Making an offer

dkennedy1001

Hi,

i am just looking for some tips on putting in an offer on a house please. A house we really like has come on the market for £445K in a nice area where we live. We recently lost (we were new to market and didnt want to buy the first house we saw) a house identical to it in size but with less done to it for £435 which we were gutted about considering nothing better came on afterwards till now.

First viewings are on Saturday and we can't have a viewing till then and we think it is worth the asking price of £445K.

Would you place the offer straight away after viewing it or does this allow the other viewers after us to get an idea that this house is popular which may increase their interest?

Or would you make the offer later in the day when the viewings are finished so other buyers arent tipped off that we want it?

Obviously with the second option one of the other viewers may make an offer before us!

Very confused so any tips would be great.

Thanks

hazyjo

Are you proceedable (eg no property to sell)? (Presume yes as you said you're new to the market, but that could be taken in a number of ways.)

Is it England?

As it's just come onto the market, the sellers are unlikely to take a huge hit. Try and find out what the other house sold for. £435k means nothing as it could have gone for £410k! You need to compare against recently sold nearby similar properties to estabish its value. If you go in at the asking price, you might risk it being undervalued by a surveyor if you're paying way more than other sales.

If I liked it, I would make an offer and try to get other viewings stopped. It might mean you have to settle at asking price (if you think it's worth that), but I would always make a lower offer first. That way, they won't be thinking they should have put it on for more!

If the vendors are doing the viewing (not the EA), be as nice and friendly as possible! It's little things like that which can swing it if there's two offers.

Good luck.

Jx

dkennedy1001

Thanks for the info hazyjo and to answer your questions we are FTB's so renting at the mo and the other identical house did go for £435k as we found this out. Property is in Hertfordshire.

This latest house though has a new kitchen and bathroom and looks more modernised hence why we think the £445k is a good deal.

The EA did say even if an offer was on the table they would continue with that days viewing unfortunately hence why i was wondering when to make my offer.

I was going to ask the offer question next, what should my offer be if I think its worth the asking price. Asking price or £5-10k lower?

Cheers

Malks

If you like it and think the asking price is a fair offer and want to try and stop the other viewings, offer the asking price but under the condition that all other viewings are cancelled, if not your offer won't stand. The trouble with doing this is that you have shown the agent all your cards early on. You can't then offer lower if they won't stop the other viewings as the agent will know you would of offered the full asking price.

leanneq

We've just offered on a property. We were the first viewers and offered full asking there and then. We knew they had other viewings and it was priced to sell. Is it worth losing it for the sake of 5k or so? I would have the viewing, go home and call them up. You're in a great position!

dkennedy1001

leanneq wrote: »

We've just offered on a property. We were the first viewers and offered full asking there and then. We knew they had other viewings and it was priced to sell. Is it worth losing it for the sake of 5k or so? I would have the viewing, go home and call them up. You're in a great position!

Interesting points Malk\Leanneq and I agree its not worth losing for the sake of £5k. Anyone fear that if they got the asking price on first viewing that there is a chance the may feel they should have asked for more and might make things a bit more difficult potentially?

leanneq

I doubt it. Find out why it's up for sale at the viewing. It a pain having a house up for sale, we've just had loads of viewings before getting an offer we'd accept. I am so glad that the viewings are over! I imagine most people feel the same! The fact you are ftbs, thy will snap up your offer! Least that's what I think anyway, but I'm no expert!

leanneq

Just saw malks comment and completely agree! We did that too (forgot to mention). Once they saw our mortgage offer, they cancelled the viewings and took it off the market. No one else viewed it. The agent are obliged to tell the vendor about your offer.

holidayinn

I have only been on the market for a few months but seen the following:

Vendor accept first bid close to asking price and reject any others on ‘ethical’ grounds. Sounds fishy to me.

Buyer meets vendor asking price within days of being advertised, vendor rejects and increases asking price by 5-10%. Good luck to her.

Vendor accepts Cash buyer offer as opposed to my higher(mortgage dependant) offer. This is fair enough.

Buyer first to view, first to bid, estate agents take it off market as meets vendor’s expectations. This was me J.

I think anything can happen, my advice would be to bid what you think it’s worth, and if you want it bad bid asking price subject to property being taken off the market.

dgtazzman

If I liked it, I'd offer asking price on the condition it is taken off the market there and then and the other viewings be cancelled. Make it clear you are in an excellent position to proceed, I'd probably even get an AIP or DIP to show that you will more than likely have no problems getting a mortgage, just to strengthen your bargaining position.

If I was a vendor, I would certainly agree, I'd be getting the price I set for my property from somebody who doesn't have to wait for a house their own to sell and has proof a suitable mortgage is forthcoming. I'd have no reason to entertain other offers or proceed with additional viewings.

dkennedy1001

Thanks everyone, this is really useful. I find it interesting that a lot of you are saying if its worth the money just offer the asking as that is what I think instead of messing about for the sake of 10K over 30yrs in the life of a mortgage which I agree with.

Forgot to add I have a mortgage agreed for £450K. Ok, I now think I am going to offer asking price, what about my original query about when to do it.

The EA has said they will continue viewings on that day even with an offer already put forward so a part of me thinks if I put in an offer then all subsequent viewers will be tipped off about this and it may start a bidding war (and I can only go a further 5k higher) where as if I wait till just before close of business other viewers wont be aware that someone is ready to pounce. I would obviously do this with the proviso that the EA would tell me if any other offers came in that day. There is a risk that someone else offers asking price on the same day though!

Decisions, decisions..