Found THE house - how do I make offer?

L

LadyJane

Registered User
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139
Hi,

Advice please!

I am so excited. After searching for months in our target area, we found the perfect house. It just came on the market a few days ago and 20k below our max budget for mortgage. It requires a bit of work, but nothing urgent. It is exactly what we always wanted but thought we couldn't afford.

We are very anxious to secure this property. We are FTB with a mortgage approval in place.

We just viewed today. I need to know how to make an offer and for how much. A friend suggested offering the full asking price but I thought that might seem a bit keen and the vendors might want to push it up then. Then again, we are attractive buyers so I don't know what to do.

Any advice you could possibly give would be so great as this really is the house of our dreams and the thought of not getting it would be really devastating.

Oh, we also have put a refundable deposit on a lovely new build house, but it has none of the character and charm of this other house.

Thanks!!!
 
Given that it's a buyers' market out there at the moment in most areas, I'd be inclined to put in an offer at least 10% below the asking price, making sure that the estate agent conveys to the vendor that you're first time buyers and mortgage approved, thus ensuring a quick sale. Don't give the estate agent any indication that you're prepared or able to bid any higher.
 
Unfortunately, the area we are buying in, and the price bracket we are in, property is still moving pretty steady. Houses of this ilk don't come up often in our price range - believe me we have searched with intent to buy for 5 months!

Would you recommend putting an "expiry date" on our offer in order to secure things?
 
I would be reluctant to offer the asking price - TBH and have purchased 2 houses in my time.

As LDFergason has suggested go 10% below the asking price, the worst the vendo can say is no. and then up the price if you want.
 
Ok, thanks pinkyBear.

Any other tips to make ourselves more attractive as buyers? What do the RE agents look for, other than lots of money? We can move very quickly as we already have letter of offer. Is there anything else peole want?
 
We can move very quickly as we already have letter of offer.
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And that is what makes you a very attractive customer - you are not involved in a chain.
If you have a letter from the bank detailing your morgage acceptance that will also be beneficial.

Also if the house goes into a bidding war fare - dont panic, if you are asked to raise your offer - do so €500's - cheeky I know but it worked for us in the first house:)

The second think is, if you put in an offer say 20k below the asking price (and note it's a buyers market) and the buyer says he will take the house off the market if you give him/her €5k more - do so if you love the house.

Be wary in this market, if he/she says €5k above the asking price - as there is a glut of houses out there.

Also go back for a second viewing, and note the folowing - is the attick insulated (if not you reduce the price by €1k) if it is poor quality - reduce it by €500 as you'll have to top it up.

Note the windows do they need to be replaced? Is there any black mould on the windows, or around them, is the paint cracked - signs of poor ventilation - is the windows will need to be replaced. If so this will also justify your reduction of the price - pretend to the EA that you know what you're looking for.....

Note the radiators, and the light switches, if these look old, you'll hvae to replace them, and all this will help in bargining down the price....

Above are the big things, ignore the paint work as this is an inexpensive job.

Find out also how long has the house been on the market for? Are the owners looking for a quick sale, have they purchased and need to close quickley.....

Good luck,
May the force be with you:)
 
WOW! Thanks for all the advice PinkyBear! It is all invaluable as we haven't a rashers when it comes to buying houses.

It has only been on the market 4 days but the vendors have built a house nearby so must be anxious to sell. They are a retired couple.

Plan on putting offer in 10k below asking.

Should I mention when I am making the offer that we have a deposit on another house? It is a refundable deposit on a new build. And any idea how long it takes to get a deposit refunded? We will need it for this other house it all goes well. I would like to think I have endless supplies of deposits, but the most we could come up with on short notice (if we don't get the other deposit back quick) is about 3k.
 
so must be anxious to sell
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- dont assume!

I would go lower than €10k to be honest, as if a bidding war comes in to play you could easity be priced out. I have seen forst offers €40 k below and this was during the height of it!!!!

Should I mention when I am making the offer that we have a deposit on another house?
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I wouldn't they might not take you seriously then...

Your cutting it tight - can take a few months to get it back...
 
LadyJane said:
Hi,


Any advice you could possibly give would be so great as this really is the house of our dreams and the thought of not getting it would be really devastating.
Thanks!!!
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Please don't take this the wrong way but you need to calm down - otherwise the estate agent will know how much you want this. My advice is to make an offer of about 15k under the asking. Tell the EA that you have approval and you are not selling another property. Then wait....do NOT call the EA again for an update...they will contact you. Sit tight....you have 35k to play with....
 
Ok I won't mention the other house. I only thought it might make us look like we could walk at any time and go with the other house if you know what I mean.

Also promise to go 10% below asking. What can it hurt?

Shoot - I hope it doesn't take that long to get the deposit back. But I wouldn't be surprised.

What a rollercoaster, hey?
 
Excellent advice Firefly. And I don't take offense, I know that appearances of aloofness are critical. I haven't said anything to the EA yet, just that we are interested. I am keeping all my silly enthusiasm for this forum! But will def. keep it in check when neg. sale.

Will definately not offer FAP and will go at 15 or so below. That was my initial instinct until a friend said to offer full price or they would think I was a messer. But then again, what does she know? :) There is a lot of conflicting anecdotal advice you get when you are a FTB.
 
Definitely offer 10% below, nothing is moving everyone is waiting until a few weeks.

However to justify this you may want to take a second viewing maybe a different time, this time be more thorough.

Basically you are looking for stuff to justify your estimation, e.g. influence the owners in thinking ok its going to cost a few quid to get this house sorted.

So
 
I differ and not just to be awkward.

If this is the house that you really want, then why not offer the asking price, but leave on the table for 24 hours only. If not acepted, then formally withdraw the offer in writing, with copy letter of withdrawal to vendor!

Be firm.

If they do not come back within the 24 hrs, then have your solicitor, whose identity presumably the auctioneer/vendodoes not know, make an offer below the asking price.

That way, you have two bites at the cherry.
 
Ravima said:
I differ and not just to be awkward.

If this is the house that you really want, then why not offer the asking price, but leave on the table for 24 hours only. If not acepted, then formally withdraw the offer in writing, with copy letter of withdrawal to vendor!

Be firm.

If they do not come back within the 24 hrs, then have your solicitor, whose identity presumably the auctioneer/vendodoes not know, make an offer below the asking price.

That way, you have two bites at the cherry.
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Sorry the market is slow at the moment you wont loose the property by offering below the asking price, its up to the EA to bring you up. Dont mention the deposit on the other property as EA may think ur undecided(messer) as soon as sale agreed and contracts signed request you deposit back, it may take a while.
 
Thanks for all the advice. I have made an offer 10% below the asking price. The EA said we were in the running that that offer whatever that means. I don't think there are any other offers on yet so perhaps it is close to what the vendor was looking for. Just waiting to hear back. We can always up the offer if needed. We didn't go full asking price yet to give us room to work if needed. I did mention that we were interested in another property and consequently under time constraints but that this one is our first choice.

I guess you just have to try your best and see what happens.

I do really appreciate all the input. Thanks again.
 
LadyJane,
I moved into my new house 2 days ago. I offered mid-March 22k below asking price and got it for 17k under in the end. I wasn't a FTB like you but had sold my former home and had finance in place and could move quickly (always a plus).
I got a very good tip on this board which you might consider : make your offer first by phone then follow up with a fax a day or two later setting a deadline for reply (say 10 days hence). My verbal offer wasn't acknowledged at all but when the fax was fired off, it was all systems go.
Play it cool(ish!). Remember you're the one with the money to buy.
Best of luck!
 
LadyJane, best of luck...I remember my first place and was dead excited. Am sale agreed myself on something at the mo and can understand how you're feeling. Bo cool with the EA...tell them you're ready to go - a quicker sale means they get their commission quicker.
 
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