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    • crd1993
    • By crd1993 11th Feb 19, 11:44 AM
    • 6Posts
    • 1Thanks
    crd1993
    FTB Advice for Offers
    • #1
    • 11th Feb 19, 11:44 AM
    FTB Advice for Offers 11th Feb 19 at 11:44 AM
    My husband and I are FTB, both with good jobs and a 10% deposit.

    We have seen a property we like for 235,000 and would like to put an offer in but have no idea where to start.

    The owner is selling via an online thing rather than a well known estate agent so we met with him for 2 viewings.

    -The home has been up for sale since September 2018
    -The owner already has a new property in a nearby village that needs significant work (so no onward chain and I imagine they need the equity to complete works)
    -They have purchased a caravan to live in when the house sells and say they can move quickly
    - Apparently they declined the 1 offer they have received in this time as it was 'a low ball' offer but didn't indicate how low

    The property is in very good condition compared to a lot of the properties available locally so it would not require any work. However, it doesn't come with a garage or drive (although it is on a private road).

    My husband wants to start at 215,000 but im not sure if that is a bit too low and might offend the seller.
Page 1
    • spadoosh
    • By spadoosh 11th Feb 19, 11:50 AM
    • 6,538 Posts
    • 9,436 Thanks
    spadoosh
    • #2
    • 11th Feb 19, 11:50 AM
    • #2
    • 11th Feb 19, 11:50 AM
    Im of the opinion that anything up to 10% of the asking price shouldnt be too offensive so that they will no longer deal with you. Of course there no saying they will agree buts its rare youll offend someone that much.

    As to what to offer, what you think its worth. Youre the best judge for this presumably having spent a lot of time looking at houses and finding the one most suitable for you?
    Don't be angry!
    • Bossypants
    • By Bossypants 11th Feb 19, 11:50 AM
    • 850 Posts
    • 1,669 Thanks
    Bossypants
    • #3
    • 11th Feb 19, 11:50 AM
    • #3
    • 11th Feb 19, 11:50 AM
    Don't worry about offending the seller, people with any sense don't get offended by legitimate offers. 215,000 is a good a place to start as any, but you need to be prepared for rejection. If you plan to up your offer, decide in advance how much by (don't wait until you've had the call, when you'll be feeling nervous and tense). Good luck!
    • hazyjo
    • By hazyjo 11th Feb 19, 11:55 AM
    • 11,590 Posts
    • 15,476 Thanks
    hazyjo
    • #4
    • 11th Feb 19, 11:55 AM
    • #4
    • 11th Feb 19, 11:55 AM
    It may be priced to sell, it may be overpriced. We have no way of knowing

    Presuming you think it's priced 'realistically' for the area/market, then personally I would be offering something like 118k and trying to get it under 225k. If you go in at 215k, it just looks (to me) like you're aiming to meet in the middle at 225k (a common tactic).

    I wouldn't be increasing my offer several times over. I would go 118k. They will prob say something like 228k, wanting 225k, and I would go back with a best and final of around 222k.

    Obviously if it's a bargain, I'd pay nearer the asking price.

    Def wouldn't say 215k was too low to offer.
    2019 wins: Bottle of Prosecco; Popcorn Shed popcorn...
    • crd1993
    • By crd1993 11th Feb 19, 12:07 PM
    • 6 Posts
    • 1 Thanks
    crd1993
    • #5
    • 11th Feb 19, 12:07 PM
    • #5
    • 11th Feb 19, 12:07 PM
    Thank you for your replies. I think that 218,500 might be a good place to start?

    As far as he is concerned, we are attractive buyers (first time buyers all set to go and looking at properties well under what we can afford according to the bank so hopefully no issues securing the mortgage and completing quickly). and he knows we are serious. In all honesty we are willing and able to pay the 235,000 as the house is ideal and only 3 mins walk from the in laws.
    • spadoosh
    • By spadoosh 11th Feb 19, 12:13 PM
    • 6,538 Posts
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    spadoosh
    • #6
    • 11th Feb 19, 12:13 PM
    • #6
    • 11th Feb 19, 12:13 PM
    Dont overplay your position.

    I was a FTB, wtih MIP, spending a lot less than we could get. I was a great buyer for any seller, right up until the point that i found out there was a default on my credit file through fraud making it impossible to actually get the mortgage and thus quickly becoming the very worst kind of buyer, one that cant actually buy.

    FTB are notorious for being newbies. They dont know how much to offer on a house, dont know what the valuation report means, dont understand the process.

    Id imagine most people would prefer to avoid selling to a FTB given a choice. Knowing this can help you play the game better.


    Incidentally how long have you and your fella spent discussing what is a difference of 1.49% of the asking price when both will almost certainly be rejected?
    Last edited by spadoosh; 11-02-2019 at 12:16 PM.
    Don't be angry!
    • Cakeguts
    • By Cakeguts 11th Feb 19, 12:16 PM
    • 5,841 Posts
    • 9,125 Thanks
    Cakeguts
    • #7
    • 11th Feb 19, 12:16 PM
    • #7
    • 11th Feb 19, 12:16 PM
    This is going to be a joint effort between you and the vendors. They probably need as much as they can get so that they can move. You want it because it is convenient so if it was me and I really wanted the house I would offer something that they can't refuse. So if it was me I would offer 230,000. So you gain a bit and they get very close to what they want.
    • crd1993
    • By crd1993 11th Feb 19, 12:19 PM
    • 6 Posts
    • 1 Thanks
    crd1993
    • #8
    • 11th Feb 19, 12:19 PM
    • #8
    • 11th Feb 19, 12:19 PM
    I'm asking for advice and personal experiences, not for criticism. So thank you for the advice given in the first part of your message and I'll choose to ignore the way you have communicated your closing comment.
    • crd1993
    • By crd1993 11th Feb 19, 12:21 PM
    • 6 Posts
    • 1 Thanks
    crd1993
    • #9
    • 11th Feb 19, 12:21 PM
    • #9
    • 11th Feb 19, 12:21 PM
    This is going to be a joint effort between you and the vendors. They probably need as much as they can get so that they can move. You want it because it is convenient so if it was me and I really wanted the house I would offer something that they can't refuse. So if it was me I would offer 230,000. So you gain a bit and they get very close to what they want.
    Originally posted by Cakeguts
    This was my initial reaction, but as my husband pointed out the vendor did say he was very willing and open to negotiate so I think we would be silly to go in so close to the asking price.

    Its a bit of a minefield! Its a 300 mile move for us too so I'm probably just over-stressing it all lol
    • hazyjo
    • By hazyjo 11th Feb 19, 12:27 PM
    • 11,590 Posts
    • 15,476 Thanks
    hazyjo
    It's been up for 5 months, presumably without a price-drop (yet).


    I think you'd be mad to pay asking price (or that close to it), mainly as it's had only one low offer, and also because as FTBs with only a 10% deposit, you're risking it being down-valued by the surveyor. Lenders will be cautious! I would want to get it for less than 230k for sure.
    2019 wins: Bottle of Prosecco; Popcorn Shed popcorn...
    • crd1993
    • By crd1993 11th Feb 19, 12:34 PM
    • 6 Posts
    • 1 Thanks
    crd1993
    It's been up for 5 months, presumably without a price-drop (yet).


    I think you'd be mad to pay asking price (or that close to it), mainly as it's had only one low offer, and also because as FTBs with only a 10% deposit, you're risking it being down-valued by the surveyor. Lenders will be cautious! I would want to get it for less than 230k for sure.
    Originally posted by hazyjo

    Yes, no price drop since it being on the market.
    • spadoosh
    • By spadoosh 11th Feb 19, 12:38 PM
    • 6,538 Posts
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    spadoosh
    Lol.

    No its because youre a FTB doing what FTBers do and that is panicking and worrying.

    Its not a criticism as such, most of us have been there. But whilst going through it most people typically pick up bits of knowledge that makes future things typically go a bit smoother. One that most people take away from it is that they always assume their position of negotiation is stronger than it actually is.

    Worrying about a difference of 1.49% in your opening offer against the asking price is very much something that a FTB would do.

    You can use this forum as an example. Look at as many thread to do with 'how much should i offer' and work out how many of those are FTB. Ill be amazed if its not over 80% of them. People who have bought before know its largely a pointless question to ask.

    Being aware of it might help you. Being ignorant of it certainly wont.

    Enjoy your day.
    Don't be angry!
    • GoingOn30
    • By GoingOn30 11th Feb 19, 3:59 PM
    • 141 Posts
    • 93 Thanks
    GoingOn30
    You can always go up with your offers but rarely down so be patient and think it through.
    If your first offer is accepted off the bat you will always wonder if you could have secured it lower.
    215 sounds like a good starting offer. If it's rejected then wait a day or so to consider your options. This property has clearly not flown off the shelf so you can afford to take your time over this.
    • diggingdude
    • By diggingdude 11th Feb 19, 6:05 PM
    • 713 Posts
    • 917 Thanks
    diggingdude
    I would go in lowish and build up. Point out that you are not part of chain and can work to their timescale unlike many non first time buyers who can much around for months and then announce they haven't yet for a buyer for their house
    House owner as of 27.3.2019
    Free Tumble drier 22
    • Crashy Time
    • By Crashy Time 11th Feb 19, 9:04 PM
    • 7,665 Posts
    • 2,793 Thanks
    Crashy Time
    Without a link how does anyone have even the faintest idea what it is worth?
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