FTB Offer - Strategy after having an offer declined

adamzetec

So I saw a property for the 2nd time yesterday, I do really like it but I feel if I were to increase my offer anymore i'd be paying over the odds.

Here is the situation:

The house has been on the market for a month and initially sold on the first day. It then fell through the day after as the individuals changed their mind. This went for nearly the asking price. At this time the asking price was £180k.

The asking price has since dropped to £178k. A very similar house sold on the same road in November 2008 for £168k. This had a nicer bathroom but did not have central heating. Another without a garage on the same road sold for £165k and is currently going through at the moment.

Now, based on the similar house which I have used as my benchmark selling for £168k, I looked at the Halifax house price index and calculated a drop of 9.8% since Nov 08. As I was very keen on the house, I placed a "take it or leave it" offer of £163k. I wanted them to know I was serious, wanted to cut straight to the chase and will offer them an extremely quick sale as an FTB.

This offer was rejected, the EA said they want over £170k. I personally think this is ridiculous and will therefore not increase my offer. I plan to sit tight and hopefully they will come back to me in the future if the house should not sell.

Is there anything else I should be doing? Was my approach reasonable?

superfran_uk

This has happened to me, and the only things you can do are a) offer more or b) move on and find another property.

If they're not willing to accept your offer it's because they don't have to and are willing to hold on, or they can't because of the debt owed on the property. Based on the fact that houses in that road have been selling recently for more than you've offered, the chances they will get back to you are slim so I wouldn't hold your breath.

reef

In the current market I think your offer was reasonable. However also as a FTB looking for a property Ive found there is still very much an sense of denial in the air about prices falling. Its seems around here at least the trend by the majority is to price properties at almost peak levels hoping to somehow attract an offer close to asking price before it all goes stale and then they gradually reduce.

Same thing happened to me aswell. Had a £120k and then £122.5k offer rejected on a £132k house which would have gone for £135k in 2007. The estate agent said a higher offer had also be rejected and the sellers wanted the asking price or something very close to it.

Our solution was to just leave the offer on the table and walk away. One of two things will happen: It'll either sell immediately at close to asking price or just sit on the market until the sellers reduce the price. If the latter occurs then you are in a strong position to pitch another offer later and likely be more sucessful.

Fire_Fox

adamzetec wrote: »

So I saw a property for the 2nd time yesterday, I do really like it but I feel if I were to increase my offer anymore i'd be paying over the odds.

Here is the situation:

The house has been on the market for a month and initially sold on the first day. It then fell through the day after as the individuals changed their mind. This went for nearly the asking price. At this time the asking price was £180k.

The asking price has since dropped to £178k. A very similar house sold on the same road in November 2008 for £168k. This had a nicer bathroom but did not have central heating. Another without a garage on the same road sold for £165k and is currently going through at the moment.

Now, based on the similar house which I have used as my benchmark selling for £168k, I looked at the Halifax house price index and calculated a drop of 9.8% since Nov 08. As I was very keen on the house, I placed a "take it or leave it" offer of £163k. I wanted them to know I was serious, wanted to cut straight to the chase and will offer them an extremely quick sale as an FTB.

This offer was rejected, the EA said they want over £170k. I personally think this is ridiculous and will therefore not increase my offer. I plan to sit tight and hopefully they will come back to me in the future if the house should not sell.

Is there anything else I should be doing? Was my approach reasonable?

Value is a combination of what a purchaser is willing to pay AND what the vendor is willing to sell for. You placed a take it or leave it offer and they chose the latter. Don't set up such an adversarial position if you want to negotiate.