Advice on putting offer in on house

maggie111

Hi, Just after a general bit of advice. We're 1st time buyers by the way.

Found a house we love on market at 143k - been on the market for a year and a half and has been reduced by 15k ish. It's an inherited house so the owners have nothing to gain but profit from the whole sale. It needs a lot of money spending on it (carpets, kitchen, bathroom etc etc)

We put in an offer at 120k, which is all we have the mortgage agreed for. EA comes back tells us that they can only contact the vendor by email until August. And he advises that our offer was "too low, they were hoping for around the 130k mark, but they may be willing to negotiate."

I phone back, trying to understand the negotiation bit, and enquire as to whether, if we scraped and borrowed another 5k, would this half way make any difference? EA informs us she can ask and find out...

2 minutes after agreeing, I realised that in effect I'd made an offer in at 125, without any idea if we could afford it... I rang back and changed it down to 123k - which uses our new carpet fund. The EA immediately informs me that this offer will be too low (but 125 wasn't???) but she'll put it in anyway.

EA gets back and says "still too low... bye!"

Now this is what's annoyed me... where's the negotiation spoken of the last time?? Why can't the EA push them for a counter offer, surely that's what she should do anyway? I mean, I could, for this house - scrounge more money (there are really very few houses that suit us)... But I'll be damned if I'm going to keep offering more money only to hear "no"... Fair enough if the vendors came back and said "129 min"


Sorry, this is ridiculously long but hopefully includes all the subtle bits of information that could help us decide how to continue... I'm just stuck and far too pig headed for our next move to be yet another offer!! Any ideas gratefully received. Thanks

gemstars

You have to remeber the EA is working for the vendor. They will usually always say your offer is to low if they think you'll come back with a higher offer. If I were you I would ring them back and say that your 123k is your final offer and you're leaving it on the table until XX date and then you're offering elsewhere.

Unfortunately I've found the process of offering on a property is like a very complicated game of poker

chickmug

gemstars - true

Too many buyers forget it is a two way process thinking they are the 'bees knees' and told this time and time again on the forum.

Buyers need to understand it is a multilateral process, do their homework as to the realism of the selling price and so the price they are offering (enough good tips on the forum for doing so), put forward their offer with good sound logic as to why they are offering that amount, demonstrate to the agent they are serious and can afford it.

"Sellers are making too much profit thinking" is seriously flawed thinking as sellers can make as much profit as they like. So don't even let your brain waste time with this thought process. When you sell you will want every £ possible.

If you don't succeed in getting a bargain this time try on the next one, and the next one, but beware not all sellers will drop any more than 5% even in a tough market.

maggie111

Hi, thanks for your replies.

I'm well aware that the sellers are entitled to have as much money as they'd like (I would too!) so it's not like I feel they're being greedy. They'd have sold it already if they were happy taking a very low offer.

I'm hoping a mix of circumstances will mean I can grab a bargain, and which first time buyer isn't thinking that these days. I have carefully thought out what the house is worth, on the market, and what it is worth to me, so I don't think I'm terribly cheeky. Let's face it, over 400 days on the market - if they wanted what was reasonable I'm sure they would have sold it by now.

I suppose the EA has got it wrong, hoping that I will come back *again* with a higher offer, waiting till I can get close to their figure, and then start negotiating between the two. What she doesn't realise is I'm definitely not happy throwing yet more offers in if I don't feel it's working to my benefit too...

Gemstars, thanks for your reply - I've certainly not thought about that tactic. I happen to be quite good at poker - but I find house buying a longer game and my patience tends to run out!!

chickmug

Yes it is like a game of poker and remember the agents play it every day and all with differing tactics. I guess I saw it as a challenge to do the best I could for clients.

What you need to remember the agent WANTS the sale and WILL want the commisison so don't forget that when dealing your next card.

Good luck and keep us in the picture.

gemstars

I'm a FTB too, I went up in various increments from 75 to 80k on a house with a 90k asking price and then said I'd go no further (as that really was the maximum we could offer) and left the offer open. Initially the vendor said no but I kept checking if they'd changed their mind once a week and they did after about a month :-)

maggie111

Thanks for both of your replies

Will definitely keep you updated... I do feel this may be a waiting game and will definitely keep you updated!

Gemstars - are you living happily in your new house now?

Welshwoofs

What you need to do is sweat them out a bit. Come up with a 'final figure' which is actually a little lower than your true final figure and give them that. Then leave it a week - if the offer was pretty close to what they wanted they'll most likely get back (after all, they want a sale!) with a compromise offer.

nooney

Thanks for all this info its actually exactly what Ive been wondering, we have sold our house have cash in the bank and are hoping to buy in York, does anyone have any ideas about initial offers,should we offer say 20 percent less than the asking price and work our way upwards or is that being too cheeky? We havent bought a house for thirty years so have no idea as to the custom.
we have about 200 thousand to spend and fortunetly no mortgage.

pawpurrs

What % did you accept on yours?

chickmug

nooney wrote: »

Thanks for all this info its actually exactly what Ive been wondering, we have sold our house have cash in the bank and are hoping to buy in York, does anyone have any ideas about initial offers,should we offer say 20 percent less than the asking price and work our way upwards or is that being too cheeky? We havent bought a house for thirty years so have no idea as to the custom.
we have about 200 thousand to spend and fortunetly no mortgage.

One of my many sayings:-


From my experience those who start off lower will eventually get the property they want cheaper than those who go in more sensibly. On the other hand those selling who start off higher will get more than those who try and price more keenly.

So buying start low – Selling start high.