A new offer from nowhere... URGENT HELP

mikee_j

thanks teokcc. I have been told that the 850 bid is from a cash buyer, in a similar position to myself. I'm not in a chain either, nor is the new bid.

With regards to the long completion date, i have agreed to 3 months!! This is because i'm in a position where i'm not in a hurry to move and it helped the negotiation. The house also needs some work so it gives me the time to get quotes and organise builders who can then begin work on the day i get the keys. How do i (if i wanted to) change the conditions of sale to reducing the completion date to, say, 1 and a half months?

I think he right play is to speak to the EA early tomorrow morning and play hardball, i.e. i need a decision by the afternoon or else i'm out.

edit: it is a great house, but it does need work done to it. i'm not too attached to it yet.

nearlynew

mikee_j wrote: »

here is my situation. I put an offer in for £820k (asking price £875k) on a house 3 weeks ago which was subsequently accepted at £825k. The sellers wanted a quick exchange but with a long completion so that they can get sorted to find rented accommodation in between finding somewhere else to live, especially as they have a big family to organise moving. I agreed this and was one of the main reasons i got a good price for it. Apparantly is was under offer a few months back for £850k but that fell through.

Now with excahnge date agreed for this Friday and new offer from nowhere has come in for £850k!! the EA clims it to be someone who viewed the house 6 weeks ago. The vendor has been contacted and been informed of the offer and have chosen to sleep on it until tomorrow!! Personally, i would have thought they would quickly say no to the new offer and get on with things. Why is this allowed to happen!??!

What is going on here?? Something doesn't feel right and its put me off the whole deal alltogether.

Please, i'd be graetful for any advice on what is going on here. I'm very tempted to pull out of the whole deal tomorrow. Is this practice normal?!

argghhh... this bloody system the country has is apauling and it doesn't help when i don't believe a word the EA is saying.

I'll tell you exactly what is going on here.

You are dealing with chancers who have heard about the "spring bounce" and are trying it on.

With the type of money you're talking about you are obviously either clever or lucky.

Use either to your advantage. Hold your ground.

pawpurrs

This happens a lot, people view houses, when they are not procedable, or look early on, view others over several weeks, and come back to the first house that they saw.
Then ring the agents who say its under offer, they say they want to offer anyway......by law that offer has to be forwarded to the vendor. then its up to the vendor to decide whether to coninue wih the offer they have on the table or to Gazump......Nothing to do with the agent.

mikee_j

pawpurrs wrote: »

This happens a lot, people view houses, when they are not procedable, or look early on, view others over several weeks, and come back to the first house that they saw.
Then ring the agents who say its under offer, they say they want to offer anyway......by law that offer has to be forwarded to the vendor. then its up to the vendor to decide whether to coninue wih the offer they have on the table or to Gazump......Nothing to do with the agent.

I can understand that, but can an EA tell someone what a house has gone under offer for? surely not?!? Thing is, if someone makes a bid say £5k or £10k higher then the vendor is more than likely going to say no and carry on with my purchase. however, £25k extra is going to get them thinking. How has this new bidder based his decision to bid 850k? has the agent been saying things he shouldn't, or are the new bidders really honestly bidding 850 with no idea of the level which it is under offer for?

mikee_j

... and there is no way i'm increasing my offer.

pawpurrs

They shouldnt disclose the offer really no, bu they have to you? So whos to say they didnt to them?
If it was me, I would hate to Gazump anyone but 25k is a lot of money, so as you say it has them thinking, the least they should do is allow you to match i, thats if your interested in doing so, if they are considering he other offer.

nearlynew

mikee_j wrote: »

... and there is no way i'm increasing my offer.

Good for you.

Call their bluff and when they come back to you in 2 weeks offer 10k less than you did originally

Gwhiz

You'll never know the facts so stop theorizing.

What you need to do is decide if you want to up your offer to £850K and a) get bum raped by the EA and vendor (assuming the other offer is not real) or b) accept that that's the price you need to pay to get the house (assuming the other offer is real) OR stick to your guns and call their bluff.

Buying can get so emotive that our business sense can often go out of the window. Only you know what the house is worth to you!

twokcc

mikee_j wrote: »

t

With regards to the long completion date, i have agreed to 3 months!! This is because i'm in a position where i'm not in a hurry to move and it helped the negotiation. The house also needs some work so it gives me the time to get quotes and organise builders who can then begin work on the day i get the keys. How do i (if i wanted to) change the conditions of sale to reducing the completion date to, say, 1 and a half months?

Not sure(other poster will correct if I am mistaken) but I believe that once you have exchanged contracts it is legally binding so unless you specifically want to, would leave completion date as per original- unless seller wants to ammend it.
My own gut feeling is that it is a try on - if you accepted what the estate agent had advised no doubt his response would be that you would have to better the £850k offer to secure the deal, house prices have still got a lot further to fall so if the deal doesn't proceed it may save you money or you good get an even better house in another 6months time. The EA will try to say the market is recovering, just say that although current figures show there is a pickup there will be another 1million unemployed by 2010 which will bury any green shoots.

socrates

A deal at this level is very different from your £200k deals.

For example £25k extra on £825k is 3%

on £200k @ 3% its £6k - some people would not want to lose a house for £6k

At this level there is a lot less 'good stock' about.

Perhaps the vendors know this - or perhaps the house they want is £25k more than they want to spend.

Its all speculation.

There is also the hidden influence in the background the real decision makers and deal breakers 'the wife'

The purchasers wife sometimes wants the house so badly and the vendor sees that.

Similarly the vendors wife may not be happy with what they have found to rent or buy.

Its all speculation but I would sit down with the EA and look him in the eye - I would know if he is lying or not- and then make my decision