First time buyer - just viewed a property we like!

Jmoo

Hello,

We saw a property we really like yesterday, and was told we were the only viewer, and the offices are now subsequently closed. That puts us in a good place to make an offer. We're thinking about the next steps, we don't yet have any financial advice, or a mortgage. We're hoping to go for a 95% government-backed mortgage. What should be the next steps if we're serious about the property?

Is it wise to go with the selling price, or should we thinking about a higher bid? We'd prefer to avoid that if possible. 

It's owned by someone doing the house up to sell, they aren't currently living in it.

Thank you for any advice.

MaryNB

If you bid high you risk the lender downvaluing the property. With a 95% LTV you will only be able to afford a downvaluation if the seller agrees to drop the price. 

Have a look at other houses in the area and try to determine a reasonable offer.

I sometimes think people who renovate a house expect the property to be worth more money than someone is willing to pay. They value their work higher than others. Also make sure the work is done to a decent standard. If someone bought a house to flip it they may cut corners to maximise their profit. They not concerned about quality of work because they won't be living in it, as long as it looks good enough to sell. 

Hedgepigs

Only viewer since when? If the house hasn't had much interest I'd firstly be thinking why? And secondly be considering an offer under rather than over, as the 'why' is probably because it is already overpriced.

But you know the house and area.

sammyjammy

I wouldn't consider you in a good position to even be placing on offer until you have a mortgage in principle in place as a minimum

Sunsaru

If you are the only viewer then there is no point offering over. You are better off going in at asking or just under. Renovation only means that they are bringing it up to today's standards and means nothing when a bank comes to do their valuation.

boxer234

Do you have a DIP yet ? That’s your next step before offering or your just wasting everyone’s time if you can’t get a mortgage. 

wjr4

You need to see a mortgage broker before viewing properties. Do you know how much you can borrow? How do you know it’s 95% LTV if you haven’t got a decision in principle? 

hazyjo

If it's new to the market(?) and you bid over, they'll be thinking they underpriced it. Never offer over unless there's genuine proceedable competition.

You need to get that AIP in place as it sounds like finances are rather tight. You want to make sure your offer(s) will be taken seriously.

980233

95% mortgage. Risky, don't even bother as heartache is further down the road after valuation.

nicmyles

As others have said, there's no point making an offer on a property (or even viewing any, really) unless you have a mortgage offer in principle (known as a Decision in Principle) from a mortgage lender. Most agents would not recommend a vendor accept an offer (or at least wouldn't remove the property from the market) until finance was in place.

greensalad

Get yourself a mortgage in principle first. 

As for the offer, it's one of those things that no one can answer. You need to do your research and figure out how much you think it's worth (this was the stupidest thing IMO when we offered on our house. I wish people would just get the house valued and that's the price. I'm not an estate agent or a valuer, I don't have experience in this, but whatever). Offer what you think is a reasonable price for you based on local research of similar valued properties. 

Make that offer. They may ask for proof of deposit + your mortgage in principle before they put the offer forward.

Await a response. That's it really!