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Main site > Forums > Essential Money > House Buying, Renting & Selling > FTB decision - vendor wants more than asking pric...
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  • FIRST POST
    roastduck
    FTB decision - vendor wants more than asking price
    • #1
    • 23rd Jul 06, 10:53 AM
    FTB decision - vendor wants more than asking price 23rd Jul 06 at 10:53 AM
    We have been looking for a house for three months. We have found a few houses that we like but we were unlucky with the purchase.

    The 1st house we put in an offer the vendor would not accept our offer but asked us to go ahead with the application. It was first come first serve. We didnt go ahead because it wa a bit risky.

    2nd house was a bit of a learning experience as well. We put in the full asking price and offer was accepted. Being the first time buyer we were very excited. but within the same say the estate agent informed us that the vendor turned us down because we made him nervous??!! being the 1st time buyer, we was not too sure about quick exchange so we ask to think and research about it. Because previous buyer fell through and he wanted to sell the house as soon as possible (exchange in 4 weeks). so we lost the house again and we learn.

    3rd house proved that we have good taste. This house is in need of decoration but it is in a very good location. Big house, laarge garden and asking price was within our budget (£285000). Put in full asking price offer, accepted. Within 24 hours the vendor decided not to sell within giving any reason to the estate agent. Because we have nothing to loose, we knocked on her door and try to do a deal. Apparantly the house was under valued. she didnt tell me what price exactly but we will have to watch out for it. Surprisingly it is on the market again for £380000.

    NOW we have put our offer for ou 4th house. We NEED some advice please. I know at the end of the day, it depends on whether we like the house or not. We put an full asking price offer. The vendor was considering our offer and the answer we got back was the neighbour knew that the house is for sale and offer the vendor £10k more for the house. We have been told that he will sell the house for only £7k extra from the full asking price. What should we do? It is a 1930s build house in a good location near to our work place. He is living in the 2nd reception room and the three bedrooms are rented out unofficially. The house is advertised as no chain because i have been told all of them can move out immediately.

    Thanks.

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  • ginger_nuts
    • #2
    • 23rd Jul 06, 11:16 AM
    • #2
    • 23rd Jul 06, 11:16 AM
    depends how desperate you are to get it .
    how do you no the neighbour put any offer in .i wouldnt offer an extra £10,000 when I could offer 1,2 or £5,000 .But then thats me .

    he could be just looking an extra £7,000 .
    Is the house worth the extra £7,000 to you .
    Do you trust the seller ,if not walk away .

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      MortgageMamma
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    • MortgageMamma
    • By MortgageMamma 23rd Jul 06, 11:17 AM
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      What's this?

    MortgageMamma
    • #3
    • 23rd Jul 06, 11:17 AM
    • #3
    • 23rd Jul 06, 11:17 AM
    I wouldnt buy it. If you are buying it for more than market value it doesn't leave much room for manouvre and I don't like the idea of the tenants being there. What if he had difficulty getting rid of them?
    I am a Mortgage Adviser

    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.

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  • roastduck
    • #4
    • 23rd Jul 06, 7:13 PM
    • #4
    • 23rd Jul 06, 7:13 PM
    The sellet told the EA that his neighbour asked him to sell the house to him for £310k. Whether it is the truth I have no idea.

    After the house veiwing, our gut feeling told us that we dont trust the seller. He was not forth coming with information such as how long has be been staying there (A: several years), and "informally" renting out the rooms to "friends" (all three rooms); and now the neighbour wanting to buy the house :confused: .we have doubts on the person but not the house.

    It is a mixed feeling. Our head said dont buy it buy our heart say yes. If the house was on the market for £310k we would have offer the this price. But we feel uneasy to cough up extra £7k for no apparent reason??? Is he going to do this neighbour trick again? What if he did this again before exchanging contract?:confused:

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  • libitina
    • #5
    • 23rd Jul 06, 7:21 PM
    • #5
    • 23rd Jul 06, 7:21 PM
    If you're having major doubts this early, then just walk away.

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  • Arch-Angel
    • #6
    • 23rd Jul 06, 8:08 PM
    • #6
    • 23rd Jul 06, 8:08 PM
    I have to agree. It almost strikes me that the seller is thinking "Well, if this buyer is offering the full asking price, maybe the houseis worth more than I thought." The point you made about "informal renting" - how does that work? (I mean how does it work for the renters - it sounds very "iffy"!!)

    Too many questions on this deal in my opinion....

    As an aside, have you read the threads covering FTB'ers? I'm an FTB myself and there's lots of useful ideas in there (such as offering less - 10%+ - than the asking price as an opening offer).

    HTH

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      itsakidsworld
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    • By itsakidsworld 23rd Jul 06, 8:15 PM
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      What's this?

    itsakidsworld
    • #7
    • 23rd Jul 06, 8:15 PM
    • #7
    • 23rd Jul 06, 8:15 PM
    Roastduck,

    Fom your information given please walk away from the property.

    You said your head says no but your heart says yes?

    When you break your heart, over time you can fix it. When you break your head you cannot fix it!! Follow your head and find something that ticks all your boxes.

    The very best of luck

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  • Snippy30
    • #8
    • 23rd Jul 06, 9:34 PM
    • #8
    • 23rd Jul 06, 9:34 PM
    Yep roast duck (very tasty! yum!)

    I would walk away the owner sounds odd to say the least. If you do decide to go ahead ask as many questions as you can of the seller, cross question gentle if you can, then ask the estate agent many of the same questions and see if they match up. If you can. get a friend to view the property and ask similar questions. see what he says, get friends opinion on the seller.

    From my experience someone who comes across as shifty and dishonest usually is. If there are alarm bells going off in your head now I would walk away.

    BOL whatever you do!

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  • clutton
    • #9
    • 24th Jul 06, 12:20 AM
    • #9
    • 24th Jul 06, 12:20 AM
    it sounds as if this person is running an illegal HMO (house in multiple occupation), and he could be fined £20,000 for not have registered it with the local council housing department. IF there are 3 other single people living there in addition to him, he certainly has a HMO, and is no position to bargain over the asking price. IF you want this house, offer him less, and put a time limit on your offer (say 1 week). if he refuses leave the offer on the table and walk away, he could come back to you later on.

    having said all that, i spoke to Bristol city Council environmental health dept today (who monitor HMO's) and they are only enforcing Compulsory Licensing if there are 5 individuals or more !!!

    Each council i have spoken to, seems to be interpreting the Act in their own sweet way !!

    So, if this is an issue for anyone, ring your local EHO and ask for the information you need - you don't necessarily have to give the address.
    Last edited by clutton; 25-07-2006 at 5:33 PM.

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  • roastduck
    The house market in london is seller's market at the moment. We did offer less than the asking price @ £294000. I have been told by the EA that he didnt want to loose £4000 for nothing. We thought about it and current market is that there would definitely be more offers for the house. Since we can afford it and we like the house (not the seller) we put in a full offer.

    The EA did say there are a few offers on the table but they are in chain. The EA recommended that he should sell the house to us coz we are FTB.

    We can sense that the EA is not that happy with the seller. he was asked to put the house back on the market for £310k unless we put in another offer for £307k. more work for him...The ea did say to us the house is worth £300k and that the valuation may not match the £310k seller's own valuation.

    So no deal. dont want to deal with this seller anymore becoz he might do that same anytime up to exchanging contract. Interesting though about the HMO...hmmm where is the council's phone number

    We need to start looking again....house market is dead queit around my patch....i wonder is this because of summer holiday????:confused:

    thanks to all of you for your advice...

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  • JennyW
    Roastduck - from what you've said about this seller, you've done the right thing. If he's dodgy and you're having issues/doubts now, it'll only get worse. I dont think you can trust him.

    The right house will come along....

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      missk_ensington
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    • By missk_ensington 24th Jul 06, 12:08 PM
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      What's this?

    missk_ensington
    I would always advise asking lots of questions when viewing a house, and trying to find out why it is being sold. It can make a huge difference if someone has died and wanting money, or people are getting divorced, or in debt... etc etc, to someone who has no urgency to sell.

    If you end up going ahead with the house, find out who is doing the Valuation report and contact them saying you have a few queries (double glazing, attic, guttering... you probably have a few concerns anyway) and ask him to check these thoroughly (at an added cost if neccessary). Don't forget to mention what a shame it would be if something crops up after the same, after all he doesn't want to be sued for professional negligence.

    When the valuation comes up with (hopefully!) a load of horrors, use it as levergae to reduce the price.

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  • clutton
    the next house you go to look at - check out www.nethouseprices.co.uk and you can find out the EXACT selling prices - not EA valuations - of houses in that street. This information will help act as a lever on the EA and maybe bring the price down !!

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  • hechizero
    I agree. Do not offer more for the house than the current value. EA's will try to get as much as possible from you as it is in their interest. FTB's are targets for all types of manipulation. Try to resist getting caught out by smoke and mirrors up-selling which is rife.
    If you look at the situation for what it is. The guy is already making rents from people staying on his premises, he does not appear to be desperate to sell in any way. He is willing to wait for the buyer who will give him more than his house is worth and by the looks of things he will be willing to push his luck throughout the process.
    Furthermore you have no idea what contracts he has with his tenants: what if there are 12 month no break clauses etc. So there IS chain if this is the case.
    Yes the WHOLE of London is dead quiet for under 300k in my opinion. It is basically a traffic jam. Lots of offers, but no one can find the property they want when they receive an offer. We have considered that this log jam will cause many broken chains and many sellers after months and months of looking are deciding to stay put...bad news for all FTB's especially.

    Premium prices at the moment as well...be patient and cautious is my advice.

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  • RUSTY1966
    As a ftb you are in a v.good position. no one wants extended chains.if you can't trust this seller then leave it. Don't be mesed about. there's plenty of property for sale.............N

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      missk_ensington
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    • By missk_ensington 25th Jul 06, 2:27 PM
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      What's this?

    missk_ensington
    www.houseprices.co.uk is also really good. You can see what other houses sold for over the last few years that are nearby, sometimes you can even see what the vendor paid for it himself if he bought it up to 7 years ago!

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