Difference between First and Second offer

boy_3

The house I am trying to buy has an asking price of 324K. My first offer was 290K, which was rejected. EA has come back after a week saying that he has an offer of 316K and whether we want to go for 318K.
We can afford 318K and also believe that house can be bought upto the asking price as a similar one next to it sold for 330K.
But, we are not sure if we should give him an offer of 318K right away (28K more than our first offer) as he could be playing a pseudo buyer on us to do a quick sale as he know we are interested. What's the best way of dealing with this? Offer him something around 300/310 and say that's all we can do to see if he is bluffing us. Or offer 318K as we want the house. Then again, there are other houses in this world. So, don't really want to overpay here.

MissMotivation

I think you are right to be suspicious but what you do next is important. It depends on how much you want the property? Are you prepared to lose it or do you want it at any price?

If you are not bothered about potentially losing the property then offer lower and see what happens but be prepared that "if" the agent is not bluffing you may lose it to the other party.

If you have your heart set on this property then go in at £318,000.

Only you can make this decision!

PoorDave

Based on the info provided, it sounds like the asking price is low compared to other similar properties, so if you want it, then go for it, up to the asking price. You initial offer is around 90%, which nobody sells for these days unless desperate, so don't worry about offering the extra 28k too much.

Gorgeous_George

The house is over valued. I know this to be true because nearly all houses are over-priced. It's only by people offering the price made up by the Estate Agent that the housing market is crazy.

Like you say, there are more houses. Assume you will stay there for 5 years and the house will be worth much less in 5 years' time. Be strong, if you offer £318, the other interested party will offer £320.

Good luck.

GG

AndrewSmith

Don't trust the agent, he shouldn't be telling you what the other offers are.

Book a second viewing at a time when you know the agent won't want to attend, eg Saturday afternoon etc,

This will give you time alone with the buyer. Don't go in for the kill straight away but simply have a chat about the place, area, etc etc then drop into the covo that you had offered £290 but it was rejected. Ask if there have been other offers and what would they be likely to accept as you really want to tie it up quickly.

Don't forget though that the seller will have a bottom price they can accept to make the move upwards possible.

Of late we have not seen massive price increases and, if they borrowed heavily to get the place, they may not have much room for manouver.

If they cant realise enough from the sale to make their own move possible and release sufficient equity for the onward deposit/fees etc then it simply wont happen.

Andy

boy_3

Agent gave us the other offer price as a personal favour. Yea, I know. He even said if we offer 318K, he will try to convince seller to close the deal right away.
Seller is not accessible to us, as he is abroad. Also, he is not in a chain. He doesn't live at the property. I have already done two viewings and like the house as it has potential. Can we ask EA to give seller details to us?
In my view, EA is trying a quick sale by taking us closer to asking price which seller can accept. But, I don't want to pay 318K if I can get it in 300K or so (i.e. there is no offer for 316K).

lilyann1

You never ever know if EA's are bluffing or not,it depends on how good terms with them you are,some are real w++++++ and others are really lovley and I would trust with anything.
We had this with our purchase asking price of £430k and I put offer in of £400k,to which the estate agent said oh it'll be turned downed as they really want the asking price or close to it.
I then went and offered £405k ,declined,then £410k and we got it!!!! We'd have even gone to £420k,but we just kept our nerve.
I did see though the house a few doors down had sold last year for £410k,so we knew we were in the right area.
If the house you saw was sold for £330k,then the one you're trying to buy at £318 sounds cheap,but you don't know if the house next to it was that price because it had new kitchen say or something wonderful in it.
I'd go for £310 and see what happens.

AndrewSmith

You can ask him for the seller details, but you won't get them.

Do it as I have suggested then you will be in a position to 'casually' discuss the price.

Andy

boy_3

Andy,
I can't do what you have suggested as seller is not available for viewing. It's only the agent who does the viewing. Seller doesn't live at the place and has no chains.

AndrewSmith

Aha, didn't know that. Unfortunately my psychic powers a running a little low today

You are then, I'm afraid, somewhat in the hands of the Agents.

boy_3

UPDATE: Just offered 310K to the EA and he came back saying that we should talk to his financial advisor to make our case stronger against the 316K offer. We refused and said we already had all the finance sorted out.
He comes back again saying that seller can do a deal today if we offer 314K. I was ready to pay this much, but now it all looks a bluff to us to get the higer offers from us. So, we have told the EA that our maximum was 310K. He has said that seller is porbably going to accept the other 316K offer then. Yea, why not. Why is he considering our offer anyway if he has an higher offer. Decided to be firm on this one. Not going up now. Let's see what happens.