first time buyer

lightbulbroy

We are first time buyers with a maximum budget of 250K, due to using help to buy ISA's. We viewed a house today listed at 270K, which we both liked. Right off the bat the estate agent said the seller would probably take an offer of 260K but wouldn't go lower. It's been on the market for 3 or 4 weeks, and I asked if they had had any offers and he said only cheeky offers. I never asked what he considered a cheeky offer to be. Checking Zoopla gives the house a valuation of 240k to 260k which makes a 250k offer seem reasonable, but is it worth it if the seller is looking for 260K? I can't give any counter to their valuation other than the Zoopla figures, which doesn't seem much ammunition. Properties in the local area are going for anywhere between 250k and 270k (but that's based on list price rather than actual sold price.) Any advice would be gratefully received.

housebuyer143

lightbulbroy said:

We are first time buyers with a maximum budget of 250K, due to using help to buy ISA's. We viewed a house today listed at 270K, which we both liked. Right off the bat the estate agent said the seller would probably take an offer of 260K but wouldn't go lower. It's been on the market for 3 or 4 weeks, and I asked if they had had any offers and he said only cheeky offers. I never asked what he considered a cheeky offer to be. Checking Zoopla gives the house a valuation of 240k to 260k which makes a 250k offer seem reasonable, but is it worth it if the seller is looking for 260K? I can't give any counter to their valuation other than the Zoopla figures, which doesn't seem much ammunition. Properties in the local area are going for anywhere between 250k and 270k (but that's based on list price rather than actual sold price.) Any advice would be gratefully received.

I think you have your answer from the agent. The seller will take £260k. 

It's only been on 3-4 weeks so it's unlikely they are going to take a low ball offer at this stage. You can try but I imagine you will be rejected. 

theartfullodger

Make whatever offer you feel capable of .  You've said max £250k so that says to me £250k. (If I'm wrong why did you state what you did please?)

You never know unless you offer.

jak

I'm also a FTB using a help to buy isa. I can only get my bonus if i spend £250,000 or less if that helps? You can only offer what you can afford and hope they go for it. Good luck.
Jak 

lightbulbroy

theartfullodger said:

Make whatever offer you feel capable of .  You've said max £250k so that says to me £250k. (If I'm wrong why did you state what you did please?)

You never know unless you offer.

We could go higher but then we lose our bonus from the help to buy which would be about 5K.

lika_86

Make the offer, you can always go up if you really want it but at least this way you know if they'll take it.

eddddy

lightbulbroy said:

"which doesn't seem much ammunition."

I don't think it's a good idea to use that kind of "ammunition" - it just winds-up the EA.

It can sound like you're saying that you (an FTB) is telling the EA (an experienced property professional) that they've priced the property wrongly. It might make the EA determined to prove to you that they're right and you're wrong.

I'd take a slightly different approach, and say something like - "I'm offering £250k, because...

• That's my max budget, or 
• That's the ISA bonus limit, or
• That's as much as I'm prepared to pay for that particular house"

jonnydeppiwish!

housebuyer143 said:

lightbulbroy said:

We are first time buyers with a maximum budget of 250K, due to using help to buy ISA's. We viewed a house today listed at 270K, which we both liked. Right off the bat the estate agent said the seller would probably take an offer of 260K but wouldn't go lower. It's been on the market for 3 or 4 weeks, and I asked if they had had any offers and he said only cheeky offers. I never asked what he considered a cheeky offer to be. Checking Zoopla gives the house a valuation of 240k to 260k which makes a 250k offer seem reasonable, but is it worth it if the seller is looking for 260K? I can't give any counter to their valuation other than the Zoopla figures, which doesn't seem much ammunition. Properties in the local area are going for anywhere between 250k and 270k (but that's based on list price rather than actual sold price.) Any advice would be gratefully received.

I think you have your answer from the agent. The seller will take £260k. 

It's only been on 3-4 weeks so it's unlikely they are going to take a low ball offer at this stage. You can try but I imagine you will be rejected. 

Ignore this advice - offer what you can afford. After all, it’s the vendor who makes the decision, not the agent.
Guven that they’ve already had ‘low ball’ offers, it’s a good indication it’s over priced.

lookstraightahead

I think you need to switch around how you're seeing this a bit.

1. you are the buyer. You only offer what you can afford.
2. The estate agent is using words to get you to offer more - they're acting on behalf of the vendor. Take it with a pinch of salt. 

3. If you offer too much, there's likely to be a 'down' valuation, which means you make up the difference out if you're deposit, which might be impossible.

offer what you think you want to pay. Offer under, over, or £250,000. Stick to it. If they say no go on to the next property. 

lookstraightahead

housebuyer143 said:

lightbulbroy said:

We are first time buyers with a maximum budget of 250K, due to using help to buy ISA's. We viewed a house today listed at 270K, which we both liked. Right off the bat the estate agent said the seller would probably take an offer of 260K but wouldn't go lower. It's been on the market for 3 or 4 weeks, and I asked if they had had any offers and he said only cheeky offers. I never asked what he considered a cheeky offer to be. Checking Zoopla gives the house a valuation of 240k to 260k which makes a 250k offer seem reasonable, but is it worth it if the seller is looking for 260K? I can't give any counter to their valuation other than the Zoopla figures, which doesn't seem much ammunition. Properties in the local area are going for anywhere between 250k and 270k (but that's based on list price rather than actual sold price.) Any advice would be gratefully received.

I think you have your answer from the agent. The seller will take £260k. 

It's only been on 3-4 weeks so it's unlikely they are going to take a low ball offer at this stage. You can try but I imagine you will be rejected. 

Answer from the agent? There's an oxymoron 😂

Sapindus

Offer £250k, regretfully but politely, since this is your max budget.  Convey the possibility that they may get offers of £260k, but then those buyers may haggle downwards after survey and valuation, whereas you, getting your £5k bonus from the ISA, will be much more straightforward knowing that you got a good deal in the first place.

If this does not work, there will be other houses.  I note you said "we both liked", not "we fell in love and this is the dream house for us and another opportunity like this is never going to come up."