What to offer?

dory1976

Hi probably been asked before but I can't seem to find anything. We are first time buyers looking at a property that is £195,000, they've had two offers on it already apparently, it's safe to say we're fish out of water and haven't got any idea of what to offer, have our AIP and 10% deposit ready to go 

Penguin_

Offer what you can realistically afford. If you can get to £195,000 & afford that, offer that.

cymruchris

Is this a house you'd like? or a house you really, really like?

Would you want to lose it over the sake of a thousand pounds or so, considering it's an asset that you'll likely keep for a long time (or at least if you sell it you'll likely buy another one).

If there are genuinely two offers on it already, it seems like there may be interest in it. So offer what you think it's worth for you to seal the deal.

If you're in an area of the country where houses sell fairly slowly - then maybe a little under asking - if it's somewhere where houses shift quickly - I'd probably go in at asking.

Then sit back and see what they say.

Although it fell through - a house I tried to buy earlier this year went to 'first and final' offers after I'd offered asking price - and I went in £5k above asking for my final offer as it was a house I really wanted. I got it - but then my buyer pulled out.

So no easy and quick answer to your question

annetheman

Not sure if this is advisable but I always offer the most I can afford closest to asking - I wouldn't be offering if I didn't already really like the house/area/combination of both/compromise on one but love the other. I am sure I want it by the time I'm going down the offer route.

It's probably smarter and much more advisable to look at what the sold prices are in the area and make comparisons on finish, or calculate the average price per sqm in the area, then make assessments of work needed etc and calculate an offer amount that way.

But I don't bother because I am always going to rip almost everything out and redo it, so I'll just offer what I can afford (also my home is for me to live in, I don't care much about resale value or good 'investment', but again, not sure this is advisable, just what I do!)

Albermarle

dory1976 said:

Hi probably been asked before but I can't seem to find anything. We are first time buyers looking at a property that is £195,000, they've had two offers on it already apparently, it's safe to say we're fish out of water and haven't got any idea of what to offer, have our AIP and 10% deposit ready to go 

It is not an exact science by any means.
Firstly the EA would normally not lie to you outright, but for sure will not be telling you the truth and nothing but the truth.  If they say there are two offers, then there should be. However what you do not know, and what the EA may or may not tell you is the quality of those offers/buyers.
A buyer could maybe be in a long chain, or not even got an offer on their own house.
The offers may be ridiculously low.

As a FTB with finance in place, you are in an advantageous position normally.

Personally I would always start with at least 5% off, maybe more, but it is a guessing game and opinions on how to approach it will vary.

As already said the main thing is to see how other similar houses are priced in the area.

Bigphil1474

Already two offers sounds like EA speak to get you to put your own offer in. Ignore it unless you love the place. Offer what you think is a reasonable opening offer. Bear in mind, the £195k is a marketing price dreamed up by the EA. They might have said the house is worth £185 to £195k, or £195 to £205k and the vendor chose which end they wanted to market it at based on how quick they want to sell. It might only be worth £180k and the seller is living in a dream world. If it was me, I'd probably be putting an offer in around £185k and see what happens. Make sure you tell them you are FTB's with AIP in place - makes you an attractive buyer for someone wanting to move quick.

TheJP

Bigphil1474 said:

Already two offers sounds like EA speak to get you to put your own offer in. Ignore it unless you love the place. Offer what you think is a reasonable opening offer. Bear in mind, the £195k is a marketing price dreamed up by the EA. They might have said the house is worth £185 to £195k, or £195 to £205k and the vendor chose which end they wanted to market it at based on how quick they want to sell. It might only be worth £180k and the seller is living in a dream world. If it was me, I'd probably be putting an offer in around £185k and see what happens. Make sure you tell them you are FTB's with AIP in place - makes you an attractive buyer for someone wanting to move quick.

Gone are the days that FTBs are the more attractive buyer. A lot of uneducated and disillusioned FTBs have tarnished that over the years.

propertyrental

If you don't offer, or offer low and lose the property, how great will be your regrets over the next months/years?

If you offer high and buy the property, will you regret spending so much over the coming months/years?