first time buyer very confused

amboy

1st time buyer with a largeish deposit to put down, a house we have seen has been on the market for over 7 months, price has now reduced to £169,950, the guy who showed us around said he should point out a crack under a window which is visible inside and out, ok I thought a bit of pointingneeded.

He also says another offer has been put in. I call them today and say would i get the house at 168k, sales manager says you would have to go closer to asking price, ok i offer full asking price, she says ok you are in a strong position and will report to vendor.

[glow=red,2,300]Now here comes the bit that does not sit right with me[/glow]

she calls me back and says the vendor appreciates your offer but would

a) like me to inform the other party who all of a sudden have had their offer provisionally accepted even though they put in an offer on a Sunday???

b) Would like to infor me that the house has been underpinned in the past ???

Why tell me this when i have made an offer and not before?

I told her that I had made the asking price offer and is she going to turn this into a bidding war.

Suprise suprise, she calls me at 5pm to say that the other party had offered the asking price. she is going to fax me the underpinning records and a final offer has to be made this wednesday by midday.

please advise I am desperate and frustrated with the agents andthe whole buying process, I previously lost a house at the 11th hour when a different agent appeared on the scene who sold the house.

deemy2004

If you want it make an offer, then make it, nothings legally binding, no matter that there telling you now about underpinning.

Obviously your goign to do a fulll survey before you sign contracts, so you could say its subject to survey.

Now the surveyor will tell you exactly where the house stands, so to speak , and you can take it from there.

John_M_Business

It seems like you're being 'flushed out'... so either you express an interest or not. The agents want a sale, the seller wants a sale - they want the best price but don't want to waste time...

which is why they've told you about the underpinning - so that you're aware of something that might hold up the deal / offer you the chance to renegotiate. It's also, in all probability, something that the other buyer knows already as well.

However, IMHO, cracks are a bad sign. Anything that is visible now is only going to get bigger...

lilaliboo1

Your message rings some bells with me, but I only found out the house I wanted to buy had been underpinned AFTER I paid for the survey.

Only you can decide if you want to go ahead. Underpinning is kind of a good thing, in that the house should not move now.

However what made up my mind (to pull out) was that the underpinning guarantee had nearly expired. I didn't want to have trouble when I re-sell the house in five or ten years. Plus the houses next door had suffered from subsidence but had not all been underpinned. This suggested to me that further movement was possible in the row of houses.

I should find out when the underpinning was done, who did it and what guarantee is left on it.

Good luck x

right2buy

I am surprised that any FTB is contemplating any house purchase when prices are on the way down, especialy a property with a potential problem. On average offers are being agreed at 93% of asking price, so either the house is very cheap, or you are at risk of overpaying.

dougk_2

Prices are not dropping everywhere! Its very regionalised and depends on local factors.

It is also not certain that prices will drop lower or whether they will rise again! Nationwides figures yesterday indicated that prices increased 1% in October.

As a buyer I would never expect to pay the full asking price and as a seller I would overprice on what I actually wanted to get.

Whenever you buy a property there is a chance that prices may go up or down.

With a likely election in May, I would guess the bank of England will be encouraged to lower Interest Rates once or twice before then to give a feel good factor so prices could go up again.

I think purchasing a house as a long term investment it doesn't really matter what you pay.

amboy

I am surprised that any FTB is contemplating any house purchase when prices are on the way down, especialy a property with a potential problem. On average offers are being agreed at 93% of asking price, so either the house is very cheap, or you are at risk of overpaying.

I have been waiting a couple of years now with the above reason as my justification, however I live in a part of the country where there is strong demand and a university that is expanding too.

Prices have evened off a little and with a child on the way we need our own space.

The documents that have been sent to me regarding the underpinning merely shows a report by a surveyor stating that they recommend the drains be fixed and the wall tiles redone (which is incidental) and then to monitor for 6 months ???

In effect they have sent me half the story.

My head is telling me to pull out beut my heart is set on it, after all if it has been underpinned then at least a problem has been identified and solved.

hasnt it???

dougk_2

I'm not too sure I would want a house that had been underpinned and I guess there is still a risk of further movement in the future perhaps?

The problem I think you will have is
a) High insurance premiums or problems finding an insurer to cover future subsidence claims
b) Difficulty in selling the property in the future.

How much lower is the price of property compared to others in the area with no underpinning / subsidence history?

If its much lower (20 to 25%) then maybe its worth it - if not find something else or withdraw and offer a lower price. Don't always beleive the estate agents - there maybe nobody else interested!

amboy

hmm i am only just starting to realise how dirty a game the agents can play, they genuinely seem to be sympathetic towards me but then tell me that the price of the house has alreday been reduced, which today i found out has never been reduced.

They also went back on their word when they told me that if i offered the asking price then i am almost certain to get the house.

I am now Contemplating playing them at their own game and making them sweat.

I found another place and offered 10% below asking and the agent almost laughed it off, her tone changed to almost arrogance and said well you wouldnt sell it for that offer would you???

dougk_2

Maybe 10% is a bit much off if there is nothing wrong with the place, but at least the estate agent should really speak to the vendor.

Don't panic... I guess if nothing has happened in the last month or so with that property , you may get a call back.

I HATE estate agents (we are trying to sell at the moment) . They are only interested in making the money and don't go out of their way to help by enlarge.

My tip is drive around the area and look for houses for sale. Don't contact the agent , just knock on the door a speak to the owner..... many of them will sell direct and not tell the agent and allow you a big discount as they won't pay the estate agent commision!
You have nothing to loose by this and everything to gain and normally you don't have to put up with the estate agent style Bull****. Maybe is not exactly fair to the estate agents but they aren't fair to you either!

John_M_Business

Best piece of advice I've ever read: be completely dispassionate... especially when it comes to the housing game.

- Don't be guided by your heart - there are other properties out there. Never pursue one and only one location.

- Don't fall for Estate Agents tricks. If they start playing, then either end the call quickly, or take them on. If they said to me 'you wouldn't sell it for that price' - I'd say 'well, it's not mine, but if it was, then I think that's a reasonable offer'.

Remember, in the end that Estate Agents are salespeople. They are interested in securing the sale at all costs - and often try emotional blackmail, empty threats and pressure tactics to achieve the same.

Be dispassionate. Don't get friendly with Estate Agents - they actually will respect you more in the long term.