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First time buyers: to buy or not to buy?

Discussion in 'General Chat' started by krish, Sep 16, 2005.

  1. krish

    krish
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    Interesting points made in an article at This Is Money

    I agree thats its not so much a buyers' market, as a vendors refusing to sell market

    I'm a first time buyer and have found agents/vendors to be totally against negotiation at the moment, so what's the feckin' point of estate agents giving most of their guys the [expletive removed by admin. Careful :nono:] job title of "negotiator"!!

    Recent offers have not been accepted and the best I've been getting is just 2.2% off asking price. Have also found agents to be total @r$€hol€$ in that they don't bother calling back with negative feedback on an offer.... what if I'm up for negotiating???

    Prices are dropping, FACT! So vendors should either take their properties off the market or price them realistically otherwise they are wasting potential buyers' time - estate agents should be sorting this out and stop misleading vendors and buyers alike, but what are the chances of finding a helpful estate agent? There's no way I'm going to be lumbered with negative equity if I can help it.

    Anyone in the same boat??

    Anyone been to property auctions and bought their house this way? - any feedback on how this went? Typical state of properties?
     
  2. krish

    krish
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    thx, yep they're muppets, and so many of them appear to be early 20s with nice cars!

    When I've given agents my price range, they then show me houses that are at the upper end, as well as over that range (but possibly in that range subject to negotiation) - so they know they've overpriced everything or that the price is certainly subject to 10-15% discount. YET they're not negotiating!

    Then when it comes to the specs - I've seen so many box rooms described as doubles; small cupboards described as fitted wardrobes; and totally misleading dimensions given for kitchens, dining and reception rooms - they are really taking the pi$h!

    I'm seriously considering waiting a few months now, as there's so much talk of a crash!!
    - sorry as I don't mean to worry you or recent buyers, I'm just weighing up what I'm paying in rent against mortgage repayments and falling house prices. Its good to have made the investment and buyers are cannier with their mortgages, so I don't think we can expect the associated problems of the early nineties recession, i.e. reposessions on top of the negative equity.
     
  3. Nobber22

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    Just moved into my first property this month. Bought new-build, so I experienced less trouble with the deal. Well a bit less - lawyers are almost as bad as estate agents when it comes to keeping you informed.

    Crash? Not round my way. There is still way too much demand for houses in the South. Prices are steady right now.
     
  4. deanym

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    You make perfect sense. Luckily our house with its location and state doesn't take much investment to put 20% on its value, so even if the housing market drops in price, ours shouln't go into negative equity, and if we wish to move on to a different property, the jump in price will be less, so we win both ways.

    That was a pre-requisite when we bought - somewhere that with a wee bit work would offset any price fall.

    But it seems you've thought about it very well and as nobber says if you're in the south/south east there's no reason to panic.
     
  5. mjn

    mjn
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    Prices have steadied here in Hertfordshire....but still pretty expensive, and show no sign of dropping. So we just took the plunge a couple of weeks ago, and waiting on the solicitors to sort their life out!
     
  6. buzlightyear

    buzlightyear
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    Me and the good lady will be soon entering the housing market, just going around mortgage lenders at the moment, im still confused as to why xyz bank offers me xxxx amount the next can improve on that amount by £80,000!!!! i can understand a few thousand but thats crazy. We are hoping to go for a new build too. Ive read that upto 5-10% off list price is a norm. Estate agents are still back in last year, hoping someone will buy at the high price and will wait until someone buys and ignore any offers below, its the estate agents that are advising the sellers to wait for the "sucker" buyer.
     
  7. mjn

    mjn
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    I wouldn't borrow right upto your limit anyway! Just too much pressure on your wages.
    Some people were willing to lend us £280k, but we only borrowed £165 in the end.
     
  8. krish

    krish
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    Yesss, New Build Good !! :D & GOOD POINT ABOUT DISCOUNT ON LIST PRICE - so good luck; have a really thorough viewing early, then spend much of the day weighing things up if impressed and it seems to tick all the right boxes, then make a decision to go for it ASAP
    - and the reason I'm saying this is.....
    Update on my position since original post: I just reserved (with deposit) a new build - found out about the house yesterday evening, viewed this morning, offer made at 4 this afternoon. Main sales guy gave me the bottom line price which was about 10% off, wouldn't budge, then after 20 minutes got him to phone his manager as I'd sign up right away at 20% and being an FTB with mortgage prearranged I'm a hot lead he wouldn't want to loose - closed at 15% off after that phone call, house all carpeted/tiled, curtained/blinded, dishwashered, fridge-freezered, turfed, trees...
    all set to exchange and complete a month today! Two other couples had come back to reserve as I was signing up, but this was the last house of that type left, so I'm very glad that I moved fast on this.

    As regards mortgage - I found a 2 year fixed Nationwide was the best as after taking account of the fees, it averaged out as the lowest monthly repayment for the first 24 months. In my case I've a good deposit to loan ratio which I'm told (by the mortgage advisor) has made lower rates available to me??

    Am now looking at solicitors' and surveyors' fees - any hints or tips about getting this done cheaply would be much appreciated! :lease: :thumbsup: :)
     
  9. pjclark1

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    New build doesn't need a survey, it will have a 10 year NHBC guarantee, but your building Soc. will arrange and charge for a valuation fee (to check they can get their money back)
    Solicitors, go for a fixed price deal, plenty advertise on the internet.
     
  10. PaulaB

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    I had this when I brought a house nearly 8 years ago. The estate agents messed both us and the house owners about so much that he lost a job he was going to move for. They took the house of the market so we started looking for a new house, I specified not a bungalow, semi or terraced or new building so thats what I got sent!! The only house that they sent was so bad I didn't even look at it all. Firstly it was so bad their last remaining pet cat was moving to a house down the road! There was that much dog mess in the garden that the turf would have had to be replaced. The kitchen had a hole in the ceiling and would have had to be stripped and replaced, oh the dog urine all over the floor was really stinking! There was NO wall paper any where it had all been stripped and the carpet was removed badly so for (this is 1997) 63000 there would have been a lot of work doing to a not nice house. I nearly forgot it was advertised with a downstairs bedroom with en suite, it had a white bathroom set but the inside of the toilet was solid brown!!!!!! After we complained we got no more properties from that estate agent, but the original house wanted was sold directly to us so we got it in the end.
     
  11. krish

    krish
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    thx :smashin:
    looking into it

    as regards the BS fees, I added these to monthly repayments just to work out the cheapest average monthly repayment for the first 24 months, and Nationwide, at present, appears best suited to my requirements (2 year fixed rate, calculated daily, up to £500 overpayment allowed per month); though will pay those fees upfront rather than adding to mortgage.
     
  12. buzlightyear

    buzlightyear
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    Nationwide seem to be a good bet, got to pop into Northern Rock at somepoint and see what they can offer. Then its time to compare all the APR's, fees etc. They make there money somehow.
     
  13. UrbanT

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    Northern Rock are not competitive in the mainstream market, their market lies in 100% lending, and higher income multiples.

    Nationwide are always a safe bet, their 2 year fixed rate at 4.39% is near the top of the market. Keep an eye on Alliance and Leicester though, they are releasing a 4.19% 2 year fixed in the next few days :)
     
  14. UrbanT

    UrbanT
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    Oh, and whatever you do, do not use APR as a way of comparing or choosing your mortgage, it is misleading with 99% of mortgages.
     
  15. Yandros

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    The market is stalled at the moment, potentially teetering on the edge of the abyss and waiting for some event(s) to shove us over the edge. Considering that the UK, German and US economies are all looking shaky or worse, and the oil situation continues to look iffy, it'll not take much to tip us into a global recession, taking house prices with it. Even without such an event, we're so far above the long term price trend that it's bound to rebound in a big way eventually when first time buyers run out of money. If you don't think that the UK market could unravel due to panic selling, just look at the rational behaviour at the petrol pumps last week *cough*. With the housing market though, it all happens in slow motion.

    Last time around I lost £30K on a £44K flat. The market took over 3 years to drop, and prices took a further 5 years to recover.

    If you've bough recently, I wish you luck, and pray you don't end up in the hole I did!

    http://www.housepricecrash.co.uk/forum/
     
  16. UrbanT

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    There has been talk of the housing market crashing for at least the last 3 or 4 years. At some point it has to happen, but you can't always rule your life on things that may happen.

    The British are still a nation of owners, who want their own property. So there is an emotional attachment, as well as a financial one. This is quite often forgotten in this sort of debate
     
  17. krish

    krish
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    Finalised my Nationwide mortgage today!! Hope I'm not really losing anything compared with A&L :rolleyes:
    - the cheapest two or three 2-yr fixed rate mortgages (Nationwide, Halifax, A&L) do all tend to average out about the same (+/- £10/month) once you account for the valuation and arrangement fees, i.e. lower interest rate probably means higher fees.
     
  18. UrbanT

    UrbanT
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    You have to take the best deal available on the day. As long as you are at 'top of the market', which is now somewhere between 4.19% and 4.39% in the case of 2 year fixed rates, you are doing OK.

    With mortgages, at some point, you have to plant your stick in the ground, and take a deal. If you wait forever for the next best deal to come by, you could end up losing altogether.

    These small differences in rates do equate to +/- £10 a month for many people, but are more important for people with larger mortgages, where 0.2% can make a reasonable difference. Be happy with what you have Krish, its a decent deal :)
     
  19. buzlightyear

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    Myself and Mrs Buzz have found a house we both like and have put a offer in to the estate agent, the house is in fine decoration apart from a roof on a conservatory and has the orignal tile roof, the house is from the 30's 2 bed main bed has shower and sink, and has a nice big kitchen, and garden, as we are first time buyers and the present owners selling up to go travelling, what do you guys think is a fair price.
    The house is up for 189,995, was up for 195 before summer, and will be happy to go up to 183-184, any more than that do you think the owners are asking too much?
    Thanks
     
  20. gringottsdirect

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    Firstly, depends how much you want to buy this particular house, pay the asking price if you need to, but that isn't really sensible right now.
    The present owners are " selling up to go travelling ", this can mean several things, ie they may think they are selling before prices crash, they may be planning to rent, they may have maxed out their credit and need to get themselves out of a hole, or of course they may really be selling to go travelling. Either way they will be looking for somebody that can proceed quickly, no chain, that is a flag to put in a low offer, say 20% below asking price, £152k - ish, make them aware you can move quickly and that you are shopping around. Increase your offer until they bite - depends how much they need to sell.
    Obviously the conservatory roof needs attention, with the age of this house, a full structural survey would be worthwhile if you are serious about buying.

    http://www.thisismoney.co.uk/mortgages/house-prices/article.html?in_article_id=404243&in_page_id=57
     
  21. buzlightyear

    buzlightyear
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    Thanks, found out from the estate agent after offering 180k that the vendours are looking for 186-187k good luck to them :thumbsup: Im looking in a area of the South East where in the last month the average house has lost £2k in value, might have a bargain in 2 months time when they are desperate to move. I guess thats why it didnt sell before.
     

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