what should i offer???????

baz01

hi,

i am a first time buyer currently looking to put an offer in for a house on the market @ 150K.

it has been on the market for 8 months and at that time was valued between 185K-200K, or so i am told.

the owner is in the process of building his own home so told the estate agents to put the house on the market for 160K. after several months and not many viewings he asked to reduce the asking price to 150K. still not many viewers.

am i being very naive in believing this storey, as i know the owner only vaguely.


million doller question is:- what should my first offer be??????????

going off the story its worth alot more than the market price.

help.

thanks in advance

mrsw1983

baz01 wrote: »

hi,

i am a first time buyer currently looking to put an offer in for a house on the market @ 150K.

it has been on the market for 8 months and at that time was valued between 185K-200K, or so i am told.

the owner is in the process of building his own home so told the estate agents to put the house on the market for 160K. after several months and not many viewings he asked to reduce the asking price to 150K. still not many viewers.

am i being very naive in believing this storey, as i know the owner only vaguely.


million doller question is:- what should my first offer be??????????

going off the story its worth alot more than the market price.

help.

thanks in advance

As a first time buyer you are in a fairly good position, as long as you have your mortgage agreed in principal. Make sure when making your offer that you stress your position.
I would personally test the water a little and go in between 8-10% less than asking price. You can then increase when your initial offer is turned down. Do you know if there have ever been any offers made on the property? Might be worth finding out.

Hope that helps a little.

baz01

thanks,

i have just rang the estate agents and there have been no offers as of yet. 3 have shown interest but not made a move.

so you are suggesting putting an offer of around 135K to start with?

also prior to putting an offer on a house, do i need to get my ortgage approved? if so what does this acually mean? does it say i can definatly get the mortgage.

also should i sort a mortgage at the full asking price, then if i get it any cheaper reduce this??

help, confused

mrsw1983

baz01 wrote: »

thanks,

i have just rang the estate agents and there have been no offers as of yet. 3 have shown interest but not made a move.

so you are suggesting putting an offer of around 135K to start with?

also prior to putting an offer on a house, do i need to get my ortgage approved? if so what does this acually mean? does it say i can definatly get the mortgage.

also should i sort a mortgage at the full asking price, then if i get it any cheaper reduce this??

help, confused

Have you made an application for a mortgage? If not, find one you want, and apply for it. That way the EA knows for sure that you are a serious buyer rather than someone just playing. You'll then get a mortgage in principal from your lender, which basically means that the lender are (subject the checks, salary etc) willing to lend you x amount. I would get it on the asking price and once you have agreed a final price get the details amended then.

Obviously up to you with what you are comfortable going in with, but basically the house is worth what a buyer is willing to pay for it so you really need to decide what you think its worth. The only thing with making a very low offer is the risk of alienating the vendor. From my experience on this board though around 10% seems to be reasonable starting point, or go in with an offer say 5% under and tell the EA that that is your highest offer and won't be increasing and see what happens.

Good Luck

mrsw1983

Also investigate what houses have sold for in the area recently, and what else is on the market.

baz01

mrsw1983 wrote: »

Have you made an application for a mortgage? If not, find one you want, and apply for it. That way the EA knows for sure that you are a serious buyer rather than someone just playing. You'll then get a mortgage in principal from your lender, which basically means that the lender are (subject the checks, salary etc) willing to lend you x amount. I would get it on the asking price and once you have agreed a final price get the details amended then.

Obviously up to you with what you are comfortable going in with, but basically the house is worth what a buyer is willing to pay for it so you really need to decide what you think its worth. The only thing with making a very low offer is the risk of alienating the vendor. From my experience on this board though around 10% seems to be reasonable starting point, or go in with an offer say 5% under and tell the EA that that is your highest offer and won't be increasing and see what happens.

Good Luck

i have spoken to a mortgage provider and have been offered the option of two different deals. i am going in this afternoon to talk further about this.
i havnt shown anything financial to him as of yet.

so am i ready to put an offer in? obviously i will speak to the MB to start with.

starting to get excited now!!

edthomasj

Hi Baz, I'm in a very similar situation.

'If your initial offer doesn't embarrass you, it's probably too much....' i read that somewhere and thought it was good thought .

Best of luck!