House Buying - Moneysaving Tips

BizzleBozzle

BARNEYB wrote: »

Hi I am new to this site so hope I am posting in the right place.

We are in the process of selling our house and have just gone on the market this week. We have already found a house we wish to purchase. The property is on for £220,000 but needs a lot of updating and new bathroom. It was lived in by and older lady who has died and her son is selling it so there is no chain on the property.

We had a second viewing on Fri to assess the amount of work that needs to be done so we could agree an offer that reflects this. We decided to offer £202,000 as it needs the work and we felt it was over priced compared to other houses at £220,000 in the village.

We really want this house ( my husband us a builder so can do all the work) and we want to move to the new area for schools so need advice on how we should play our next move...

We are on the market and photos being finalised next week, we have final mortgage meeting this saturday coming to provide evidence for mortgage in principle. The agents selling our house recon it will sell within 4 weeks as we have completely renovated house for sale.!

We made an offer on the house we want on saturday of £202,000 which was rejected via voicemail, the EA said the vender is willing to go below the asking price but that offer was a little low and to call back if we want!to revise the offer. From previously talking to the agents they have only had one other offer from a cash buyer but it was way below asking price ( not sure if this was made up though!)!

We love the house but are on a tight budget as it needs a lot of work doing to it so we want to save as much as possible in the offer we make so that there is monet left to do the house up.!

Our thoughts were to hold off making another offer until we had got the mortgage finalised and had a couple of viewings ( maybe evenn until we had sold) so we are in a better bargaining position and then go back in with a £205,000/ £206000 offer. (pray somone else doesnt make an offer in meantime). Should we do this, it might make them sweat abit but could lose the house as well? It has been on since christmas so not been snapped up yet? !Anyone out there have any advice would be gratefully received!!!

I'm assuming you need to sell your current house in order to buy the new one in which case you're not really proceedable at the moment. This means that although your offer may be noted, it's unlikely that the vendor would take their house off the market on the strength of it.

You really are better off staying silent and getting on with selling yours first. If it's still sitting there as you say you'll be in a much better position.

BARNEYB_2

Thanks bizzlebozzle, yes we do need to sell in order to get the new house. Have never sold a house before and really hoping it won't take too long. I had 3 valuations last week and had positive feedback from all eatate agents on saleability of house, !all 3 thought that it would sell within 4 weeks ( do they say this to everyone though)? We have done every room up and extended and put in new bathroom and kitchen so it is being listed as premier for all the work that has been done and is one of the best hpuaes on the market for our price range.

Also can anyone help me with mortgage advice.... I am currently on maternity leave and The bank has said they will only take my current monthly salary into account for mortgage borrowing, this means they are basing it on my very low statutory maternity pay and not my actual income when i return to work is this normal? TIA

nicolewilson

I have been searching for a house and it seems that I won't be able to afford it till later on down the line. House prices are rising and all I can do now is rent. It's fine for my present situation since my job is still unstable but it makes me upset at the increasing prices.

I read an article in The Guardian about rising house prices.

Are people looking more to buy or rent a place and how do you go about doing it? Do you go through agents? Are they online agents? What websites do you search to find properties?

Thanks.

Kassius

My partner and I have the Nationwide Save to Buy account and have found a house we really like. We should have a 5% deposit by August and can apply in June for a Nationwide mortgage. According to Experian our credit is pretty good (no outstanding debt etc). We have found a house which we really love at £140,000.

We have explained we will not be ready until August and the vendor is fine with this.

However a few points we'd like a little clarification on:

-We've heard that it's difficult to actually get a 95% mortgage with Nationwide. Our credit reports are pretty good but my dad has debt and I wonder if this could impact me in any way?!

- When should we make an offer? I think we should go ahead whereas my fiance thinks we should wait as once it's made, if they accept at less than the asking price, they could still keep it listed and get better offers in the meantime.

- Is £123,000 a reasonable first offer? This is 12% below asking price. The property has been listed for 2 years and is in serious need of re-decorating particularly the bathroom. Another house in the same street with similar specs but no need to re-decorate and a nicer bathroom and garden sold for £138,000 last year.

Our maximum will have to be £134,000 as we do not want to get in above our heads before we even begin but we really love this house and the area.

Should we put our offer in now before we actually have the funds and with thechance that our mortgage application could get declined or should we wait and hope for the best in July when we can actually apply for the mortgage.

The vendor has apparently not yet started looking for a new house either so obviously this could drag out a while once we do make an offer.

Any advice greatly appreciated!

Thanks

snid

There is nothing to stop you making an offer now. However, before you exchange contracts there is nothing to stop the vendor pulling out and selling to someone else.
(We had an offer accepted on a house last month with the vendor aware and happy that we would not be able to complete for 5 months. However, within 2 days the EA 'phoned to say that he'd accepted another offer of the same value from some one who was ready to proceed.)
If you do get an offer accepted make sure the house is taken off the market & no more viewings are allowed.
It also seems as though you will be making an offer without any real certainty that you will have funds available. Could you not apply for the mortgage before June and get an agreement in ptinciple that your mortgage would be available from August?
If you have an accepted offer, but not certainty of funds, would you be happy to spend out on Solicitors fees & surveys before any exchange of contracts?
I think an offer of £123K is a reasonable offer, but probably will be too low for the vendor. However, if you came in at (say) £130K then you haven't got much room for manouvere.

BTW - you're probably better starting a new thread for this than putting it in the 'tips' thread. More will see it.

himalayas

Hi,
I am planning to purchase a home in California. I think its such lovely place but I don't have the much knowledge about that city. Anyone in this forum can suggest me that what is property rate there and it is nice place for living there. Please help me. I'll wait for your reply.

RonLeroy

nicolewilson wrote: »

I have been searching for a house and it seems that I won't be able to afford it till later on down the line. House prices are rising and all I can do now is rent. It's fine for my present situation since my job is still unstable but it makes me upset at the increasing prices.

I read an article in The Guardian about rising house prices.

Are people looking more to buy or rent a place and how do you go about doing it? Do you go through agents? Are they online agents? What websites do you search to find properties?

Thanks.

If it is possible try to buy a house from its owner. Agents get expensive commissions. In UK agencies usually put tablets near houses for selling, so no contact details of real owners, you can see only agency phone number. But if you stay for some time near the house try to speak with neighboors you can find the real owner, try to negotiate and bargain, you can really save a lot.

Tips for buing the house - full list

As I know mortgages now have record low rates, it is good time to get it.

Pritchett2003

Question - i am an FTB and have been to the bank and agreed a mortgage in principle but due to the deposit we have and the ltv available we are limited to what we can afford - my question is would it be reasonable for me to view a property that is almost £20k above my limit hoping that they might accept a lower offer in the current climate or is that being too cheeky? How cheeky can you be without getting the vendors backs up? The house i have seen is really nice however there are a few of the same style on the same estate all with varying prices but i do know that the owners of this house are having financial difficulties?? - i know i haven't viewed yet which could change everything but wanted some guidance before i start on this road..

townendwig

Pritchett2003 wrote: »

Question - i am an FTB and have been to the bank and agreed a mortgage in principle but due to the deposit we have and the ltv available we are limited to what we can afford - my question is would it be reasonable for me to view a property that is almost £20k above my limit hoping that they might accept a lower offer in the current climate or is that being too cheeky? How cheeky can you be without getting the vendors backs up? The house i have seen is really nice however there are a few of the same style on the same estate all with varying prices but i do know that the owners of this house are having financial difficulties?? - i know i haven't viewed yet which could change everything but wanted some guidance before i start on this road..

Hi Pritchett,
I'd say there are no rules for what is a fair offer, an asking price is just that.

Would you rather offer £10k more (which equates to £20k of your wages in payments to the bank over the life of the average mortgage lets not forget) or offer £10k less and risk getting a stranger's back up? I know which I'd choose

Research your market well, arm yourself with the facts and don't fall in love with any one property. Give yourself options. Take everything an estate agent says with a pinch of salt, they have one interest and it doesn't align with yours as a buyer. It is their job to manipulate people and not surprisingly they are very good at it as they get plenty of practice. This includes making you question the validity of your offer, making you believe it is 'too low'. Another classic sales tactic "well if you can't afford it sir..."

How long has the property been on the market?
How much is £20k as a % of asking price?
How much have similar properties sold for in the area?
How much did that specific property last sell for and how long ago?
Has it been improved since then?

Rule of thumb in today's buyers market: If you're not embarrassed by your offer, it isn't low enough

Cheers,
Wig

girl_withno_name

Where can I find information on the best schools in Wales?
I've tried googling, but only seem to be able to find info for England...