First offer advice

Kernowl

Hello, we are first time buyers and in a situation we'd appreciate some advice on!

We have a £45k deposit and we've seen a house that we want to make an offer on. It came on the market last week at £260k and by the time we saw it this weekend has had a few viewings and an offer already made - the agent said they would honour our viewing as we had already booked it in for this weekend. We know the vendor has no onward chain and wants to wrap things up this week, and hopefully our situation as first time buyers is favourable - although not sure how much this influences things, and don't know what situation the others making an offer are in. We are planning to make an offer when the estate agent opens again first thing Tuesday morning but are wondering how to approach this as we don't really know what the process will be: we don't want to go too low and not be considered further if the other offer is higher (e.g. if we offer £250k but the others have offered closer to the asking price), but on the other hand don't want to go too high and pay more than we need to or get into a bidding war that goes beyond our budget.

We really like the house and think we can afford it at the asking price but not much higher, and we think £250-260k is a reasonable price based on the house and area and what's sold recently. So... do we start with £260k and say "that's our max and we don't want to mess around with a bidding war" - or start lower? Will the agent come back to us and/or the other people making an offer automatically?

Any thoughts or tips gratefully received, thanks in advance!

Mickygg

Go in at asking to try to get it. Always a chance of a bidding war but if someone offers full asking first and you lose out by trying to save a few £££ how would you feel? Only you would know that.

Simby

I would also say go in at full asking, if you think the price is fair .

hazyjo

Had they actually accepted the other offer?

Kernowl

No they said they had received it Friday but not accepted yet - they said they would honour our viewing and will be wrapping it up Tuesday.

Jrose1927

Your in a very good position as a FTB

Offer asking price is they want a fast sale I'd be surprised if they don't take your offer

It's a high price for a FTB so unless the other party is cash you may get it

letitbe90

Firstly I’d like to say being a FTB isn’t really an advantage as some sellers are reluctant to deal with FTB’s over fears of lack of knowledge of processes or panicking after a survey - then there are those who might just not prefer them for the same reasons.

Priority usually is for sellers to sell to people who appear committed and ideally with no chain.

With that said, it is impossible to give the right answer to your question.

What I would say is, if you offered asking price and won - would you be happy or sad? Probably still happy and it would only be theoretical that you could have got it cheaper, as we don’t know what the other person bid.

If you offer less and win you’re obviously ecstatic, but if you end up losing it, would you then regret not having offered 260k or happily carry on your property search without much regret.

I guess you should decide what is more important - saving money or getting the property. Although both are important, different people will have different priorities depending on their own circumstances and how much they like the house as well as whether you have lots of options on the table.

danlightbulb

Just lost a house to best and final bids after originally bidding asking price then £4k more. Although Im in no chain myself the winners were also FTB. Some people will just throw money at stuff, you cant beat them and remain feeling you didnt overpay.

You have to offer what your comfortable paying good luck.

Kernowl

Thanks that's useful to know, and a good way of framing the dilemma. It is our favourite from what we've seen so far, however there are other options in the area in our price range so we wouldn't be devastated if we didn't get it - and if it ends up going higher, to a price we think its not worth and can't afford, then that answers the question for us.

Is it more likely than not for an agent/seller to ask for second/final offers if there have been more than one - i.e. even if we went at the asking price and said 'this is our max' is it most likely they would still go back to the others to have a chance to make a higher offer?

[Deleted User]

They'd be silly not to ask if anyone would like to improve their offer - they want to sell the house for the highest price possible.

Everyone else will be asking themselves the same questions you are. Don't try and second guess anything, offer the price you'd be happy with and if someone wants to pay more then don't get tempted to move out of your budget and regret it.

lookstraightahead

This is so back to front. You need to be in the driving seat. Offer what you think it's worth, then walk away if they refuse. You have no idea who is telling the truth. Agents play games. Sellers have huge egos about the importance and value of their houses. Just make your offer and don't worry