First Time buyer - need help negotiating!

kellyp

We are FTB's and have found a property we would really like. House on market for £125 K, and made a cheaky offer of 117 750 which was also declined. Then tried 119 k which was also declined. Got the impression from estate agent he wont except anything under 120k, and stuck on what to do now because of stamp duty cutoff. We were thinking of offereing 119950 and a £1000 for fixtures and fittings - are you allowed to do that to avoid stamp duty??
Obviously want to pay lowest price, so any hints and tips on how to play the negotiating game would be gratefully appreciated, i.e., how long should we wait between offers?

stockmarket-diva

Hi I used to be an estate agent and the fixtures and fittings idea works some times but its up to your solicitor and the vendors solicitor if they are happy to work along those lines.

Remember though, you are a First Time Buyer and you are a fairly rare commodity that most purchasers would welcome. You can use that to your advantage. You could even try saying that you'll pay a certain amount and guarantee that you'll exchange contracts in 4 weeks for example. Once you've exchanged the vendor knows you can't pull out and the completion date could be set at whatever date you want in the future if you won't be ready for the house straight away.

Another way to guarantee your seriousness is to say that you will have a survey done within the next few days of the offer being accepted. You have to pay money for a survey and the vendor will know you're serious about the property that way too and that they won't be sitting there for weeks wondering when a survey will be carried out. I assume you've sorted your mortgage application etc ready for when you find a property.

Explain to the Estate Agent that whatever you have offered is your absolute maximum and that you won't budge any further....they would other wise be advising their client to stick out for a bit more. If they know thats your maximum etc they'll tell the vendor that and its up to them whether to accept your offer knowing that you won't be tempted to bid a bit more.

Good luck. Let me know how you get on.

meanmachine_2

All good advice diva.

donsaini

i think you have made a very fair offer, just wait a while. the vendors will return. dont act to desperate for the property. this is why the EA is saying this.

the vendors wouldnt be expecting anythng over the stamp duty threshold anway, having proced the the property at 125k.

ramember you are a precious rare commodity in the market these days. dont sell yourself short. if you wanteed make your offer time limited, eg till friday to accept. also you can make it conditional, eg you want a 4 week completion.

remember they want to sell!! esp in today's market

:beer: :beer:

spottydog

As far as I'm aware stamp duty thresholds refer to above therefore properties up to £120,000.00 do not occur any stamp duty, properties from £120,000.01 to £250,000.00 occur 1%, properties £250,000.01 to £500,000.00 occur 3% etc. so offering £120,000 won't incur you any stamp duty (and will cost you less than offering £119,950 plus £1000) and I would assume the vendor won't be expecting any more than that due to the stamp duty boundry.

Doozergirl

He'll be very lucky to be offered over £120k, he's far too near the threshold. If the estate agent says he won't accept under that price, it may mean that he will accept £120k on the nose.

If he rejects, and you have to offer over, ask him to either pay stamp duty for you or split it with you. Talk to the estate agent when the answer comes back and find out if the vendor is open to this sort of propostion.

Ian_W

Hi Kelly,
Its all about negotiation and if you appear too keen, they [EA & vendor] will know there is more to come and won't accept your offer.
Before the price was set at £125k I'll bet you a pound to a pinch of pigsh*t there was a conversation along the lines, "price it at 125 but because of the SD threshold be prepared to accept 120".
If you're strong, 120 in this market is a fair offer [BTW 117.75 was far from cheeky!], they'll accept - but only if they think there is no more to come. Tell them it's your final offer, put a time limit on acceptance, stress your ability & will to complete early and tell them you'll be viewing other suitable properties if the offer is turned down.
That very much puts the ball in their court.
Obviously there are risks but FTB's are pretty thin on the ground at the moment and if someone else comes in for it and you don't get it - it wasn't meant to be.
Best of luck

nelly_2

Phone the EA, let them know who you are then start asking about other properties it will make them think you have lost interest in the 1st one, it might gee them up a bit to put presure on the seller. But make sure you let them know you are looking with other ea's too.

Find another house from another ea close by and mention it in passing

I also think your 1st offer was far from cheeky, houses are only getting around 93% of asking price these days and in your case that is £116250

kellyp

Thanks all, some really great advice.
Will call tomorrow with a final offer of £120k, and give them to the end of the week.
Will let you know how i get on.

Doozergirl

sounds like a good idea!

kellyp

Placed offer of 120k this morning.

EA doesnt think he will except anything less than 123k.

Will let you know the outcome, but may have to try the splitting of the stamp duty!

Anyone any other ideas??!!