How to make an OFFER on a house!
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- Опубликовано: 4 авг 2024
- This might seen simple, yet a lot of people make mistakes which could be made a lot easier just by considering the points I make in this video! I want you to be able to make good decisions and be able to get the best deals for your property investments! Speaking to estate agents is a pain sometimes but you need to build good relationships with them!
Flat price was 150k. My offer 124k was accepted. Have done some cosmetic work which cost me 1k. 3 years later sold property for 174k. Success!
Boooooyaaaaaaaa! Winning!
what percentage of guide price would you offer if you paid in cash?
Thanks Jamie
You were asking for crazy offer stories. When we bought our home, it was just after brexit, my offer initially did not make it to the vender because the agent resigned and changed job. After about a month or 2 i rang up the agency to see if i can get feedback. It seemed no one passed on my offer and no new offers were made, so my low offer ended up being accepted. The agent then told me the vendor initially rejected 2 offers higher than the asking price. True or not it makes a good story and i know (from data) i got a good deal.
Thanks for the video, now to find the next good story.
Your points are spot on Jamie and as usual really resonate with me, transparency, integrity and honesty when dealing with folks is the best policy, especially when building a business. BTW the way I used to use the negative technique when buying cars until I saw how Mike Brewer did it on Wheeler Dealers, he always complements the vehicles to get the vendors on side..very smooth.
Excellent advice Jamie. Thanks again for your guidance much appreciated!!
I ended up buying my perfect home and negotiated a good price thanks to all the tips you outlined in the video - it was a house that had a lot of interest but because of the things you outlined I had the edge and rapport with the seller, and got it even though my offer wasn't the highest. Thank you for posting this video Jamie, helped me massively!
Thanks. I have purchased 3 properties for me and my family over the course of 25 years. I thought I knew everything about properties. I don't, especially now that I'm seriously thinking about property investment as a way of investing my money and time . Watching these videos from you is really opening my eyes, broadening my knowledge and giving me a lot more insight into how these property "games" are strategically played and won. Thank you. Great advice & valuable information. 👍🏽
Dude I'm going to have to watch this more than once, so much to learn! Thank you!
Haha, no worries. Really glad it’s helped 😊
Thanks a lot Jamie, your approach is clear and simple but with sound know-how.
Glad it was helpful!
Good advice there I used to go on so many viewings, as a newbie initially it helps get a perspective on what’s out there but realistically after the first few you are wasting your time. I now have my own excel spreadsheet breaking down every purchase cost, refurb costs and net income after all costs which I can plug my numbers into before even viewing to generate an ROI anything less than 15% (HMOs) and I won’t bother! Great point on the meeting half way I used to think like that initially until I switched on to a) Making a very specific offer last couple £221700 and £238700 so they get the impression that your serious / calculated and there probably isn’t much room for manoeuvre b) Give them something to save face rather than an absolute no £1000 to £2500 usually extra. Literally just had 2 offers accepted today sweet!
Would love to learn how you decided what to include in your spreadsheet. Can I buy a copy of this document from you ;)?
The "cigarette fumes" part was hilarious 😂
Kinda wish i watched this before i put in an offer on a property now.. although i still got it at a good price, the qay you negotiated it was slightly better than mind haha. Great video mate
Thanks Jamie. Awesome video. I believe negociation is the utter definition of insulting someone's intelligence. Sometimes might be needed, but, boy! I have hard time to get it!
Great job as always!
Thanks again!
Hi Jamie, thanks for the video.
Imagine the situation.
There is a property on the open market for 360k, however its realistic price is 350 k (sellers just wanted to test the market). There are 3 parties which want to buy this property:
Party 1 -you (experienced buyer)
Party 2 and 3 unexperienced with 10% mortgage.
You made an offer for 355 k, but party 2 during competition with party 3 increased the offer to 365k. The seller accepted the offer for 365k. The legal process started, however, the surveyor downvalued the property to 350 k, as a result, the buyer does not have enough money to proceed and asks if it is possible to reduce the price to 355 k otherwise he will need to pull out. As a result, party 2 wins, you are out.
How often does it happen?
Can it be used as a strategy by dodgy buyers to trap the seller?
Thanks in advance.
Could you please make a video about property valuations?
Regards,
Anton
Great practical advice. Thanks, Jamie.
Glad it was helpful! Thanks for watching!
Offered 110k, my offer has been rejected.. after month agent rang me again and asked if I want to review my previous offer.. and I did- said I will buy it for 100k :) my new offer was accepted.. after 1 year that property price jump to 170k in valuation :) That was a funny story.. I am happy in the end :)
What area is the property in?
@@Avdarmaly North Manchester
Is it a lease or did you borrow
Amazing!
Top dog.
Jamie, do you deal with Scottish property?!
How about a video on differences between English vs Scottish/ welsh from putting an offer to finalising the deal
Really good vid Jamie cheers
Thanks :)
good advice
I'm a sucker for a KitKat. That would definitely get my sale.
Hi was wondering if you think renting to a local council is better than renting privately. I’m newish to your channel and trying to gain as much knowledge as possible. Thank you in advanced
We bought our house 15 years ago and used the "meet you half way" offer. Didn't realise until way later we actually offered about 10k more than the nearest !
This is what I'm scared of
Another solid vid, I basically do this but will start formalising things with the letter of intent. Recently had a bid knocked back of 70k when they were asking 75! Turns out the place has been empty for 2 years, some sellers need to wise up too!
im new to the UK property market, I want to look at properties to get a sense of value but I have no clue on where to get information and estimates on renovation/fixing costs. Build qualities and standards are very different then in Canada where I'm originally from.
Great video as always Jamie. I had to laugh at the estate agents recommended solicitors you called sausage factory’s ha ha!! I once went with one of these which was a mistake. Always very polite on the phone but took ages. (Don’t want to mention the company name but it rhymes with Countryside) 😁. In the end I just had to drop them and go with a local solicitor. Little bit more expensive but so much quicker.
Good call!
Hi Jamie what’s your opinion on down valued property? If it was 20 grand down valued would you refuse to pay more than the banks valuation or meet half way etc but that would mean a much bigger deposit ...
Good advice
Glad it was helpful!
Great video
Thanks!
Jamie..one other thing. I watched one of your other videos where you mentioned mileage allowance, and the vehicle should be in personal name...why is that? And could you explain mileage allowance or point me in the direction. Thanks mate and sorry to be a pain
4:49 "Is that cigarette fumes?" Oh dear Jamie. HAHA!!!
hahaha!
Good one buddy
Cheers mate thanks for watching! 👍
Got proof of funds with solicitors, so you can move forward. I can put forward 106750, thats my absolute limit will that work with the vendor? No worries it valid for 48hrs, if not ill revisit in a few month if its not sold.
Hi Jaime, great videos 👍, question; would you do a interest only mortgage on your personal residential property? Many thanks
Jamie, I tried to buy two new built and around £800k each by cash with the money proceeds from sale my family house in HK. I paid £2000 for reservation, I also used Developer’s recommended lawyer to do both converyancing. But the lawyer took more than 2.5 month and still could not finish the exchange contract and the Developer moved forward the contract exchange date and lawyer could not complete the exchange contract by deadline and the deal fell through. I complained to Legal Ombudsman about the lawyer negligence and sued the developer for money back. I suspect that both parties corroborated to delay and cancel my deal as the Developer found better offer buyers. Have you come across similar cases before? My son tells me never use Vendors’ recommended solicitor. Is this a correct motto?
Good educational upload, but in reality the way properties are selling quickly in current climate, it wouldn't always work. Properties are selling for asking and above asking price. Also, estate agents value properties based on sold comparables.
Great point!
Totally agree with this point.
In my area property's don't stay more than 1 or 2 weeks on the market.
Jamie...brilliant video sir..have you got a video about due diligence. I take it that means will rental value provide cash flow?
Yes I have
Its quite a hot market right now, why do you think its not selling? Do you think thats reflected in the price or the vendor being unrealistic in that?
If i would put forward in an offer that was a bit reduced but i could go through, certainty and quickly, would the vendor consider that?
No matter what you do or say the highest offer most likely to win ….someone asked about Scottish properties. Well in Edinburgh everything must be over home report valuation (unless really poor ones), only question is where you bid north of the valuation. Offers often are sealed till closing day, seems seller’s market!
Most likely, but not all the time, that’s where sales comes in of course 😊
Hi Jamie,
Great video! Thanks ;)
I'm just wondering if I was to purchase a property now while the market prices have increased. Is there a higher possibility in the future if or when I come to sell it, of losing on it due to already paying over the odds?
Yes. That’s the short answer. There is always risk, but it’s for you to decide whether the juice is worth the squeeze and the purpose behind getting the property
When i bought my house i haggled as if I was in the fish market.. 120k is the price. i initially put in 110, he dropped to 119 then i went to 112..lol agent then came back 118500 last price then i gave my last price 115. Then it stopped for a week. Agent rang me again asking my last offer i said 116 with a swear 🤣 as i got pissed of the whole situation then vendor offered 117 then we closed the deal... The house was 3 years old and still very fresh.. didnt do any refurbishment.. and im living in here for 2 years now.. I will surely apply all the lesson learned for my next btl property.. 😄
Jamie, Belated Happy Birthday!! :)
Thank you!! 😊
Great Vid.
Question: If the vendor rejects the offer and you do the "revisit after a few months of not sold" would you go on again with the same offer you first made at the time or would you change this?
I'd ask a few questions and see if they are actually motivated to sell and why they haven't sold it yet. I'd be setting my limit smaller because they've lost the luxury at the beginning
@@JamieYork Thanks.
Hey Jamie, started watching your videos and really found them educational and really helpful. Do you have any advice on purchasing student suites at a university complex and what are the pros and cons of this investment?
That will be an interesting one
Cheers, thanks for watching! Glad the video helped you!
The most bizarre experience I just had, made an offer on a property and while being the highest bidder, the bid was unsuccessful because the seller wanted to sell to a first time buyer and not an investor. Lesson learned don't disclose your intentions for BTL.
Why would they care if it's a first time buyer or not?
The reserved happened to me. The vendor said they had two offers above mine but they prefer to take mine because I'm an investor and I know the process better than the other two who are 1st time buyers. Bizarre!!!
Very strange
@@tf2368 probs they wanted to help someone get on the property ladder who was gonna live in the house and enjoy it
When I bought my main residence the vendors wanted to sell to me as a 1st time buyer instead of an investor. People that don't want to mess about would prefer an imvestor, people that hate landlords would prefer other type of buyers..
Hey man been watching a few of your videos recently and in a lot of your examples you seem to pay a deposit for a mortgage as opposed to buying outright with cash, is that just because it's more of a realistic example for the average person or because there are actual benefits to doing so?
I would have thought if you have the means of doing so, buying with cash will always be better right?
Why would it be better in your opinion. I’ve got a fair whack of cash now but I’ll always look at leverage first. It allows me to purchase more 😊
@@JamieYork I'm just thinking from a zero loan point of view, If I was to buy a house with cash that removes a lot of the extra fees that come with buying with a mortgage, also I wont be having to pay the extra % from the mortgage itself which depending on the interest rate can be a real step back and could mean a whole room renovation or two.
Unless I was trying to expand my investments at a really high speed by buying multiple properties with mortgages which I'm not, I feel as if paying in full, renting out your house, saving up again, buying another property with cash etc is also a valid option no?
Just as a disclaimer I live near the valleys so house pricing isnt crazy and buying with cash is still an option, or at least that's why I'm asking for your opinion on it.
@@Boombaclarted valid, but veeeery slow!
How mant years do you need to save cash to buy another property?
weirdest thing recently went to arrange a viewing and the estate agent told phoned me back and said they were dropping the seller because the seller had just put the price up by 10% just because id asked to view. wild
How do you cope with sealed offers
On putting forward an offer to the vendor you say you should provide proof of funds. I understand how you can provide proof of funds for a mortgage, that's an Agreement in Principle. How can you provide proof of a gifted deposit?
What about putting in a lower offer on a property advertised for ‘offers in excess of’?
That’s no problem at all. Same structure
@@JamieYork is there a percentage below that you see as ‘taking the piss’? This is through an agent. They don’t operate in the area the house is located and have overpriced the property by at least 4%
First ✌🏻
Wouldnt going in cash jump the cue to most. Surely a bank statement shows credibility
Depends on what the vendor wants? Speed or security?
@@JamieYork wouldn't cash offer speed and security? Over all the checks needed with a mortgage etc. Most people want it sold as quick as possible.
Fresh fro
If the property is being sold by a company (vendor) via an estate agent, would you try to go direct to the company?
No. I really try not to cut any agents out. It’s a small industry and I don’t want to cut my nose to spite my face
@@JamieYork Thanks Jamie. Loving the channel and the frank advice. Very kind.
What is your preferred equity percentage in your BTL's. You strike me as the type of person to have more than 25% in each. Which is my preferred method.
Keen to know why 25% is preferred for you Darryl, if you don’t mind me asking
@@maartjeramakers1572 I tend to have 30-40% equity in my properties. This enables me to lock in at the lower interest rates on fixed mortgages. Also, peace of mind for any market crashes etc. However, this does go up as the property appreciates in value
Is the current market making everyone expecting above listing price?
Yeah it seems to be
*What if the house price says 'Offers in Excess of £400,000' How mush should i offer?*
I viewed an hmo few weeks back and estate agent said if I put x amount they will accept. I told them I will get back tomorrow as need to check the numbers and new rates. But at 8:30 next day they said vendor sold to other buyer because they offered 1k more and he is even willing to pay 5k extra. It was so disappointing. Two weeks later they came back again and said the buyer pulled away and told me if I want it? I said I will be back after checking with my Broker. After a day or so I said my numbers work and I am going to buy it. I was in direct contact with vendor in parallel as the agent had given the permission. I asked vendor let's ask the agent to send the letter that offer accepted and we can exchange the solicitors details. Unfortnatelly a day after they said sorry now this time they are selling to a cash buyer. Tgey put me down twice apart I had sent the proof of fund and my details. Not sure what I should have done this to happen. This vendor killed my time and energy and in mean time I lost another opportunity.
Currently negotiating on a property that has come back onto the market after a chain collapse. EA state the vendors want a quick sale as property has been empty 3 years. We are no chain buyers using mortgage. Property on at £229,000 EA told us when viewing that vendor will take £200,000 so we assumed offers around. However 2 failed offers into negotiations under the 200k EA informed us they have a mortgage to clear. Any advice in where to go from here please Jamie?
How do you protect yourself in a deal that is in a chain? I heard it can go wrong and you can lose money! Is that true?
Yes, but the secret is to be ready to buy any chain breaking properties
@@JamieYork trouble with that is imagine the chain breaking property is double the price of the property you are purchasing!!! That's a huge amount to potentially have sitting around for the average person.
Not at all. You usually get a better price :)
I'll take second then
:)
And the Oscar goes to....😃
hahahaha!
Seriously the part with your offer and the KitKat cracked me right up 😂
I found a 3 bedroom house of price £530,000. House is very popular with many potential buyers. How much should i offer for this house?
Pity that such irritating sounds have been added to the video which completely draw attention from advices
I’ll feed back to the team :)
@@JamieYork It will be great :)
Another solid vid, I basically do this but will start formalising things with the letter of intent. Recently had a bid knocked back of 70k when they were asking 75! Turns out the place has been empty for 2 years, some sellers need to wise up too!