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First time buyer- advice needed!


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Gents:

 

I'm looking at buying my first place in Erdington- looking at 1/2 bed apartments.

 

Any advice? I'm interested in putting an offer in for one place at about 10k below asking price cus her valuation is a bit out... but will she think I'm taking the piss?

 

Its already been reduced once and is currently up for 2k less than what she paid 3 and half years ago. But as nice as it is, its not worth what she wants and Zoopla agrees

 

Cheers.

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I've bought a few properties and also do buy to let so happy to give some advice, feel free to take it or ignore it as you wish.

 

First thing I'd say is that I'd ignore what Zoopla says the property is worth, in my experience it is not an accurate guide, useful perhaps but certainly not accurate.

 

To give an example, the street I live on is very mixed in terms of size, quality of house and type of property ie houses, multi tenancy houses etc. I bought the property 10 months ago and was one of 7 bidders on the property and Zoopla was out by almost 35% on the value.

 

I would also ignore Kirsty and Phil and their go 10% under bollocks. It might work in some areas but you can't take a uniform approach to the market you need to guage the market in the area you are buying.

 

My advice would be,

 

1. Question the vendor and agent as much as you can. How long has it been on the market? Why is it on the market? Does the vendor have somewhere to move to? Have there been any offers? You would be amazed how much you can find out and how much more informed you can be as a buyer by asking the right questions. I normally ask all these and more of both the vendor and the agent to see if they match.

 

2. How much do you want the property? If the property has already dropped in value the chances are it will go back up over time. So it is a question of how long you intend to own it because it doesn't matter if you pay over what it is perhaps worth if you plan to own it 10 years because the market will likely come back to you. If you plan to own it for 2 years than it is a different story.

 

3. If it is already reduced and the below what she paid for it you are potentially dealing with someone in negative equity. There is going to be a limit to how open or how able they are to take an offer.

 

My approach is do your homework, look at a site like www.ourproperty.co.uk which tells you official sold property prices so you can see what other local properties have sold for recently. Then if you want the property and you know a) your budget and B) how long you think you want it for then get a final figure in your head you want to pay and then work backwards. I would aim to make 3 offers, securing it on the 3rd your final offer.

 

Don't go two low on your first and give yourself room for your 2nd and 3rd without pissing of the vendor and be prepared to play a waiting game between offers. Oh and play hard ball with the estate agent, believe me once they know you are serious they switch from being on the side of the vendor to that of the buyer because they want the sale.

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If you offer 10k below and you intend to go higher if she rejects it, then make sure you leave some time in between bids.

 

You need to make it look like you really are struggling to pay anymore.

 

If she rejects it and you immediately go back with £9k lower it's obvious that you're negotiating and she'll keep playing the game.

 

 

When I bought mine, I started at 8k below (from memory) and slowly went up to 6k below.

When I made my 6k below offer I told the estate agent I was really struggling with that as it was top of the budget.

 

The owner rejected it and said she still couldn't go that low. I thanked the agent and left it. I fully intended to ring back the next day and offer higher, but they rang back less than 2 hours later and accepted my offer.

 

If you can afford to (i.e. you'r enot in a bidding war) then be patient.

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It's a difficult thing to do, particularly when it comes to your first house, but the first thing you need to do is avoid becoming emotionally tied to the property. Stay objective and sensible and be prepared to walk away. If you find yourself falling desperately in love with the property then the Estate Agents will pick up on this and will take you for all they can.

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As Shillzz says, don't get attached to a property. Know your budget and stick to it. I went through this process for the first time a few years ago and always made sure the seller knew that I was prepared to walk away if i wasn't getting the deal i wanted.

However good a property might be and however much you might want that particular one, there's alway more properties hitting the market tomorrow and some might be better than what you've seen today.

Don't forget, it's in the agents' interest to sell the property so don't presume he is acting solely in the sellers interest. You're a first-time buyer and you hold all the cards. Make it work to your advantage.

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i disagree with Choffer & Shillzz.

 

If its a house for the long-term that you are going to be living in, then really you want to fall in love with it.

No good buying a house which you don't love.

 

Also, if its the perfect house that you have fallen in love with, don't lose the house over haggling over £2-3k.

Its bloody hard to find a house that you love, another house like that may never go on the market.

 

 

When we were house hunting a few years ago, we found the perfect house.

Whilst we were debating what to offer, they accepted someone else's offer. 

We then spent 3 years looking for another house, nothing matched up to that house.

Eventually, 3 years later we found another house which was almost as good, but paid £50k more than the initial house we loved.

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You shouldn't "fall in love" with any house. Its an investment. The most important one you will ever make because it could provide future security of **** you up for the rest of your days. The first consideration is not "what should I pay for it" but "will I be able to sell it" and preferably "will I be able to sell it at a profit" If the answer is "no" or "not sure" walk away. The next question is "why should someone else buy it?" the fact you are prepared to is no reason for someone else to follow in your footsteps so only buy something you have a chance of shifting in the long run and know the reasons someone else will take it off your hands. Beyond that: have it surveyed. (and I mean properly - not just the crap you do to keep the mortgage company happy) Good Luck

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Assume that it will take 200% longer than you 'reasonably' think. Also assume that it will end up costing you more than you 'reasonably' expect with regards to additional expenses: mortgage booking fees, surveys, solicitors removals, new bits for the new house. If it's an old house, don't expect it to be snag free - some things you just have to suck up.

 

Also talk to an IFA about the mortgage. Julie on here or I can heartily recommend my Godson's dad Patrick. Absolutely trustworthy.

 

By all means talk to your bank, but talk to an IFA too.

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Don't talk to your bank, I don't know who you bank with but they are bastards and they will rip you off. All of them.

 

Always use an IFA and not one attached to a bank or estate agents!!! 

 

Just be aware that the rules in relation to IFA's charges fee's changed recently so make sure you know what the costs are for their time up front. 

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You shouldn't "fall in love" with any house. Its an investment. The most important one you will ever make because it could provide future security of **** you up for the rest of your days. The first consideration is not "what should I pay for it" but "will I be able to sell it" and preferably "will I be able to sell it at a profit" If the answer is "no" or "not sure" walk away. The next question is "why should someone else buy it?" the fact you are prepared to is no reason for someone else to follow in your footsteps so only buy something you have a chance of shifting in the long run and know the reasons someone else will take it off your hands. Beyond that: have it surveyed. (and I mean properly - not just the crap you do to keep the mortgage company happy) Good Luck

 

No way is it an investment (unless you buy it specifically for investment purposes,short-term gain or temporary residence).

 

First & foremost its a home, a refuge for you to come to at the end of a hard day, a place your kids will grow up in, a place to live with the people you love, a place you will have 100's of different & new experiences, a place that you will remember for the rest of your life, a place to party, a place to dream, your castle to leave the world behind.

 

of course you should fall in love with it, and you should never worry about selling it.

Enjoy owning your own home and making it exactly as you dreamed it would be. Its the greatest feeling in the world to have a place you can call home. 

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Agree with the ignore Zoopla statement. 

 

We bought our house 7 years ago for a certain amount but under circumstances which it has no idea what so ever so only changes the price on averages throughout that time.

 

It takes little account as to those circumstances or what we have done to the house in the meantime.

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If you want to know the value of the property, wait until your mortgage company has done the survey. Santander told me I'd offered 15k more than they valued the property. I knew I'd made a pretty fair offer but I still managed to get the seller to drop by 12k after that bit of advice :)

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I didn't know you could get half bed apartments.

I've boughtand sold a few times. First offer always rejected so bare that in mind.

As Trent says, Zoopla is often miles out, I know for a fact it has my own property miles out because I got it at a good price and then done it up. Zoopla can't handle this kind of scenario.

Some people recommend offering an uneven amount (like 121,550 for example) as it looks like you are right at the top of your budget. Could work better as a first time buyer, I'd do that on my second offer.

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I agree about the banks being bastards theory. Saw a mortgage advisor yesterday and he shit all over the bank`s advice. I am trying to keep emotion out as the likelihood is, i`ll live there 5 years Max... But it is hard not to get attached when you can picture yourself living there!

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Sounds like you are going about things the right way.

 

If you only see yourself living there for 5 years you need to keep that in mind when picking your mortgage and when you making your offers.

 

As I said if you want it and it sounds like you do, then aim to get it on your 3rd offer then if you get it on your 2nd you will be laughing. My trick would be to tell the estate agent on your 2nd offer that it is your maximum and that you can't go higher and wait and see what happens. If it is rejected just say "okay if they change their mind let me know" then give it a couple of days. Then go back and say you've borrowed money from family, you simply can't go any higher and its your best and final offer and make sure you hammer the point home to the agent.

 

If at whatever stage you get an offer accepted insist you want the property off the market, so sold sign up, STC on right move, no more viewings etc. The vendor or sometimes the agent aren't eager to do this but you are within your rights to insist.

 

Whatever you do, do not let the agent know your real maximum budget because they will do everything they can to get it. Once they think they've got as much as they can out of you they will turn to your side to try and push the deal through.

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