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

mbga9pgf

Tara, have you thought WHY the property is signifficantly cheaper? If you know (repo, probate etc) fair enough, but there could be a whole host of structural, local or other issues that turn a "Bargain" into a "Nightmare".

tara747

Running_Horse wrote: »

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.

Hmmm, good point. I am going to go back for a second viewing this week (without OH as I can focus better on my own) and I'll probably ask at that stage whether there have been any offers.

tara747

mbga9pgf wrote: »

Tara, have you thought WHY the property is signifficantly cheaper? If you know (repo, probate etc) fair enough, but there could be a whole host of structural, local or other issues that turn a "Bargain" into a "Nightmare".

It did cross my mind that there may be problems. I have asked the agent to find out who the neighbours are. Regarding why they are selling, the agent told me that they simply need more room for their family (and there are a LOT of children's things around and the house is quite cluttered).

Bufger

tara747 wrote: »

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?

Waiting for someone else to offer? well as soon as they do they could accept pretty quickly and you'd be left not wishing you had played the right hand but wishing you had just played any old hand! Your best method for getting the best deal isnt about timing, its about selling yourselves as prospective buyers AND hoping that they're not the really emotionally attached stubborn type.

Personally i would go with:

Your lowest offer (unless its so low its considered rude and they wont deal with you again! :rotfl:)
Your current status: IE, 'we are immediately proceedable, have a lawyer awaiting address and go ahead, mortgage in principle well within the limit and a 25% deposit. I would also go directly to the vendor if they show any interest at all and offer them direct communication.

Infact i would probably ask if the vendor can do my viewing and then whilst there tell them you are about to make an offer you believe is reasonable, i would also give them my email address if they wanted to talk about it (its easy to ignore someones emails if they turn out bad). If they then have a similar offer but know (or at least feel like..) you are the kind of person that doesnt mess around then you will likely get the acceptance.

I had a situation of a distressed seller needing to move quickly, i had no chain and everything in place and offered 6k below asking, someone else offered full asking but wasnt proceedable! They had to think about it for a whole week as it was a close call for them which just goes to show the price people can put on a less risky situation.

tara747

TOBRUK wrote: »

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.

A good post and plenty of food for thought, thanks. I definitely won't show that I am really keen on this particular house, I know that will make them hold out for more money! We have made it clear that we are viewing other houses.

The agent said that the sellers are willing to be flexible on price as they are keen to move. I suspect that they have seen a house that they like.

Good luck with your sale.

tara747

Bufger wrote: »

Waiting for someone else to offer? well as soon as they do they could accept pretty quickly and you'd be left not wishing you had played the right hand but wishing you had just played any old hand! Your best method for getting the best deal isnt about timing, its about selling yourselves as prospective buyers AND hoping that they're not the really emotionally attached stubborn type.

Personally i would go with:

Your lowest offer (unless its so low its considered rude and they wont deal with you again! :rotfl:)
Your current status: IE, 'we are immediately proceedable, have a lawyer awaiting address and go ahead, mortgage in principle well within the limit and a 25% deposit. I would also go directly to the vendor if they show any interest at all and offer them direct communication.

Infact i would probably ask if the vendor can do my viewing and then whilst there tell them you are about to make an offer you believe is reasonable, i would also give them my email address if they wanted to talk about it (its easy to ignore someones emails if they turn out bad). If they then have a similar offer but know (or at least feel like..) you are the kind of person that doesnt mess around then you will likely get the acceptance.

I had a situation of a distressed seller needing to move quickly, i had no chain and everything in place and offered 6k below asking, someone else offered full asking but wasnt proceedable! They had to think about it for a whole week as it was a close call for them which just goes to show the price people can put on a less risky situation.

Thanks. Interesting suggestion about doing a viewing with the vendor (they are doing viewings outside office hours but we went with the agent). I might do that.

Bufger

tara747 wrote: »

Thanks. Interesting suggestion about doing a viewing with the vendor (they are doing viewings outside office hours but we went with the agent). I might do that.

It gives you a good insight into the real reason for the move - Could be a breakup, financial troubles, death etc. You will be able to tell whether they want a really quick hastle free sale (lower offer) or whether they're the type that will happilly slog it out for their full asking price (or as close to it as possible).

I know it sounds heartless but this method does allow you to prey on peoples circumsances.

TOBRUK

Thanks tara747, and very good luck to you. Although the estate agent has told you the reason why they want to move, why don't you ask them yourself when you go next - watch their expression/reaction when they answer and how they answer. Don't be afraid of asking them anything - what are the neighbours like? Is it a quiet place to live etc.

The estate agent does my viewings but I am here, he introduces them and then I keep out of the way (so not to make them feel awkward) but I do tell them to feel free to ask anything. Last week a couple came to view and almost the first thing they asked me was why I was selling. I had no problem answering because I was truthful.

tara747

Bufger wrote: »

It gives you a good insight into the real reason for the move - Could be a breakup, financial troubles, death etc. You will be able to tell whether they want a really quick hastle free sale (lower offer) or whether they're the type that will happilly slog it out for their full asking price (or as close to it as possible).

I know it sounds heartless but this method does allow you to prey on peoples circumsances.

Oh goodness, sounds heartless alright but I guess you are right! I should try to gain an insight into the reasons for them selling, and also get a feel for the neighbours and area.

TOBRUK wrote: »

Thanks tara747, and very good luck to you. Although the estate agent has told you the reason why they want to move, why don't you ask them yourself when you go next - watch their expression/reaction when they answer and how they answer. Don't be afraid of asking them anything - what are the neighbours like? Is it a quiet place to live etc.

The estate agent does my viewings but I am here, he introduces them and then I keep out of the way (so not to make them feel awkward) but I do tell them to feel free to ask anything. Last week a couple came to view and almost the first thing they asked me was why I was selling. I had no problem answering because I was truthful.

It's always the first question I ask too! Even though I have not viewed many houses so far (it's rare that a good-value house comes along here). Someone I know advised us to view more houses - even ones that we're not that interested in - as 'practice', to hone our viewing and negotiating skills!

RobertoMoir

tara747 wrote: »

Oh goodness, sounds heartless alright but I guess you are right! I should try to gain an insight into the reasons for them selling, and also get a feel for the neighbours and area.

It's not "heartless", it's "business". Keep that in mind. You're not being cruel when you make a lowball offer, you're negotiating from a position of (hopefully) strength. It may sound like I'm being silly or splitting hairs, but I'm not. A house purchase is one of the biggest financial decisions most of us ever make, so it's definitely business.