First Time Buyer - Advice

mattstockbridge

Hi,


My girlfriend and I are first time buyers so are new to all this and just wanted some advice. We have a mortgage in principle with Santander and all our paperwork is in order, so we are ready.


We have a property in mind that is on the market for 240k, however it sold under 5 years ago for 172.5k. Although its in an ideal location (close to the station for London commuters) I do not believe its has increased in price by 67.25k in 5 years. I would value the house at 220/230max.


One of the current owners works in property so I believe they may have put this on the market at 240k to see if anybody bids at that price, but would go lower.


I guess what I am asking is how do you think I should play this with bidding etc? The EA says there is another couple who are interested, but I don't know if this is true or not but I don't want to run the risk of letting this property slip through our fingers. But on the other hand I don't want to pay over the odds.


All responses welcome, thanks

Mover555

I'd take a punt at offering the value you think the house is worth, if you like it enough. You won't lose anything by this. There may be someone else interested, there might not be. It doesn't matter unless they offer and the EA will tell you if you ask.
Offer low, give the estate agent the poitive points of your buyer status and the reasons for your low offer - it would be useful to back that up with what other nearby houses have sold for, if that helps your case.

I got my first house cheap by bidding 30k under the asking price. It was cheeky and got refused, but as the place was in a run-down state, there was little other interest so I had the upper hand. I increased it by a tactical 6k and it was accepted.

Good luck.

mattstockbridge

We were thinking of making the initial offer of between 217.5k - 220k and take it from there. There haven't been many sales in the area recently as its quite a sought after area. I understand that in the last 5 years houses prices have increased, but I don't believe to that extent.


I guess we just have to play the waiting game after our initial offer, I am sure it will be rejected but hopefully we can gage from the EA what range our next offer should be.

amnblog

You should never offer a price you are not comfortable with.


Another couple is probably interested (whatever that means) - what of it? If they want to pay the full £240,000 then this is not for the property you anyway.


Never be swayed in your position by what someone else may or may not think of the property.

Mover555

217-220k sounds like a good place to start. It's not taking the mickey and shows you're serious. Be prepared to walk away and wait a couple of weeks when you reach the point where you dn't really want to go much higher.
Also good to play tactics with looking at other houses and making interested noises with a different estate agent. They all seem to talk behind the scenes and all want you to buy from them. They can often influence the seller to accept or hold out for more, and may change their advice if they think they are going to lose you to an EA down the road. You're the one with the money - use that power.