FTB- Negotiation advice please!

ReadingTim

SmashedAvacado wrote: »

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.

"Offended" is just old language/phrasing, and they're unlikely to be insulted either. However, they may write you off as a timewaster who might not even be able to afford the place, and so treat any subsequent offer you might want to make with extreme scepticism if not outright hostility.

Rock up to a Rolls Royce dealership and offer Ford Mondeo prices if you want an idea of this strategy...

Fire_Fox

Woah. :eek:

Get your finances sorted: deposit, mortgage in principal. Ask around - friend, relative, colleague - for a reliable conveyancer so you have their contact details to hand.

Research the property market online so you know what different types of properties in different areas are selling for. Under offer is nowhere near sold, that is Estate Agent bull. Only auction properties 'sell' (technically exchange of contracts) overnight.

Thoroughly research the difference between 'owning' a leasehold flat and a freehold house. The Leasehold Advisory Service website is very useful. If you go leasehold you need an idea of the length of lease, service charge/ ground rent/ buildings insurance, if there is a sinking fund, any proposed major works before putting in an offer.

A property is not worth what the vendors need or estate agents fantasise about. It is worth what a buyer is willing and able to pay. Might be more than, less than or massively less than the asking price. Depends how realistic the vendors are, how desperate for a quick sale they are. You will have a good idea because you researched the property market.

Always view a place twice at different times of day/ the week. With someone more confident/ better poker face/ more experience than you if possible. This is £££££££ of your money.

Agree with SmashedAvocado submit your offer in writing stating your strong position (FTB, finances in place) and any conditions (subject to survey, include appliances). That stands you out from the newbie crowd, leaves less room for EA bull. Do not rush into a second offer immediately, wait until the following day (or longer if you need to research/ number crunch). If the vendor counter offers think about it, even if only for a couple of hours.

You are not negotiating with the Estate Agent but with the vendor, via their representative. EAs are obliged to put all offers to the vendor. Remind them of that if needs be. Don't wobble: you researched the property market.

Johnhowell

Unless you receive a good recommendation as stated above, my suggestion to the OP is to get several quotes from solicitors that are either close to your home or your work place - so you can walk in as required. Base the quotation on a property price that is at your higher end - therefore you will know the end price should be less.
Keep good track of the costs they quote, items are rated differently for VAT.


Also, be aware that 10% of the purchase price will have to be provided to your solicitor before the Exchange of Contracts. So be prepared for this.
Good luck,
J

Albala

SmashedAvacado wrote: »

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.

Some vendors do get offended by low offers- not everyone is reasonable or even businesslike about selling their home. But if they get offended by an offer that isn't more than about 10% below asking, they are probably best left alone for a while, either they are wrong about their price, in which case they may reconsider if they get no better offers, or you're wrong about its value, in which case you're wasting your time as someone else will offer more. As a buyer, I'd worry about a very low offer, in that even if the buyer upped the offer, I'd be thinking they might drop it later, possibly right at exchange.