Should we submit an offer while viewing is still being carried out?

JonMitchell

Hi
Was wondering if we can get some past experiences of forum members here.
There is a property that we are very interested in though it is being tenanted in-situ at the moment. It has a guide price of around £375K.
Was wondering if we should put in an offer now or wait till viewings are done by other people? Our plans are:
. Offer £5K above the asking price - £380K
But am cautious whether the EA will use our figure to go "bargain" with other viewers - 4 more viewings tomorrow? Which there might always be a case for. Or should we wait for tomorrow's viewing to complete before submitting our offer?
Any suggestions greatly appreciated.  

hazyjo

Have the tenants been served notice yet? Have you even seen it?

If you want to offer, I would say it's on the basis of all viewings are cancelled. If they still go ahead, I'd take my offer off the table and say you'll consider an offer at a later date.

Do you need a mortgage? Do you have cash to meet any shortfall if they down-value it (perhaps likely if you're offering over the asking price)?

JonMitchell

Thanks. I have been informed the tenants are moving out middle of June as they have found some place.
Will be taking up a 50% LTV mortgage, the rest are from deposit from our savings. Not sure if this will be attractive?

moneysavinghero

50% LTV will be attractive. Gives you more room to manoeuvre when the valuation comes back below the offer price than someone with 5-10% deposit.

hazyjo

Yes, a large deposit will be hugely attractive and means you can be flexible as to valuation.

You'll more than likely still be borrowing the same amount whatever it's valued at. For those with a small deposit, a down-valuation can make a huge difference if they don't have cash to pay over what a lender will offer them.

JonMitchell

Thanks - would you recommend going ahead with the offer now or play the wait game? 

hazyjo

What's your position? FTB? Something to sell? Buyer? Chain?

steampowered

I would just put the offer in.

Even if you wait until the other viewings have happened, the EA can still use your offer to bargain with other viewers. If Mrs X offers £375k for the property, the EA can still call them up a week later and ask if they are willing to beat your £380k. Try not to overthink it.

JonMitchell

No chain, we own our current property. Planning to buy the property as an investment but more for our son going to uni this year. 

hazyjo

Personally, I would ring the EA and say "we're very keen on it and wondered if there's a price that would get it off the market and all further viewings cancelled - we're chain free, motivated buyers, and can move at the vendor's pace". Then wait for a call. Not sure in your shoes I'd even go straight in with an offer. As it's tenanted, I'd be surprised if asking price didn't get it off the market for you.

Saying all that, be very careful actually buying for your son at a Uni in an area he's presumably unfamiliar with on a course he's not started. Many end up swapping courses and moving Unis or quitting altogether.

Good luck. Let us know how you get on.

Grumpy_chap

If you want the property and you know you want the property, then make the offer. 
Why are you so keen on this particular property that you want to offer above asking?

When I purchased my first house, I walked through the front door, poked my head into the kitchen, liked it and immediately offered asking, subject to the property being taken off market and no more viewings.  The EA was rather surprised as I'd not even walked round the whole house.

Worked, though, and I was very happy there