Property Starting Offer + Survey

todorare

Hi all,

Since it's the first time buying a UK property the confusion is great as well. Having decided on a specific property, my main concerns are the starting offer value and the condition of the property.

The property looks like it is in a very good condition, but I think that a survey is still needed in order to make sure. From what I 've understood while browsing this site, the survey should take place before making the initial offer. Is that what I should do?

Then, I guess the offer should take the survey's results into account, but if everything works out fine during the survey, what would be an appropriate initial offer, given the fact that the asking price of the property is £220K?

Any advice would be appreciated!!

Thanks!

hazyjo

Buying in Scotland or England? If England, don't do the survey before making an offer. You make the offer (subject to survey), agree a price, then get a survey done and then maybe drop the price if major urgent work needs doing.

Jx

badm88n

Scotland or England?

In England in most cases the survey is instructed AFTER an offer has been accepted. If you were to wait for the results of a survey BEFORE you offered on the property then you run the risk of the seller accepting another offer while you are still waiting for your survey.

hazyjo

Also, do a bit of homework. See what other similar sized properties in the area/road have gone for. You can't take the £220k as being a true valuation until you know what others are up for/have sold for. It might be a bargain, or it might be horrendously overpriced. If you think it's comparable with others that have sold, personally, I'd go in at around the £203k mark, but others will probably tell you to go under that. Do you have a maximum budget you can afford? Don't go up in large increments and don't keep going up when they reject offers - they'll just think you have a bottomless pit of money! If it gets up to say £208k, say that is absolutely the top of your budget and you'll have to leave the offer on the table. See what they come back with. Might be worth asking the agents to get back to you as some just don't if the offer's declined and nothing else put forward!

Jx

todorare

Thanks everyone for their swift and helpful replies!!

As a follow-up question, what should be the procedure of the negotiations? I guess I should just wait for a couple of days if an offer does not go through and then make a new offer, right?

Sorry if my questions sound very simple, but I am not really used to the property sales system in the UK...

hazyjo

Tell the EA your offer. Don't discuss it... don't tell them your maximum price or that you'd be prepared to increase that offer, just give them a price and ask them to give you a call back once they get a response from the vendors. Emphasise you're in a great position - FTB, and I presume nowhere to give notice on (renting? Living elsewhere?), and that you can and want to move quickly.

If you don't hear back from them, you don't just call with a new offer. Give it several days (if you really can't wait) and ask what the vendors' response to your offer was. If they declined it without giving you a figure, I'd be reluctant to jump in with another offer. A lot of it's a waiting game. The next stage, I've already outlined above. Oh, and don't forget to find out their position. If they've found somewhere they love, they're probably more likely to take an offer/get back to you with a figure. If they're still looking for somewhere, they might not be in a rush to accept a lower offer, but might bear your offer in mind for when they do find somewhere (if you're still looking).

You still haven't said if it's England or Scotland. Two different sets of laws, so please clarify.

Jx

todorare

I forgot about that, the property is in England.

Yes I don't have any chains and I could close the deal today if needed.

So in the end, I guess I should generally wait between price changes and rise the price in small increments until I reach a desirable price?

Any other advice?

hazyjo

todorare wrote: »

Yes I don't have any chains and I could close the deal today if needed.

In all likelihood, it will probably take between 4-12 weeks if things are chased/hurried. Average is still about 12 weeks which means a lot will take longer than 12 weeks. I presume you need a mortgage? The lender will need to do a valuation of the property. Solicitors need to do their side of things too. It does take a long time. We've been racing through ours to exchange within 3-4 weeks of offering, and we're now at the end of Week 5 and we're nowhere near exchange.

You might be chain free, but are they? The top of the chain could be a few properties up. The longer the chain, the longer it's likely to take.

Jx