First Time Buyer - Negotiating House Price

hambleton1

Hi All,

I'm a first time buyer. My grandparents old house has gone up for sale, which they sold ten years ago.

It's up for £160,000, but when you look at the listing description on Zoopla it says guide price £160,000 - £170,000.

I think it's worth about £150,000. I've lived 100 yards from it all my life and other houses in the area are less than what it's up for - What would be a good opening price to offer?

El_Torro

It depends on factors like how much demand there is in the area and how keen the sellers are to sell. 

I assume you are not in a chain, being a first time buyer? This works in your favour, makes the selling process easier for the sellers. 

If you're willing to pay up to £150k I'd probably go in with £145k. Gives you some wiggle room if they reject your first offer.

hambleton1

El_Torro said:

It depends on factors like how much demand there is in the area and how keen the sellers are to sell. 

I assume you are not in a chain, being a first time buyer? This works in your favour, makes the selling process easier for the sellers. 

If you're willing to pay up to £150k I'd probably go in with £145k. Gives you some wiggle room if they reject your first offer.

Thanks - I was thinking £145k, but was worried that they might think it was too low and not counter offer.

The guide of £160k-£170k is throwing me off. The headline price of £160k seems more reasonable to offer £145k.

Also, I have no chain.

Hoenir

hambleton1 said:

Thanks - I was thinking £145k, but was worried that they might think it was too low and not counter offer.

Who knows what other offers maybe made.  End of the day people will pay what they consider it's worth to them. I would expect a straight decline if your offer is well below the going rate for similar properties in the locality. Vendors aren't going to waste their time playing games. 

hambleton1

Hoenir said:

hambleton1 said:

Thanks - I was thinking £145k, but was worried that they might think it was too low and not counter offer.

Who knows what other offers maybe made.  End of the day people will pay what they consider it's worth to them. I would expect a straight decline if your offer is well below the going rate for similar properties in the locality. Vendors aren't going to waste their time playing games. 

Another house in the terrace sold in February for £138,000 - That's closer to the going rate around here.

Albermarle

Thanks - I was thinking £145k, but was worried that they might think it was too low and not counter offer.

Remember this is as much about business/money as it is about home ownership. So do not get too sensitive about potentially offending people. Most will not be anyway.

As long as your first offer is not totally ridiculous, then should be no problem. They will either counter offer, or just reject your offer. Then you will have to think again.

A lot will depend on if any other buyers are taking a keen interest, or not. 

Hoenir

hambleton1 said:

Hoenir said:

hambleton1 said:

Thanks - I was thinking £145k, but was worried that they might think it was too low and not counter offer.

Who knows what other offers maybe made.  End of the day people will pay what they consider it's worth to them. I would expect a straight decline if your offer is well below the going rate for similar properties in the locality. Vendors aren't going to waste their time playing games. 

Another house in the terrace sold in February for £138,000 - That's closer to the going rate around here.

End of the day both parties need to compromise and come to an agreement. Otherwise there's no deal struck. Pointless overthinking matters. 

gwynlas

Have there been major improvements that would appear to justify higher asking price?

Get yourself prepared with mortgage in princile, solicitor details etc then make your offer and tell the EA it is based on what comparable houses sols for.

Do not let them know it was grandparents house as they will play on emotional connection. It is sufficient to say that you knew previous owners and visited

hambleton1

Albermarle said:

Thanks - I was thinking £145k, but was worried that they might think it was too low and not counter offer.

Remember this is as much about business/money as it is about home ownership. So do not get too sensitive about potentially offending people. Most will not be anyway.

As long as your first offer is not totally ridiculous, then should be no problem. They will either counter offer, or just reject your offer. Then you will have to think again.

A lot will depend on if any other buyers are taking a keen interest, or not. 

How should I think about the guide of 160-170? I'm new to all this and don't understand why is it not just a single price.

hambleton1

gwynlas said:

Have there been major improvements that would appear to justify higher asking price?

Get yourself prepared with mortgage in princile, solicitor details etc then make your offer and tell the EA it is based on what comparable houses sols for.

Do not let them know it was grandparents house as they will play on emotional connection. It is sufficient to say that you knew previous owners and visited

Thanks for the advice - I was wondering whether it would be in my favour or not to mention the family connection. I think I'll keep quiet about it.

Albermarle

hambleton1 said:

Albermarle said:

Thanks - I was thinking £145k, but was worried that they might think it was too low and not counter offer.

Remember this is as much about business/money as it is about home ownership. So do not get too sensitive about potentially offending people. Most will not be anyway.

As long as your first offer is not totally ridiculous, then should be no problem. They will either counter offer, or just reject your offer. Then you will have to think again.

A lot will depend on if any other buyers are taking a keen interest, or not. 

How should I think about the guide of 160-170? I'm new to all this and don't understand why is it not just a single price.

There a few ways that estate agents present an asking price.

Offers in Excess of £xxxxx only 
Offers in region of £xxxxx
Recently reduced 
Priced for quick sale
Guide price £xx to £xxxx 
Etc

An experienced buyer will just ignore all that stuff and make their offer.