Of Them.......

MrDT

geoffky wrote: »

Do Not Get Sucked In By Both Of Them.......

You crack me up :rotfl:

A four bedroom house, for 70k. Somehow I doubt I'd be paying over the odds. I'm looking to negotiate down from an asking price of 90k, which in itself is a reduction from 100k. Pretty much covered.

Do you expect me to languish in negative equity for years or something? Am I to expect that these 4 bed houses will be selling for 35k this time next year? Can't see it happening, sorry.

Different areas will be affected differently. If house prices drop far below what I'm looking to pay then cash buyers would be snapping them up! I figure you could easily manage £600pm rental income so BTL still stacks up here even at current prices. Not everywhere will be affected to the same extent.

Houses here aren't insanely overpriced. They're overpriced, but not so far out of whack as London etc. They haven't got as far to drop in my opinion.

Thanks for giving me a nice little chuckle early in the morning though, great way to start the day

Conrad

MrDT wrote: »

Sorry if my idiocy offended you, I'm not in the habit of buying houses too often so figured I'd ask advice from people who have more experience than me

Thanks everyone

It is unusual to request such advice.
Dont forget us owners were all first timers once, but we didn't have the paralysis you seem to possess.

It really is such a simple concept, with no thought or debate required.
Most people would make a decision more or less instatly as to what they will offer - whats to think about?

Logically the worse that can happen is they reject your offer.

Abot 1% of FTBs come into my office with thier Mum and Dad. I've gotta say I find it very perculiar, and it is those same kids that dont seem to have the confidence to make an offer.

I put it down to over bearing / bossy parents.

Best of luck and for your own sake learn to be decisive and common sensical.