Stalwarts......

dodo01

Hi all I am back on here after a very long absence. I lost two consecutive houses last year both a week before completion in the end I gave up on the whole nightmare of buying and have rented for over a year. I am now considering buying again. I have been keeping my eye on Rightmove and the prices in my area are just going up and up. I live in the West Midlands. We have a 100k deposit (from the sale of our house 2years ago!) and obviously have no chain. I have seen a house in my area which has been on since 9th May it has had a slight price reduction a few weeks back, it is now marketed at 225k .
My question is to those who are more experienced on here is what would one offer? I don't want to go over 210k - am I living in a dream world do buyers tend to drop this much? Especially now considering the economic uncertainty? I am not buying as an investment as such I just want a nice home I can call my own! My confidence has gone due to past hellish experience! Any advice greatly received, thanks.

booksurr

dodo01 wrote: »

Hi all I am back on here after a very long absence. I lost two consecutive houses last year both a week before completion

do you mean exchange rather than completion? If you truly lost 2 before completion I hope you got substantial compensation from the vendors - very bad luck by the sounds of that

dodo01 wrote: »

My question is to those who are more experienced on here is what would one offer?

no one can answer that question irrespective of how much "experience" they have since no one has a crystal ball as to what direction prices are actually headed in

there are dozens of posts on here ever since BREXIT talking down the market , recounting EA and vendors dropping prices in a panic and generally speaking predicting an "immediate" housing crash

there are others referring to people carrying on with their purchases unconcerned since they are buying homes, not investments

if you cannot go over 210 then you cannot offer more than that - simples

dodo01

Sorry we were due to exchange contracts. I hadn't exchanged/completed or signed anything we were 5 days from this on one and a little longer on other. It was all very complicated subsidence blah blah blah no insurance blah blah blah, erection of a wind turbine blah blah blah. Anyway thanks for the reply I will maybe try my luck and see what comes from it. I am just meh about the whole process..... my hubby and I have often fantasised blowing our deposit and renting forever!!!! I am not the only one in a predicament it's uncertainty all round but if the right house (again) was to appear I don't think br*@t (it's like a swearword now!) would necessarily stop me.....

Hoploz

If that's your limit then offer that and be clear that's it. You'll be given the chance to up it a couple of k afterwards if it is rejected which might swing things - they'll see you're keen enough to up it a bit rather than randomly putting bids in on any old house. But it's quite a bit below asking price so I wouldn't go in any lower.

Have you viewed the property? There might be a reason it hasn't sold quickly.

The seller's position can affect the price they'll accept. Whether they are in a chain desperate to sell, or they are just on market speculatively with no onward plan, or if tenants are in situ for another few months. Find out as much as you can from EA. You are in a good position with large deposit - do you have an up to date mortgage in principle agreed? If so the EA will be keen to get a deal together

richbek

We have recently exchanged on our house. It was up at £275k and we originally offered £250k before agreeing on £265k. They had put the house on the market on the Thursday, had a lot of viewings on the Friday & Saturday (including us both days). We put the first offer in on the Sunday, they counter-offered on the Tuesday and we agreed the price on the Wednesday. This was back at the end of April so before all the Brexit worries. They accepted because they were also chain free (we're FTB) and they wanted a quick sale.


What I'm trying to say is don't be afraid to be cheeky. We went in at the £250k knowing it would be rejected but also knowing we had to try because as FTB there were incentives to us buying a house below £250k in value. But we were able and prepared to pay a little higher as we loved the house.

D_M_E

We bought our current property at a 10% discount to the marketed value.

It was on the market for 3 months, had a price reduction after 2 months and we offered 80% of the new price and eventually bought for 10% less.

In your case, since it's already had a price cut, I would start by offering £200k then work up to your max of £210k and at that point make very clear to whoever is handling the sale that THAT IS IT NOT A PENNY MORE.

I would also refuse to show the agents proof of funds, saying that that is a matter for the solicitors, not them, and I would not use mortgage brokers or solicitors recommended by the agents.

dodo01

Thanks for all of the replies some very interesting points there. In regards to the mortgage in principle- no not as yet. We already have had two which are both expired. I have no doubt we will be able to get one as and when we decide we like a house enough to need it. I put an offer in on our last disaster on the Friday had it accepted and the M.I.P sorted out on the Monday Morning by 9.00am.
It's a decision I will have to make over the weekend whether it's worth viewing etc and going from there. I didn't want to bother viewing the house knowing it was over budget,loving it and feeling even more disheartened when they laughed at our pathetic attempt of an offer...... I need Phil and Kirsty down the pub having a pint, offering stupid prices and sealing a deal- Oh wait this isn't London and I haven't got a 500k budget! To be continued.....

Smodlet

"I would also refuse to show the agents proof of funds, saying that that is a matter for the solicitors, not them, and I would not use mortgage brokers or solicitors recommended by the agents."

I definitely second this advice. Good luck Dodo01.

agrinnall

Smodlet wrote: »

"I would also refuse to show the agents proof of funds, saying that that is a matter for the solicitors, not them, and I would not use mortgage brokers or solicitors recommended by the agents."

I definitely second this advice. Good luck Dodo01.

I on the other hand would not agree with the first part of this. If you are not prepared to show the EA evidence that you can actually buy the property then any offer you make will be passed on with an assessment that it is not a serious offer, and if the seller listens to their EA then your offer will be at the bottom of the pile.

Smodlet

I take your point on board but is that really the case, now? The property market has become a much more frightening place since I last needed a mortgage, which was not that long ago, but I suppose time is relative.

Imho, the last thing EAs need is any more power.

Niv

Smodlet wrote: »

I take your point on board but is that really the case, now? The property market has become a much more frightening place since I last needed a mortgage, which was not that long ago, but I suppose time is relative.

Imho, the last thing EAs need is any more power.

My EA would not advise I accept an offer until they have confirmation of funds.

I am currently going through a house sale now this is current practice - with my agent at least.