First Time Buyers

SephChem

My fianc!e and I are first time buyers with a mortgage offer in principal and can move any time so are in a pretty good position (we think) in terms of negotiation.

We have seen a house that we like which is for sale at £149,950 and has been on the market for just over 3 weeks (it appears they dropped the price by £5,000 after a week). We made a cheeky offer of £130,000 which was rejected. The EA isn't giving much away but having spoken to the owners during viewings it appears that they have seen somewhere they want to buy.

Does anyone have any tips in terms of negotiation strategy - do we wait or just put all our cards on the table? The EA said they would let us know if there were any more offers - is this something they are likely to do?

Any tips would be greatly received. It's such a scary business this growing up malarkey!

brit1234

Ask the EA if they have any similar properties to view in the mean time. The seller will get nervous you haven't got back with a higher offer and may try to get back to you.

Time is on your side because with each ending month house prices will be further down.

botanical

brit1234 wrote: »

Ask the EA if they have any similar properties to view in the mean time. The seller will get nervous you haven't got back with a higher offer and may try to get back to you.

Time is on your side because with each ending month house prices will be further down.

I agree. You've got the advantages at the moment. (assuming the house is normal and not a really low-priced bargain) Don't put all your cards on the table, but know how high you're really willing to go. Sit tight because the sellers are unlikely to have loads of prospective buyers on their hands at the moment, given the economy and the time of year. Very important to keep the EA in contact with you. If the owners contact the EA, they'll hear that your looking around at other properties, which will worry them if the market is sluggish. They may come back to you with a counter-offer then you can deal out your cards until you've reached a price you're happy with. But don't deal too often or be too tough.
Otherwise, come back shortly with a still cheeky but a warmer offer and they may just bite.

geoffky

do not let the ea know you are keen otherwise they will screw you..play the long game and play games with them but do keep them onside and tell them you are looking at other houses via another ea and really keen on one but still if the price is right might consider the other house you viewed. its all mind games..stay in control..