Need advice on making an offer on house please!

soapstar88

Hi,

Myself and my girlfriend are both first time buyers so know very little in regards to buying property! We have recently been to a mortgage broker and now know a maximum figure that we can work with (around 300k give or take 10/15k possibly if we get help with funding).

We are quite interested in a property which so happens to be my parents neighbours house! This house has been on the market for around 3 months at the price of 349k.

- Obviously this is way out if our range but we feel its going to be worth a go or is this just insulting offering around 300k?

- My next question regards to actually making an offer. Do we need to make an appointment with a local solicitor before thinking about making an offer OR can we just go to the estate agents and express our interest making an offer? From what ive heard we can do this however its sensible getting a solictor sorted out shortly after making an offer. We aren't bothered about viewing as we know what the property is like inside and out being my parents neighbour.

- Is it worth bypassing the estate agent and going straight to their door and express our interest? I should point out that we or my parents aren't friends with the neighbours and have rarely spoken so we aren't really on good or bad terms with them!

I would like to point out this property is in Scotland if that makes any difference with legislation etc.

Any advice would be great!

Thanks
Stuart

G_M

An offer that low is unlikely to be accepted.

You slightly increase your chances if the seller can avoid paying his estate agent 1.5% - £4500 (or whatever).

So yes, just knock on next door neighbour's door and have a chat.

Of course, it depends on the seller's contract with the EA. If a 'sole selling contract', he'll have to pay commission anyway.

nubbins

It all depends on what area you live in and how quickly properties tend to shift. If I was the owner having come through Xmas I would be waiting to see what Jan/Feb brings but it just depends on circumstances. To be honest I would say you have almost zero chance of getting 50k off a 350k property and if you was in my area you just would not be taken seriously.

In terms of knocking on doors for a friendly chat, some people can get funny about that sort of thing hence paying an EA. And finally regarding going direct to the seller to avoid EA fees, the contract will almost probably say that it they find their own buyer the fees are still payable.

squeeks

Put the offer in, if it gets accepted, great. If it doesn't, you haven't lost anything, especially if the asking price is out of your range.

You'd make the offer to the Agent or directly with the neighbour. As the property is already marketed by an agent, you won't gain anything going direct to your neighbour.

MysteryMe

It's unlikely to be accepted but I would definitely go via the Estate Agent. I also think you need to view the property. It may be similar to the one next door but unlikely to be identical. It might need a lot of updating and maintenance or it might be like a show home. If it's the former then you need to think carefully about whether you are stretching yourself too far.

rosie383

When we went with the EA they very firmly told us that unless we told them there and then about any interested party that we may know of, then they would get the fees as soon as they started marketing the property.
My friends had a buyer approach them through their parents and definitely not as a result of EA marketing and they ended up paying the EA fees anyway.

Doozergirl

Why would you not be interested in viewing a property you want to buy?

If nothing else, it might make the vendor take your offer more seriously. I'd be confused at an offer made by someone that hadn't seen it.

If you are seriously buying then it would make sense to start obtaining quotes from solicitors so you're ready when the time comes. There's no need to visit them beforehand, unlike the actual house!

derbyshirenick

Just to be clear, you do not need a solicitor until your offer has been accepted which in this case, its not highly likely to be.

As an aside, I would recommend seriously thinking about if you want to max out your budget. It is a common mistake for FTBs to think "I can borrow x so I will spend x".

If I am allowed to be a little condescending for a moment, if you have not already it might be worth looking at your budget from a perspective of ... what mortgage could I pay back based on my current rental outgoing (assumed you are renting). Remembering that A) owning is more expensive on top of the mortgage. Insurances, maintenance costs etc will always surprise you. At least to begin with I would budget £200 per month for the first few year as there may be lots to spend on. Then WHEN (not if) interest rates creep up that monthly payment is going to get more expensive.

I have seen no end of friends blindly offer what they can borrow then have to take on second jobs etc when they see they have so little headroom they cant afford that re-pointing or guttering work or, heaven forbid inevitable boiler replacement!

Condescendingness finished

silvercar

I would think it would be very easy for the seller to inform their estate agent that the neighbour has said their child may be interested in buying and therefore they are showing it privately to them. I wouldn't have thought the estate agent would have a case for claiming they introduced the buyer.

Does depend on the contract with the EA, but round my area no EA expects sole selling rights to exclude private sales.

soapstar88

Thanks so much for all the helpful advice folks. This has helped us out a great deal. From this I think its wise for us to view the property and definitely make an offer even it is below the asking price (why not!).

Sorry I have more questions! To save us the hassle can we ask the agent if there has been much interest in the property? Also can they tell us there and then if this offer is below any other and if there has been any offers to begin with?

One other thing. I hear a lot about 'noting your interest' in a property with an estate agent. What exactly does this mean and how do we go around about doing this? Does this mean no offer has to be made?

Apologies for the simple questions but we haven't been involved in any of this before and its quite daunting!

Thanks

rosie383

Guaranteed if you ask the EA if there has been any interest they will say yes. So a waste of breath. Good luck with it I hope you get it if it's right for you.