Hi, I’ve been in the market to buy my first B2L property in the North East and have done all the ground work (market Vale, rental values expected, costs etc).
I’m all set but so far have had several offers on properties rejected. I’ve been offering market value less the cost of the repairs etc that will need doing with a view to possibly increasing the offer as needed.
Estate agents haven’t been great at communicating with me either so I’m stuck at the moment.
Does anybody have any advice on how to improve chances of having offers accepted? Is it better to just offer the final figure and leave it? Obviously I don’t want to pay too much for a property but I’m not even getting the agents asking me to up the offer. I’ve already told them I’m ready to buy several but want to start with one first to get my feet wet.
I’ve bought houses before to live in but this is a different environment.
you are not offering enough money
You’re in one of the hottest property markets for decades unless you’re in London. There is little scope for a bargain at the moment.
if you’re offering “market value” and deduct renovation costs the market value must be what a comparable, renovated unit is selling for.
the days of buying a place cheap, doing it up and then having a “profit” have gone . .In the main that is. I have switched to commercial properties and done better
Do people think I should just offer the maximum my figures allow and if it is rejected move on? I don’t want to pay more than I have to.
Normally I’d start low and increase but I’m not getting the opportunity to increase. The estate agents aren’t really communicating so I’m trying to figure out relationship best course of action.
No one wants to pay more than they have to but if you keep losing out ,then you have to offer more than the asking price regardless of the condition. I recently sold my house . I got more than the asking price . So to get my present house I also offered more and got it. The last commercial property I offered more and got it . That s life at the moment . Property is in great demand, look at all the building work going on
It also depends if you are buying with a mortgage or not. A surveyor friend of mine told me that it is becoming more common for surveyors to value properties at less than the agreed price because people are offering more than they are realistically worth from the lender’s risk point of view.
This obviously has the effect of increasing the LTV ratio, so you may have to put in more deposit.