What to offer? 1st time buyer don't want to miss out

akurei2000

Hi,

Just to set the scene, i'm a first time buyer, approx 20k deposit available, with a mortgage in principle agreed at 160k.

I have been looking over the last few weeks for a suitable property and finally think i've found one. Its a 3 bed terrace with gated drive, garage and front garden, on the market for 164k.

I think, pending another viewing i'll be putting in an offer, but don't know where to realistically start. The situation is that the owners accepted an offer on the property, but the potential buyer has been unable to organise a mortgage as of yet, the current owners are ready to move, they are currently the bottom of a chain, waiting on selling their house.

The agent tells me that they should accept 161k, but is that where i should target my 1st offer, or go in at a lower price, say 155k?

I would be looking to do some structural work to knock the dining room into the kitchen as downstairs space is currently limited (i intend to take in a lodger) should i factor all things like that into my offer or not?

any advice appreciated as i don't want to offend with a ridiculously low offer, and don't want to overpay either.

Mike :hello:

Doozergirl

You can't really justify 'wants' when making an offer though work obviously makes a difference to your budget.

I wouldn't be frightened at all to start at £155,000 and if the EA says they will take £161,000 then I would push that down. You are in a good position, especially if they are eager to move already - another £2-3000 off that wouldn't be hard at all if they are motivated enough. So if you go in at £155,000 keep your subsequent offers very close to that and hold out for as long as possible between offers. Knock the ball back to their court occassionally - after your second offer, ask the vendor to give you their best price, rather than throwing in another offer yourself. And then knock a bit off whatever they say for your final offer

Don't panic. They are as nervous as you are. I never get used to it. Vendors are vulnerable too.

pamaris

Definitely go in lower. You are the key to them getting on with their life. They only have one house to sell.

sozzifer

Apologies if I'm hijacking someone else's thread, but rather than starting another, almost identical thread, I thought I'd post here. I'm in a similar situation to the OP, I'm a FTB, except that rather than getting a mortgage I'll be making a cash purchase. I've found the flat I want (link):

http://www.rightmove.co.uk/viewdetails-8730789.rsp?pa_n=5&tr_t=buy

Since I'm in quite a strong position, I'd like to barter a little bit. The market in Oxford is slowing down (finally), so I don't want to pay more than I have to. The vendor has already dropped the price from £225K to £199,995. The upstairs flat sold for £215K a couple of months ago. I was thinking of starting the bidding at £185K - would that be too cheeky?

DKLS

Mortgage in place? Go for 145K and let them sweat.

pamaris

sozzifer wrote: »

I was thinking of starting the bidding at £185K - would that be too cheeky?

No... but be prepared to sit on that offer for a bit (they just might not bite your hand off, but who knows). If you want to save time and hassle, just make a single first last and final offer for what you feel comfortable paying for it.

carpetbelly

DKLS wrote: »

Mortgage in place? Go for 145K and let them sweat.

Definately...

And as for 185k, seems like a sensible offer. Ask the EA to submit it and again, just wait it out. Don't seem to eager if you're desperate to buy it.

akurei2000

Thanks to all for their feedback - i think 145 is a bit low, as all properties around the area seem to be priced about 160 - 165k, but starting at 155k should give me somewhere to start, would be prepared to go up to 161k, but not gonna let estate agent know that :silenced:

lets hope the viewing tomorrow goes ok and i'll be back to let you all know how it goes on.

might even have enough left to change my car as well (was in original plan, but thought i'd sort house out first)

Johnocyprus

If you are a proceedable first time buyer, you are a rare commodity.

" I think £145k ia bit low" - I think you're missing the point, the market has changed, there are no FTB's out there. You can dictate what happens, offer £145 max and explain that you are interested in other properties and let them come to you.

The estate agent will sniff distainfully hoping to shame you into offering more but be patient and save yourself thousands of pounds.

Alias_Omega

£145,000 offer, make it clear that you are 'good to go', and that you are a first time buyer, leave that with the estate agent and leave.

You are the start of the chain, they require your cash to move up the market, without you, they cannot move.

They need you..

Why should you have to pay full price, have you researched how much they paid for the house.? How much the houses are going around it.? Google houseprices . co . uk and take a look.

sarkin

Its a buyers market so go in low and tell them you have your mortgage in place