Yet another bid advice thread!!

mrsnow101

Evening all. I’m after a bit of honest, impartial feedback from people with more experience at house buying than I have!!

We have decided to put an offer in on a lovely house that we have been to view on a few occasions. Its up at £146k – and has been on the market for approx. 3 weeks.

I put an offer of £132k in a few days ago. The offer is about 10% under asking price – my reasoning being that we are FTB in an extremely proceedable position (large deposit, mortgage in place, family will do the legal work, & also a similar house around the corner went for £128k a few weeks back as a repo, although not as nice).

The vendor declined – they are holding out for £143k. The feedback I was given was that they are in no rush to sell themselves, as they have no mortgage, and tenants’ in place at the moment. The tenants actually moved out last weekend (bought a house elsewhere)… so I know the last bit is bull.

What do you think my next move should be?? I would appreciate any feedback at all. I am conscious of the fact that as FTB’s we are in a very strong position (possibly stronger than we will ever be). I certainly wont be getting emotionally attached (hence why I’m liaising with the estate agent and not my partner!!).

Milliewilly

If they've rejected then you either have to wait and see if they come back to you (they may never) or up the offer. Depends on how quickly you want to move (Stamp duty) and how much you want the house.

marcg

Clarify the details of your offer.

If you are able to, you might offer 5% deposit on exchange with completion within 56 days. Obviously you need legal advice to make sure this is do-able and that the mortgage company will agree to that timescale. Otherwise, I suggest stand firm and wait and see.

pawpurrs

56 DAYS!!!!!! Hardly an incentive for the seller to sell to a ftb is it? In my experience FTBers are a complete nightmare, give me an older casdh buyer anyday! Thats not exactly quick. I have completed in a week before, and this time looks like it should be 14 days, auctions are 28 days......... A ftb with mortgage in place should be able to complete wayyyyyyyyyyyyy sooner, and indeed there is incentive at the moment to do so, with the stamp duty threshold.

Anyhoo, advice to the OP, offer has been rejected all you can do is either increase your offer, wait to see if they backtrack (unlikely) or move on to the next property, only you know how much this property is worth to you.
I should imagine that a house that is new to the market is less likely to accept a low offer than one that has had trouble selling.

mrsnow101

I was planning on going back in with a 'final' offer of £135k tomorrow afternoon, with a view to then sitting it out for a week. I really dont want to go above £137k to be honest.

Milliewilly

mrsnow101 wrote: »

I was planning on going back in with a 'final' offer of £135k tomorrow afternoon, with a view to then sitting it out for a week. I really dont want to go above £137k to be honest.

You don't want to go above £137 then don't - move onto the next and you can sleep soundly that it wasn't to be. I always offer in stages up to my maximum and if I lose the house then I don't have any regrets thinking oh if I had bid another £1000 etc.

Doozergirl

Being a FTB doesn't generally make people accept less than they would from anyone else. I wouldn't give a 10% discount to a FTB - when I set out to sell a property there is one price in my head, not one for FTBs and one for anyone else It's a little bit of a myth that a ftb or cash buyer is in a much stronger position than anyone else - a little bit perhaps but 10% of asking price? I'd sit in a chain for a while if it makes me an extra £14k!

In a competition with someone in a chain you'd definitely win but arbitrarily knocking money off the asking price because of your position rather than the condition of the property is not going to be met with open arms. It's the property being valued - not you!

I'd not expect someone new to market to drop any more than 5% even if they have specifically set the asking price a bit high. Yes it's worth asking but it's also not worth dwelling on or questioning why people aren't open to low offers.

I won't buy a house myself unless I know it's a bargain so with my buyer hat on I say "don't buy unless you're genuinely happy with the price and haggle hard" but with my vendor hat on I say "don't be surprised to be turned down".

mrsnow101

Ok, well it sounds as though I’m grossly over estimating the strength of our position… that’s a bit of a disappointment.

Appreciate the feedback all the same.

Doozergirl

mrsnow101 wrote: »

Ok, well it sounds as though I’m grossly over estimating the strength of our position… that’s a bit of a disappointment.

Appreciate the feedback all the same.

The amounts concerned get quite arbitrary when you talk about them all day but some people don't earn the sort of money in a year that you are looking to take off the asking price. You obviously appreciate because it's work you won't have to do if you get the house at a good price but if the vendor thinks there are people out there willing to pay even a little more than you have offered, they will wait for them.

In that position as a vendor, I would drop my price to £140k and then £135k before I even considered an offer of £132k - you should give the opportunity to as many people as you can before you accept a low offer. Slightly different if the house has been on the market a long time and their expectations have been worn away but they haven't thought to reduce the asking price

Hopejack

I actually think in this current climate if a FTB comes along who has a large deposit as the OP has (and can prove it) and has a mortgage set up, then they are in a very strong position tbh. You could wait for that 'magic' offer and end up with a chain of 3 say! One hasn't got a MIP and then wham, they go for their finances and find they can't get the funds or not what they need! This forum is filled with people not getting mortgages and chains falling through right, left and centre - a 'realistic and prepared' FTB or a cash buyer would be my dream when I sell next year! Sadly, I think in our price bracket it's likely to be a second time purchaser!

I agree that it's always difficult to offer low when a property has just gone on the market - no-one wants to take a first offer if it's low!

Good luck, why don't you go back with £135k and then up to £137k as final offer and see what they say - obviously I'm sure you wouldn't do it all on the same day but if you are willing to pay £137k then go to that amount....

david29dpo

You don't believe the tenant has moved out?