FTB house offer woes!

Anew

Hi everyone, I've long come to these forums for advice but up until now have relied on others questions rather than making my own.

I am a FTB and have just put an offer in a property, it was a low offer and I never expected it to be accepted but after reading advice here and elsewhere I started low with a mind to then negotiate up.

After putting the offer in yesterday the EA did say that the offer was "borderline offensive" but when I said perhaps I should not put the offer in they backtracked and said to leave it with them.

Later on I got another call asking me for my "best offer" I was put on the spot and so am now kicking myself for not asking more questions, I stalled them and said I would talk it over with my partner and we would get back to them today.
I expected them to come back with a figure to aim for as is normal with negotiation... but instead they just want me to raise my offer by an amount...without any input on how my first offer was received....

I'm a bit confused now, I am a FTB but have tried my very best to research the system, I thought I had it all covered and was expecting a figure from the vendor to aim for a mid-ground and figures would be exchanged until both parties were happy, now I am unsure what is actually going on...

Are they just trying to get me to panic and up my price without any feedback? Is this actually normal practice? Is it the case that someone else has put in an offer and I need to beat that in the dark? Or should I be getting more feedback from my initial offer...

She at no point said my offer had been declined, and all in all the phonecall was a bit ....shady??

Thanks for the feedback guys, I know EA are seasoned at working all the cash they can out of people, I'm not going to call them and I think I will leave it for them to contact me, but at this stage they havn't given me any incentive to raise my offer other than severe paranoia.....

I guess the short question here is:
Should I up my offer on the information given, or am I intitled to more information before I offer anymore cash?

tara747

It sounds like you've played it perfectly so far! Well done on stalling. :T:T:T Don't call them again till at least Monday. They may chase you.

When you do speak to them, don't be the first to name a figure. You've already made an offer. Ask the EA what they would be prepared to accept and negotiate something BETWEEN the two.

Good luck.

gemstars

I'd also check if they have actually put your first offer to the vendor

princeofpounds

Tara is spot on, although you may not wish to wait (it's up to you, I would be inclined to do so but it's a risk).

Don't worry too much about what the agent says. All you care about is getting the house for an acceptable price. If you can't do that because they have different expectations, there was never a deal there to start with.

You have done well to introduce a low 'anchor' for their expectations.

You can say to them something like that you have discussed it with your partner, you provided them initially with a number you thought was a fair offer, and that it would help if you could get a better idea of what they might be willing to accept as you are wary of negotiating your offer without any idea as to how realistic or unrealistic their expectations are. You are busy househunting and don't want to waste too much time on this one property remember! You don't want to deal with people who aren't motivated sellers.

They obviously don't want to lose the bite on the line or they would have simply told you to go away.

tara747

princeofpounds - even more spot on! OP - definitely emphasise that you are looking at other houses.

Anew

Thanks guys, we are still looking and have only seen a few properties. This was a nice place and would happily live there, but only for the right price.

I will leave it, I am away on a jolly weekend so will put it the back of my mind.
And when they call back I will ask questions, I'm not going to stick another offer in without any feedback, I feel that would just show them I'm willing to go even higher and leave me less room for negotiation. We are motivated buyers, no chain and we have the money ready to go today if need be, so hopefully they won't want to lose the sale. I' quite a stubborn person by nature and it would not be beyond me to walk away just on the grounds that I feel I'm being played.

I think one thing is that we used the same EA for a mortgage advisor, so they know how much we can borrow, the offer is some 20k less than our top allowance so they may be wanting to milk that as they no doubt know the details of what we can go up to.

Another quick question: if someone else had put an offer in, would they tell us? I guess they would want us to up the offer so would be straight on the phone to tell us right? This place isn't suddenly going to be sold to someone else?

Thanks again, I'll keep my head on and see how it goes, and of course keep you all posted!

tara747

You have the right attitude. I doubt that there will be any other buyers in this market. Good luck and enjoy your weekend.

pawpurrs

I suspect the offer is way off what the vendors would accept, jusging by the way they have played it, I know when I had a really low offer, the vendors just said it would have to be much nearer asking price to the buyer, and they said is there not a counter offer, and the agent said to them that it doesnt work like that, they needed to increase their offer, not sure why they played it like that, but if its so far from what they would accept, perhaps they feel its not going anywhere.

chickmug

Anew wrote: »

1) After putting the offer in yesterday the EA did say that the offer was "borderline offensive" but when I said perhaps I should not put the offer in they backtracked and said to leave it with them.

2) I expected them to come back with a figure to aim for as is normal with negotiation... but instead they just want me to raise my offer by an amount...without any input on how my first offer was received....

3) Are they just trying to get me to panic and up my price without any feedback? Is this actually normal practice? Is it the case that someone else has put in an offer and I need to beat that in the dark? Or should I be getting more feedback from my initial offer...

4) Thanks for the feedback guys, I know EA are seasoned at working all the cash they can out of people,

5) I guess the short question here is:
Should I up my offer on the information given, or am I intitled to more information before I offer anymore cash?

1) I was never scared to telling people what I thought about their offers and would laugh at some and say "you must be joking" or "Are you trying to offend the seller"

2) You have a perception of what is normal which I would dispute. The seller has said what they want - it is on the sales details the asking price. If I took any offer the seller didn't accept I told the party making the offer it had been rejected they needed to increase it. Of course I would try and guide them but why should they The seller) give a counter offer?

3&4) Of course agents doing a good job for their clients will try and maximise the level of offer. Wouldn't you want your agent to do that if you were the seller?

5) You have every right to ask for more feedback so make sure you have the questions written down so you are not bullied into a short conversation.

Remember the agent will want a sale and the commission despite the arrogance many show.

Doozergirl

I agree that it is not normal for a counteroffer to be forthcoming. You almost always have to ask for it, especially if you offer low.
If they vendors don't give you one then I would say that you aren't in the ball park for them.

If your offer has been rejected and they have asked you for a higher offer, if you don't call them back then I suspect that they will simply move on. The ball has been put in your court and at this stage I wouldn't say that negotiations are truly open at this stage. They will forget you.

A lot of the posts on this board treat the offering process in quite a cocky manner. In truth, I don't know how much hands on experience of negotiating a purchase many people have, nor whether they are treating you as if you are genuinely interested in buying a house because I suspect that a lot of time this 'walk away, make em sweat' advice doesn't work. I don't see benefit there could possibly be in giving EAs and vendors the impression that you aren't that interested. Feigning disinterest will just mean that you are met with disinterest also.

Negotiating a sale is about engaging people. How much business would get done if every person pretended they couldn't care less? It's all about building rapport, being confident, friendly but firm. Yo have to get people into the position where they can feel the sale within reach and make them stretch that bit to meet you. Best way to do that is get them to like you!

No they won't tell you that another offer has been received.

chickmug

Doozergirl

An excellent post.

All so true as the typical day in agency work never ever sees some of the (perhaps only theoretical) tactics suggested on this board. That is not to say there is no reason why they shouldn't be tried but in negotaiation you must always put yourself in the other parties shoes.

I have read another post where the 'playing it cool' approach backfired as there really was another party who did make a firm offer as the first party thought they were making them sweat.

Even in bad markets there will always be the properties which are more in demand and will attract viewings and offers so people on the board need to be warned.

There is no reason why you can't negotiate very hard but why leave it for a few days, why set silly deadlines after the offer is withdrawn. In my eyes it goes like this - offer made - seller turns down - buyer informed and asked what they want to do - meanwhile the marketing carries on - another offer from second party - so let the previous party know and give them an hour to state their position. I hate to say it because many will not like it but some advice really is over complicating a much simpler process.