How To Offer When Buying Property

For some buyers, it still makes sense to proceed with a purchase, even (in fact sometimes because of) a looming recession and property market downturn.

But, the most important thing is to not overpay. So how do you know what the right, fair, market price is? Because every property is unique. Even two physically identical neighbouring properties will have a different feel.

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[SamuelThornton]

I put an offer on a house 10% below asking price. They agent told me because its been sat on the market for a long time and no offers received, the seller is open to reducing their asking price.

A day later the vendor spoke to their family and bumped the asking orice up another £40k+ because they (their family) believe its under-priced.

The estate agent was gobsmacked and told me this property will not sell especially now. Shame really, we liked the property and neither of us understand why the vendor thinks its worth more, they had no offer offers.

Do you think this is a lucky escape from this vendor Charlie? (Better for this to happen now, rather than when we are invested in the procese).

[nickbrown]

You didn't cover the situation where I got caught out big time. First time buyer, tying to buy a starter home in a very hot rising market in 2015. 20 potential buyers at the open house viewing I attended (one of two open house viewings, so likely 40 potential buyers). The agent was only accepting offers over. I put in a big offer (about £15, 000 over, about 10%) to blow everyone else out of the game and hopefully secure it. Offer was accepted. But by the time exchange of contracts was about to happen (about 3 months later), the house prices on this type of house had risen by over £30, 000, so the seller decided to withdraw on the day we were meant to exchange contracts, and put the house back on the market. I lost over £1500 in legal/surveyors fees. And because the prices had run away from what I could afford by then, it meant I never managed to buy a house in my chosen city, and probably now never will. I ended up buying a house in a cheaper city 40 miles away a year or so later, but it's not really where I want to be. I feel very let down by the whole system. Is there any advice you can offer to avoid a situation like this happening to anyone else?

[mar]

Sometimes it’s the location not the home itself we fall in love with

[vuthomas]

Really enjoying your content. Thank you for providing such valuable information to those of us who are new to the property market!

[samba]

Hi Charlie. After 5 years of renting, we have found two properties we love. The asking price is the same for both and we are about to offer on one of them. If our offer is rejected, we will then make an offer on the other. Fingers crossed, we are successful, and bag ourselves a home. Thank you for your advice. I feel much more confident in this whole process than I did before subscribing to your channel.

[broadleyboy]

Excellent video Charlie relaxed and informative .

[epijournal]

I bought a run down house that i really really hated. But an awesome area. Que 6 months of renovating and its starting to look pretty awesome.
Perhaps mention if you are willing to make it into a home, it can work out.

[talexe]

Hi Charlie, these videos are coming at just the right time for me -- thank you! We're first-time buyers looking for a property but are in no rush, which is to say that we'd like to move in the next 18 months or so. We're ready to move, but there's also a huge amount of uncertainty in the market (and in the wider economy). If we project that there could be up to a 20% correction in the housing market over that period, would it be a reasonable strategy to keep looking but to make very low (15-20% below asking) offers on properties we're interested in? This strategy assumes we come across a trickle of houses which we like a lot, but aren't ones that we'd get drawn into a bidding war for. Or would our precious time on Earth be better spent just waiting 6+ months?

[TedsAssassin]

We are sitting tenants hoping to buy our current house. We have a valuation and negotiation coming this afternoon. What a time to find this video! Thank you!

[Hixyboyblue]

I have the same Pink Floyd back catalogue poster. Awesome taste.

[aliaksandrasaywell]

It is a bugger if you found two properties in the area and both are selling under the same agency.

[samsurfer]

Very helpful. Sound advice. Much appreciated

[yoginid]

Thank you Charlie. Really appreciate your videos and clarity.
Here's a scenario (I find myself in): with the budget I'm working with, there isn't really a property that I see myself 'falling in love with' (location, size, requirements). My 'dream' home or the kind of property that I would fall in love with, or see as my dream online, is well above my budget. So... what I do find myself finding are properties 'that I like' - and could happily live in - but even with these properties there's bidding wars. So it's a kind of philosophical and psychological question really: how far do you push yourself to purchase a property 'you like' and can be happy with, knowing that on your budget there will compromises to be made with whatever you buy.

[msbs]

Finally, a non-sensationalists Brit that is looking to help buyers and not investors. Glad I found this channel. Looking to buy within the next 6 months. Been on pause since the covid frenzy and hoping the time is now right. Looking for pre covid prices so around 15-20% reductions ideally, East Midlands area. Possible or not?

[xJeniee]

Thank you so much! Found you on tiktok at just the right time.

[mikeparrott]

I've just found your channel and subscribed. Enjoying your content alot. Massive commonsense thinking and market knowledge from yourself.

[Natta]

Really useful thanks. Subbed. Every house I have viewed, they have been sealed bids because of multiple offers. It gives me the worst anxiety and desperation sets in. It's so hard to be logical when deciding what to offer. Best advice i've got is to only offer what you can afford not what you think others may be offering.

[ArsenalTrill]

Keep bringing the great content...Loving it 👀🍿♥️

[TheGregcawthorne]

Important to add; with the cheeky low offer, they will also usually come back to you with a best and final offer if someone else comes along. So it is unlikely they will leave you out of the equation entirely.

However, then you would have to probs pay on or over the asking price anyway.

Again, depends if you're in a falling market + how much you want it anyway.

[Joe-yhqg]

Hey Charlie - great videos! What do you think will happen to interest rates over the next few years?

I ask because I’m buying a £350k property in London on the HTB scheme using the max 40% equity loan and £20k deposit. They are now predicting 12% dip in London which, if correct, would knock £42k straight off this property value. The catch is that if mortgage interest rates rise to something like 6-7%, then buying a similar property in a couple of years, not on HTB, would cost me this amount in additional interest (or more!), seeing as I would be taking out a larger mortgage without the 40% equity loan being available through HTB. So actually means I wouldn’t save anything for waiting and purchasing in the dip, or may even end up being more expensive due to higher interest rates.