Buying my First Home!

[kitkat9933]

Just thought I'd share my story as it unfolds.

I have been looking for my first home for a few weeks and finally found a place and about to put an offer in. This place just felt right as soon as I walked in.

House is for sale at £140k, but I'm going to offer £136k.

I'll post updates as I get them!

 

[Dis86]

Just thought I'd share my story as it unfolds.

I have been looking for my first home for a few weeks and finally found a place and about to put an offer in. This place just felt right as soon as I walked in.

House is for sale at £140k, but I'm going to offer £136k.

I'll post updates as I get them!

Honestly, I'd chance a lower offer than that.

 

[OpenToSuggestions]

My house was up for £120,000. It was owned by a housing company as the previous owner 'part exchanged' it against a new home. It really should have been for sale for £130,000 as it was without doubt worth that in May '13.
I offered £112,500 and firmly believe I only had that accepted as I was a first time buyer who could complete within a month.
Could I have gone in lower? Yes, but as with your house I just knew it was 'the one' and did not want to lose it.
Also take note that the estate agents will always say there is another offer on the table. Do not let them bully you.

As a first time buyer you have a lot in your favour - No chain to collapse and you can complete within 4-5 weeks.

I would offer £124,999 just to see if they will accept a price that doesn't cost you stamp duty. Your offer may need a day or so for the buyer to think over it, but if it is declined then do not make another offer on the spot.
Make the seller wait a little while before you make another offer (if you decide to make another offer at all).

Of course everything I say is just in my opinion. How are houses selling in the area? The house is up for £140,000 - Do you think that is a fair price? Over/under value?

 

[R B Customs]

Honestly, I'd chance a lower offer than that.

+1

I was in a similar position, looked at loads of houses, hated most of them, then we viewed one that was perfect for us. went for a second viewing with the intention of making an offer after seeing it a second time.

Without our rose-tinted-glasses we actually realised the offer we were going to put in was a bit high because of some of the work that needed doing to it (nothing major, just stuff we overlooked - mostly decor) I put in an offer way lower than I was going to and didn't feel at all daft about it as it was completely justified.

naturally they haggled back up and I met them just over half way (by 500 quid) again and settled for something that was still 7K under what I was going to offer.

so yea, I'd go for a second viewing, consider your offer further, and then definitely go lower as you only really get one chance at A) a low offer, and B) being a first time buyer.

your second option would be, if you have already offered - to go for a second viewing and then submit a revised, lower offer after seeing it again - but then you're messing them around.

edit:
for an example, the house I'm buying was:

-listed for 180
-reduced to offers over 170
-I was going to offer 169 / 170 - it was 'the one'
after second viewing I realised I should offer lower and the estate agent tipped me off when I said I think I'm going to offer 160 - she hinted that they would probably take that.
-I put in an offer for 160
- they said they would take it off the market for 165
-I said I would meet them more than half way at 163 to show a bit of respect and willingness, but that was my final offer (don't get scared!)
-they accepted

So if you want to pay 136, offer lower and work your way back up to it if you have to.

That being said, well done! good luck with solicitor roulette! try and get a recommendation if you can as some of them (ours) can be rubbish!

 

[godinman]

It's easy to get carried away with a first home, luckily the estate agent played the 'we've had another offer' card which put us off long enough to find the house we're in now. They called back a couple of weeks later saying the offer had fallen through and I had great pleasure in saying 'thanks, but no thanks'.

So yes, just try and stay objective and don't be afraid of starting low. If they do actually get a higher offer they wont just kick you into touch as they'll be looking for the best price.

 

[OpenToSuggestions]

So yes, just try and stay objective and don't be afraid of starting low. If they do actually get a higher offer they wont just kick you into touch as they'll be looking for the best price.

I agree with this.
However if the other offer is better than yours, but they are have a house to sell of their own, it can all change.

Say your FTB £124,999 offer vs. their £127,500 offer with a house to sell in a chain of 4.
The FTB offer would be smoother and has far less chance of going **** up. I would be gutted if I had paid for all surveys etc. then the purchase fell through. Luckily mine was vacant already.

 

[Finners]

Good luck! I'm about a year away from going through all this as I need to save a pretty hefty deposit as houses are so expensive down south.

Out of curiosity what size is the house your going fron 2/3 bedroom?

 

[kitkat9933]

Good luck! I'm about a year away from going through all this as I need to save a pretty hefty deposit as houses are so expensive down south.

Out of curiosity what size is the house your going fron 2/3 bedroom?

3 bedroom.


Theres obviously no chain on my end so that is heavily in my favour. But the guy said he had the finances (mortgage etc) in place but still haven't found a house quite yet, but they have a lot of viewings arranged and want to be moved in by october-november. So they aren't in that much of a rush.

 

[kitkat9933]

+1

I was in a similar position, looked at loads of houses, hated most of them, then we viewed one that was perfect for us. went for a second viewing with the intention of making an offer after seeing it a second time.

Without our rose-tinted-glasses we actually realised the offer we were going to put in was a bit high because of some of the work that needed doing to it (nothing major, just stuff we overlooked - mostly decor) I put in an offer way lower than I was going to and didn't feel at all daft about it as it was completely justified.

naturally they haggled back up and I met them just over half way (by 500 quid) again and settled for something that was still 7K under what I was going to offer.

so yea, I'd go for a second viewing, consider your offer further, and then definitely go lower as you only really get one chance at A) a low offer, and B) being a first time buyer.

your second option would be, if you have already offered - to go for a second viewing and then submit a revised, lower offer after seeing it again - but then you're messing them around.

edit:
for an example, the house I'm buying was:

-listed for 180
-reduced to offers over 170
-I was going to offer 169 / 170 - it was 'the one'
after second viewing I realised I should offer lower and the estate agent tipped me off when I said I think I'm going to offer 160 - she hinted that they would probably take that.
-I put in an offer for 160
- they said they would take it off the market for 165
-I said I would meet them more than half way at 163 to show a bit of respect and willingness, but that was my final offer (don't get scared!)
-they accepted

So if you want to pay 136, offer lower and work your way back up to it if you have to.

That being said, well done! good luck with solicitor roulette! try and get a recommendation if you can as some of them (ours) can be rubbish!

We wil be using my Step dads solicitor.

I can afford up to £140-150k but I only want to pay what is the right price, and even better under price.

So you guys think I should try even lower at £125k first? Nothing has been sold in the close since 2012, as its a fairly small area. Back before the recession a fully detached version of it 2 doors down sold for £155k. Comparing to very similar houses a bit further out the price seems reasonable.
Pictures:

 

[kitkat9933]

Offered £124,999 but someone else offered over £130k. I matched it and the seller rejected it immediately . Currently my offer is at £134,500 but played couldn't go any higher card etc and under the condition it was taken of the market.

Waiting to hear back now.

 

[OpenToSuggestions]

Offered £124,999 but someone else offered over £130k. I matched it and the seller rejected it immediately . Currently my offer is at £134,500 but played couldn't go any higher card etc and under the condition it was taken of the market.

Waiting to hear back now.

There is no way the other offer was over £130,000 right away....you would be mad to not try the 'try a cheeky £124,999 to avoid stamp duty card'.
I hope your new offer was not a knee jerk on-the-spot reaction. The other offer could be from someone who is in a chain of 4 people awaiting sale.

That said, I wish you luck with your first home .

 

[kitkat9933]

There is no way the other offer was over £130,000 right away....you would be mad to not try the 'try a cheeky £124,999 to avoid stamp duty card'.
I hope your new offer was not a knee jerk on-the-spot reaction. The other offer could be from someone who is in a chain of 4 people awaiting sale.

That said, I wish you luck with your first home .

I always made sure I came back to them over an hour or more playing down my interest in the property and the actual money I have available.

Apparently, there is now 3 bidders all around my last bid of £134,500 and they wanted to see what everyone would go up to, so I said i'll give them a call back tomorrow morning after 'discussing' it etc. Im thinking maybe to go £137,500 and then call it quits and also that at with that offer it must be taken of the market.

 

[OpenToSuggestions]

I always made sure I came back to them over an hour or more playing down my interest in the property and the actual money I have available.

Apparently, there is now 3 bidders all around my last bid of £134,500 and they wanted to see what everyone would go up to, so I said i'll give them a call back tomorrow morning after 'discussing' it etc. Im thinking maybe to go £137,500 and then call it quits and also that at with that offer it must be taken of the market.

I would say the answer to that is how strong you feel your 'hand' is and how the market is at the minute. This is like playing a game of poker as estate agents will lie without hesitation.
My house was 'near completion by another party'. There is no such thing! An offer is either accepted or rejected.

Whilst estate agents bully you into making an offer, their interest is not in increasing the price at risk of losing a sale.
They get paid commission per house sold, so selling the house for £124,999 is better than losing 1 in 5 sales trying to up the price to £130,000. At best the estate agent company gets 3% of the sale. All in my opinion of course.

 

[kitkat9933]

What a great day...

In the end my offer was at £137,500, one couple dropped out and another wouldn't move from £136, but the estate agent said the owners wanted it to stay as a family house and wanted to sell for the family that had offered £136 even though my offer was higher.

I said I was willing to go even higher and they said the owners were settled on their decision now.

 

[OpenToSuggestions]

If that is the case then the sellers are retarded.
Who the buyer is should not matter! Why do the owners even know?
When a seller has unknown agenda then you have no hope. All I would care about is who is paying the most.

Keep looking, but never up your offer on the spot again.

 

[kitkat9933]

If that is the case then the sellers are retarded.
Also, who the buyer is should not matter! Why do the owners even know?
When a seller has unknown agenda then you have no hope.

Keep looking, but never up your offer on the spot again.

Other properties I've taken interest in have now been taken of the market also. So back to searching I guess!

 

[postbox]

If that is the case then the sellers are retarded.
Who the buyer is should not matter! Why do the owners even know?
When a seller has unknown agenda then you have no hope. All I would care about is who is paying the most.

Keep looking, but never up your offer on the spot again.

Depends completely on the buyers position surely? I had an offer accepted on a house which was lower than other bids because I made sure the sellers were aware that I was in a no risk, no chain situation - I could move in tomorrow if needed. That to some sellers is worth way more than a couple of grand here and there, especially if they don't want to hang around or be messed about.
Some sellers have spent a long time living in their house, spent a lot of time and effort doing them up over the years and become emotionally attached to it, they may naturally want to sell it to people who are generally "nice" and fit their ideals - especially if they are still good friends with their neighbours.

 

[PapaLazaru]

Houses in Reading are going for asking price only at the moment. Bloody crazy down here.

To think that I purchased in March last year and negotiated 8% off the asking price and during the following summer houses on my road started going for over asking price.

Prices on my road as it stands are selling for 20% more than this time last year. I've gained a nice bit of equity in 12 months, though it is all, of course, relative.

 

[kitkat9933]

EDIT: Hopefully this post makes sense lol.

Seen another house its in an ok-ish area but not great but it really is the best example of a polished turd I have ever seen.

It doesn't need any work the price seems really good, it looks great tbh, but it's just the area that is giving me second thoughts.

If we call it House A, this is what I'm thinking atm. Both are 3 bedrooms + main bathroom.

House A: List Price £120K
Divorced couple and desperate for fast sell, agent said it could go down to £110-£115k if I bought it quick. Houses on the street are selling around this price.

Immaculate condition, ready to move in and really nicely done and in my taste.

Area lets it down as its not the best.

House B: List Price £169k
Everything the same as house A, but they are in no desperate rush to sell, its immaculate in side but in a much much nicer area.

Considering I'm at around £100k cash and everything on top is mortgage. Is an extra 50k mortgage + interest + fees etc worth it for a much nicer area. After interest it will probably be over £65k more in the long run. Also note that with a £10k-£20k mortgage I can pay it of within 2-4 years with ease or even half that if I tightened up, and that means all my extra money could be put into savings earn interest. This makes the difference probably more like £75k.

Obviously House B with the nicer area should be hold its price better due to the area and surrounding properties. House A isn't a bad area, as in its close to train stations/supermarkets/good schools/motorways/shopping centres etc, but its just the surrounding houses.

I am just not sure what to do.

Couple of pictures of House A:

 

[FinglisHobbit]

I was about to say get the cheaper one as a first buy. Dont get yourself into too much debt.

But then I saw you say you had 100k. So now I say go for the better more expensive one.

The mortgage you will be left with will be very affordable and you will get to live in a much nicer area.