FTB - FINALLY time to make an offer! Advice please

MajicMOLE

Hi all.

After 18 months of hard saving from me and the OH for a deposit, we are finally in a position to make an offer on a house :-)

I have spent a long time over the last 18 months looking at houses online, and had a few viewings.

We have seen 1 house which looks perfect, have had 2 viewings - (last one was a week ago today), with bringing my dad on the 2nd viewing for advice.

We love this house, but have been very cautious of making that known to the seller and the EA. EA been ringing and have just been saying iv got other viewings, etc.

However, now is the time to put the opening offer in.

The house is up at OIRO £162.750

Im just not sure what to offer! After researching, I was thinking of an opening offer of £141,000, which is around -13% off asking price, however im worried of this being laughed at or insulting the seller!

The seller currently lives with his family in another property, and has decided to sell this one (I am assuming he has either just bought another house outright, or inherited one). So he has no chain, and neither do I.

The only problem is, is the house has only been on the market for 5 weeks, which makes me think he may be reluctant to accepting a lower offer.

Any advice on an opening offer figure, and also any tips or "how-to's" to actually make the offer to the EA on the phone, would be MUCH appreciated.

Regards

BitterAndTwisted

Ring the agent and tell them you're offering £130k. When he stops sobbing up it by £500

Accountant_Kerry

I would say £141k is a little high, I would go in at 15% off asking price and be prepared to pay up to 90% of the asking price. If of course I had done my research and was happy that the price was correct.

MajicMOLE

Wow - £130k?! Is that not a little too low??!

15% is around the £138k mark. Is that around "the norm" then?

I was prepared to go upto about £148k, which is around 91% - so looks like i got that figure right :-) this figure is the most i would pay for this property - dont think its worth the £163k!

DVardysShadow

MajicMOLE wrote: »

Wow - £130k?! Is that not a little too low??!

15% is around the £138k mark. Is that around "the norm" then?

I was prepared to go upto about £148k, which is around 91% - so looks like i got that figure right :-) this figure is the most i would pay for this property - dont think its worth the £163k!

This is all tactical thinking. But you don't have a strategy.

First decide your absolute top price, where you would walk away if it were £1 more. Once you have that in mind, start thinking f your tactics to get it for that price or less.

happy_2008

Have you tried looking at Net House Price website to check the house prices nearby?

MajicMOLE

My very top price was £150k.

I was going to go in at £141,500, and then £143,500, then 145k. And then if non of them where accepted, would go in at 146,500 and say that is the max i can go.

However, am i starting too high? Should i be looking for a cheaper price.

In regards to nethouseprices, the road is a small road with about 5 houses on it, off a larger housing estate. Houses sell on the housing estate, with the last one going at £164k in oct - but all the houses on the housing estate seem to be slightly larger properties or bungalows, so its hard to compare

myhouse_2

Take your time - time is on your side, and make sure you keep looking around while your bargain. If first/second offer is not accepted, tell the same estate agent you want to view other houses.

MajicMOLE

Thanks - i do intend on taking my time, as I dont want to look too keen! And I had no intentions of making quick offers - I decided last week I wanted to make an offer, but wanted to leave it some time as I had only just had 2nd viewing

quantic

Make low offers, its better to have them rejected then go in with a high one and have it accepted instantly and regret it. Which is almost what happened to me.

Doshwaster

MajicMOLE wrote: »

Thanks - i do intend on taking my time, as I dont want to look too keen! And I had no intentions of making quick offers - I decided last week I wanted to make an offer, but wanted to leave it some time as I had only just had 2nd viewing

Not appearing too keen is an essential part of the process - even if you are absolutely in love with the house. There are plenty of other houses and sellers out there so you have to be prepared to walk away - and the seller need to know this.

If the first offer is rejected (as it almost certainly will) don't put in another offer immediately. That is the mistake I made - after a rejection I faxed over another one £3,000 higher within minutes. I should have huffed and puffed and made it look like I was having to sell my Granny on Ebay in order to find the extra money.

The second offer should be the really serious one. If it is rejected then you seriously have to think about walking away or making the seller worry about losing an interested buyer.

If you do a third offer then increase it only by a very small amount, say £500 but put on a lot of conditions and declare it a "full and final" offer. The seller may then take the extra as a moral victory.

The question you have to ask yourself - and be honest - is how willing would you be to walk away? After a month of looking for the perfect house it can be so easy to throw in an extra grand or two just to seal the deal but you have to stand firm - there's no point in getting that ideal house if you overstretch and cannot afford to live there.