Bidding war going ABOVE asking price

NickDurham

SandC wrote: »

It's very different to other sales. I've never heard of anyone doing this before, honestly.

?? There are several cases on this board where someone has had an offer accepted and then the valuation has come in way below, so they've either had to negotiate a new price or pull out.

The only difference here is I'm being pessimistic (realistic?) about what the valuation will be.

NickDurham

jamtart6 wrote: »

ah, was December boo..

when do you find out about if the offer has been accepted?

1.30pm today. I'm trying to be upbeat whatever happens:

they accept: it's a lovely house and a price we can reasonably afford

they don't accept: we've avoided buying a house at over the asking price and can try to find one where we don't have the bad luck of being in a bidding war with another couple in a proceedable position like us (if they ever existed in this case!). Also, I've learnt a thing or two about how to make offers and how not to appear when talking to EA.

SandC

NickDurham wrote: »

?? There are several cases on this board where someone has had an offer accepted and then the valuation has come in way below, so they've either had to negotiate a new price or pull out.

The only difference here is I'm being pessimistic (realistic?) about what the valuation will be.

Not in a scenario of bidding war above the asking price. Where the valuation has come in way below the vendor has either been overly optimistic or there have been issues that have come up under the survey that mean the house is worth less than they thought. In this case it's the buyer(s) who are putting the price of the house up and not the vendor!

NickDurham

SandC wrote: »

Not in a scenario of bidding war above the asking price. Where the valuation has come in way below the vendor has either been overly optimistic or there have been issues that have come up under the survey that mean the house is worth less than they thought. In this case it's the buyer(s) who are putting the price of the house up and not the vendor!

OK, I take your point. What I would say is, I have voiced these concerns to the EA and pretty much told them we wouldn't be able to make up a big difference between valuation and offer. Even so, they said I should bid what I could afford/woudl be willing to pay REGARDLESS of that problem. I don't want anyone thinking I'm doing this out of spite. I have made it quite clear to the EA what position we're in. I'm slightly bemused as to why they suggested making an offer anyway and then going on to say they've instructed the vendor that if the valuation is lower he'll have to negotiate. Please don't go thinking I'm the driving force behind all this!

pawpurrs

So really in a way you are hoping that the valuation comes back lower?

NickDurham

pawpurrs wrote: »

So really in a way you are hoping that the valuation comes back lower?

Sort of. Though I'm just concerned about overpaying for the house. So if it comes back at the price we've offered, I won't be disappointed in the sense that it will show the price is reasonable. If it comes back lower, then it will have alerted me to the fact that my offer is above what the house is worth. Does that make sense?

pawpurrs

Mortgage valuations are not very precise, if you have a low LTV and are very low risk they are less likely to downvalue the property than if you are a FTB with a small deposit, and a high LTV.

NickDurham

Well... we move onto the next step. 136k was accepted. Now onto mortgage application, then the all-important valuation. We shall see...

Thanks to everyone for their advice in this bizarre process.

jamtart6

If the valuation comes back at 136k are you happy to pay it?

NickDurham

jamtart6 wrote: »

If the valuation comes back at 136k are you happy to pay it?

Yes, because I'm assuming that the valuation is going to reflect market value acc to mortgage providers (NatWest in this case). It's affordable, though not as affordable as we'd have liked, but as long as it reflects the value then we'd pay it.