Foolish to offer the asking price?

Docinho

Hi all,

So just wondering peoples opinions really as I am yet another nervy first time buyer.

I've thrown myself headlong into house viewings and I've seen Soooo many, probably about 20 so far. I've put offers in on 3.
The first one I offered the lower end of the guide price but the vendor wanted more but I didn't think it was worth it, so I walked away, no probs, it wasn't the one for me ( terrible parking). The second one i loved but the vendor took the house back off the market due to personal reasons (gutted) and the third I lost out in a bidding contest.

Its been a journey!

There is one house on my viewings shortlist that I am particularly keen on but wonder if I'd be mad to offer the asking outright if its as good in the flesh as it appears on the advert? It obviously doesn't leave much wiggle room but im so over dancing around the buying process and I've not even got as far as having an offer accepted.

And on paper, it looks really really good.:D

The market in my area is super hot and fast moving where there are not enough houses as they've all been bought up by buy to let landlords.

My buying position is pretty good, first time buyer, no chain, rolling monthly rental contract 50% deposit and a aip.

So give me your thoughts, clinch it and risk paying over the asking price or negotiate and risk loosing to another buyer of which there are many?

ellie27

When you say on paper it looks good, I assume you have actually viewed the house?

Docinho

I'm viewing in a few days time, but just thinking about what approach to take if I love it as much as I suspect I might. It just has a lot of features that I would add to a home already done.

If I don't love it, I'm happy to walk away.

NicNicP

I suppose it depends on how much you want the house and how much you think it is worth. Maybe go in with a lower offer but be prepared to increase if necessary, although you then risk someone else making an offer which is accepted. We paid more than we wanted to for our new house (still under the asking price) but as we'd been offered the full asking price on ours we had the extra money to play with. Didn't stop us offering a lower price to start with. Good luck whatever you decide to do.

Cakeguts

You offer what it is worth to you.

fairy_lights

I viewed a house last year that I loved so much that I offered full asking price an hour after viewing it. It was exactly what I wanted and I didn't want to risk losing it or play around making offers and counter-offers. And I'm sitting in that house as I type this reply so it worked out for me
Sometimes I think you've just got to put your cards on the table.

Debtslayer

Do properties in the area normally sell for the asking price?
If you really love it and want it then you pay what it's worth to you as your future home that you'll potentially be living in for a good number of years, you're not buying it to make money on it in 6 or12 months time.
Also when you offer on a property you really want make sure you emphasise what a great position you're in, first time buyer. AIP etc

warby68

fairy_lights wrote: »

I viewed a house last year that I loved so much that I offered full asking price an hour after viewing it. It was exactly what I wanted and I didn't want to risk losing it or play around making offers and counter-offers. And I'm sitting in that house as I type this reply so it worked out for me
Sometimes I think you've just got to put your cards on the table.

What she said

It seems to get vendors onside - even if bidding starts, they might favour you a little. It happened to us as vendors - we wanted the first people to offer like that to win and thankfully they did. We had agreed if the difference was small we'd stick with them because we were confident of their intent unlike some of the other bidders who started low (too low)

AnotherJoe

No,its not necessarily foolish at all. "It depends".
If prices are rising in your area, then whilst you think you are in good position having sold already, longer term you aren't because prices are rising and your cash isn't,so there's medium term pressure on you to buy also.
And if it's the house you really want, is it worth missing out on because you think it's a game whereby you "must" do the dance of offer, counter-offer etc and whilst you play that game someone else comes in, offers full asking and you lose out short term ( didn't get that particular house) and long term ( you end up paying £10k more because by the time you buy prices have risen, all because, for sake of argument, you offered £5k less, would have paid full asking but never got the chance to because you got shut out by a full asking offer conditional upon house being taken off market.

I'm not saying you should offer full asking, but just take these factors into account. When I helped my daughter buy we ended up paying £9k over, about 3%, in a very hot market. The house has since risen about 30% in 18 months and wouldn't be affordable for her today or indeed had she waited 6 months.

Of course, if the house has been on the market for 3 months then maybe it is overpriced and an offer might work. But just don't assume all houses sell at below asking price, as some posters here (not in this thread) seem to assume. Depends upon the market where you are, and the particular house price. A house in a hot area can still be over priced.

iantojones40

fairy_lights wrote: »

I viewed a house last year that I loved so much that I offered full asking price an hour after viewing it. It was exactly what I wanted and I didn't want to risk losing it or play around making offers and counter-offers. And I'm sitting in that house as I type this reply so it worked out for me
Sometimes I think you've just got to put your cards on the table.

Gutted for you. It must be a pretty horrible feeling thinking that if you hadn't been so giddy and naive and instead made an initial offer of maybe 5% below asking you could have quite likely had it accepted and now be sat in your dream home with a four or five figure sum sat in your bank account.

Zeebs90

You should find out from the Estate Agent if you will have opportunity to up your offer after to have submitted it. The house we are currently buying we both loved and we agreed on the way home that we would pay up to 10k over the guide price (very hot area and this was cheaper than most others currently on the market!) however we went in with our first offer 5k under the asking price just to see. As expected they received other offers above our first one but we were given the opportunity to increase which we did to 8k over (including white goods) and we are now about to exchange!