What to offer on a £200k+ property as a 'red hot' buyer?

smiddy_2

Just wondering buyers / sellers opinions on this? I am viewing property up to an asking price of £220k and wondering what sort of prices would be acceptable.

I am a FTB living with parents (nothing to sell / no renting contract to live out) with a deposit and mortgage agreed in principle. Ive heard in the trade we are known as 'red hot buyers?'

As a buyer in this position, what would you be likely to offer?
As a seller knowing i am in this position, would you be likely to accept a lower offer to enable a quicker move?

I saw one today on at £215k, would starting at £192k and working up to £200k be reasonable. Too much, too little?

Would love to know peoples views on this!

<sebb>

Have you checked the recent sold prices for similar properties on the area? You can do this on rightmove or zoopla websites.

smiddy_2

Good call, the exact house sold for £81k in 2000 (wow). It may have had some work carried out as it is extended slightly. Another in the street sold for £190k in 2008.

shane42

lower try 190
people are taking offers try your luck

poppysarah

175k

Why not!

smiddy_2

Thanks guys. I know that if your first offer does not embarrass you it is too high but i want to be taken seriously. £190k seems about right but £175k?

dopester

It isn't a He-man contest where you win by how much you can overpay.

These are serious numbers - the economy is being hit by some hard market forces which have some way to play out.

You've seen how house prices have risen (£81,00K in yr. 2000 to asking price of £220,000)... house values can fall as well. They don't magically keep on doubling every 7 years.

I don't sense any fear in you that house could fall back in value to £81K, as sellers of other similar properties begin accepting lower prices in the years ahead.

Would you prefer to have less debt? More money in your savings account? Please don't be red-hot to massively overpay, or over-offer. Some sellers are putting fantasy asking prices on hoping to snare someone like you into a £190K offer.

getmore4less

smiddy wrote: »

I am a FTB living with parents (nothing to sell / no renting contract to live out) with a deposit and mortgage agreed in principle. Ive heard in the trade we are known as 'red hot buyers?'

As a seller knowing i am in this position, would you be likely to accept a lower offer to enable a quicker move?

Red hot maybe for the trade you create the bottom of any chain and create a lot of commision when it completes.


There is no evidence you could do a quick sale yet

How big is this deposit 25% and we are in the right ball park for no hastle on the loan front if the salary multiples are reasonable.

As a FTB you will probably get spooked by the survey(if you have one done) when it points out loads of minor points and suggests checks on the roof,gas,electrical, damp etc.

Don't forget the high deposit / low salary multiple indicates you can pay more.

Over confident you are the ideal buyer can indicate you can afford more.

smiddy_2

Right ok, let me put it another way. I have a mortgage agreed for £150k plus i am putting in a £50k deposit - therefore i have 200k to use. Fees etc are budgeted elsewhere so the whole amount can be used for purchase. I have seen a few properties around the £230 - £240k mark that would be ideal but have been putting off viewing as i thought they are a little out of my £200k ceiling.

Would you go ahead and view or as a seller be annoyed that someone with a £200k was wasting (or not) your time. Just trying to get an idea because as a FTB i am new to the property game.

smiddy_2

getmore4less wrote: »

Red hot maybe for the trade you create the bottom of any chain and create a lot of commision when it completes.


There is no evidence you could do a quick sale yet

How big is this deposit 25% and we are in the right ball park for no hastle on the loan front if the salary multiples are reasonable.

As a FTB you will probably get spooked by the survey(if you have one done) when it points out loads of minor points and suggests checks on the roof,gas,electrical, damp etc.

Don't forget the high deposit / low salary multiple indicates you can pay more.

Over confident you are the ideal buyer can indicate you can afford more.

As above, 25% deposit, seen a mortgage advisor and have a agreement in principle. £200k is my limit. The property i viewed is superb but did have patches of damp in the ceiling - i would certainly get an idea of the cost of dealing with it and use this wisely on the offer.

Eric1

Agree with dopester, but at the moment it depends on your area.
You won't really know until you start actually bidding. Don't be afraid to start low or to "miss the boat"