First time buyer - offer advice needed...

PilgrimOneOne · 12 October 2017 at 11:45AM

Hi All,

First post here, hoping to get some advice from those of you with a bit more experience in buying houses.

We're first time buyers and have found a place we really like. It's listed as 'Offers in excess of £450k'. It's been on the market for about four months, and was originally on for £500k, and dropped to OIEO £450k about three weeks ago.

We're very interested but there's some work we would like to do on it in order to make it into our home as we look to start a family in the next couple of years. Namely, it currently has a huge kitchen and small living room. We wish to move the kitchen into the smaller room and make the larger one into the living room. We brought along a builder for the second viewing and he quoted us about £10k for the job, which we're happy with.

So, I put in an initial offer of £440k. A bit under what they're after but I didn't really expect them to accept it. They didn't, so I increased our offer to £445k, which again was rejected. However, the vendor hasn't made a counter-offer, which would at least give us something to work from to try to find a happy middle ground. The agent just came back saying the vendor has more viewings scheduled so is declining our offer at this stage.

Should I just sit back and wait now? Would putting in a third offer of perhaps £450k be showing my hand too much? Should I ask the agent to seek a counter offer from the vendor?

Also, the agent has told me there have not yet been any other offers.

Any advice for a first timer?

Thanks guys!

aneary · 12 October 2017 at 11:50AM

You have put in an offer for under because you want to change the layout?

Is there anything wrong with the current kitchen other than you personally don't like it?

LEJC · 12 October 2017 at 12:01PM

I would have to agree with the other poster....I wonder if perhaps at the moment the price you are willing to pay is based upon the house you want it to be after modification or the house as it currently stands.

Just because you want to remodel it doesnt mean that someone will love the layout as it is and offer a figure closer to what the vendor would like/expect.

It's always difficult with these offers in the region of type scenarios as they are sometimes geared to pitch one potential buyer against another and then you get into bidding wars etc.
Much simpler if there is a set price.

How much do you like the house....do you think it's worth the 450 ?
If you do think it's worth the money and you see it as a place to raise your family etc then maybe a confident 450 or 455 might secure it with the proviso that it's removed from the market..sometimes a final offer made clear that it is a final offer is enough for a vendor to reveal a counter offer especially if you have already had second viewings and taken a builder with you.

But really the choice is yours....the danger is if you hold off too long others become interested and the bidding begins....you might be better off going in with a full and final offer and walking away if its not accepted.

Theres nothing to stop you continuing to monitor the property if it remains unsold in the next few weeks and re offer as interest dwindles from others.

Cakeguts · 12 October 2017 at 12:09PM

You can't expect the vendor to accept a lower price because the house is not to your taste. If you like the house you have to offer a price that is acceptable to the vendor and then alter it to your taste. You want to move walls but that is to your taste. Other people might want to do something different or leave it as it is this doesn't affect the price you offer.

You have to decide if you are happy for this house to be possibly sold to someone else who offers over £450k or if you really want it in which case you have to offer what the vendor wants.

PilgrimOneOne · 12 October 2017 at 12:11PM

Hi guys,

Thanks for the input. I do think it's worth £450k, and we'd be willing to go to perhaps even £460k, but we are concerned about getting into a bidding war with someone else. We're just finding it a bit confusing with the lack of a specific price or a counter-offer.

Cheers!

Lokolo · 12 October 2017 at 12:13PM

If you are concerned about a bidding war then offer what you feel is a reasonable price or whatever you would be happy to give and say "This is my one and only offer".

If they reject it then walk away.

LEJC · 12 October 2017 at 12:18PM

PilgrimOneOne wrote: »

Hi guys,

Thanks for the input. I do think it's worth £450k, and we'd be willing to go to perhaps even £460k, but we are concerned about getting into a bidding war with someone else. We're just finding it a bit confusing with the lack of a specific price or a counter-offer.

Cheers!

Then to prevent a bidding war you need to go in strongly with your next offer as a final one.

You may never know what the vendor really wants for the property....but there will be a price at which they want to sell.

The counter offer may never come...some vendors are like that....and some will come out with a figure that is tens of thousands above the OIRO price just to see how far they can push you.

One final offer with the proviso that the property is taken off the market if accepted.

PilgrimOneOne · 12 October 2017 at 1:51PM

LEJC wrote: »

Then to prevent a bidding war you need to go in strongly with your next offer as a final one.

You may never know what the vendor really wants for the property....but there will be a price at which they want to sell.

The counter offer may never come...some vendors are like that....and some will come out with a figure that is tens of thousands above the OIRO price just to see how far they can push you.

One final offer with the proviso that the property is taken off the market if accepted.

Thanks for this, good advice!

Since our last offer of £445k was rejected, do you think going up £10k straight away to £455k is excessive?

Cheers.

Cakeguts · 12 October 2017 at 2:00PM

PilgrimOneOne wrote: »

Thanks for this, good advice!

Since our last offer of £445k was rejected, do you think going up £10k straight away to £455k is excessive?

Cheers.

You offer what the house is worth to you. So if it is worth £455k to you then offer that.

Surrey_EA · 12 October 2017 at 2:04PM

PilgrimOneOne wrote: »

Thanks for this, good advice!

Since our last offer of £445k was rejected, do you think going up £10k straight away to £455k is excessive?

Cheers.

If someone else came along and offered £455k this afternoon and the vendor accepted, would you kick yourself?

Lokolo · 12 October 2017 at 2:07PM

PilgrimOneOne wrote: »

Thanks for this, good advice!

Since our last offer of £445k was rejected, do you think going up £10k straight away to £455k is excessive?

Cheers.

What amount are you happy to pay with and be able to walk away if it is rejected. That is your answer.

Some people are quite willing to overpay the odds on a property they love, because they love it and it's going to be a longterm purchase.

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First time buyer - offer advice needed...

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