FTB: Advice needed RE: Offer

beebutterfield

Hi,

I need some advice.

Viewed a house which is valued at £170K, it is just what I am looking for and it is in good condition and in an area that I have been looking to buy in.

I have made an offer of £163K and the seller has come back saying this is too low. They are now saying another couple is interested and they have also offered and their offer is also too low. EA said that he thinks it will sell for near enought the asking price, (he would) but I am now thinking is he playing us off against the other?

I keep reading that the housing market is set to decline and that I should't buy now, but I am in a position that I can afford to buy and I think I just need to bite the bullet and buy or else I will be living with family forever!

What should I do? I am getting very confused answers to questions from people and would like to get some good, honest advice? Basically, what is a good offer for me to make and should I ever offer the asking price?

Thanks in advance,
Bee x

zag2me

If you really want it offer a bit more, but to pay the asking price for a house in this market is pretty stupid in my opinion. Also the "other couple" put in a low offer too so that tells you they dont think its worth the asking price either. The average sale price is about 93% of the asking price i think. Remember also to check nethouseprices for any sale value previously.

Sput2001

Don't offer asking price. Maybe try £165K or £166K and see how it goes.

Obviously a lot depends on the area you're in, but as a general rule, that area of the market isn't massively active with buyers at the moment, so you're in a strong position. Use it!

John_M_Business

This is just another example of the ludicrosity of the existing housing market. You're offering at least £160k over what your house will be worth by Wednesday next week. You may as well be giving your money away. Have you seen the graphs??? House prices are going to crash so lock up your daughters. If you have them.

(btw. this is a joke, but I thought I'd beat certain other posters to it... )

This is my honest opinion: ask the Estate Agent whether the offer has been accepted or rejected. If it has been rejected, then offer £500 more and try again. If it has not been rejected, tell the EA that your offer will only be valid until Monday next week, at which point you will withdraw it and look elsewhere.

pollocmc

I'm about to embark on my fourth house purchase in 10 years (not entirely of my own choosing) but that doesn't make it any easier to judge what is the right price to pay for a property. The one thing I always consider is, is it fair value? You can worry for ever about house prices going up or down and never actually do anything sometimes you've just got to bite. You need to decide in your own mind how much is the *most* you are prepared to pay. Not knowing the property, is it something you could see yourself living in for 10 years if necessary or is it a flat that will do while you lead the single life but once you're hooked up with possibly sprogs will be too small? Can you afford the mortgage reasonably comfortably (it's never painless but you still want to have some sort of life)?

The reason I ask is that if you plan to stay somewhere for some time, and you can afford the property it doesn't really matter what the market does. It only matters to those moving. You can sit and wait out any lean times and wait for the next rising market. The thing to remember is that as your house price falls, so does most of the rest and the affordability doesn't really change that much.

As I see it, you've got two options:
1. Give them what they want and you get the house you want
2. Meet them halfway and tell them that you've used up your budget for decorating/improvements and there is nothing left to give. You have to be prepared to walk away though.(There will ALWAYS be another house take it form me)


Just re-read your post and was thinking the

this is too low

bit intriguing. To me that says they are willing to negotiate as they didn't come back and say they wanted the asking price or nothing else. You could attach strings to an improved offer, like taking it off the market (is that normal in england - I have to deal with the wacky scottish system)

Anyway don't blame me if it all goes pear shaped. I've got a wife at home to do that for me already.

HTH

pollocmc

bridiej

pollocmc wrote:

I'm about to embark on my fourth house purchase in 10 years (not entirely of my own choosing) but that doesn't make it any easier to judge what is the right price to pay for a property. The one thing I always consider is, is it fair value? You can worry for ever about house prices going up or down and never actually do anything sometimes you've just got to bite. You need to decide in your own mind how much is the *most* you are prepared to pay. Not knowing the property, is it something you could see yourself living in for 10 years if necessary or is it a flat that will do while you lead the single life but once you're hooked up with possibly sprogs will be too small? Can you afford the mortgage reasonably comfortably (it's never painless but you still want to have some sort of life)?


pollocmc

I agree.

meanmachine_2

The "other buyer" ruse is the first EAs use in the "How to Scam a Buyer" rulebook.

Sometimes its genuine, but in the present climate, I'd suggest not.

As others suggest, only go up by another £500, and then another £500 at a push. Make this last one your final offer, attach a deadline to it, then be prepared to walk away.

As everyone tells you, it's a buyers market - and you're in charge. Without your money no one gets a penny, including the agent.

Personally I'd advise you to wait till Autumn, but if you're desperate to move, and the mortgage is manageable, that is your "premium" for buying right now.

Oh, and do look the property up on nethouseprices. This will show you how little the current owners paid for the same property.

normski_2

I'd just echo previous comments. I have no axe to grind against Estate Agents but it is important to remember that they are acting for the seller and not you.

As others have said it all depends on how much you want the house. Can you face loosing the property for the sake of £2-3K? If you are prepared to walk away then increase your offer by the suggested £500 and go no further. Tell them it is your best and final offer.

So far, you have made an opening offer, which is just that. I wouldn't expect this is the best price you can stretch to and neither will the seller. It's now time for a bit of horse play, tooing and frowing, seeing who will blink first.

As a current seller desperate for a buyer I'm still prepared to wish you 'all the best'. After all, everyone loves a bargin.

Normski

donsaini

IMHO ithink at the moment there is two housing markets running in parallel.

firstly, the home owners selling who think that the house prices are still increasing as before, and that they will get full asking price.

secondly, those whose house is priced at the right level, regarding them market.

eg. i just bought a house, as a ftb for £245, asking price £247.5. (i actually offered the full asking price however they delayed completion by 4 weeks so it cost them). on the same street there is another house in slightly better condition, with one bedroom less, single garage as opposed to double, less area of garden, originally on at £265 now at £260. GOT TO BE JOKING!!!!

so the OP has to ask himself which category does this house fall into. also i would in your position if it is at the right price offer them about £1.5k more, with the condition of exclusivity, off the market straight away, 4-6 week completion, deadline for the offer of 2 days

hope it helps
:beer:

beebutterfield

Well............

I offered £167K and said it was the absolute highest I would go. EA called back and said that the seller was accepting the "other persons" offer and that he would keep me informed of any other properties that come on that may suit me. To be honest, I am sure that the property is not worth the asking price, so if they paid it good luck to them. I have a strong feeling he is testing me, I think he thought he could scare me into increasing my offer more. Maybe he will come back to me?

On a separate issue, I have another question. Why is it that all the EA's I have met/spoke to etc, have all been really young and wet behind the ears? (one could not answer one single question about a property I was viewing!) I have been told that the Lower Priced houses get allocated to the new/young EA's as the commision from the sale would not interest the older & more experienced EA's. Is this true? What if I was not happy with the service provided by the EA allocated? Can I ask to speak to their peers in the office instead?

Sorry for all the questions, new to this and I have lots to find out!
Bee x

meanmachine_2

normski wrote:

As a current seller desperate for a buyer I'm still prepared to wish you 'all the best'. After all, everyone loves a bargin.

Normski

Just out of interest, did you take the highest valuation? Have you recently lowered your asking price? And if not, how long would you be prepared to wait before doing so?

And if you still didn't get interest, would you keep going lower, or just take the property off the market?

I'm just curious as the mindset of today's seller.

I'm a potential buyer, but one who was priced out of the market ages ago, and would need a substantial correction before I could be coaxed back in.