House Buying - Moneysaving Tips

bigbeff

Hi, we are currently looking at a flat and the agent is advertising 209000-229000. We're first time buyers - is it rude to go under this. I don't really understand why they put a range of values in.

Speaking to mortgage advisor tomorrow before and am going to view again.

Thanks in advance

robatwork

209k - 229k is estate agent doublespeak. The price is 209k
Now it may BE worth 209k - only you and zoopla and rightmove know that, but unless there is a queue of viewings I wouldn't offer 209k which is the asking price. Perhaps go in at 190k - all depends on how realistic 209k is and how keen they are to sell.

MoneySaver8_2

Also - don't show your excitement to the agents if you find the property that you like. You need to show them you are interested but that this is not your favourite and you have other options.

sirloin

As I said in my post of 7/1 go in REALLY low. What is the worst which can happen ? they can refuse it !
After 3 years of searching, find that a price range of (say) £209k - £229k is in EA 'speak' a required price of £229k, but they put in the £209k to tempt you. Offer around £190k and see what they say.
Another thing I found was to take a folder with you (bulging) when you go to view and say you've looked at some others and some more to view , but this particular property is looking overpriced compared with others you've shortlisted. You can be assured that the agent wants his commision and that usually means he'll try and get YOU to purchase. His (say) 2% commission on a price of £190k against £209k is still more than a big ZERO ! if he doesn't make the sale.
ALWAYS get a proper survey and if the surveyor comes up with any faults, then use these to get the price lower. It works !
It is very much a buyer's market, so take advantage !

njp28

I've seen a house for 169,950. It's been on the market since November, they had an early offer but the buyer had to pull out of the offer because of a change in their circumstances.

I know that it's still being viewed by others because we went for our second viewing this weekend and the owner got us confused with someone who'd viewed last Monday. The EA told us that 6 parties have viewed and that the most interested person has asked to be kept in the loop. The house hasn't gone under offer though.

It's fairly well done out, not much work needs doing though the wood double glazing is a bit old and they have a water meter (this is our main sticking point because it would increase our water bills by quite a lot).

Would it be reasonable to offer 160k? Normally I would try, but I'm concerned that the other 'interested party' will then counter bid. Though part of me thinks, if she was that interested wouldn't she have already put an offer in?

Also, do you have to give a reason when you offer lower than asking? Would the effect of the water meter on our monthly bills be an appropriate reason (the owners chose to install it a few years back)?

samtoby

You don't need to give a reason. Just make it out thats your limit and premote your position (chain free if so, mortgage in place) x

IvyD

Hi
If a property is in need of having radiators installed, bathroom redone, some emptying (owner are not taking limited furniture etc) and the asking price is 'in excess of £350k', would thar mean that they won't even entertain a lower offer?
Thanks.

sirloin

Your query raises more questions than answers able to be given. (£350k in Westminster would seem as you've just won Euromillions lottery)
You need to do some research (Zoopla and Land Registry, amongst others) and see when this house last sold and for how much. Look at other houses in the same road/area and see what their values are. There are plenty of websites around where you can get estimates online for installation of radiators etc..
Remember that the vendor (and the EA, as the higher the price the higher his 'cut' !) is trying to maximise their return, so remember, it is only worth what someone is prepared to pay for it.
As I said in an earlier post 'go in low' as all they can do is refuse, or maybe counter offer.
Hope this helps

IvyD

Thank you, Sirloin. I have been told that the owners are now in a care home and have no children. From the look of the house, it appears that they haven't really done much to the house at all. We are going to view the house this week. Will keep you all updated.

samtoby

I know this might sound obvious but carehomes cost a bomb; they are probably looking to seel as quick as possible to free up cash to pay for the home. Obviously may not be the situation; but likely. x