First time buyer nerves!

LunaKamelia

We're first time buyers and have seen a property we really want for £279,950. The house needs complete gutting, as the owner had been living there since the 30s, and would need around £30,000-£40,000 to make it habitable. We've put in 3 offers so far (£234,950 , £242,950 & £245,950) and the estate agent has yet to get back to us regarding last offer. We are 100% cash buyers with everything in place, so are at a certain advantage, however, the estate agent has been acting extremely weirdly. After first 2 offers he swiftly tells us that offers are too low and others have put in a much higher figure, and quickly tells us that he has another property which we might find of interest. Without seeming desperate, I give him the last offer and tell him it is our last and that due to the state of the property the offer seems more than fair ( especially since he hinted we could get it for £250,000!!). Also the property has yet to feature on their website, eventhough all the new ones are on there! He hasn't gotten back to me yet since yesterday. Is it me or is there something going on, as he doesn't seem very encouraging. What should we do? Properties in the area have been going for £300,000. Help!!!! :eek:

NyimaR

LunaKamelia wrote: »

What should we do?

Be patient!
IMO you should leave it a few days before getting back to them and asking whether your offer is being accepted - otherwise you may look desperate. As you have increased a couple of times already they may be holding out to see if you panic and offer more.
Good luck!

tyllwyd

Why are you assuming that the delay is on the part of the estate agent? The vendors might be taking a bit of time to think about it, especially if is nearly but not quite what they were hoping for.

LunaKamelia

Thanks Nyimar! Just got a call from the agent and he's said that our offer was rejected yet again and that the vendor was not in a hurry to sell, therefore our having 100% cash is not that important. However, we were free to put in another offer and if not they were happy to find us another property!! Am gutted, but have to think hard about what to do next!

LunaKamelia

I know its not the agent, but as he's the one I've been dealing with and is somewhat connected to the house I want, he's going to get all my pent up impatience!! I do know that the vendors were not quite happy with our last 3 offers, but the house needs sooooooooooooooo much work doing to it, that I really wonder whether they think they will sell closer to the asking price. They probably will as it has great potential. Will think about putting 1 last offer of £250,000, and will see how it goes.

pardal51

I think you are leaving your emotions take over. Offer what you think it is worth, i.e., if it needs sooooooo much work you don't want to pay the AP or even close to that.

You are in a good position, you can/will find many other properties. Think rationally rather than emotionally. Don't up your offers they way you've done, i.e., full figures £8K than £3K. Go let's say from £234950 to £241283 to £243127.....Just to show that you are trying to scrape every single penny you can. Take your time, don't rush things as you may show a bit of desperation and this can be used against you when negotiating.


Having said that I am also a FTB, with a reasonable deposit and still to do my first testing negotiation.

betmunch

If the vendors feel the asking price reflects the amount of work on the property and they are willing to wait for someone to pay a lot more there not a lot you can do.

I would think about the maximum I would be prepared to pay and offer that. If it is turned down then tell them you'll leave it on the table until you find another house. Then book a view more viewings on other properties, including a similar one with the same agent.

It might just be a case where your valuation and the vendors valuations can never match and you wont buy the house......

jozbo

We´re in a similar position -
I would say if you really want this house, do a detailed costing of everything needing doing to it (down to the last detail) inc labour and materials. Add a contingency. Take what you think the house is worth (get a figure from recently sold house prices in the area). Deduct the total cost of works from what you think is it's market value. Offer that precise amount (presuming that still puts it in budget, if not, walk away).
That way, you have done your absolute best, and anyone that subsequently comes in and offers more is probably going to lose money on the house, which could very easily be a 'money pit'.
Whatever you do, don't get back to the agent for a while. They're probably getting jittery because you're a great customer (cash) and they are fearing that you'll go off and seal a deal with another agent.
Good luck

tawse57

If you do the following:

1. Use Firefox as your web browser.

2. Go to a site called Property Bee - http://www.property-bee.com/ - and download the Property Bee plug-in for Firefox. Restart Firefox.

3. Then go to Rightmove.co.uk and type in the postcode of the house you are looking at. You will probably be able to check what the asking price history has been for this house and houses nearby as Property Bee then lists all this information.

I am in a similar position as you and am looking at houses with asking prices of 300K but I will not pay a penny more than 249,999K - basically taking just under 20% off as I believe asking prices at at least 20% over-valued.

If you offer does not embarass you it is too high. It is a buyer's market and the economy is getting worse.

brit1234

LunaKamelia wrote: »

Will think about putting 1 last offer of £250,000, and will see how it goes.

Don't!!!!!!!

Wait till next Friday and put the last offer in again. Halifax figures will be out the day before and the estate agent will be aware. They are likely to say the 4th month in a row house prices have fallen.

So say on Friday "£245,950 is our final offer, we can't give more as it is the 4th month in a row house prices are falling and we fear they will fall a lot more. We do not want to lose extra equity for nothing and needs be buy else where with some one who is realistic about the economic situation"

The EA wants his commission and you have shown you are aware of the housing situation and he can relay that to the seller. After all it is a buyers market.

QTPie

Good advice from others...

The reason that it isn't on the EA's website is that they believe that they can sell it for a good price without going to the trouble of putting it on there.

As someone else has said, don't under-estimate the cost of doing it up (especially if you don't intend to do it yourself....). Would be good to take a trusted builder or two around and get some quotes....

We have just bought a house (complete this coming Wednesday) and are having it gutted. New windows, complete rewire, central heating system completely replace (including pipework - old system is microbore), new gutters/facias/soffets/etc, complete redecoration, kitchen and utility complete refits, two new bathrooms (keeping one shower room and downstairs WC as they are). It is costing a fortune, but it is a big 4 bedroom house.

Don't underestimate the costs involved.

QT