[Digger]

Well, being as you lot have probably done a lot more house buying than I have, I could do with some advice.

We've found a house we want to buy. We've not done anything about that yet with the estate agent or seller.

We have a deposit, we have a mortgage sorted and it is well within what we can afford. So no issue there.

So, here's the question - what do we need to be asking/saying before/during/after making an offer for the place?

Are there any tricks or other ways of getting a better deal than simply offering just below the lowest price we think they will accept and working up from there?

We also want to move fairly quickly - apparently no chain on the house and we are effectively cash buyers. What's likely to cause big delays/problems? If nothing else I really don't like the idea that once I've shaken on a deal and agreed to buy at a price, someone else can still come along and offer more than me and ruin it, after money has been spent on solicitors, surveys etc.

Any and all good advice appreciated. Feel free to share the "you have to do this, otherwise this happens" stories.

TIA.

Digs.

 

[outlaw13]

Have a look on the UK Land Registry database and see if you find how much the current owners paid for the house. That should allow you to judge what to offer depending on when they bought it and how house prices have changed in that area.

http://www.houseprices.co.uk/

 

[Ivon]

I have bought around 6 houses in the last 10 years and are looking again at the minute. Biggest bit of advice I can give is exchange well before completion. Once you have decided a price, get the contracts exchanged as long as everything is OK. If you don't the buyer can pull out at any time, had this happen to us once when we were completing a week later after messing us about for 3 months on a small chain. Lost a lot of money in surveys etc and ended up without any were to live as we had sold ours and if we didn't complete would have lost our buyer so ended up on friends couches.

Also if you have a deposit you can't be cash buyers, unless you have the full amount. If your first time buyers that's not a bad position as long as you have a decent LTV. You see time and time again at the minute houses going from for sale to sold only to come back on the market a couple of months later once the mortgage company don't agree on the price, and they are been cautious at the moment with high LTVs.

Download Property Bee, you need to run it in Firefox. This will show you exactly how long the house has been on the market, any drops in price etc. Also use Rightmove for sold prices, if you click in the tab at the top of the page you can search for houses down the same street or area and use this as a guide of what to offer.

Good luck!

 

[Lou]

You can be gazumped - simple fact. The way to reduce the risk is to move as fast as possible.

You will need a survey - know who you are getting it from when you step in to offer, and when they can go round to do it. Your mortgage people will probably need you to use their person for the valuation stuff. Depending on your affection for risk decides whether you get a structural survey done.

Have your solicitor in place. They will have to do the searches, and these are what can take time, depending on how slick your solicitor is. If you have a solicitor used by either of your workplaces, then using them often gives a good extra bit of leverage to call often and make a fuss if things aren't moving. One house purchase is nothing...a whole business's worth is a bit more....inspiring.

I've never gone in for making offers that I know I will up. I've always done a single offer of what I am willing to pay. I figure that if I want the house then I don't want to lose it whilst I jigger around over £10k, and if I am not that bothered then it isn't the right place. That makes the negotiation quick and easy

 

[4823]

Unfortunately you have no guarantee until contracts are exchanged that someone won't gazump you. It's a risk you take. Having said that I think it's a buyers market currently.

In addition to Outlaw13's link you could try UK house prices, property, crime, local neighbourhood & schools | UpMyStreet you may find you can view what the place last sold for and then use House Prices home page to get a rough valuation on what the property is worth now, although this won't take into account any work that may have been done that adds value to the place. Up my street will also give you background information on things such as crime levels, schools, ACORN etc which may help suss out what the value of the road is in relation to surrounding roads.

Next, look at what work needs to be done and if any work out what it will cost to get someone in to fix it (even if you're going to do it yourself). Use this to help justify your offer. Are there any spoilers? Loads of old bangers in the drive next door? Is the property on a busy main road? Backing onto a railway line? etc etc

Then it really boils down to what the place is worth to you. ATEOTD if both parties don't feel they're getting their moneys worth out of the deal it won't go through.

 

[BJ]

What's its right price? The three most important rules of house valuation:

1) Location
2) Location
3) Location

 

[Digger]

I have bought around 6 houses in the last 10 years and are looking again at the minute. Biggest bit of advice I can give is exchange well before completion. Once you have decided a price, get the contracts exchanged as long as everything is OK. If you don't the buyer can pull out at any time, had this happen to us once when we were completing a week later after messing us about for 3 months on a small chain. Lost a lot of money in surveys etc and ended up without any were to live as we had sold ours and if we didn't complete would have lost our buyer so ended up on friends couches.

Also if you have a deposit you can't be cash buyers, unless you have the full amount. If your first time buyers that's not a bad position as long as you have a decent LTV. You see time and time again at the minute houses going from for sale to sold only to come back on the market a couple of months later once the mortgage company don't agree on the price, and they are been cautious at the moment with high LTVs.

Download Property Bee, you need to run it in Firefox. This will show you exactly how long the house has been on the market, any drops in price etc. Also use Rightmove for sold prices, if you click in the tab at the top of the page you can search for houses down the same street or area and use this as a guide of what to offer.

Good luck!

We're hoping to exchange within 28 days of agreeing sale.

Sorry, by cash buyers I mean we've got the mortgage signed off and ready to go. Our LTV is fairly small, bank wants to give us a lot more than we actually want, and deposit is about 20% of value. No issue on the value being lower than the mortage.

Thanks all for help so far. It's one of those things which is stressful and difficult the first time, hopefully it gets easier after this one, and this all goes smoothly!

Digs.

 

[AndrewRawlingson]

It's one of those things which is stressful and difficult the first time, , hopefully it gets easier after this one.

Unfortunately not, we are in the process of moving for about the third time. It's much more stressful this time as the amounts involved are so much larger!! Our mortgage on the next house is going to be 6 times what the first was worth

 

[mala]

when you make an offer it is with the proviso that they take the property off the market.

2p

 

[Simon A]

We're hoping to exchange within 28 days of agreeing sale.
Digs.

Digs,
I've completed with a buyer in your position (I was the vendor) in 27 days, but the buyers spent a couple of days driving documents between the solicitors to make that happen. So it is possible, but very tight.
HTH
Simon A

 

[Lou]

when you make an offer it is with the proviso that they take the property off the market.

2p

Ah yes, Key point. No more viewings, sign down, no ads.

 

[Digger]

Digs,
I've completed with a buyer in your position (I was the vendor) in 27 days, but the buyers spent a couple of days driving documents between the solicitors to make that happen. So it is possible, but very tight.
HTH
Simon A

Well, that's the aim, but we'll probably end up at a bit longer than that. But moving quickly hopefully helps us.

Digs.

 

[Divingminxsy]

Do your research into recent similar properties in the street and what they sold for - decide your fair price for it - offer that and say that's the sole offer you are making but that it is genuine. Declare your eligibiluty to buy by backing up the offer with details of your confirmed funds / mortgage etc.

House buying and selling is a tetchy business. Creeping up in £1000 blocks and ending up making 7 offers often irritates seller to the point they refuse to consider you and regard you as mucking about. They will know a fair price when they see one.

Have you sold your current property ? You say you are a cash buyer. If the purchase is dependent on that and you don't have a buyer you have less room to bag a good deal on your purchase.

I have bought 9 houses to date and always work on finding a buyer for mine first before I look for my next home.

Above all be honest in your dealings with agents and sellers and stay relaxed if you can but not too relaxed to let the pressure off the solicitors acting for you.

 

[Digger]

Have you sold your current property ? You say you are a cash buyer. If the purchase is dependent on that and you don't have a buyer you have less room to bag a good deal on your purchase.

Yes, that's all sorted, we have the cash. We can go ahead as fast as a solicitor/surveyor/bank/seller will let us.

Digs.

 

[4823]

let the pressure off the solicitors acting for you.

The solicitors are just as keen to see the sale through as you are as that's when they see their money (same with the agents) in my experience it's only buyers or sellers that dick about....having said that we've always used the family solicitor so we know they're good even though they are in Sussex!

 

[19696]

when you make an offer it is with the proviso that they take the property off the market.

2p

But they may not, unless you off them what they are asking. Whether they will or not, depends on what they are actually expecting to sell for.

My flat is currently on the market. Each agent i had round to value it (despite me saying that I wanted it on the market at a price to sell) said 'put it on for x, and you should get x-5k'.

wtf? why not put it on for x-5k at the outset!

Anyway, if someone offers me anything between 5k below, and the asking price, i'd take it off the market, because I'd accept the offer

 

[4823]

Anyway, if someone offers me anything between 5k below, and the asking price, i'd take it off the market, because I'd accept the offer

And if someone that had viewed the place before decided to offer x+3K you'd still go with the lower offer?

 

[stuartrc]

Digger, the solicitor will muck your timeline up. They can't be trusted.

Take up references on the solicitor and once you have appointed them, performance manage them until the only thing they want is to make you go away.

 

[benpanter]

Bear in mind that the estate agents on both sides will get paid almost exactly the same amount whether you pay plus or minus 10k on the deal - for them the only thing of interest is getting things done and it off their books and into the invoicing pile. Using that logic, if you can convince your solicitor and theirs that you'll be in like a shot, and you won't mess them about over the survey you'll find that they'll work hard to convince the sellers to move.

I'd go in 10k under, state that unless the survey finds something serious you won't be haggling, explain that you're a cash(ish) buyer and that you want to move fast.

The flip side of all this is that within a month of moving in you won't even remember what you paid for it!

Good luck,

Ben

PS: You on the Easter trip this year?

 

[19696]

And if someone that had viewed the place before decided to offer x+3K you'd still go with the lower offer?

I doubt I'd be that lucky to have to face that dilemma, but probably, yes. I'm a scot at heart, and i jsut want to sell the flat!