Buying Newbie: When making an offer...

Morata_

...do you submit this verbally or is it better via email (in writing) or does it not matter?

I've done research into the area I'm buying and in my mind I have an opening offer but it's lower than the "guide price" and it's making me feel anxious about submitting it, as I don't want to embarrass myself, any advice on putting in offers etc?

Thanks.

juniordoc

When we submitted our offers we rang the agent and offered verbally and followed it up with an email. That way you could get a gist from the agent about what timeframe you could expect to have an answer from the vendor.
I would try not to feel embarassed, try to separate the offering process entirely from your emotions and treat it like the negotiation it is.
Remember that a property is worth what someone is willing to pay for it, not the asking price or sellers ideas of what it should fetch, so be confident inyour offer, and don't offer more than what it is worth to you.
Having an offer accepted is no success if you feel you haven't got a good deal. Equally being outbid by another buyer but at a price you aren't willing to pay for a property is no failure, remember in your view they are overpaying.
Best of luck with your negotiations, and don'tfeel down ifyou're not immediately successful, not many buyers are straight away!

indianabones

Morata_ wrote: »

as I don't want to embarrass myself, any advice on putting in offers etc?

So feeling embarassed is more painful that losing on £££s of your hard earned money?

If they laugh at your offer let them. You owe them nothing. A house is what someone is worth paying for it.

In terms of making an offer do it verbally first. But always start off low. Some people start off ridiculously. I got one of my friends to go and view the house I'm in and make a joke offer the next day. An absolute ridiculous offer and only increase by 2k. I got him to highlight some of the flaws we saw and make it sound really bad.

Then I went in a day later with a reasonable offer 170k for a advertised 190k house. I negotiated it to 175k. I was prepared to go up to 180k. All done verbally, then submmitted online via purple bricks.

Whatever you do, don't rush. Give an offer and then wait before replying to a counter offer. Always do it verbally before they agree and then when accepted turn it into writing.

RedfordML

indianabones wrote: »

So feeling embarassed is more painful that losing on £££s of your hard earned money?

If they laugh at your offer let them. You owe them nothing. A house is what someone is worth paying for it.

In terms of making an offer do it verbally first. But always start off low. Some people start off ridiculously. I got one of my friends to go and view the house I'm in and make a joke offer the next day. An absolute ridiculous offer and only increase by 2k. I got him to highlight some of the flaws we saw and make it sound really bad.

Then I went in a day later with a reasonable offer 170k for a advertised 190k house. I negotiated it to 175k. I was prepared to go up to 180k. All done verbally, then submmitted online via purple bricks.

Whatever you do, don't rush. Give an offer and then wait before replying to a counter offer. Always do it verbally before they agree and then when accepted turn it into writing.

Great advice this. Good luck

Morata_

Thank all, infact, maybe I should start £2k lower haha!

I just lack confidence but I need to separate emotion and love the "owe them nothing" line.

Cheers all.

hazyjo

If you go in too near the asking price, you run the risk of it being down-valued by the surveyor if anything needs doing or if it's been up for a long time. Agree - start low-ish, although not too low that you can't come up to a reasonable offer. How much is it on for? £2k obviously means more on a £60k house than a £600k one!


I always offer verbally. They will prob send you a letter confirming it anyway. Make sure you say 'subject to survey' and 'on the basis of it being removed from the market with no further viewings'.

Morata_

On for "Guide Price" £245k

Was thinking off going £228k, but might go £226k now. Think they would be great prices, low but just about fair...I think haha! I then felt I had a £5-£8k scope if I required...(I won't go over £236k!)

juniordoc

226 wouldn't be too cheeky at all.
Another tip is, if the estate agent rings back to say they've declined your first offer, do not up your offer on the phone there and then. That minimises the legitimacy of your first offer, and tells them you were prepared to pay more all along.
Unless things are super competative in your area, you can afford to keep them hanging a day or 2, the longer it goes without any other offers, the more your offer will look like a good deal.
Don't fall for the "we've had another offer at £x000," either, just focus on yourself and your offer, and be patient, it will pay off!

Morata_

juniordoc wrote: »

226 wouldn't be too cheeky at all.
Another tip is, if the estate agent rings back to say they've declined your first offer, do not up your offer on the phone there and then. That minimises the legitimacy of your first offer, and tells them you were prepared to pay more all along.
Unless things are super competative in your area, you can afford to keep them hanging a day or 2, the longer it goes without any other offers, the more your offer will look like a good deal.
Don't fall for the "we've had another offer at £x000," either, just focus on yourself and your offer, and be patient, it will pay off!

Thanks again...this is something I WOULD have definitely done.

Great advice and now feel much more assured in myself...a little!

hazyjo

Also, don't presume everything is priced X% over what they want/expect/what the market dictates. Some will be priced keenly to sell, others will be deluded. You'll obviously know how much bang to expect for your buck if you've been viewing others/getting RM alerts, etc, but basically you need to do your homework as to value before offering.

Morata_

Already been reduced £5k

Vendor done the first viewing and said "we did think it had been valued too high"

They are also desperate to join family up north so I'm just preparing things.