FTB- Negotiation advice please!

Sicily1991

Hi all,

I'm a FTB, started viewings a couple of weeks ago but my dream home has not come up yet.. I've scheduled viewings every week for a range of properties; flats and houses to get a good idea of what I can get for my £££.

I want some advice on how to approach putting an offer in. In terms of my situ, I am FTB with 10% deposit. I'm getting hounded from the agents but I haven't felt confident in putting an offer for any of the ones I've seen so far (about 7). I'm looking to buy in and around Colchester area. It seems some places get sold after a month, even a week, where as others have been on the market for months..

Should I definitely have a second viewing before putting an offer in? How do I negotiate the price? I assume that sellers will always put on the market for more than they might expect to get- but how much more?? What's reasonable to go in with a first offer e.g. 10% less? 150k less for a place listed at 170k? And is it likely to have to barter, before reaching your threshold? Can I ask what offers have come in thus far? Or what the bottom line for the seller is?

Pls pls pls any tips on how to negotiate with the agents/sellers.

Thanks!
S

SmashedAvacado

1. Offer less than you think they will accept - you won't offend them and you can offer again
2. Ensure your first and subsequent offers include the things you want included like white goods / curtains / carpets / light fittings
3. Ensure you explain your position - ie FTB with loan in principle keen to move quickly but flexible enough to fit in with the seller's plans.
4. Go up a small bit from your previous offer
5. if that doesnt work go up an even smaller bit
6. make your offer in writing.

You don't need to explain your offer - ie you dont need to find reasons why you are offering less than they want. just focus on the number.

2bFrank

It entirely depends on the property unfortunately. if the property is desirable, you could be up against other buyers, and the best one will win (whether that is price or position). You will have a slight advantage as you are a FTB and no chain, however that being said some vendors will not deal with FTB due to some of them being a bit of a pain to deal with.

Your best bet is to try and find out as much information as you can about a property, such as recent selling prices of similar properties. That way you can base your highest offer based on that. Only you know how much you are willing to spend on a property.

Ive always gone in a little low with an offer to test the waters, sometimes I will get laughed at, sometimes ill even miss out on a property as I was too slow, but you can always adjust your offer, its easy to go up but very difficult to go back down, without good reason (e.g. survey has uncovered something).

Linton

Aim to make no more than 2 offers. Assuming you really want the house, the price is not unreasonable, and the area isnt wildly popular, offer about 5% less than the asking price. The vendor may well split the difference it which case you accept . You could possibly try and split the difference again, though you risk the vendor saying no which puts you on the back foot.



If you really want the house and its likely to sell quickly go straight in at the asking price on the condition that it is taken off the market immediately. You dont want a bidding war.



If you go in far too low the vendor will just say no and you have made no progress. You will possibly be flagged as a time waster and you have given someone else the opportunity to get the vendors attention ahead of you.


If you dont really want the house unless its seriously cheap or if the house is seriously overpriced I suggest you look elsewhere and not waste your and the vendors time.

Sicily1991

Why do some vendors not deal with FTB??

babyblade41

Don't go in too low as to offend the vendor, they might not want you offering again.

There are no right ways..I have never done second viewings before offer, in fact the previous 2 I hadn't seen before we moved in (certain criteria have to be met, if that has happened anything can be changed)

Before viewing I know where I want to be , I study the floorpan in depth plus sat images if I'm not completely sure what is around, although 90 percent of the times I do know

I have a fave list on RM and whittle it down until 4-5 possibles, then I speak to the EA to find out what the vendors positions are. No good viewing if vendor is in no hurry or just testing the water

Only then a viewing is booked...as soon as I walk in the door I know if it's right or wrong ...but you never know until you live there for sure as in my last move , the thing I loved but didn't need turned into a pain

Offer what you think would be good and acceptable.

I've paid well below, on the nose and slightly higher , it really depends how much you love it ...at the end of the day it's your home first before investment (well as long as you're not silly)

SmashedAvacado

the idea of being offended by an offer is really a red herring. I can't believe anyone would be so offended by an offer that they would cease to entertain a higher offer.

Offering less than you are prepared to pay is good for your mental wellbeing - and for the seller. They don't want to accept your first offer because they will think you might have paid more. You don't want your first offer accepted because you will regret not offering less. Either scenario would eat away at you during the inevitable minimum 3 month period between offer and exchange. Much better to both think you have got a good deal by negotiating - that way means there is more satisfaction all round. you still think you got it cheap, perhaps they think they would have sold for less.

Slithery

Sicily1991 wrote: »

Why do some vendors not deal with FTB??

Because they often have a lack of knowledge of the process and unrealistic expectations.

I'd take a seasoned buyer over an FTB any day of the week all other things being equal.

Sicily1991

I always ask why they're selling and in one instance I've been told the owner is deceased and the sale is being managed by solicitors. I've got the viewing this week, It's been on the market for nearly six months and been reduced once..do you think I can still go in at 5-10% less than asking, how can this be negotiated as it is all being managed by solicitors?

Sicily1991

What kind of unrealistic expectations?

Slithery

Sicily1991 wrote: »

I always ask why they're selling and in one instance I've been told the owner is deceased and the sale is being managed by solicitors. I've got the viewing this week, It's been on the market for nearly six months and been reduced once..do you think I can still go in at 5-10% less than asking, how can this be negotiated as it is all being managed by solicitors?

It all depends on the wishes of the executors. They may want a quick sale or they may want to hold out for the best price. Negotiations should go through the EA as usual.