Bidding war going ABOVE asking price

suisidevw

sounds pretty bonkers. 136k was your 'sealed bid' correct?

NickDurham

suisidevw wrote: »

sounds pretty bonkers. 136k was your 'sealed bid' correct?

Yes. We had been told before deciding how much to bid that the "other bidder" had bid more than our previous offer - i.e. they had bid about 133 and had been asked to raise too, hence 136k. It is farcical though - I told them that in effect we were both raising our bids when all parties involved thought it highly likely that they would all have to be brought down after valuation. The EA simply said, 'Yes, I know"!

jamtart6

wondergroove wrote: »

Quite uncanny jamtart, you seem to have gone through exactly the same hassle as we did when purchasing our house. I have never met such incompetent people in my life, no wonder the housing market has been going down the tubes when you have people like that in the business. We were promised so much by the EA but they delivered nothing. I think just because its a repo they wash there hands of it and assist as little as possible. I did get extremely wound up with one of them which seemed to do the trick to a certain extent......

I rang them (and the completely incompetent solicitor) up every 15 minutes to see how far they'd got as it was the only way they'd do anything. I was not prepared to lose my dream home because of idiots who couldn't do their job properly. I've given them terrible reviews on various review websites and have told everyone I know how poor they were. They basically said if you dont take our mortgage product, you dont get the house, when I challenged the illegality of this, they soon changed their tune. Utter wazzocks!

Good luck with this Nick, let us know how you get on with the survey

NickDurham

jamtart6 wrote: »

I rang them (and the completely incompetent solicitor) up every 15 minutes to see how far they'd got as it was the only way they'd do anything. I was not prepared to lose my dream home because of idiots who couldn't do their job properly. I've given them terrible reviews on various review websites and have told everyone I know how poor they were. They basically said if you dont take our mortgage product, you dont get the house, when I challenged the illegality of this, they soon changed their tune. Utter wazzocks!

Good luck with this Nick, let us know how you get on with the survey

Will do! I've found my solicitor independently. He's one they use as well, but they quoted me more than he did when I went direct. They were a bit taken aback at the EA. I explained the possible issue of the valuation with the solicitor and he basically set out that only 50 quid or so would be charged to me for work done upto that point should the worst happen. To be frank, if it does fall apart, we plan to use the mortgage and solicitor on a different property... no idea which one but we would make compromises as we want to move this summer if at all possible - fed up with a leaky, damp, mice-infested rented house where things never get done.

Yakubu22

Nick, I've been reading your thread with great interest. As someone who could be looking to buy (if the right property at the right place appears). This has been very enlightnening.
Basically IMO most EAs are self centered and are only in it to line their pockets. A buyer's plight is not their business and they will almost certainly squeeze as much money out of you as they can.
Congrats on having the offer accepted and i hope everything goes ok with the process. FWIW I personally wouldnt have offered anymore (except for maybe £10) at the closed bidding stage. I know you are very keen on this place but having gone above the asking price already I would've called the EAs bluff by not playing ball. Just my opinion, but good luck anway!!!

NickDurham

Yakubu22 wrote: »

Nick, I've been reading your thread with great interest. As someone who could be looking to buy (if the right property at the right place appears). This has been very enlightnening.
Basically IMO most EAs are self centered and are only in it to line their pockets. A buyer's plight is not their business and they will almost certainly squeeze as much money out of you as they can.
Congrats on having the offer accepted and i hope everything goes ok with the process. FWIW I personally wouldnt have offered anymore (except for maybe £10) at the closed bidding stage. I know you are very keen on this place but having gone above the asking price already I would've called the EAs bluff by not playing ball. Just my opinion, but good luck anway!!!

Cheers for that. We probably (definitely) went over what we should have bid, but, to be honest, even without the valuation, there are things that the survey will bring up (new double glazing needed, etc) that will enter into the equation. What I've learnt is NEVER appear really keen. This was my downfall. TBH I think the vendor realises that anything over the asking price is good. I can see our agreeing something nearer that after valuation adn survey have taken place, not least because I was unable to see the HIP pack prior to making the offer, and I made it clear the offer was subject to seeing it (info on energy bills, insulation, etc.). This was the fault of the EA and DOES have an effect on your offer, since how much you're going to be paying in bills each month and if major insulation work is needed obviously affects your ability to pay the mortgage. If the energy consumption of the house is high then I will lower my offer accordingly and the only one to blame will be the EA for not doing their job and fulfilling their legal requirement of having the HIP ready as soon as it is put on the market.

franklee

NickDurham wrote: »

Just an update: NatWest tells me that 1 in 2 valuations are currently coming in at under the agreed price. Quite a figure! :eek:

But not surprising now house prices are falling.

When prices are rising the valuation goes through on the nod, but when they are falling the valuation often comes in lower as the valuer wants to cover their backs.

In the last crash this was normal and it was also normal for buyers to make up the shortfall with their own cash. At least you have made it clear to them that you can't do this so if they chose you in spite of that then it's their loss when the inevitable happens. If you hadn't told them this then I'd say you were mucking them about.

NickDurham

franklee wrote: »

But not surprising now house prices are falling.

When prices are rising the valuation goes through on the nod, but when they are falling the valuation often comes in lower as the valuer wants to cover their backs.

In the last crash this was normal and it was also normal for buyers to make up the shortfall with their own cash. At least you have made it clear to them that you can't do this so if they chose you in spite of that then it's their loss when the inevitable happens. If you hadn't told them this then I'd say you were mucking them about.

Thanks frank. I did say to them that I was concerned about the possible difference and that in such an instance we would not be able to make up the shortfall. Realistically we could manage 2 or 3k, but that's it. The EA knew this and that was why they said that if it happened then the vendor would have to negotiate and accept less. If it does come in lower then I am planning to say I can give the valuation plus 3k. Given that I have told them that we have the deposit and that's it from the start of all this, I don't think they could really complain.From what I have gathered the other people bidding were in exactly the same position in terms of proceedability and also in terms of having 10% deposit but no more. So I'm guessing they figured they weren't getting anything better so they'd cross their fingers and deal with any valuation problems as and when.

Foggy

Nick I am in almost exactly the same position as you. I have been following houses for sale for a year with a view to buying soon. I have noticed a dearth of quality properties coming onto the market of late and know those that have been on for while very well.

I made an offer recently on a new to the market property and eventually got an acceptance only 5k under the asking. I have 25% deposit and am considered prime for credit I suppose and have been approved for the FD offset @2.99%. I have warned the EA should the bank's valuation come in much lower it will take me out of the 75% LTV and into much more expensive mortgage territory and I may have to pull out if there is no renegotiation over price.

Like you I am quite prepared, no very happy, to pay what I have offered but should the valuation be significantly less then I will simply present it to the EA to talk about a new price. If the vendor won't budge then I will move on having lost my valuation fee - not to mention the mortgage booking if I don't find anywhere else. I really don't want to do this and mess the vendor around. If this does happen then I should question why the EA are setting/recommending prices above the likely true bank valuation which surely will only result in sales falling through.

I may be worried about nothing and it could come back close to or even the same. Squeaky bum time I suppose....

hearts

I don't understand. If you are not expecting to pay the price you offered, then why did you go in so low? Risking losing out to another fictitious bid. Surely if you are not intending to pay what you offer then why not go in at 140k or whatever.