what to offer for house in light of our mortgage approval?

J

jamiew

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we are going to view a house tomorrow asking price 175k, were waiting on approval for mortgage(officially applied today, but by looks of it we may just about meet requirements for mortgage on 155k, providing 20k deposit.) we really love the house and it ticks all our boxes, and in our opinion its actually undervalued, and price will prob go up with bidding (house is new to the market). My question is, if all going well with viewing tomorrow and we get approval, do we offer asking price straight away or is it always norm to start under the asking price?

Thanks
 
jamiew said:
we are going to view a house tomorrow asking price 175k, were waiting on approval for mortgage(officially applied today, but by looks of it we may just about meet requirements for mortgage on 155k, providing 20k deposit.) we really love the house and it ticks all our boxes, and in our opinion its actually undervalued, and price will prob go up with bidding (house is new to the market). My question is, if all going well with viewing tomorrow and we get approval, do we offer asking price straight away or is it always norm to start under the asking price?

Thanks
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Depends where the house is and the level of interest,in a property slump,I would take the view that if you're not embarrassed by the offer then you've bid too much.

I definitely would not be going in with the full asking.Do not make any offer til you get approval in principle,otherwise you may be wasting everyones time.
Where the house is,number of bedrooms,finished estate etc would all feed into what I would offer so if you would like to provide this...?

Also you should check what similar property has sold for using this site..

http://propertypriceregisterireland.com/
 
Thanks for your time in replying, i had a little laugh at your remark about not embarrasses that bid is too much, but you are so right, thank god for boards like this, it gives me reality checks :) Its a 3 bed semi, 10 mins drive from city, walking distance with schools/shops/pubs etc , beautiful finished estate, 12 yrs old , and the inside of the house is stunning, very bright, clean, wouldnt have to do a thing, includes sunroom, conservatory and spacious back garden!
should have approval by thursday so wont make any offer til then, you thinking much lower??
 
Hi Jamie

Try to curtail your excitement as it only sets you up for huge disappointment.

Auctioneers play tricks with people. They may well price the property too low, so that they stimulate interest.

in our opinion its actually undervalued, and price will prob go up with bidding (house is new to the market).
Click to expand...

It probably is so. And you will be competing with cash buyers. There is another thread on askaboutmoney where the auctioneer refused to entertain bids from people as he had two cash buyers fighting for it.

Brendan
 
Wow, thanks Brendan. I will try prepare for worst so, You always reply to my posts, Thanks
 
I think you need to focus on getting the mortgage approval sorted. You mentioned that you have just officially applied, from reading other posts it seems that getting approval can take some time, so let that be your main focus.
Keep in touch with the bank, be prepared to answer their questions and submit additional documents etc. etc.

However, you should of course pursue this house and you can work on that in parallel. I would try to find out as much background information as possible. Do you know anything about the vendor; is there are bank or other compelling reason pushing them to sell, have they found somewhere else? I would knock on a neigbors door under the pretense of asking about what the estate is like to live in and then use this as a basis for finding out as much extra as I can about the vendor.
I would also try to strike up a relationship with the estate agent - often they say too much. Remember information is power. Don't let the agent know how keen you are. Based on the information you gather you can judge the offer level that you can 'get away with'. There is no harm in making a low offer, once you have mortgage approval. If you do, and it's rejected make sure you get feedback on why it's rejected and how much you would need to increase it by. Then increase it if you feel it's worth it - but not to the level asked for.
 
Until you mortgage approval don't make any offers on properties. Could be setting yourself up for major disappointment.
 
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