First Time Buyer - Next Steps 30 August 2005 at 11:30AM in House buying, renting & selling 7 replies 844 views

Sweeney_Todd_2

Hello everyone,

As a first time-buyer I was wondering if anyone had any advice on our situation. We have made an offer on a property of £170,000 (£10,000 below the asking price), which has been rejected. We are keen on the property, but are reluctant to pay full asking price given that we have mortgage approval, and are able to move instantly due to having no chain - and are also aware that the market is quite flat currently (also aware that the average sale price is 94% of asking price, hence the initial offer of £170,000.

The property is vacant at present...

Any suggestions on a sensible next offer? And should we wait a bit before going back to the agent following the rejected offer at the end of last week?

Any thoughts?

Thanks in advance!!!

Doozergirl

How long has the house been on the market and how long at the current asking price? This will help you guage how much they're likely to come down at this stage.

Find out from the agent what price the vendors wants, they'll have an idea. Tell them you've got no more money, what's the lowest they'll come to? You'll have to borrow from parents to get it...

If you want the house badly, the next offer should cut the difference between what you're first offer and what they want. Make it clear that it is all the money you have. This should really get them thinking!

If your offer was vehemently rejected, in your position, I'd do the waiting after my second offer.

Doozergirl

Don't pay too much attention to this 94% thing. It is an average, not a rule. You MUST do your own homework on whether the asking price is realistic. It could be underpriced for all we know!

lush_walrus

I would say exactly as Doozergirl has said above. General statistics are pretty pointless things, check your own area and make sure that the property is realistically priced for that area and how much movement there is there. Where we are prices are still rising, so a 94% offer around here would not be accepted. A sensible offer is impossible to ascertain on here, check with other properties in the area, check with the agent how things are moving, how much of a hurry the vendors are in, and what indication the vendors have given of the price they are trying to acheive. That is where yiu will find the answers.

Sweeney_Todd_2

Thanks for your comments...

As far as I know it has been on the market for 6-8 weeks, and I believe at its current price. My understanding is that the vendor has a little bit of leeway in their price - so will do as you suggest, split the difference between our previous bid, and their likely price and keep our fingers crossed for a while!

Thanks

Doozergirl

Good Luck! Let us know how you get on?

meanmachine_2

lush_walrus wrote:

Where we are prices are still rising, so a 94% offer around here would not be accepted.

Where you are Lushy prices are always rising. That's because you live in Estate Agent land.

I've never once met an agent who admitted that, on his patch, prices were falling.

Actually, I live in Essex, where I believe you are, and the market is dead here. Just look at the latest Hometrack figures, if no one believes me.

But anyway, apart from that one comment, I agree. The OP needs to know about the history of the property and the position of the lender.

For all you know £180K might be a drop from £200K, so you're actually offering much less than 94% of the original asking price.

Rather than just "split the difference", if you can afford to play the waiting game, then do so. The vendor might lower their expectations in another 6wks time.

If you really want the place then do what others suggest.

Good luck!

lush_walrus

meanmachine wrote:

Where you are Lushy prices are always rising. That's because you live in Estate Agent land.

I've never once met an agent who admitted that, on his patch, prices were falling.

Actually, I live in Essex, where I believe you are, and the market is dead here. Just look at the latest Hometrack figures, if no one believes me.

Hey Meanmachine, True Im partly in West Essex, partly in Herts and partly in Berkshire, but Essex is where my heart is!!.