Initial Offer Rejected - Advice.

Simon_G_2

Hi, I'm a first time buyer, and had an initial offer for a house rejected. The house is on the market for £145K, and I offered £137.5K (which is what the current owners payed for it in mid 2005), which was rejected. I have a bit of a strategy, but I guess my real question is, what do I do if my next offer is also rejected?

I'm planning to offer £140K, and can afford to meet the asking price, but being a first time buyer would preferably try and save as much as I can for fees, surveys etc. I have a hunch that £142.5K might be an amount that the owner would settle for, but don't want to look like I'm willing to keep pushing up my offer until I reach the asking price.

Hope I've not rambled too much, I tried to keep it short, but thanks for any advice, it's much appreciated

B_Blank

How has average price in your area changed since mid 2005? Check land registry. Did they buy the house new? Have they done much work to it since they bought it?

Simon_G_2

The area I'm looking at is pretty well sought after, so I think from what I've seen houses going for it may have pretty much stayed the same, or if it has decreased, not by much. It's a terrace that dates back to the 1880's, and they've done a lot of work throughout - new double glazed windows, new combi-boiler, kitchen, new skirting boards in a couple of rooms, plastering etc. I only went in with the offer of £137.5K to get the ball rolling, and would like to think my position as a FTB would give me a bit of bargaining power, but I'm trying to walk a tight-rope of showing interest, but not looking too keen if that makes sense? The fact I really want the house doesn't make it any easier!

jaffs

I offered on a house last week and did the same as you, they wanted 100 - 110K. I researched what they paid and offered the same, that was rejected, raised it by a little bit and when that was rejected said that i was walking away, got a phone call a few hours later accepting my offer. It is a risky strategy but it depends on how keen your seller is, mine already has somewhere to go so needs to sell fast, guess it depends how brave you are and if you are willing to loose the house.

Good luck

more_money_for_me

If it is a terrace you are likely to have a wider range of prices to look at which should give a reasonable average. Just try to keep in mind that as a first time buyer able to proceed you are a lot rarer in the property market than property sellers. Having had your offer rejected I would now go and look at at least another half dozen properties to give yourself some perspective. Try not to get tied up with this one property, as this is what the estate agent wants you to do, and what will ultimately make you overpay. Talk by the EA of other viewings and other interested parties should be taken as just that. In your position I would either add another £500 as final offer and mean it, or simply say that I felt that the previous offer was fair and that you will leave it on the table for a couple of weeks. That is me though, and have recently walked away from 2 properties, if you must have it and have it now, put in a higher offer as soon as possible, that will guarantee acceptance.