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  • FIRST POST
    • Fisa002
    • By Fisa002 12th Jan 18, 5:34 PM
    • 144Posts
    • 61Thanks
    Fisa002
    House we like already under offer by someone else but thereís an issue
    • #1
    • 12th Jan 18, 5:34 PM
    House we like already under offer by someone else but thereís an issue 12th Jan 18 at 5:34 PM
    Hi there.
    I have lurked around this forum for a few weeks after deciding Iím ready to purchase my first home. Iím a newbie to buying so bear with me if I ask something which may surprise some members. I literally just wanted other members thoughts and advice.

    So, I have been looking to purchase my first home to live in for a couple of months and viewed a few propertyís. There wasnt any properties really that I liked. I came across an area where there are about 3 houses for sale. 2 are very similar and are three bed town houses, and are priced around 220k. I love the area and the houses but found some of the rooms a little small for my liking and been pondering whether I should make an offer or not on one of the two. After viewing the second one of the 3 bed houses today I noticed a house around the corner with the same estate agent that is 4 bedroom house but much bigger inside ( after I looked at the property online). The guy from the estate agent told me that That house was under offer. Itís on the market for 270k, however there has been a problem with the current offer because the house valuation has come in lower. The house still listed online as being Ďunder offerí.

    I asked the estate agent how much the offer is on for and he wouldnít say, BUT he did say that THAT house would be more to my liking and needs and that I shouldnít worry, and that he would keep me in the loop.?? (Obv 270k is well over my budget which was around 230k stretched to about 240k.) He also did mention that an offer of 250k may do the deal if thereís a problem with the current offer ( I got an impression that there is). (And presumed the offer currently maybe lower that 250k?)

    So my questions are, who has valued the house higher? The bank or the conveyencer, and why would this be an issue to the buyer if they was happy to make that offer in the first place?

    And is the estate agent trying to obtain a second offer or higher offer? I donít really want to gazump somone else if they have there heart set on the house.

    And if that doesnít go through the likelihood of me making an offer lower towards my budget if that current one doesnít go through ?

    Iím really confused as you probably can tell and would appreciate members advice on my options and your thoughts on this. ( apologies for the long first post)
Page 2
    • Cakeguts
    • By Cakeguts 12th Jan 18, 7:04 PM
    • 4,423 Posts
    • 6,354 Thanks
    Cakeguts
    So if itís likely to be down valued again, and again, surely the Vendor is likely to drop the asking price or not? And why canít the EA give an idea of what the valuation has come in at? Grr this is so frustrating but really appreciate the responses !!
    Originally posted by Fisa002
    The vendor doesn't need to drop the asking price. The difference is in the valuation that the mortgage company has given not what someone is willing to pay. If someone has a big deposit they can make up the difference between the offer and valuation with cash and take out a smaller mortgage.

    Or someone could come along and offer cash. If they don't need a mortgage and they want that house then there is no problem.

    The best thing to do is to forget about this house because it is most likely to be sold for more than you can afford.

    Make sure that you only look at houses within your budget.
    • Fisa002
    • By Fisa002 12th Jan 18, 7:25 PM
    • 144 Posts
    • 61 Thanks
    Fisa002
    Actually thatís really sensible advice. Itís probably going to cost more than I can afford judging from all your replies. So I wonít think too much about it. If it falls through I can only offer what I can afford and thatís it. If not then it isnít / wasnít meant to be.
    • JoJo1978
    • By JoJo1978 13th Jan 18, 10:26 AM
    • 350 Posts
    • 429 Thanks
    JoJo1978
    Fisa no need to apologise, it's a confusing as nerve-wracking business. The house we bought was under offer when we viewed it. Be prepared that it may take the vendor and current buyer a few weeks to decide what will happen so I'd express your interest and ask to be contacted if the situation changes.

    Don't stop looking at other houses, as others have said the EA is doing his job by drumming up more interest in the house, works for vendor not you so take what says with pinch of salt. There'll probably be a lot more houses come on market in Feb and March so don't rush.
    Hamster in the wheel (London) 1999-2017
    Mortgage free since 2015; Pension pot sorted 2017
    Part-time gigger and charity volunteer 2018
    • Fisa002
    • By Fisa002 13th Jan 18, 1:41 PM
    • 144 Posts
    • 61 Thanks
    Fisa002
    Fisa no need to apologise, it's a confusing as nerve-wracking business. The house we bought was under offer when we viewed it. Be prepared that it may take the vendor and current buyer a few weeks to decide what will happen so I'd express your interest and ask to be contacted if the situation changes.

    Don't stop looking at other houses, as others have said the EA is doing his job by drumming up more interest in the house, works for vendor not you so take what says with pinch of salt. There'll probably be a lot more houses come on market in Feb and March so don't rush.
    Originally posted by JoJo1978

    Hi Jojo many thanks for that reply! House buying certainly is nerve-wracking! Yes your absolutely right. I think the EA knows Iím interested and has said he will call me next week. Iíll drop him a line if I donít hear anything. In the mean-time Iíll carry on looking as you and others have suggested.

    Just out of curiosity, did you end up getting your house that was under offer at the price advertised and how did you end up getting it. Iím just curious to know. Thankyou
    • JoJo1978
    • By JoJo1978 13th Jan 18, 2:21 PM
    • 350 Posts
    • 429 Thanks
    JoJo1978
    Hi Fisa, we offered 10k less than the asking price for our house and it was accepted immediately. We don't know how that compared to the previous offer, all we know is that fell through because the previous buyers were unable to sell but we'd sold our house already and could also have been cash buyers if necessary. 10k under was not a large % discount, it was more important to us and our vendors that we could both proceed quickly - each of us had had other failed transactions on sales and purchases last year and were keen to get the deal done.

    We were the last people to view it before it was taken off the market and put under offer. We were chosen as 'back up buyers' by the vendors due to our circumstances and because we were travelling 120 miles to see it, they didn't have the heart to reschedule us once we'd booked train tickets. We all agreed that no offers would be made or accepted until they'd given the other party six weeks to try to sell. When that six weeks was up the EA rang us and said it would be going back on the market the next day. We booked in a second viewing and made an offer before many other people had had the chance to see it for the first time. Patience and communication was how we got it, also someone else's misfortune I'm afraid in that we sold before they did.
    Hamster in the wheel (London) 1999-2017
    Mortgage free since 2015; Pension pot sorted 2017
    Part-time gigger and charity volunteer 2018
    • Fisa002
    • By Fisa002 13th Jan 18, 2:53 PM
    • 144 Posts
    • 61 Thanks
    Fisa002
    Jojo am really happy it worked out for you in the end. Hope your enjoying your house now.
    I!!!8217;ll keep this thread open and update my circumstances
    • Fisa002
    • By Fisa002 23rd Jan 18, 11:00 AM
    • 144 Posts
    • 61 Thanks
    Fisa002
    Hi
    I just thought I would update my thread.
    So some good news.
    The EA called me last wk after I last posted here saying did I want to view the house. I think the other offer fell through.
    We viewed the house and put an offer in of 242 which was rejected. The EA reiterated what the vendor was looking for.
    So I reordered yesterday at 247 and the EA called me to say it!!!8217;s been accepted !
    So happy, and wanted to thank those who offered advice.
    Now to sort out my next steps! It!!!8217;s seems like a scary road ahead !!!
    • JoJo1978
    • By JoJo1978 23rd Jan 18, 11:31 AM
    • 350 Posts
    • 429 Thanks
    JoJo1978
    Well played and congrats Fisa! Get yourself over to the waiting to exchange thread for moral support!
    Hamster in the wheel (London) 1999-2017
    Mortgage free since 2015; Pension pot sorted 2017
    Part-time gigger and charity volunteer 2018
    • spirit
    • By spirit 23rd Jan 18, 12:08 PM
    • 2,717 Posts
    • 6,213 Thanks
    spirit
    I was wondering if the stamp duty at £250,00 had something to do with the previous one falling through and your offer now being under that threshold?
    Mortgage free as of 10/02/2015. Every brick and blade of grass belongs to meeeee.
    • Fisa002
    • By Fisa002 23rd Jan 18, 12:14 PM
    • 144 Posts
    • 61 Thanks
    Fisa002
    I was wondering if the stamp duty at £250,00 had something to do with the previous one falling through and your offer now being under that threshold?
    Originally posted by spirit
    Spirit, Iím not sure tbh. I was told
    There was a problem with the valuation at the bank with the current offer. I have a good sized deposit so hopefully I wonít have the problem but you never know. I wouldnít like to guess
    • thelem
    • By thelem 23rd Jan 18, 1:38 PM
    • 713 Posts
    • 524 Thanks
    thelem
    I was wondering if the stamp duty at £250,00 had something to do with the previous one falling through and your offer now being under that threshold?
    Originally posted by spirit
    The £250,000 barrier doesn't exist any more. Stamp Duty was reformed in 2014 so you only pay on the portion above each band. Say a property sold for £255,000 (to a standard purchaser, so not a first time buyer and only holding one property at a time). Stamp duty would be 0% on first £125k, 2% on second £125k (=£2500) and 5% on final £5k (£250). Total £2750.
    Note: Unless otherwise stated, my property related posts refer to England & Wales. Please make sure you state if you are discussing Scotland or elsewhere as laws differ.
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