House bidding advice..

Guys..
I know its unusual for someone to be actually buyin a house but think its good value and will be needing place shortly...House is advertised at 300k..EA said builder would take 250k and no lower...offered 215k and after bit a haggleing etc builder will do deal if pay 5k deposit by tom..and close with in 5 weeks..have applied for mortgage...Bit of a rush but think house good value at 215k but can never tell the future..am i mad..?

Re: House bidding advise..

you said you have applied for the mortgage, not that you have the mortgage. If you put down the 5k deposit and then dont get approved and all sorted within 5 weeks you will lose your deposit.

If the builder said no lower than 250k and now he's going to except he's obviously desperate to sell.

Get the mortgage approval first. As for are you mad? who knows? some will say it's mad to but others will say go for it. If you like the house and the area and your planning to live there for a while, and you have the money to pay the mortgage ( job secure ) then it wont matter if the house price does fall a bit, cause your not planning on re-selling again in a few years.

good luck what ever you do

Re: House bidding advise..

But i would presume that deposit is refunable if it all falls through..must clarify that

Re: House bidding advise..

You are just paying a booking deposit, which IS refundable. It is only the deposit you pay when signing contracts which is non-refundable. So you can still pull out if necessary if you do not, for eg, get mortgage approval.

As to whether you are mad to buy a house in this climate I have nothing to say- who knows? If it is a house you want to live in, and you can afford the repayments ( even if rates rise) then you should make up your own mind on it. There are people who will advise you either way.

Re: House bidding advise..

sorry i should of said "will you" not "you will".....always been a bit backwards

Re: House bidding advise..

You should be calling the shots on this one. The builder probably can't wait to get rid. Remember he is not doing you any favours. Don't feel pressurised or rush into anything.

Re: House bidding advise..

thanks guys..hes lookin for 3k tom and 2 k next week..which i am happy enought to pay as it is refunable if i get refused for mortgage...which ya never know these days..

The builder could well go belly up in 5 weeks and you loose your deposit, he might even delay paying it back and go belly up in 6 months.
Tell him you'll pay the deposit when your good and ready.