Offer Strategy

ray123

The EA might be friendly, but at the end of the day, dont trust everything they say... If they work on commission, it is in their interest to get as high a price as possible.
Now you have made your first offer, he/she will probably come back and say its been rejected. You can proceed with a higher offer if you feel that its the ideal property or play the waiting game.
You could even ask the EA if they have any similar properties around the same price range and see how they react? The EA may then try to persuade the seller to accept your offer of 250k.

QTPie

elsteshepardo wrote: »

put in offer of 250,000

EA adamant that offer would not be accepted saying that this offer had been rejected recently

asked to proceed anyway

Should I have?

Don't want to annoy the vendor

Waiting for callback

I think that you were right to put in that offer AND to insist that the EA put it to the vendor...

How long has it been on the market?

You would really appreciate a counter offer/suggestion back. £250k is really not that far off of £275k (90% of the asking price). It is a serious offer.

Good luck and let us know what happens
QT

ray123

Very true, you must be bold and insist that the EA puts forward your offer.
They are like second hand car salesmen, trying to put pressure on you. Next, they will tell you that someone else is interested in the property.
Stick to the budget of 250k and see how things develop.
It is a buyers market and patience is definitely a virtue.

Rick62

If they reject your offer then you should ask to see other properties, also start seeing other properties through other agents. When they ask you to increase your offer start talking instead about what a good buyer you are (mortgage arranged etc) and reiterate that you are not prepared to pay the extyra £5k on duty. They have more to lose in todays market.

Doozergirl

elsteshepardo wrote: »

put in offer of 250,000

EA adamant that offer would not be accepted saying that this offer had been rejected recently

asked to proceed anyway

Should I have?

Don't want to annoy the vendor

Waiting for callback

You are right to do what you've done. Previous offers of 250k is good for you - it undermines the seller's confidence. Wait for the call - if they reject it then wait a day or so before offering again. You want them to be considering that maybe the house is only worth 250k and therefore start adjusting their expectations (even if they won't take 250k then hopefully they are thinking along the lines if people keep offering 250 then perhaps we're luckier than we thought if someone offers less than we were hoping for initially)

Doozergirl

ray123 wrote: »

The EA might be friendly, but at the end of the day, dont trust everything they say... If they work on commission, it is in their interest to get as high a price as possible.

On the contrary, if an EA works on commission, it is in their interest to get sale. A percentage of something is better than a percentage of nothing.

Why do people think that asking to view other properties is going to make an EA quiver in their boots? The fact that it gets mentioned so many times means that every EA must know it's a rather rubbish game of 'hard to get'.

Surely trying to make someone think you're not interested makes them think you're not interested!

Be straight. You like the house but you are really unsure that it is worth the full asking price and the SDLT threshold is a considerable concern for you as it would be for anyone. They are like car salesman in the respect that they will try to facilitate a cheaper deal if that's what it takes to secure a sale.

Swans1912

elsteshepardo wrote: »

I think the 250 offer has to be made
(we're in a good position too)

with the 2nd offer - how cheeky is it to try and get the seller to help out with stamp duty?

don't want to offer 260, get refused, and lose it...not much out there where we're looking.

You don't ask, you don't get. When I bought our house I asked the vendor to pay a 2.5% deposit AND drop their price by £10K which they happily accepted. Its deffo worth a try to ask for help with stamp duty.

geoffky

check prices for the area..

http://www.home.co.uk/guides/house_prices_report.htm?location=ch1&startmonth=09&startyear=2007&endmonth=09&endyear=2008

poppysarah

I just read this

QUOTE
Having viewed (address) for the second time on Saturday we are prepared to make an offer on the property, albeit with due consideration to prevailing market conditions.

The original asking price for the property last July was £245,000, since reduced to £239,950 ie a reduction of 2%. The peak price achieved for a property on Blah Road (according to Land Registry figures) was £247,500 in October 2007, which represented the very top of the market nationally. Since then all the major house price indices, including those of the well regarded Halifax and Nationwide, have shown significant reductions, with most experts agreeing that a drop of 20% from peak has already occurred.

Most economists, including those affiliated to the major lenders, are also agreed that there are further significant falls, of the order of 15-20%, likely during the course of 2009 and into 2010, with a recovery in property prices not likely for a number of years.

It is against this background, and the current difficulties in arranging financing, that we have to try and calculate what is “fair value” and hence what to offer. If we assume (generously) that a peak value for (address) was £250,000 then the 20% reduction that has already occurred gives a figure of £200,000. If we then assume a further 15% reduction for 2009 we arrive at a figure of £170,000, ie a further £30,000 loss of equity. These figures are set against a mainstream expectation of potentially 40% reductions peak to trough, ie (address) could bottom out at £150,000. (NB – in the last few days one well-respected economist has predicted falls of up to 55%.) As our intention is to buy a home, not make an investment, we accept that, by buying now, we will likely suffer a significant loss of equity over the short to medium term.

With the above analysis taken into account we wish to make an offer on (address) (inclusive of carpets, fixtures and fittings) of £180,000.

We request that you pass this letter on to the vendors.

Yours Sincerely

BP

chickmug

poppysarah wrote: »

I just read this

QUOTE
Having viewed (address) for the second time on Saturday we are prepared to make an offer on the property, albeit with due consideration to prevailing market conditions.

The original asking price for the property last July was £245,000, since reduced to £239,950 ie a reduction of 2%. The peak price achieved for a property on Blah Road (according to Land Registry figures) was £247,500 in October 2007, which represented the very top of the market nationally. Since then all the major house price indices, including those of the well regarded Halifax and Nationwide, have shown significant reductions, with most experts agreeing that a drop of 20% from peak has already occurred.

Most economists, including those affiliated to the major lenders, are also agreed that there are further significant falls, of the order of 15-20%, likely during the course of 2009 and into 2010, with a recovery in property prices not likely for a number of years.

It is against this background, and the current difficulties in arranging financing, that we have to try and calculate what is “fair value” and hence what to offer. If we assume (generously) that a peak value for (address) was £250,000 then the 20% reduction that has already occurred gives a figure of £200,000. If we then assume a further 15% reduction for 2009 we arrive at a figure of £170,000, ie a further £30,000 loss of equity. These figures are set against a mainstream expectation of potentially 40% reductions peak to trough, ie (address) could bottom out at £150,000. (NB – in the last few days one well-respected economist has predicted falls of up to 55%.) As our intention is to buy a home, not make an investment, we accept that, by buying now, we will likely suffer a significant loss of equity over the short to medium term.

With the above analysis taken into account we wish to make an offer on (address) (inclusive of carpets, fixtures and fittings) of £180,000.

We request that you pass this letter on to the vendors.

Yours Sincerely

BP

I must be thick as I am not quite sure of the point you are making?