What is my "First Time Buyer" status worth?

Lynxs

Hello Experts,

I was just wondering what the status of being a first time buyer is worth? I am looking to buy my first home - but as I'm sure you are all aware, there are many aspects to take into account. I'm going at it on my own, so paying the right price, for the right house is essential. Being a first time buyer, would I have the upper hand to the seller? If so, how much £££ is that worth?

I am interested as I would like to take this into account when I make an offer on a home. There is a £90k house which is just out of my budget and would like to see how much I could knock this down to and if being a first time buyer meant I could knock it down maybe a bit further than any other buyer?

Obviously, I understand that I may have no advantage but I just want to know what you guys think?

Thank you for your time.

R-

[Deleted User]

You'd probably have an advantage over an equal offer from someone in a chain purely for speed, but not necessarily in terms of getting a cheaper price.

Lynxs

Deleted_User wrote: »

You'd probably have an advantage over an equal offer from someone in a chain purely for speed, but not necessarily in terms of getting a cheaper price.

I see. The reason I had asked is because when I spoke to my mortgage advisor he seemed to suggest that being a first time buyer had many benefits. As potential sellers that wanted a fast move meant that a lower end offer from a first time buyer, which would obviously make selling the house a lot quicker than someone in a chain - is definitely a consideration to sellers.

Thanks.

Idiophreak

Lynxs wrote: »

I see. The reason I had asked is because when I spoke to my mortgage advisor he seemed to suggest that being a first time buyer had many benefits. As potential sellers that wanted a fast move meant that a lower end offer from a first time buyer, which would obviously make selling the house a lot quicker than someone in a chain - is definitely a consideration to sellers.

Thanks.

Probably makes a bit of difference if the house you're looking at is holding up a chain - they'd probably take a bit less for the old place to get the deal through, but if they're in no rush, it might not make a difference.

Zogger

I think it has knocked a few thousand off on an offer I recently had accepted.
The vendors had previously accepted an offer 7,000 more than the offer I made, and were only willing to go down 3,000 on that, so we reached a stalemate 4,000 apart.
They were moving to rented so didn't need a specific value to be able to move on. The estate agent was very eager to make the sale and called them up and stressed our position being able to move quickly with low risk and having a good deposit, which apparently persuaded them to accept. If we had a property to sell I'm not convinced the agent would have been as pro-active and that the vendors would have been as willing to drop their price. Perhaps I'm just seeing it how I want though
We're talking a bit more than double the value of the property you're looking at though!

holly_hobby

Ok ..

This is how being a FTB will in most case prove advantageous, both in having an offer accepted & possible negotiation on asking price.

As a FTB the first thing you do is get a decision in priciple from a lender, ensure you disclose everything i.e any adverse credit data, as some DIPs are performed using only the public data base which doesn't leave what they call a footprint (registration of search). Info in the public domain only shows CCJs/Bankruptcy Orders & Repos - if you have any other skeletons reveal them and/or seek a lender who uses a full Credit Ref search for their DIP (Santander perform them in this manner I believe).

This DIP gives assurance to the vendor (as I say assuming you have obtained the DIP on the above basis), and that you are in a position to get the ball rolling quickly, having already had yourself approved for mge lending up to a confirmed figure. (menaing from their point of view they are not accepting an offer that will collapse at application state).

Further to which, you are not subject to others below you in a chain, whose actions/mge refusal could delay or even collapse the chain and purchase - which means that subject to survey (and you not pulling out for other reasons) the deals effecively done.

It is this that gives you the power to negotiate especially if the vendor needs to move quickly/has already found somewhere .. etc .. etc...of course their are further realms to negotiate upon receipt of the survey - so be sure to make it clear that ANY offer you make is SUBJECT to survey (leaving the door open for possible further movement in the agreed purchase price).

Thats how being a FTB may bring benefits to the table - so your broker is absolutely correct (albeit he didn't seem to explain to you exactly why FTB has its benefits !!).

Hope this helps & good luck ...

Holly