First house purchase, advice on offer

[smithyithy]

Appreciate this kind of thing is very situation specific, but I wanted to get some general feedback / thoughts..

I'm looking to buy my first home and recently viewed this property:

House in question:

https://www.nockdeighton.co.uk/properties/114247-n...

• £160k is my upper limit based on discussions with mortgage broker, deposit %, current rates etc. so anything below that figure would help
• House has been up for ~6 months, mostly with another agent at OIRO £159,995, didn't sell, re-listed with current agent recently at £160k
• I spoke to the previous agent, the seller is emigrating so wants it sold. They had lots of viewings, mainly by couples, some with a child, main feedback was that it's too small for them
• From my viewing, it's in decent condition. The new kitchen is a big plus, the bathroom is okay for a while. I needs a general clean and ideally decorating (at least living room and both bedrooms - paint and floors. Doors and windows (UPVC) a bit tired, at the very least new handles / catches throughout. Boiler is 12 years old, a combi in the main bedroom's cupboard, so maybe replacement in the near future (I'd maybe want to relocate downstairs at the same time..
• Parking is on-street nearby. Not a huge issue, I'm currently running a cheap runaround I'm not precious about. It's too tight to park in front, it'd have to be in the nearby cul-de-sac.
• There is agreed access from the garden, across the neighbour's garden (via a small gate) to get the bins into the adjacent private lane / driveway, so this would need retaining in writing.

Obviously a lot of this depends on the area, the recent sales prices etc.. briefly, pricewise this house sort of sits on it's own - there a few properties in the £140-150k range (small flats or very small houses based around an old converted care home building complex), otherwise you're into the £180-185k range for a more 'typical' 2-bed semi type house.

I'm happy with a project, as I currently live with parents who are 5 minutes round the corner, so in theory I could delay moving in whilst I work on tidying it up. But my thoughts are what I could sensibly offer, or what my negotiating tactic would be, obviously this is all new to me so it's a bit of an unknown prospect...

My initial thought would be, £150k would be a fair price, based on the TLC and potential future works needed, and that it's a relatively niche property in terms of prospective buyer. The agent has implied that the seller is keen to sell and open to negotiate, but I'm a bit confused by the re-listed it with this agent at the same price it was previously at, rather than lowering the price to attract offers / more viewers?

So any thoughts or advice etc would be appreciated! What sort of questions should be asking now, are my points valid in terms of negotiating the price? Thanks in advance

[TimmyMallett]

I think you're overthinking it. Go in 150, if no, then up to 155 and then 160 final offer.

[Puzzles]

I’d factor in the bathroom access off bedroom 2 if you are going to compare to similar properties.

[ClaphamGT3]

Puzzles said:

I’d factor in the bathroom access off bedroom 2 if you are going to compare to similar properties.

Though, from the plans, it looks as if a door could be added from the main bedroom to make a 'jack and jill' bathroom fairly easily

[blue_haddock]

I'm local so as your probably aware this is very much bottom of the market locally, personally the two properties on Audley Avenue offer better space and are slightly cheaper whilst also giving you an allocated parking space.

[Puzzles]

ClaphamGT3 said:

Though, from the plans, it looks as if a door could be added from the main bedroom to make a 'jack and jill' bathroom fairly easily

I think the basin is in the way, but if you’re going to redo the bathroom anyway agree it shouldn’t be too difficult.

[smithyithy]

Agree about the bathroom, would be better access from the main bedroom perhaps, although bear in mind, there's a step down from the landing into the smaller bedroom, so if accessing from the main bedroom, you'd be stepping down into it.. maybe not an issue but something to consider in the future.

blue_haddock said:

I'm local so as your probably aware this is very much bottom of the market locally, personally the two properties on Audley Avenue offer better space and are slightly cheaper whilst also giving you an allocated parking space.

Indeed it is! The main pro's of this however are location (much quieter and private) and the type of property. Obviously as a first home it's hard to find the perfect house and as you probably know - the bigger more character properties around town are very expensive.. But to me, this one is significantly nicer than those on Audley.

The next step up would be the type of houses on Stafford Street but they're over £200k. First time buyer and Newport isn't an easy match unfortunately but I'm set on the location..

I think I might go in at £150k, with room to negotiate but I'd like to be closer to 150 than 160...

[ThingsBehindTheSun]

The last two houses I have offered on I have done the following:

1)Highlighted that I have nothing to sell and that I can move immediately
2)Sent a copy of my mortgage offer
3)Sent a copy of my bank statement showing my deposit
4)Not messed anyone around or come across as a time waster. Always instantly replied to all phone calls and messages.

Both times my offer was accepted within half an hour. The last house I purchased there were (allegedly) three offers, but I suspect the other two were not in a position to immediately proceed.

Nothing screams timewaster more than someone who makes an offer yet states "Our house is not on the market yet". I suspect this person is sick of timewasters and will accept you 150K (or near to it) if you are able to move immediately and back it up.

[blue_haddock]

smithyithy said:

Indeed it is! The main pro's of this however are location (much quieter and private) and the type of property. Obviously as a first home it's hard to find the perfect house and as you probably know - the bigger more character properties around town are very expensive.. But to me, this one is significantly nicer than those on Audley.

The next step up would be the type of houses on Stafford Street but they're over £200k. First time buyer and Newport isn't an easy match unfortunately but I'm set on the location..

I think I might go in at £150k, with room to negotiate but I'd like to be closer to 150 than 160...

If the seller knows they are the cheapest they may not want to move much on price, which may be why they relisted with a diff agent at the same price.

The main advantages I would see over the audley avenue properties are the fact that you can add value to the property by doing it up so make more when you decide to move on but also your not paying lease charges of over a grand a year.

[smithyithy]

blue_haddock said:

If the seller knows they are the cheapest they may not want to move much on price, which may be why they relisted with a diff agent at the same price.

The main advantages I would see over the audley avenue properties are the fact that you can add value to the property by doing it up so make more when you decide to move on but also your not paying lease charges of over a grand a year.

Freehold is essential really in my view so definitely agree, and I think that's what I'll be trying to achieve with a house like this, improve over time and add value... can't make it any bigger, but can certainly make it look nice

[toughmat88]

Definitely over thinking it.

Its offer if they say no they will counter. if not move on.

I bought my 1st home 2 years ago and was on the market for less than a week. I offered £8k less than what they were asking for and they accepted straight away.

[raceboy]

Go in low.
Know nothing about the market in that area but the worst that can happen is they say 'no'.
I'd go in to the agents office and pitch my position, no chain, mortgage in place, deposit ready, and then pitch low, in the £140's if you want to finish in the low £150's.
Obviously play it by ear as to what the agent has to say, and know at what price you'll walk away from it, but what have you got to lose.

[smithyithy]

Appreciate the replies so far, trying to go in with a level head but obviously first purchase etc can be a bit daunting / confusing.

Another cog in the machine - my mate that lives in the town and seemingly knows everyone and their mother knows the seller reasonably well, at least enough to speak to, and has given me his number..

Is there a general protocol for speaking directly to a seller? My mate told me a bit about him and said he's around his age (younger than me / under 30) and said to just text or call him to discuss it..

I'd probably prefer to do it that way honestly, a bit like buying a car.. As long as it's not frowned upon when there's an estate agent in place..?

[MyM2006]

I found it a lot easier speaking to the seller directly when buying my first house and then formalising everything through the estate agent, in fact the estate agent had been causing an issue with the sale before we started talking primarily as they were looking after their commission more than anything else.

The property I bought had been on the market for a while, hadn't had its price dropped but when I viewed it I decided it suited what I wanted but I felt it was over priced and also outside the budget I wanted to go with. Made an offer about 15% lower than asking, they countered and we eventually settled on about 10% under asking however used things like being chain free and all finances organised to my advantage to make me look a better option.

[smithyithy]

Yeah when my parents bought there's (where I am currently) there were some very minor issues that both sides' solicitors were being petty over and it was delaying the move date..

If they'd been able to just speak face to face with the seller it probably would have been sorted in 15 minutes..

[alscar]

smithyithy said:

Appreciate the replies so far, trying to go in with a level head but obviously first purchase etc can be a bit daunting / confusing.

Another cog in the machine - my mate that lives in the town and seemingly knows everyone and their mother knows the seller reasonably well, at least enough to speak to, and has given me his number..

Is there a general protocol for speaking directly to a seller? My mate told me a bit about him and said he's around his age (younger than me / under 30) and said to just text or call him to discuss it..

I'd probably prefer to do it that way honestly, a bit like buying a car.. As long as it's not frowned upon when there's an estate agent in place..?

I’d say it was probably a bit unusual to negotiate direct and perhaps the seller won’t even entertain it but no harm in giving it a go.
If it worked no doubt the estate agent would still be charging the seller their fee so possibly bear that in mind.
As you say it’s more like a buying a car then but it does also depend on how good at negotiation you actually are and indeed how receptive the seller is to hearing you don’t value his house as much as he does !
If you do want to put an offer in via the estate agents then as long as you don’t low ball too much and simply “ offend “ the seller then the advice given thus far from others is I would say along the right lines as start point.
If you think £160k is realistic though then despite what you want to spend on the house ( and definitely have the list in front of you when you call ) personally I wouldn’t want to start at less than £144k.
He won’t accept but hopefully he will counter at £155k leaving you able to counter that with around £ 146.5.
Then see what happens.
Best of luck.

[Pincher]

raceboy said:

Go in low.
Know nothing about the market in that area but the worst that can happen is they say 'no'.
I'd go in to the agents office and pitch my position, no chain, mortgage in place, deposit ready, and then pitch low, in the £140's if you want to finish in the low £150's.
Obviously play it by ear as to what the agent has to say, and know at what price you'll walk away from it, but what have you got to lose.

What's the saying? If your first offer doesn't make the seller weep, then it was too high

[blue_haddock]

smithyithy said:

Another cog in the machine - my mate that lives in the town and seemingly knows everyone and their mother knows the seller reasonably well, at least enough to speak to, and has given me his number..

It is a very much a local town for local people!

I could almost certainly walk into any of the pubs on the high street and bump into someone i know!

[Wilmslowboy]

Go in with a low offer, worse case you insult them and they blank you. (i.e. £146k) - You can always go back and up your offer.

First rule I was told, if you are not embarrassed by your own offer, you didn't go in low enough - this approach pissed my wife off (as we lost houses she wanted) but then again probably saved us combined £120k+ on the last 2 we bought.

Remember the agent's fees hardly changes between a sale price of £160k and £150k - so if they think you are serious and can complete, they should push the seller to take your offer seriously.

[Alex_225]

If other properties that are comparable are £20K+ higher, you may find they decline and offer but circumstances imply a quick sale so you could try £145k and keep your fingers crossed. Maybe on the basis of it needing work done to get it up to spec.

Worst they can say is no. I found the estate agent may have an idea of if they're definitely looking for that exact price.