Is being a FTB really that much more advantageous when buying a house?

freeof1

We currently rent and have been house hunting. Whenever we tell estate agents that we're FTB they always give a big nod and reassurance that it puts us in a great position.

Therefore we've been trying to hold out to buy a bigger home than one would typically buy as their first house as we try to take advantage of this supposedly hallowed position we're in.

But in the last 6 months we've been outbid by small amounts on a few houses, missed out on one house because we came 5k under the sellers minimum acceptable price, and just generally found the only thing matters is the price we're offering and that's it.

Not that I'm moaning about it - it is what it is - but it makes us reconsider whether it's better just to buy a smaller house, get ourselves onto the property ladder and then go for an upgrade further down the line.

For those that have sold a house, did you show preferential treatment to a FTB?

Thanks

Doozergirl

The price is what matters.

I wouldn't lower price for a FTB because they're not that easy a buyer to deal with! There's a perception that someone without a chain is good, but FTBs can also be jittery/downright annoying as they lack experience of the reality of the process and home ownership in general.

I've been in the luxurious position of being a seasoned cash buyer with no chain and I still wouldn't be looking at houses above what I perceive to be affordable. If I were, I'd expect to be knocked back a LOT more than I had offers accepted. That's hardly surprising.

welwynrose

A FTB is buying our house but to us it doesn’t seem to have moved things on any quicker we didn’t really care who bought our house as long as someone did

freeof1

That's a great point about the lack of experience from an FTB being a negative rather than a positive!

As you say it's not a surprising situation, but every EA goes on about it like its a great thing and so far I don't think it's made a blind bit of difference. They probably just say it to encourage you to put in an offer. I'm sure they give a different line to non-FTBs!

freeof1

@welwynrose we have been very prompt as buyers, but that's not because we're FTBs but rather just because that's the kind of people we are.

Cakeguts

It sounds as if you are looking at houses that you can't really afford.

freeof1

I can see why it looks that way but we definitely can afford the places we've offered on. We just set an upper bound for what we want to pay for house X and don't go above that.

Typically our upper bound is just below what the market price is because we thought as FTBs our strong position would encourage sellers to accept our offer. But in reality its entirely driven by price regardless of whether the buyer is a FTB or not. Even for amounts that are less than 1% of the list price.

We've not been in the position of selling a house ourselves so I'm just keen to hear from the perspective of sellers.

Cakeguts

freeof1 wrote: »

I can see why it looks that way but we definitely can afford the places we've offered on. We just set an upper bound for what we want to pay for house X and don't go above that.

Typically our upper bound is just below what the market price is because we thought as FTBs our strong position would encourage sellers to accept our offer. But in reality its entirely driven by price regardless of whether the buyer is a FTB or not. Even for amounts that are less than 1% of the list price.

We've not been in the position of selling a house ourselves so I'm just keen to hear from the perspective of sellers.

Some houses are really popular. If you are trying to buy a house that will sell easily you can't just set an amount that you won't go above. You have to decide how much you want that particular house and offer according to that rather than just offering less than the asking price by your own personal formular.



You aren't going to get a lot of money off a house that is in an area that people aspire to live in because these sell quickly at the top prices.

freeof1

Exactly, and that's my point. That has nothing to do with being a FTB and everything to do with price.

Yes, we do live in a desirable area but in spite of that we still have EAs that operate exclusively in this area telling us the whole "FTBs are like gold dust" line, which I now realise is probably spiel and we need to adjust our price expectations accordingly!

Slithery

I'd take an experienced buyer over an FTB every time.

freeof1

What sort of issues have you encountered with FTBs?