Hypothetical FTB

debtfree_wannabe

Hello,

My OH and I went to look at 2 houses yesterday. One was a bargain repo, but appeared to need more doing to it than meets the eye. The other, we both liked, but I'm struggling to work out how to play the offers game.

We have a mortgage in principle for 90k with a 10k deposit (other fees etc come from another pot). However, we would ideally like to pay no more than 95k for a property. This property is on the market for 112,500. A cash buyer offer fell through for more than this a few months back.

The owners have a mortgage approved on the place they are buying, so are ready to move. I have found the following information on propertybee

History

dateevent12 November 2008

• Price changed: from '£114,995' to '£112,500'

16 October 2008

• Status changed: from 'Sold STC' to 'Available'

25 September 2008

• Status changed: from 'Available' to 'Sold STC'

05 September 2008

• Price changed: from '£117,995' to '£114,995'

19 August 2008

• Price changed: from '£122,950' to '£117,995'

04 August 2008

• Initial entry found.

Only 2 similar properties in the road have sold in the last 18 months, at 111k and 116k. But I do not know how many bedrooms these properties had, this one has recently had all new central heating and carpets put in, but there is room and a precedent set for conservatories and loft conversions on these properties, so room for growth and possible future potential. Any property we look at, we will have to consider as being a long term family home.

Assuming we knock 10% off the asking price straight away (am I right that this is almost what is "expected" anyway?) that takes us to 98,500. I am considering suggesting making an opening offer of 92k going no higher than 95k.

Is this how the vendor and the EA would perhaps expect the offers to come in? Because the vendors are ready to move, are they more likely to accept lower offers, or will they still have their "must make x amount for my new mortgage" figure?

I'm grateful for any help, Thanks!

clutton_2

what have you got to lose my putting in this low offer - the worse that can happen is that the answer comes back "no".

and after the offer, the EA may guide you as to how much they will realistically accept

icebergx

I'd start from 80-85k and work your way up. Go up £5k initially then £2-3k increments.
Also, don't go up immediately, wait a day or so between increments and explain at each point, how you're funding the increase (eg. money from parents, dip into savings, etc.)

icebergx

double post

poppysarah

icebergx wrote: »

I'd start from 80-85k and work your way up. Go up £5k initially then £2-3k increments.
Also, don't go up immediately, wait a day or so between increments and explain at each point, how you're funding the increase (eg. money from parents, dip into savings, etc.)

Start at 80k and wait for them to break and accept.

debtfree_wannabe

Thanks for your responses. I don't know how common it is, but I guess as I'm new to all this, I'm still feeling almost "guilty?" at making really low offers, but you're right, the worst they can do is say no!

Thanks

lethal0r

I would say £90k, we are first time buyers, have a mortgage in principle & can proceed straight away. and then not negotiate upwards at all. if they reject it say we wont be increasing our offer, but its still on the table, call us.

thats how im going to do things when I buy in 3 or 4 months.

Gangstabird

Do you know anyone at all who knows a reputable builder?

If you do, ask them for the phone number and tell them that they have been recommended and will be doing the work on the house once you have bought it. Get them to outline what needs to be done.

If not, get them from the Yellow pages and ask 5 different ones to accompany you to the building. It's important to say that they were recommended.

Surveyors are notoriously crap and will not ever tell you exactly what is wrong.