Property bid - confused ! Your opinion please ?

earlgrey11

I have no idea how the estate agents work etc ... so I like to hear your opinion on this as I am very confused !!

OK facts

The property has been on the market for 7 months - It has dropped price the last 2 months to 490 000 - Photos & location looked nice. I make an appointment to visit: Location is indeed nice but house needs work. I tell the lady i like it but do not think it is worth 490 000 £. I probably would offer 440 000 I say. I get told they already have 1 offer just the same so I would have to go higher.

The next day she calls me early in the morning asking me again what i found of the property after giving it some thought. I say the same - I am interested and would offer 440 000. I ask her to put my bid to the client.

One week passes I hear nothing ...

I called her yesterday and all she said was that it isn`t going to happen for me? She now has 3 people into a bidding war. (end of converstaion!)

Wow I thought that's fast ... on the market for 7 months and now within a week lots of interest - even a bidding war ??

I am unsure if this is true ...

If so why wasn`t she keen to include me - 4 people bidding is better than 3 not - why didn`t she say the client is looking for more like 470 000 ish or something like that ... or even i might have something else you like ...

Nothing - is she expecting me to come back with something - is that is waiting game to see how i would react or is this just a closed door for me?

I find it all very confusing ! I guess i just expected her to sell it more to me but just saying i just don`t think it is going to happen i find odd or maybe that is a normal thing?

Any opions ?

Premier_2

earlgrey11 wrote:

...If so why wasn`t she keen to include me ...

It appears they attempted to

earlgrey11 wrote:

...I tell the lady i like it but do not think it is worth 490 000 £. I probably would offer 440 000 I say. I get told they already have 1 offer just the same so I would have to go higher.

The next day she calls me early in the morning asking me again what i found of the property after giving it some thought. I say the same - I am interested and would offer 440 000. I ask her to put my bid to the client...

As she now has 3 people offering the same or more than you, and you didn't consider offering more when she had someone offering the same, then why should she consider you will offer more now? Hence:

earlgrey11 wrote:

...I called her yesterday and all she said was that it isn`t going to happen for me? She now has 3 people into a bidding war. (end of converstaion!)

If you think the property has increased in value over the past week you could offer more in an attempt to outbid the current 3 bidders, but it doesn't look good. If you don't think prices have increased in the last week, don't offer any more!

It could be rightly considered that as you only thought the property to be worth £440k last week, then any higher offer by you now would simply be a spoiling offer with the intention to suddenly reduce the price to the originally offered £440k or less immediately before exchange.

I suggest you move on, find an alternative property and make your best offer on that.

geoffky

they are trying to mug you...dont fall for it..

pinkshoes

Did the EA actually pass the bid on to the client?

I would phone them back, and tell them that £440k (or £445k) is your highest and final offer, and you will leave it on the table for 2 weeks.

People with higher priced houses are taking some big hits in some areas, as the credit crunch is making it hard for people to borrow that amount unless they already have a huge deposit, so I very much doubt there's any more buyers.

Are there other properties you like on the EAs book? Perhaps phone up the EA to view another property on their books, to show that you haven't 100% got your heart set on this one.

earlgrey11

Note sure if the EA padded on the bid - How do I know that really ?
I assume so. Is there a reason why they would not ?

I don`t need a mortage and can put a nice cash deposit down which i thought would work in my favour.

Still isn`t it off they just say that's it than ... they didn`t even try to go higher.

earlgrey11

sorry i mean passed ... not padded.

Premier_2

Remember, most EAs earn their money on a comission basis only. I mean the actual agency, rather than the employee - even so the employee will often only earn a pittance compared to the amount they could earn by securing a sale.

So either the EA is about to go bust - it's not easy out there at present and any potential purchaser with almost £0.5m burning a hole in his pocket shouldn't be closed out of a deal...even if the seller won't accept £440k, the EA should be working on getting the price up rather than closing the door on the deal

or

the EA is telling the truth and has 3 other potential buyers bidding up the price, and doesn't want to waste their time with someone who clearly stated the property was only worth £440k to them.

You decide!

earlgrey11

I doubt the EA is about to go bust - Indeed she could be telling the truth. But is seems weird that the property is on the market for 7 months. I put in an offer and now they have 3 people fighting over it ? Could be i guess but in 1 week it seems strange.

I guess i cannot decide what is happening for sure ...

Conrad

It wont be about commision - EAs just want sales and wont risk blowing it for the sake of say 2% on an additional £20,000 selling price.

One thing I have learned is EAs detest tire kickers or anyone that could be a time waster - you would to if you relied upon commision. Trawllers go to the fish not the seaweed.

earlgrey11

I drove for 2 hours to see the house than put in a bid so i don`t really think you can be seen as a time waister can you ?

loveandlight

posted by earlgrey11
I drove for 2 hours to see the house than put in a bid so i don`t really think you can be seen as a time waister can you ?

It doesn't really matter what efforts have been made to view a house. If the price isn't right for the vendor (regardless of how unreasonable you think the the vendor or estate agent are being) they will look upon you as a time waster. It's all about the botton line for both the buyers and sellers and both want as much as they can get.