Am I in a good position FTB?

birdboy89

To offer a bit of perspective as a current FTB having had an asking price offer verbally accepted someone attempted to Gazump us with a higher offer the following day. The estate agent told us not to lose hope but we braced for the worse as despite a little bit of a buffer (c12% deposit and some money in reserve) we really didn't want to go any higher since the house needs work. Thankfully they kept with us on the grounds we were a straightforward FTB, had an AIP in exess of the asking price and didn't care about the Stamp duty holiday etc and we had our mortgage offer this week and our survey booked for tomorrow! Obviously we don't know what would have happened if they'd made that offer before ours had been accepted or how much higher their offer was but there is some value to some people and even to Estate Agents!

Irishpearce26

I don't think in this situation being an FTB will give you an advantage in having a £15k lower than asking price offer accepted. 

If i were to choose between an FTB or a seasoned buyer I wouldn't chose the FTB based on my last experience. They tend to have unrealistic expectations, first offer from an FTB wanted £25k off as they said the kitchen and bathrooms were condemned. They also stated in their offer that I would have to remove the old kitchen prior to completion. I didn't respond. The second FTB to offer came in low and before I could respond they withdrew then next day offered again however their parents showed up unannounced and asked me odd questions before saying that their daughter offered too high and we would have to accept a lower offer. I called the EA when they left and declined her offer and stated I would not accept any offer from her.

[Deleted User]

what you describe with FTB getting discounts might still happen but its probably not been a general rule since pre-covid at least.4

FTB's are more likely to be buying at lower deposit levels, have less funds to keep the deal together if something happens with valuations, and are more likely to be scared by solicitors and their doomsday approach to paperwork (my client lost a buyer to their solicitor telling them they needed chancel repair liability policy or they might go bankrupt in the future!).  I know a lot of estate agents will try avoid them in this hot market with a higher chance of downvalue as well. 

Depending on what the market is around you then the owners will likely just take the best offer and that's it. People on the whole are greedy and if there are 5 or 6 people offering then your own position becomes a moot point

After selling my last house I would like to think I would take a lower offer from a non ftb next time just to get someone experienced with how it works.  In reality I know I will just take the highest offer I get.  

AdrianC

COYI123 said:

RelievedSheff said:

Being a first time buyer is not an advantage. 

For us it would be a disadvantage. First time buyers are known to be indecisive, prone to changes of mind and generally a bit skittish around house purchases.

Everything you have just stated is down to anyone due to how they are as a person , if I see a property , and I like it , and I know I can get it , I would put an offer in, I’m not going to stand their and be worried that their may be a better property somewhere else , because doing will get you no where , of course there would be other places that are nice but at the end of the day you can only have one sodding property , I’m old school , if I see somewhere else in the future I would just remortgage , simple . You can’t say that FTB are like that , if anything people with a chain are the picky ones with the old time classic “ just waiting for my house to sell” .

Do not conflate "FTB" with "no chain". They are not the same thing. Many non-FTB are chain-free.

Ultimately, the first thing many sellers will look at is the number. Sure, if there's two fairly close offers, maybe chain-free will swing it. But 5%? No.

Gavin83

We haven't experienced any issues being a FTB. Saying that we're older than your average FTB, have a good income/deposit and didn't mess about. Also made it very clear to the vendor we were aware of certain problems and expected them to come up on the survey and that wouldn't influence our decision.

However we did offer asking. I think the only way you'd get a below asking offer these days is if the house was overpriced, there was something seriously wrong with it or they were in an urgent rush. 

cdp2879

We're FTB.  Agreed £15k less the asking price (of £465k - which had just been reduced from £495k).  Seller went with us because we were FTB, with all the bits lined up and could move as quickly as they could.  A number of estate agents got noticeably excited when we said we were FTBs.

I think a lot depends on where you are.  Not everywhere is a seller's market.  Properties around us are reducing all the time or switching to rentals when they can't sell.

COYI123

RatInACage said:

I had to accept an offer from a FTB because I'm legally obligated to accept the best offer (probate). The lack of a chain is nice, but I'm definitely not jumping for joy. I have enough stress in my life right now without all the silliness that comes with most FTBs. There's no way I'd have given them a discount or accepted anything under asking in this market and if they start trying to get £5k off because a floorboard creaks, I'll just remarket.

It's possible that you live in an area where the market isn't great and everyone wants to move quickly, so you can get away with offering under asking, but please make sure that's the case before you start offering or you're going to get a reputation for being a time-waster.

I’m around Essex which is basically London bound as they are next door to each other , we have £30k deposit , and are leaving ourselves with £10k+ after putting our deposit down , I’ve got a trade plumbing and gas , work for probably the most secure company as it’s government run , projected around £60k a year after next April , and my partner runs her own business also expected to go back to a good wage once everything has settled after this COVID nonsense . Being in the trade I understand everyday that their is problems with houses believe me , and I’m lucky enough to be able to sort 99% of them out by myself , all I’m saying is when we’ve spoke to EA’s they have been shocked in a good way that we have that deposit just being 20 years of age ( had no help from parents , all our own work to save that amount ) , and have been bugging us to work with them 

Sazzy1253

I’m a FTB, buying with a partner. We’re 24 and both full time employment with the nhs (combined income of 80,000). We had a 60% deposit for the property we wanted to buy (£150,000 property). 

It took us so much longer than we thought to get a mortgage. We don’t have any debt etc but we’ve been paying our credit cards off before the statement is released. Because we don’t have anything on finance we just didn’t have a long history of credit. 

Never thought that could have an impact but it did! Started leaving the credit card and using it slightly more. 6 months later all sorted! 

COYI123

Sazzy1253 said:

I’m a FTB, buying with a partner. We’re 24 and both full time employment with the nhs (combined income of 80,000). We had a 60% deposit for the property we wanted to buy (£150,000 property). 

It took us so much longer than we thought to get a mortgage. We don’t have any debt etc but we’ve been paying our credit cards off before the statement is released. Because we don’t have anything on finance we just didn’t have a long history of credit. 

Never thought that could have an impact but it did! Started leaving the credit card and using it slightly more. 6 months later all sorted! 

Yeah that’s what we found out obvs being only 20 we weren’t going to have unreal credit history , but we paid everything off all the time in full , you sound like you must be from up north to get a property for 150 which is cheap , honestly up north for what you get for 300 , down here in Essex it’s about 750 no joke 

ele_91

The other threads you’ve started sort of suggest you’re not in a good position and they highlight a real problem with FTBs… You are struggling to get a mortgage AIP and because your deposit is low, lenders will view you as more of a risk. You won’t be able to weather any downvaluation and one of you is self employed and has been on furlough. That would set alarm bells ringing for me! It won’t be the same for everyone but unfortunately lots don’t view FTB as a good prospect anymore and there are plenty of other chain free buyers.

I accepted an offer from a FTB who had a 60% deposit but they could not get a mortgage offer despite having an AIP as one of them was self employed and had claimed grants last year, they had refused to pay for any searches or survey until they had their offer and after three months waiting for a mortgage offer were no further down the line so I had to put the house back on.