First Time Buyer - OIEO

paper_doll_2

Hi everyone,
Myself and my husband are first time buyers. We are due to go for a 2nd viewing on a house that we really like and are seriously considering putting in an offer. 

It's a big terraced 3 bedroom house on the market at OIEO £375k. There are a couple of other properties in that area up for sale, both 3 bedroom but semi detached and priced at £400k.

We are a little confused as to what to go in as our first offer. We believe it is on the market for a good price (£375k) so won't be offering lower, but what do we start at and what do we up by if it gets rejected? We want to be seen to be serious, but also don't want to keep going back and forth with offers.

The owners have found somewhere else and are after a quick sale which we are able to give them as we are first time buyers and renting!

Apparently the house has had a lot of interest and viewings (according to the EA).

Any advice appreciated!
Thanks

Chilli6

It's so hard to know if estate agents are telling the truth when they say it's had alot of interest. I viewed many houses in my search and pretty much every time they told me it had alot of interest or was close to someone offering. And what a surprise most of those houses were on the market for months to come. I've also been told they had viewings straight after mine but then saw them drive off.
Just my opinion but I would go in at £375,000 as you believe that's a good price. You're no chain buyers and the vendors have found somewhere they want so all is in your favour. If they turn it down simply ask the agent what figure they are looking for. If it seems reasonable to you then great. If it seems excessive then offer what you would go up to instead. I have in my head the max I would pay and if I get under great.
When selling my house it annoyed me that someone started very low and kept going up £2,000 at a time! Wish he'd just said his max as that's what he ended up paying but it took ages going back and forth! 

tweet86

Don’t trust everything the EA says. They are trying to spark interest and people who believe there may be others willing to make an offer will generally offer more. How much do you love the house? If you believe the house is worth £375+ due to others on the market, offer what you are happy to pay. What have similar properties sold for? As the sale price is the most important thing. The ones who put their house on for £400k might be wanting to achieve within 5% of the asking price. And if they’ve not gone already then they may be overpriced. How long has it been on for? 

I offered under on the asking price of OIEO £350k because I didn’t believe it was worth the price. 

I would offer what you are happy to start with and go from there. Stress your position of a FTB. 

tweet86

Also, most first offers are rejected. So offer under what you hope to pay as they may try to negotiate you up. 

emjay2kay

If you think 375 is a good price I'd go in at that first and go up from there if that's not acceptable. Obviously have in mind what your maximum offer would be. I wouldn't offer "in excess of" 375 as my first offer. Similarly, if I thought it was worth less then I'd be offering whatever I thought fair - if that's less than 375 then so be it.

macman

Do you really expect the agent to say 'it's had very little interest and few viewings'? It's their job to talk it up. They work for the vendor, not for you.

blue_max_3

Why not 'disclose' to the agent that your maximum is £375, but do you think they may accept £360? That gives the agent the chance to feel involved and important. If he sells it for £360, great. If not and he negotiates the asking, he'll think he's done well for the seller. Win, win.

NameUnavailable

I would start under 375K as if that is the maximum you can pay that is your 'best and final' offer. Try 10K under push the fact you're ready to go (this is based on 375 being a competitive price now and not too high - bear in mind that prices are expected to fall towards the end of the year as well).

paper_doll_2

Thanks everyone! 

It’s only been on for a week, and I am totally aware that the estate agent is probably saying that it’s had a lot of interest just to make us even keener! 

I had a look on Rightmove and they bought it for £355k in 2015 so I doubt they will want to go much further down from £375k... they have made cosmetic improvements from what I can see from the older photos but nothing in the way of construction.

It is much larger than the other houses up for sale around that area that are on for more (it’s just over 1000 sq ft, whereas the others are more in the region of 800 sq ft.) 
I’ll see what we think when we view it on Tuesday. I’ll let you know the outcome!

Young_Turk

paper_doll_2 said:

The owners have found somewhere else and are after a quick sale which we are able to give them as we are first time buyers and renting!

This could prove to be very important. Even if they have had serious interest from others, they may not be in a position to move as quickly as you. So that is yet more reason to offer under 375. 

Doozergirl

Young_Turk said:

paper_doll_2 said:

The owners have found somewhere else and are after a quick sale which we are able to give them as we are first time buyers and renting!

This could prove to be very important. Even if they have had serious interest from others, they may not be in a position to move as quickly as you. So that is yet more reason to offer under 375. 

No it isn't.  It's been a week and the OP says it is a good size compared to similarly sized properties. The asking price is Over, not under.  The vendors expectations have more than some relevance at this point.  

Offer what you feel comfortable with, given the market where you are.  See what happens.