Putting in first offer, advice appreciated.

skypie123_2

Rich its worse than dating for all the games you have to play!!
Good luck! Hope you get it!

hazyjo

It's a fact that people usually overvalue the houses they like. Where they'd drop the price on something they're more nonchalent about, when they love it, they just want to pay the asking price. Great for the vendor, not great for the buyer! Try and keep level headed. We felt like that about a house. Absolutely loved it but couldn't sell ours... we felt that panicky feeling as it just felt so perfect, yet, 8 months later, it's still on the market! And it's been dropped £25k now in all (that we know of). Just try and keep calm. If other people were desperate for the house you want, they'd have got it by now. For the sake of £5k which they've dropped when they're obviously open to offers anyway, someone would have dropped them from their asking price. I'm guessing they have a way to go yet before they get significant interest from other parties.

I'd definitely not jump up from an offer of £123k to £135k. Too big a jump.

It doesn't matter what someone wants or needs from a sale, it's what they'll get. If it's up for nearly £140k and has been dropped numerous times, I still doubt the market's gonna bit their hand off. I'd still want a deal on it - and they obviously want a quick sale or they'd have kept it on at the same price and taken offers. They're obviously keen to move on and get rid.

Personally, if you want it that much and don't mind paying a premium for it, I'd go in at £128,500. It's a very fair offer in this market. If they say no, say you don't want to go backwards and forwards so are putting in a best and final bid of £131,500 - say £130k was your limit, but you can scrape together the rest by the time the sale goes through. I wouldn't be paying £135k unless I absolutely had to. Don't overpay though. I'd be going in about £124k if it was me and sticking my limit at £128k, but there you go. If you want it that badly, you'll probably end up paying more for it anyway.

Jx

RichPyke

Thanks for that. I have a few figures sorted in my head.

Was going to put the offer in today but spent all morning with mortgage broker (who couldn't beat my current AIP with Halifax... waste of a morning but at least I know I found a great deal). So offer will be discussed with the EA on Monday. Cheeky one first, I have to at least try the cheeky one... they may say no, they may be in the state of mind where the house is just a pile of cash costing them money and they want rid...

I guess I will find out on Monday if I need to start saving like a mad man and doing everything I can think of to make some quick cash, or if I can relax and let everything fall in to place...

Once again, thanks for the advice.

RichPyke

This has become one hell of a task! lol.

I emailed my offer to the EA on Sunday night but never heard anything Monday or Tuesday, so phoned Tuesday... turns out the EA hadn't seen the email as he wasn't in! That'll teach me to email wont it? But it's gone in now so waiting for an answer.

The great news is, the property is actually either a repossessed property or part exchange property as it's listed on one of those websites which only cover those... I didn't know that's what they dealt with when I first saw it on there! So hopefully, they wont care I've gone in so low (not stupidly low, just over 10% low).

My only problem is, I have heard they will continue to market the property even after an offer has been accepted. My concern is my costs if someone gazumps me. Should I be worried? I guess no one is really interested if it's been on so long but now it's on with another agent too it will have more exposure...

I guess all I can do is get exchange of contracts sorted as soon as humanly possible isn't it? Would having the mortgage lender (Halifax) do the conveyancing too (even if slightly more, about £200 more, although legal fees refunded) and just having the basic survey they insist on be a good plan to get it all signed, sealed and delivered as quickly as possible? House is 30-40 years old and in very good shape (worked in construction industry for 12 years so I'm a pretty good judge, although no structural engineer)

But, waiting game has commenced, and I hate waiting.

hazyjo

Who's told you they will continue to market the property? Them direct? You could try making it part of your offer that the property is withdrawn from the market. If they won't accept that, it might be worth seeing if they'll give you four weeks or so to complete.

I'd be very reluctant to spend any money on something that I risk losing. Yes, you should be worried as you'll lose money if you're gazumped.

Not sure if it it would speed things up if Halifax do the conveyancing. When you say the 'basic survey', make sure that's not just a valuation. I'd go for at least a homebuyer's report.

Jx

des_cartes

RichPyke wrote: »

I will be putting in an offer on a house I viewed when the EA phones me next week.

The asking price is £119,995.
I have used PropertyPriceAdvice to give an online evaluation of the property and they come back with an average valuation of £80,000.
There is another property up for sale in the same road for £135,000 (still unsold, has been up a while).
There has been one property identical to this in size and shape sold in the past 2 years (next door to the £135,000 one) however it was a semi not end terrace, had better parking arrangements, does not back on to a railway line (a fair distance away from it) and had been redecorated more recently where as the one I am looking at doesn't look like it's been decorated since the 70s.
Not to mention this one has electric night storage heaters and looks like the original electric hot water system.

Personally I think the asking price is very high for the property. However think that Property Price Advice is on the low side (despite Martin stating that they value high). My experience is limited so I am questioning everything I am thinking... that's where you come in.

I am going to be putting in an offer on the property and I am thinking £93,000. Would you say that's a fair price? A happy medium between the one that sold last year and what the online valuation said.

The only snag/problem is, I cannot check the average selling price for the area as in the past 7 or 8 years there have only been 2 or 3 bungalows sold, the others have been 3 or 4 bed semis. So I can't get an idea of the average selling price really other than the one mentioned above.

Any advice would be appreciated. Obviously I do not want to pay more than I should but on the other hand I do not want to offend by putting in too low an offer.

Your offer price seems a bit on the high side. I would go in at 85k based on what I would expect it to be worth next year. Whatever you do, don't risk getting into negative equity as prices fall over the next few years as you could be stuck there for a long time if it turns out to be the wrong place for you.

hazyjo

Think you need to read the thread as the offer's on a different house!

Jx

RichPyke

Negative equity doesn't worry me. Whatever happens to the property market happens, and if the value of the house I buy drops so will the value of other houses in the same area... I can't see myself ever moving to a different county (and even if I did, it seems prices here are high compared to many other places).

But yes, re-read, the house has changed to a 2 bed semi. It's worth asking price easily, during the peek they went for £20-30k more than asking price now but have been steadily selling for around about asking price. I've no worries about that side of things.

I read on here when looking at something about repos and part exs that they continue to market them. It is part of my formal offer letter that it be taken off all websites etc. (standard part of my template letter "subject to contract, survey and the property being taken off the market and all websites").

Jackinbox99

RichPyke wrote: »

Negative equity doesn't worry me. Whatever happens to the property market happens, and if the value of the house I buy drops so will the value of other houses in the same area... I can't see myself ever moving to a different county (and even if I did, it seems prices here are high compared to many other places).

But yes, re-read, the house has changed to a 2 bed semi. It's worth asking price easily, during the peek they went for £20-30k more than asking price now but have been steadily selling for around about asking price. I've no worries about that side of things.

I read on here when looking at something about repos and part exs that they continue to market them. It is part of my formal offer letter that it be taken off all websites etc. (standard part of my template letter "subject to contract, survey and the property being taken off the market and all websites").

If it is a repo then you have no choice in the matter,my EA / seller said legally they have to keep it on the market and advertise it.

In my case last month, I saw a repo property advertised for 160k and had to offer 180k in order to have my offer accepted. Litterally a few days from completion, someone offered the seller 190k and they accepted it. I couldnt offer any more, so the seller withdrew and went to the higher seller. I lost my valuation fees, mortgage fees all which came to about £1500.

RichPyke

bullau wrote: »

Dont worry about the ea, that is their job and whatever his outward reaction he will know what the place is probably worth.

I've since told that EA where to go. But it seems all the properties from that EA are very overpriced (they want offers over £145,000 for a 2 bed terrace with no garage in the same road as a 2 bed semi, near perfect condition, garage and bigger garden which is asking £139,950!)