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

getmore4less

smiddy wrote: »

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.

Look in the loft and elsewhere find the sourse of the damp before bothering with offers.

Look for other issues if they have not fixed this what else has been neglected.

dander

There are no rules to this. Some properties will be priced low to sell at £215k, other properties will be about worth that, others will be wildly over priced. Some vendors will take low offers just to get shot, some vendors are happy to hold out for what they think the place is worth. All you can do is make your offer and see what happens.

Azeem_2

I'm no expert but was in a similar position. I viewed a property it was on the market for 260K and had just been reduced from 275K. My opening offer was 230K and my final offer was 237K which was eventually accepted after a few days.

So I would say your first offer should be a little silly to lower the expectations of the vendor and be sure to say to the agent that this is my final offer at some point and stick to it. The agent will try his usual scare mongering but this is a buyers market.

Good luck hope it all works out.

Running_Horse

You're not a "red hot" buyer.

You're a buyer, and the seller will have a figure in mind they need to sell.

Get over yourself already.

smiddy_2

Running_Horse wrote: »

You're not a "red hot" buyer.

You're a buyer, and the seller will have a figure in mind they need to sell.

Get over yourself already.

Bad day my friend? Compared to a buyer viewing property with no mortgage in place, no deposit and a house to sell i would have to agree with the Estate Agents. The sound of glee when i told them my situation said it all. Even the EA showing me round yesterday said i am in a position to negotiate. There is no need to 'get over myself'............

Please, feel free to come back when you have something constructive to say.

smiddy_2

dander wrote: »

There are no rules to this. Some properties will be priced low to sell at £215k, other properties will be about worth that, others will be wildly over priced. Some vendors will take low offers just to get shot, some vendors are happy to hold out for what they think the place is worth. All you can do is make your offer and see what happens.

Thanks, yeah i understand that. It is just wether to try my luck on £230k properties etc as these are exactly what i am looking for. There is a 4 bed detached that has stood empty and been on the market for almost a year and it still has not sold. Looking at the photos it looks very ordinary (by that i mean it in a good way - no garish decorating or bad layout) so wondering wether to go for it?

TOBRUK

smiddy wrote: »

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.

I think you would benefit going to look at some houses that are a little above your £200k ceiling - a house at 230k could be sold at £200k. The seller doesn't know that it is above your budget (and don't tell the estate agent working on their behalf - don't show your hand!) you have to see what is out there and compare properties. As a seller I obviously don't want time wasters BUT you as a buyer have to be selfish.

You say that you have £200k to use and you have fees etc budgeted for elsewhere. You can be certain whatever property you buy there will be something you will want to change - even a coat of paint can cost more than you expect, depending on size of rooms etc maybe 2 or 3 tins of paint will be needed - try and cost it.

smiddy wrote: »

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.

Be very careful, these damp patches may be just the start! I don't understand why they wouldn' t have sorted this before showing people round. Although you are in a good position to buy, don't be rushed into buying.

smiddy wrote: »

Thanks, yeah i understand that. It is just wether to try my luck on £230k properties etc as these are exactly what i am looking for. There is a 4 bed detached that has stood empty and been on the market for almost a year and it still has not sold. Looking at the photos it looks very ordinary (by that i mean it in a good way - no garish decorating or bad layout) so wondering wether to go for it?

You need to view these properties especially as they are exactly what you are looking for - if you don't look you won't know! After saying that, you need to be realistic in what you are able to afford.

Not sure if my view has helped you at all! Happy hunting and good luck.;)

Running_Horse

smiddy wrote: »

Bad day my friend? Compared to a buyer viewing property with no mortgage in place, no deposit and a house to sell i would have to agree with the Estate Agents. The sound of glee when i told them my situation said it all. Even the EA showing me round yesterday said i am in a position to negotiate. There is no need to 'get over myself'............

Please, feel free to come back when you have something constructive to say.

OK, have it your way.

You're a red hot super duper ultra mega whizz bang top of the world buyer.

If you're dumb enough to fall for EA hype then good luck buying a house.

Come back when you have something sensible to say.

neas

it all depends on your cicumstances.... my wife and i are in similar position £50k deposit.... wanting to offer on a £180-190k house (offer maximum 170k)..

Theres a glut of properties starting to appear in area we want... and according to mouseprices.com each oen is on average overpriced by 15-20k.... hencewhy maximum of 170k asking price.

If i get a mortgage for 120k (based solely off my salary.. just in case) we intend to get a fixed offset account frmo YBS for 5 years (4.89% rate at 670 quid a month) why an offset? well because it essentially allows us to overpay by as much as we want... and the interest saving is equivalent to a 6.12% bank account.

We would also get a lodger to help pay down mortgage quicker. Houses in my area for this range are usually of good standard, reasonable size (big ceilings etc) and have room for 2 lodgers... typically 80 square metres of 'room space' (not floor space which is around 110-120 square metres... i dont count conservatory, landing, loft or other floor spaces)

What i see happening is house prices falling in next 2-3 years but interest rates will rocket... I will owe less money but be forced onto a stupidly high interest rate...

Why fix for 5 years? because in 2 years we've managed to save 30k extra deposit.... over 5 years i anticipate with or without lodger being able to 'overpay' mortgage by 30k (in offset account).

Im a bear i know house prices will fall.. but i feel the next 3-4 months is the window of opportunity to get a good rate, a reasonable discount (upt to 10%) which if combined with a large deposit will buffet you from NE. i doubt house prices will half from their current leve... maybe 25-30% knocked off..

Basically i dont want to wait 5 years more to buy a house... i have a life to live too lol. Which would be the 'opportunity' time.. once house prices crash (2-3 year point) and then interest rates recover (4-6 year point).

As a bear i hear the argument all the time for holding off buying but.... when you truly factor in interest rates... and especially this deal from YBS i cant see getting too much better deal. If IR rise 25% (4.89% becomes a 7% deal) then your mortgage for 4-5 years would still be same.... and you'd have waited a lot longer to do what? put your life on hold?

smiddy_2

TOBRUK wrote: »

I think you would benefit going to look at some houses that are a little above your £200k ceiling - a house at 230k could be sold at £200k. The seller doesn't know that it is above your budget (and don't tell the estate agent working on their behalf - don't show your hand!) you have to see what is out there and compare properties. As a seller I obviously don't want time wasters BUT you as a buyer have to be selfish.

You say that you have £200k to use and you have fees etc budgeted for elsewhere. You can be certain whatever property you buy there will be something you will want to change - even a coat of paint can cost more than you expect, depending on size of rooms etc maybe 2 or 3 tins of paint will be needed - try and cost it.



Be very careful, these damp patches may be just the start! I don't understand why they wouldn' t have sorted this before showing people round. Although you are in a good position to buy, don't be rushed into buying.



You need to view these properties especially as they are exactly what you are looking for - if you don't look you won't know! After saying that, you need to be realistic in what you are able to afford.

Not sure if my view has helped you at all! Happy hunting and good luck.;)

Yes, very much so, excellent response. I am booked into viewing two tomorrow, one at £225k and the one that has been on sale, empty for almost a year at £230k. Each EA has asked my budget so i have responded with 'up to £230k asking price.' Hopefully this will not give too much away!