Hi I am a first time buyer and have just started looking at properties in the s10 area. I am confused by the offer proccess. How much can you actually underbid? Has anyone had an experience of getting a property for alot less that the offer price?

cheers

There is no formula in this. It comes from your gut feeling.

if you read through some of the other threads on bidding, you'll probably find plenty that say that in sheffield, especially for terrace houses in s10/s11, the asking price is the starting price from which bids usually go up as much at 10-20%. i've kept a really close eye on stuff for over a year as we put our house (in walkley, s6) on the market in september. after 3 dozen viewings in the first 4 days, we closed by open bids 2 weeks after the sign went up, for about 15% over the asking price. i was advising people who were interested in bidding just to bid the asking price, then the estate agents wouldn't close the (open) bids without contacting them.

for a hosue in s10 to go for less than the asking price, tbh i think it'd either have to be grossly overpriced, or just so gross that nobody else wants it. the house we're trying to buy (actually meant to be exchanging today, except htat the s*****g vendors have gone awol again, thereby delaying everything again) that we've agreed the final price of is somewhat less than the asking price, because it was both overpriced and revolting. be warned, though, estate agents usually won't tell you what amount a bid was if it was less than the asking price, so that they can try to scare you into raising yours. be careful...and don't be afraid to ask the vendor direct questions like what the highest bid currently is.

good luck

The first house we went to view was a house in toyne street in crookes. It was £135,000 and it was horrible. It had a tiny second room, no garden and the bathroom was downstairs. Is this all you are likely to get for this money in s10? Does anyone know of any sites that offer private sales?

cheers

Coops

Sorry I did type a longer post... obivously not all of it went in!

I used to be an estate agent... although not in Sheffield I can say that despite views we are not all out to get every penny we can out of you. As first time buyers you do against popular belief hold a lot of weight. Being first time buyers you'll be at the beginning of a chain and so your purchase will kick start a string of buying so when approaching the agent you can afford to calcualte in your solicitors fees etc because they will know your'e on a budget.

When thinking about putting in an offer consider your NEEDS not your WANTS. Your'e not going to get much off the price if you say you don't like the carpet but saying it needs a new carpet is different.

The main thing though is to be realistic with your offers. Go visit houses out of your range but don't then go back and offer something ridiculous. Nothing used ot bug me more when I would do a viewing on a house and the buyer would offer £110k on a £200k house.

As for private housing, there are a few sites out there but it's not a big thing in the UK - I think your'e best signing up to a good few agents to get a good feel for the market and get mortgage advice sorted - this shows them your'e serious

Thanks for the advice mike. We have a got a morgage sorted already. How long does it usually take to complete buying a house from putting in an offer to getting the keys?

as a 1st time buyer you really do have the upper hand.

If the people selling a house want a quick sale then they're more than likely to accept your offer.

Before putting in an offer make sure you ask how long its been on the market - how many viewings there's been - how many previous offers (if any) - and if the sellers are in a chain (ie already had an offer accepted on the house their moving to) this should help you asses how much they want to sell 'quickly'

The housing market at the moment is not as bad as it was, I really do think you can get a property for below asking price at the moment.

I believe the etiquette is to offer between 5-10% below asking price.

If you register with www.ourproperty.co.uk and do a search on the address on the property you're interested in, if it was sold to the current owners in the last 10 years it'll tell you what they paid for it (it searches the land registry database) - this is very useful for assessing what offer to put in!

here's a list of propertys for sale in s10 between £90k and £160k.

http://www.rightmove.co.uk/search.rsp?lo_u=2209&lo_n=S10&se_c=1&poi_e=0&poi_n=0&nh_st=1&stc_s=false&mi_p=90000&ma_p=160000&tr_t=buy&pa_n=1&eventsubmit_dosearch=1&initial_search_time=1168016475154

Depends completely on the 'chain' - as a rule of thumb I would say 5weeks. Being a bit big headed we were a good agency and made sure our clients knew exactly what we were doing and where we were on the deal. The things that hold you back are survey and solicitors

But say you have your mortgage ready then it's like cash in the bank so the agent will know your'e serious and help you. After you have put an offer in and it's accepted give them a call every week if theyr'e not calling you and ask them what progress theyre making.

Also a little tip - Not only do agents make commission from sales but they'll get money for surveys and mortgage advice. So if an agent has a mortgage advisor go see them. Even for a referal we got £20 and you only have to sit there for an hour for some free advice - this way the agent will like you and probably help you (sounds stupid but £20 cash kept my clients on the top of my list)

Is it true that there is some legislation coming in that means the seller has to have a survey done and show this to perspective buyers?

Well it comes in 2007 I think - its called HIP

thehipreport.co.uk/hipsinfo

It's nothing scary and if anything helps the whole mystery of the purchase process a little more transparent

In the meantime if your'e looking at a house that's falling to bits then get a full survey done - theyr'e not cheap but the great thing about a surbeyor is they'll give you a price for repairs etc which then acts as a very good tool to negotiate price. As agents it was a given that if full survey was being carried out then we knew a offer was coming with it.

Well it comes in 2007 I think - its called HIP

thehipreport.co.uk/hipsinfo

It's nothing scary and if anything helps the whole mystery of the purchase process a little more transparent

In the meantime if your'e looking at a house that's falling to bits then get a full survey done - theyr'e not cheap but the great thing about a surbeyor is they'll give you a price for repairs etc which then acts as a very good tool to negotiate price. As agents it was a given that if full survey was being carried out then we knew a offer was coming with it.

sorry coops - I dont mean the surveyor will give you cost of repairs. What I mean to say was they will let you know what the issues are so you can work on costing (knowing a builder here is good or finding one who will give you a free quote)

One more question I promise!

One you have had a bid accepted is the property taken off the market or can a higher bid still be accepted over your own?

No if the offer is accepted they stop advertising it. Only when contracts are signed do they formally recognise the sale but don't worry..if you make an offer and it is accepted it is very bad business to invite other offers! It won't happen!

and by the way.. I dont mind if you have questions! I was an Estate Agent during my placement year at university and having to explain the hard facts to buyers who were often older than me was horrible - so if I can help then its no problem

So what are the main causes of a sale falling through?

One you have had a bid accepted is the property taken off the market

Kind of

can a higher bid still be accepted over your own?

Yes


Good luck!

Deepak

Edit - removed duplicated post

So what are the main causes of a sale falling through?

Sometimes a sale falls through if the buyer is taking too long to get their mortgage, survey etc. organised and the vendor gets sick of waiting, but sometimes its just because the vendor changes their mind. We had an offer accepted on a house, we were first time buyers, already had our mortgage sorted and arranged the searches and survey straight away, but the vendor still pulled out five weeks on without giving us any reason.

Don't let that scare you too much, as long as the vendor seems serious about selling and you don't cause any unreasonable delays the sale should go through, I think we were just unlucky.

No if the offer is accepted they stop advertising it. Only when contracts are signed do they formally recognise the sale but don't worry..if you make an offer and it is accepted it is very bad business to invite other offers! It won't happen!

and by the way.. I dont mind if you have questions! I was an Estate Agent during my placement year at university and having to explain the hard facts to buyers who were often older than me was horrible - so if I can help then its no problem

Not strictly true - an agent is under no obligation to remove the house from the open market until the contracts are exchanged, however most usually do as a gesture of goodwill. Sometimes if an asking price is not reached properties are left on the market (and still advertised) and you just have to hope that the solicitors exchange before someone comes in with a higher offer. if allhouses were took off the market upon acceptance of an offer (as is the law in Scotland) there would be no such thing as Gazumping.

True - but in my experince of estate agency - word gets round very quickly if 'guzumping' is involved with any purchase. Its not a done thing - and i think only shoddy agents do it