Lancer Register Forum banner
1 - 9 of 9 Posts

·
Registered
Joined
·
384 Posts
Discussion Starter · #1 ·
All,

I am soon to be a first time buyer (hopefully), I am at that stage where I have a mortgage agreed in principle and need to look at houses and make offers before going back to the lender to do more paperwork.

My question is this, when you are making an offer what's the general rule of thumb? (i.e. do you offer 10% less than asking price or 20% etc....)

Just after some guidance / words of wisdom if anyone has any?

Cheers. :smthumbup
 

·
Registered
Joined
·
11,496 Posts
offer what you think the house is worth and what, realistically the vendor will accept.

Putting in a cheeky offer is sometimes a good starting point, but you're in a strong position if you have no property to sell first, have a mortgage agreed in priciple and can move quickly. Most people want to sell quickly and if it means dropping the price of theirs to get the one they want, then its becomes just a back and forth game until you both agree on a figure.
Take a look at houses in the local area that recently sold. Loads of websites for that. Compare the conditions of the houses to get an idea of value.

Don't let it become stressful, just make it a game. My present house took little negotiation as the old couple had just bought it a few years earlier for pennies, then wouldnt budge having more than doubled their money!! Managed to drop only 3k. Tight wads. :lol:
 

·
Registered
Joined
·
1,210 Posts
Unsure if it's public information in the UK, but over here we are able to check/get the prices of houses sold in the last x years in a certain area. This makes for a comprehensive view of how fast a house sold, how much is was listed for and how much is was sold for eventually. This cheatsheet really helps to see if you can afford houses in a certain area or in having a chance of lowballing a long-time seller.

Houses that have been listed (on and off) for more than 6 months, either need work done by yourself or are overpriced in general. Make sure to have some knowledge of how to probe woodwork, piping and such when viewing a house or have someone at hand to do it for you. Also factor in other things like heating-costs when the equipment is old and also look at the outside of houses to see if 1 side of the house is more greenish than others (green side usually says moisture which is caused by on average highest amount of wind/rain taken).

If you finally find 1 or 2 properties that interest you, don't just take the word of the realtor for it. Circle the area a few times in the next week like during rush hour, Saturday nights (clubbing people???) and on a Tuesday @ 2PM. Makes a lot more sense to find if you will be living in a quiet, busy, chav area :)

Although I do not work in real estate, I would find an offer of 10% less a good starting point for a serious negotiation on a house that was listed in last 3 months and/or is on prime location. An offer of 17 to 20% less a starting point for houses listed for more than 6 months or in less desirable areas (this can even be this street rather than that street) or with overdue maintenance.
 

·
Registered
Joined
·
241 Posts
I'd also think about getting a survey done, or if you know a decent builder get them to look at the property for any looking issues you may have to deal with. Sometimes it's nothing, but other times there could be major issues that would cost thousands to sort. I nearly bought a house with a drainage system in the back garden as the ground floor was underground at the back, as building regs etc had changes I was given a price of between 15,000 (to repair) or 60,000 to replace as the distance from the house now has to be over 5 meters which would have meant digging up the main road. When I asked the vendor about it he said: it wasn't working well before, hence my water butt and hose pipe to a drain, but there's no reason you can't reconnect it.
Safe to say I didn't buy that house and it's still up for sale, about 4 years later!!
 

·
Registered
Joined
·
31,032 Posts
Check Zoopla for the sale prices of the houses on the same street.

Ask the estate agents how long the properties have been on the market and whether any offers have been rejected.

Most will come out with BS as they want the highest price and therefore commission.

But if you play them at the sales game, they may side with you the buyer in order to get the sale.

Tell them you are viewing 6 or 7 similar properties in the area and that you intend to throw offers at a few.

You may find that you have the conversation where they tell you what they think the seller will accept ;)
 

·
Registered
Joined
·
384 Posts
Discussion Starter · #6 ·
Cheers for the info guys, the missus is out looking at a few today and is reporting back on any that she likes and so I need to see. This is the one (and probably last) time that I have final say.

I of course want to get a place as cheap as possible, but am also acutely aware that the market is in a bit of a surge at the moment and so properties come in and sell quickly, all the agents have said the same (although this could be agent BS), so I want to put in an offer as low as possible but obviously it seems to be a sellers market at the moment. I am just hoping that my circumstances (no house to sell first) enable me to get ahead of the queue.

Cheers.
 
  • Like
Reactions: MAX3400

·
Registered
Joined
·
1,210 Posts
the missus is out looking at a few today
she is reporting back on any that she likes
this is the one (and probably last) time that I have final say.
Run while you can! Before you know it, the only options she brings home will have 5 bedrooms (for all the kids) in a green & speedbump neighborhood where local pub only has veggie snacks and you're lured into participating with local bowls club... :smthumbup
 

·
Registered
Joined
·
384 Posts
Discussion Starter · #8 ·
Run while you can! Before you know it, the only options she brings home will have 5 bedrooms (for all the kids) in a green & speedbump neighborhood where local pub only has veggie snacks and you're lured into participating with local bowls club... :smthumbup
Fortunately I have given her a list of minimum requirements and one maximum requirement (the price), so I think I should be ok.

You raise a good point about green and speedbumps, I didn't add that in to my "must not have" requirements list, better call her now. :utahere:
 
1 - 9 of 9 Posts
Top