First Time Buyer - Expected Reduction?

Sweeney_Todd_2

Hello,

As a first time user of this site, and a prospective first time homebuyer, I was wondering if anyone had any advice regarding a realistic reduction on a houses list-price...

We are looking for houses at around the £200k mark, have a good deposit available and mortgage agreement in principle. We are able to move at very short notice with no chain, or notice period on a rental property.

I was looking for guidance on how compelling these factors are to a vendor? Obviously, each situation and each vendor is different - but where might be a sensible starting offer on let's say a £200k property with the market in it's current state? I was thinking 10-15% below asking price - as an opening gambit...

Thanks!

Woby_Tide

often depends on the sellers situation. If they need to move quickly, they may accept yor situation and offer a discount. If they are in no particular rush, your status will count for little potentially. No harm in speculative offers(unless they think you may be taking the p!ss or take it personally). Think it's quoted on here that average selling price is 93% currently so you're not too far away. All depends on your market and how the persons viewings/offers have been going also.

Ian_W

I think Woby is spot on with that. Your situation is strong but it will depend on the sellers situation, for all the reasons outlined, just how strong and how an offer will be viewed.

Make your position clear to the EA dealing with the property you're interested in, even show them your in-principal mortgage offer and try to find out how long the property has been for sale and the vendors situation. Make any offer through the Agent as they will use their influence to reinforce your strong position with their client. Sometimes, not always, it isn't the highest offer that gets a property but the person in the best position to complete.

Where you live may also be a big factor, not just in terms how slow the market is, but also how much you have to spend. Where I am £200k is way beyond normal FTB land, so here you'd cut out 1 or maybe even 2 links in a chain and be in an even stronger position. Obviously if that sum is the norm for FTB's where you are that doesn't apply.

However if you could stretch another 20 grand I know of a lovely 3 bed detached, 2 baths, d/garage, large garden, yards from open country......... :rotfl:

Poppy9

You need to do your homework on similar properties in similar condition. Also check out the cost of houses needing more work or fully updated. Talk to the EA about the sellers situation. Are they relocating, have they found a house to buy etc. Talk to EA about the type of houses selling now. Many will be cagey but there are a few who are honest if you build a relationship with them. We spent 18 months looking for our house. We had sold our home and moved into rented. We were chain free and ready to go but some EA kept sending us to crap. My OH had got friendly with one agent - who I had found a bit snooty but honest, viewed a house in the morning, rang us saying this was the house we had been waiting for as he left the property. We viewed within the hour, made an offer 5% below asking price and secured house. It never went on the market so no-one else viewed. If it had gone on the open market it might have fetched more as its quite a sought after area - but the EA knew we had the funds ready, were serious buyers and the elderly couple had already bought a flat.

It's not a rising market at the moment so the house may be overpriced. Yes they will be insulted and offended if you offer 20% below asking price but its not personal - they may have overpriced expecting people to offer well below asking price as market is falling. The thinking being if they market at a realistic price buyers will still think its overpriced and offer even less.

A house is only worth what a buyer will pay for it. You have to decide how much you want a house and at what price.