Urgent help - FTB bidding war

househunter_3

We are new to all this - FTBs

We have visited a repossessed property and put in an offer for the asking price of £189,950. The EA has got back to us and said they have had another offer at the asking price from other FTBs.

EA is speaking to the bank but suspects that he will have to come back to us for a best and final offer later today.

Even after the bank accepts an offer the EA will have to do a 7 day notice in the local paper.

We can get a mortgage for £200k. I am not sure what to offer when the EA gets back to us. Should I say £195k (as other people may still make offers during the 7 day period and we can only go up to £200k) or should I make the highest offer we can of £200k now and hope that nobody comes in higher during the 7 day period.

I don't know if 'best and final offer' means that or whether it is a game.

Please help me

confused and inexperienced househunter

lynzpower

What I dont understand is that if someone else has offered the asking price why this hasnt just been taken. Offering over the asking price and trying to set off a bidding war as you say looks like the EA is trying to get you guys to all gazump each other till someone bails out. I dont know much about this, but like you, I smell a rat, and I personally would back out of the whole process and let the others have it. I wouldnt be encouraged over a barrell by this sort of behaviour, and I certainly wouldnt like to be undertaking business dealings to the tune of 200k with someone with this sort of credentials.

Maybe im just cautious


EDIT to say, If youve both offered the asking price then it should have been accepted whoever offered first. Seems simple to me. They are just trying to get more out of you ( or the other people) thats my opinion.

rchddap1

I would also urge caution. Estate Agents sometimes say there there is someone else interested purely to get you to up your offer. Actually happened to my sister. She told the agent that she wasn't going to offer any more and went off to buy a better house. A little while later the agent came back begging her to re-instate her offer as there wasn't any other bidder and no-one else wanted the house. Gave us all a very good laugh.

The lesson from the tale is only to offer what you think the house is worth. if the asking price is £189,950, and you have offered this then I really wouldn't offer any more. However, it depends on whether the house is underpriced or not. Take a look at similar properties in the area to check. Usually people offer below the asking price...not dead on (Scotland is a bit different of course)

Bear in mind that there are plenty of fish in the sea, and if you do happen to lose this one then don't worry and keep looking for something else.

I certainly wouldn't want to overpay and you are at risk of doing so.

Doozergirl

Best and final means exactly that. BUT...with a reposession, the mortgagee is obliged to get the best price for the property, so even if you get outbid by the other FTBs, you should be able to offer higher again. If the 7 day notice goes in, thy are inviting offers; there's no reason why your subsequent offers can't be accepted.

There's no dirty tricks when it comes to a repo. Think of the people who owned that house - they are in debt. Anything left over once the mortgage is paid off is theirs to keep. If the house isn't sold for enough to cover their debt, they are lumbered with more debt and no asset left to sell.

My husband was once in a best and final offer scenario where the other party offered "£500 more than the highest offer". We were outraged, but it worked for them. Turns out it that building is now an Estate Agent. Wonder where they learnt that dirty trick :mad:

AndrewSmith

Absolutely spot on Doozergirl.

That's exactly how it works. No games or dirty tricks, they are just acting within guidelines laid down for them.

Andy

NAR

househunter wrote:

We can get a mortgage for £200k. I am not sure what to offer when the EA gets back to us. Should I say £195k (as other people may still make offers during the 7 day period and we can only go up to £200k) or should I make the highest offer we can of £200k now and hope that nobody comes in higher during the 7 day period.

Depends on the other bidder, they may be at their limit, so say an extra £2k or £2.5k might get rid of them. If they also are very keen on the property you may be better going in with £195k now, to let the opposition know you are very serious about wanting the property. Hopefully that will stop them coming in over you. Good luck.

househunter_3

Thanks everyone that's really helpful

less confused househunter

sm9ai

Just make sure you don't bid more than the house is worth. Remember there are hundreds more houses available.

Tassotti

Is it a repo? What are similar properties selling for?