House Buying - Moneysaving Tips

JMilligan09065

My boyfriend and I are first time buyers and currently browsing the market and saving for a deposit. Between us we have approx £8000 in savings.

Recently we have spotted a property in the village we are interested in and had a little drive down to the street today to have a look at the surrounding area. Its on the market for £115,000 (three bedroom end terrace) but has been for sale (according to mouseprice) since December 2010 with an original price of £120,000. The price was dropped in Feb 11 and then Nov 11.

We are currently trying to decide what our next step would be. I was thinking that we should probably arrange an appointment to see how much we can actually borrow, we are aiming for a 10% deposit but wonder if an offer of £100,000 would be realistic, but this does give us some manouevring room.

We wonder what the reaction would be if we were to start viewing and discussing mortgages as we are a way off (£2000 for an offer of £100,000) a deposit plus fees. It would take us around 2 and half - 3 months to save this, so is it worth just waiting or should we get the ball rolling now?

aronhayek

Many first-time buyers do not have a well-established budget. In most cases, they are generally aware of their finances, but have always had extra income at the end of the month so tracking every dollar spent has not been a high priority. This has to change when seriously considering buying a home.
- michaelaning.com

mzmz

We are first time buyers. Found the house we realy like, it has been repossess, asking price is 94500£, we started with 85000 £ then went 87000£. Last inf about this house what we colud find was : sold in 2001 for 63500£. Our offer has been rejected. It is 3 bedroom semi with garage. Hasnt got kichen in at all, boiler needs replacing, no foors in at all. The house has been on the market a few months. What wolud be your advice? We feel like going any higher wolud be too much.

charleyplackett

Hi, I'm after some advice on what to offer.
I am not a first time buyer but am currently renting and have a £40,000 deposit. I have a decision in principle for £140,000 mortgage and have seen a property for £154950. I like the property and it ticks my boxes though it is not my dream home so I am not emotionally attached. The venders have already exchanged on their next property so it is marketed as no chain though they were still living there when we viewed last Saturday. I have researched on Zoopla and it says a value of £141,000 though this does seem low compared to asking prices of others in the area. I was thinking of offering £142,000 as a starting offer but this seems very cheeky to me, what does everyone think?! Charley.

sejdee

mattybully wrote: »

Put in a low offer explaining your circumstances then if it's rejected leave it a couple weeks to get them thinking. Don't be drawn into upping your offer straight away as this will show a willingness to negotiate too easy to the estate agent

We have decided to let our mortgage advisor broker the deal, so offer of £155,000 is going in tomorrow. Wish me luck

@mzmz wrote.

We feel like going any higher wolud be too much.

Then don't go any higher! Leave your offer on the table and wait and see. All depends on how much similar properties have/are selling for and the amount (££££'s) of work required to refurbish it, and how much you really want it.

@Charleyplackett..

I was thinking of offering £142,000 as a starting offer but this seems very cheeky to me, what does everyone think?

Sounds like you are in a strong position as a buyer, and they will probably be keen to get a quick sale, but there are a lot of factors as with all house dealings. Zoopla cannot be relied upon for house values, so ignore it. What are/have similar properties sold for recently? This is the best valuation as to it's real value. They can only say no to your offer, so go for it. You can then gauge their response, as they may come back with a counter offer.
Don't forget before making the offer, to explain your very strong position to back up the offer, namely;
You have nothing to sell or to hold up proceedings
You are not in a chain
You can be flexible as to completion date (within limits!)

You have nothing to lose..........

Valeria12

Well I am planning to buy home in California in UK. Is it good location..??? I don't have a much knowledge about that place, Anybody can tell me about that place.I'll wait for your reply.

sejdee

mattybully wrote: »

Put in a low offer explaining your circumstances then if it's rejected leave it a couple weeks to get them thinking. Don't be drawn into upping your offer straight away as this will show a willingness to negotiate too easy to the estate agent

Well, we went in with an offer of 155 (house on market for 175), which was immediately declined. Sellor wants nearer the asking price, so upped our offer to 162 to show we are serious. Declined again with the same reason. So upped it to 165 (final offer) to again reinforce our intent to buy, but declined again with the same reason. I was expecting a counter offer, but they are probably thinking as we have increased several times then we'll go further. Wrong and now I'm not sure if they are serious about selling at the moment.
Nice house and we could go to asking price, but in current market we think 165 is a fair offer, so that's that.
Have arranged viewings on similar properties that look promising in the same location, so fingers crossed still.

johnmcloud

Absolutely fabulous advice in this thread. Thanks all!

skyeceilo

Hi All
In abit of a sticky situation. Accepted an offer on our house (125,000)which would give us 12k equity. We were hoping to pay fees etc from some of this money and Northern rock (we have 100% mortage) said a simple transfer of our mortage is no problem but now they are only willing to give us £105,000 on a house £118,000 which is 7k below our current mortage loan. So now we are some what short of money. Should we try and get a loan or go into rental for a while? I'm afraid if we go into rental we wont get back on to the property ladder what with being in our mid 30's. I'm also on maternity leave now so afraid we will be rejected from another mortage lender etc.

jules888

sejdee wrote: »

Well, we went in with an offer of 155 (house on market for 175), which was immediately declined. Sellor wants nearer the asking price, so upped our offer to 162 to show we are serious. Declined again with the same reason. So upped it to 165 (final offer) to again reinforce our intent to buy, but declined again with the same reason. I was expecting a counter offer, but they are probably thinking as we have increased several times then we'll go further. Wrong and now I'm not sure if they are serious about selling at the moment.
Nice house and we could go to asking price, but in current market we think 165 is a fair offer, so that's that.
Have arranged viewings on similar properties that look promising in the same location, so fingers crossed still.

Just put our house up for sale and want to buy another one,no mortgage and have savings to put towards buying another house.I dont blame sellers for wanting nearer the asking price.I feel even more nervous about it all reading this thread.Its all got ridiculous!