FTB - What to offer for house?

Labrisse

Hi,

I am a FTB with my b/f and we have found a great house. We want to put a offer in. Although we know prices may still drop, this is a very long term house for us, and we do not want to wait just in case. We have a good deposit (20k) and both earn about £57k combined.

The house is on at £225k, any advice on wat a good offer would be. 12.5% lower is about 197k, but as we are buying for first time, have no idea how to proceed. It has been on the market for 2 months.

Many thanks in advance

L x

neverdespairgirl

Do you earn £57k each or between you?

Labrisse

Hi,

Sorry knew i'd forget some detail.

We earn £57k between the 2 of us.

L x

slummymummyof3

I'd be tempted to offer a low amount - you can always increase your offer if necessary. However, I wouldn't appear to eager!!! Remember when you are having conversations with the EA - they are employed by the seller so be careful how much info and how eager you are to the EA. For a seller, you will be the ideal - proceedable and a FTB therefore no chain - depends how necessary it is to sell for them.

squoog

You are in a great position. You may love this house but believe me there is always another one just around the corner that you will also love.
I would look on a property price website at prices in 2005 for that street and offer something similar. But be clear with yourselves how much you want to pay if the prices keep dropping.
If you are in London then depending on area, you may find that bargains aren't so easy to be had. I think people in the south are finding it hard to accept that the market really has changed. Houses around me are just sitting unsold most without any reductions 4 months on!
You may find you get a better bargain in the winter as people will be hoping things pick up when the school holidays are over, by late october people start thinking about christmas, not about moving house.
Do you know if the vendor has found somewhere? This may have a bearing on what reaction you get, depending on how keen they are to tie things up.
But remember 2 things,
1. There will always be another house.
and
2. You are in a great position so use it well.
Best of luck, keep us posted!

squoog

slummymummyof3 vbmenu_register("postmenu_13523851", true);
Location: At Wits End
:rotfl: :rotfl: :rotfl: :rotfl: :rotfl:
Love your name! I'm a slummy mummy of 4 so wits end is a place i am so very familiar with!
Agree with your comments above, great minds and all that .

slummymummyof3

Squoog - I think you should read the 'Secret Diary of a Slummy Mummy' - it is hilarious and you can only really appreciate it when you have kids!

Very similar sort of style to the first Bridget Jones book only better!

pinkshoes

Labrisse wrote: »

Hi,

I am a FTB with my b/f and we have found a great house. We want to put a offer in. Although we know prices may still drop, this is a very long term house for us, and we do not want to wait just in case. We have a good deposit (20k) and both earn about £57k combined.

The house is on at £225k, any advice on wat a good offer would be. 12.5% lower is about 197k, but as we are buying for first time, have no idea how to proceed. It has been on the market for 2 months.

Many thanks in advance

L x

This £20k deposit... do you have extra money for stamp duty (£2000), solicitors fees and searches (£1000) and moving costs?

For most mortgages you need to put down a 10% deposit, so if you've only got a £20k deposit, then the most you could offer would be £200k!

cupid_s

Sorry to sound rude but since when is less than 10% of the asking price a 'good deposit'?

Sweetsaver

cupid_s wrote: »

Sorry to sound rude but since when is less than 10% of the asking price a 'good deposit'?

20k is not such a bad deposit in this climate. :cool:

If the house is for 225K its very possible that it will go for less than that price.

So for example say it goes for 10% less that makes it £202k and then the deposit will be 20k (10%), so that how i read it.

Of couse that only counts if Labrisse secures a good price, But as others have said Labrisse is in a strong position. But it depends how much the vendor wants to sell, as to how much they will accept.

zappahey

cupid_s wrote: »

Sorry to sound rude but since when is less than 10% of the asking price a 'good deposit'?

Since the first 100% mortgages appeared, I would guess.

The situation has only swung back very recently and it will take a while for the public mindset to follow.