Making an offer, first time buyer

hohum

The answer to this is probably 'it depends'. But just wondered what other people's thoughts are.

Have found a house we would like to put an offer on.

We have an AIP to lend £80k against a value of £105k.

It has been on the market since Aug 2014, and is vacant.

It's listed as offers in region of £105k.

From initial inspection there's some curious choices in decor (OK in terms of execution but wood panelling in a bathroom? Really? Plus another panelled room with..amazing..inbuilt cabin bed. Plus boxing off previous understairs cupboard in sterling board. Lovely). Helpfully have architect in family who has had a look so can say structurally is sound.

The living room needs reskimming and replastering, new carpets. Whole house needs finishing off and redecorating. We have up to £10k cash to do this on top of deposit.

The area is not high turnover in sales so hard to find comparable sales nearby. A similar property in layout 2 streets away went for £105k a year ago and needed less work done. A house down the street went for £115k a year ago but it was in much better condition. A smaller house down the street went for £85k.

I suppose the best thing to do is just offer, I'm thinking of opening with £95k. I have no idea how to negotiate! I also want to know a bit more about the vendor before I offer (am wondering if is repossession/ deceased estate). Can I just grill the estate agent before I offer? Phone them up and say 'tell me more about this house I have seen twice?'

martin.cat

Don't tell the agent more than you need as they work for the vendor
Offer wise you seem to have done your homework and at the end of the day it's worth what someone will pay for it.
Unless there have been other recent viewers there shouldn't be much competition. I would start lower than 95 maybe 91 or 92 as at 95 they will expect you to go to 100 and over.
But if you are not patient and don't want to risk losing out you should go for it if you are comfortable with offering more

zaax

If they are selling it because its an inheritance they will want the money, so as said above be cheeky and ask 90K. If you don't ask you don't get

kinger101

£95K is too generous an opening offer if it's been on since August. They might not need to sell at a low price, and may hold out for asking. But if they they are prepared to let it go for less, going it at £95K will make them expect £100K. Go with what you think it's worth, minus £10K. Remember, your first offer is unlikely to be your last.

hohum

Thanks, having talked through the necessary work to do as well I feel a bit more confident going in lower than £95k. Might offer at £91 and see what the response is!

hohum

Just to update - I went in at £92k (my nerve failed me a bit!). They countered with £97k. I countered with £96k and a couple of conditions - leave white goods and some additional requests. I also found out a bit more about the situation with the property - not deceased estate or repossession, but other reasons which make sense.

Now just waiting for reply to the £96k offer. If this is a negotiating tactic it's the wrong one - I've taken 6 months to find something I would offer on, clearly am in not too much of a hurry!

ETA there's part of me that can't really be faffed with hardball negotiating over a grand or two when we're talking thousands. I am trying to conceal this part of me when negotiating

rosie383

Thanks for the update Hohum. I hope you get it.

hohum

Thanks Rosie.

They accepted the offer

This is around the price we had in mind so I'm happy!

Now broker is off to get us an actual mortgage, and I'm off to get some quotes for conveyancing. And possibly talking to some plasterers to find out their availability in the coming months..

kayfaz

Congrats!

One step closer to owning that home