I am considering buying a house but am a total novice!!

tara747

We have viewed a house that we like a lot but I think it is a bit overpriced... however, it's the cheapest 4 bedroom semi-d in the area we want. But that's not to say that others won't follow suit, these might just be the most desperate sellers around at the minute.

How do we handle it? I'm determined not to make an offer just yet...

Running_Horse

Not a lot of information to go on really. If you want it, offer a bit less than you are willing to pay, then negotiate. If you're asking do we think the price might fall if you wait long enough, then it might, or it might not. Bit hard to buy a house if you don't want to make an offer just yet.

PasturesNew

How much is it?
How much deposit do you have?
Do you have a Mortgage in Principle?

tara747

We would have a 25% deposit if we can get it for £9k under asking price. I can't say much about it as I don't want to identify the house, sorry!!

We're not making an offer yet as we want to wait and see if anyone else does. No point in setting the ball rolling too soon, it weakens our hand imho. If the seller has to wait longer for an offer, they may be more keen to accept. Also, there's the forthcoming election/economic uncertainty to think about. I reckon IRs are on the way up and this may have an effect on house sales in the next few months. And as an uber bear, I don't want to pay too much for a house lol!

Anyway, as I say, I have no experience of house buying so am not 100% sure how to go about it. Basically we would buy at the right price but I guess we just need to sit tight for now and wait to see if anyone else makes an offer.

I have been to see an IFA and we have an idea of how much we could borrow and from which banks, but that's all. Should we get a mortgage offer in principle?

CloudCuckooLand

If they are desperate, being the first to offer low, then come up a bit to your preferred figure, might get you the house...

tara747

CloudCuckooLand wrote: »

If they are desperate, being the first to offer low, then come up a bit to your preferred figure, might get you the house...

Really? Hmmm, I have a feeling that there may be some interest in this place, as it is literally the only sub-£200k 4 bed semi in the (nice) area. But I guess we can only wait and see.

I know one thing though... we will only go up to our limit and that's it. I can't stand the thought of falling in love with a house to the extent that we would pay over the odds to get it.

A quick question about mortgages. I see that trackers are very attractive right now, but we all know that IRs can only go up. from their current level - it's just a matter of when. Would it be better to get a tracker (£605 per month) and overpay as much as poss while the rate is low, then switch to a fixed rate whenever IRs rise? Or should we go straight for a fixed rate for (say) 5 years at approx £740 per month? I know the fix might work out dearer later than if we took it now, but we would have paid some extra off the capital by then. If we even overpaid £200 per month, that would put us in a better position down the line.

Any advice will be gratefully received.

tara747

Must not ring the agent
Must not ring the agent
Must not ring the agent

jonewer

tara747 wrote: »

Must not ring the agent
Must not ring the agent
Must not ring the agent

Er.. why?

.

tara747

I'm trying to play it cool!!! Am I being silly? The house has only been on the market for a week.

Running_Horse

That's the gamble you take that someone else may beat you to it. When we sold our place for full asking price on day one we refused any further requests for viewings on principle. But that was at the height of the market. You could ring and ask for a second viewing in a few days, and try to be a little more critical.

TOBRUK

tara747 wrote: »

Really? Hmmm, I have a feeling that there may be some interest in this place, as it is literally the only sub-£200k 4 bed semi in the (nice) area. But I guess we can only wait and see.

I know one thing though... we will only go up to our limit and that's it. I can't stand the thought of falling in love with a house to the extent that we would pay over the odds to get it.
Any advice will be gratefully received.

Have you thought why this is the only sub £200k 4 bed semi in the area? Have you, out of interest gone to see other 4 bed semis in the area to see the differences - even if they are above your budget? I ask because I would wonder whether there is a major problem with the house - which you would only find out after paying for a survey!

Did you say the seller is desperate to sell - have you been told and if so what is the reason. If everything checks out why not put in an offer - a low offer, but do not show the agent or the seller that you are really keen to buy THIS house. Why do you want to wait until someone else puts in an offer?? If the seller is really desperate to sell he/she may take the offer and you could lose out!

Rates may go up or down at any time as can house prices no one can really tell what will happen, even after the budget or waiting the outcome of election.

I have my house up for sale but have already got an offer of a re-mortgage in place, and have found the property I want to buy. I may not sell who knows and I may lose the property I want to buy. There are a lot of ifs and buts. My reason for selling is because of health - need to move to bungalow, and be near family for care needs. I have not told my estate agent that I am desperate to sell (who knows what they tell the buyers!), I have played it down. I have told him that I have seen a property but if I lose that then I'll wait until something else comes along.

The sort of mortgage you take on - if you want certainty of how much goes out every month then go for fixed rate. Only you know what's important to you and your budget, outgoings etc.