Received offers but worried house has been undervalued

Running_Horse

Just did a Rightmove search for 2 bed houses less than £250,000 within a mile of Orpington station. 12 came up (including yours). 12 came up at £270,000. 13 came up at £280,000. 13 at £290,000. 13 at £300,000. And so on. I like Orpington, but are you really sure a 2 bed house will ever get much more than £250,000?

Cannon_Fodder

A first offer is rarely the highest someone can go.

If the house might be worth £270k, so you put it on at £280k for negotiating room, you could deter a big chunk of potential buyers.

If buyers suspect it's "true" value, but start competing from the 'low' point of £250k, then one of them may be happy to pay around £260k plus the extra stamp duty, rather than the expected £270k and still the extra stamp duty.

You gain £10k, and avoid the risk of being too far above stamp duty threshold.

Discuss the best approach with the EA, sealed bids or direct suggestion of £260k...

mark5

Just because they all offered £250,000 doesnt mean any would have offered £250,001(actually £257,501).

Soot2006

Maybe it means the price is perfect for the house?

Problem is now it's been marketed at this price any buyer doing their homework will be able to find the old price ...

goldengirl28

could you go for sealed bids against each other?

see what the highest price you can get is?

adg1

5/5 is a great hit rate for viewings and offers.

This could be for a couple of reasons:

1. Priced too low as you mention;
2. priced correctly for the current market;
3. that there is nothing comparable in the local area and there are a lot of people who want this type of house, so when it came along they were ready.

My guess is that its a mixture of the last two. The reason I am going down this route is for this reason: why would an EA downvalue a property? It will reduce their fee and hence their negotiatiors commission.

Property is selling quickly when it has been priced correctly for the current market conditions as a lot of vendors are still living in the past and expecting more for their house that the current market will generate.

You also mention that there is very little on the market that is comparable in your area. Maybe the EAs used their buyer base to generate the price and managed to get as many people that they could that wants your type of home through the door in one weekend.

With 5 people bidding sealed bids is a possibility. I would guess most would drop out as this would shoot the proce over the stamp duty threshold. The other option is to study the offers in depth. Look for chains that could collapse, cash buyers, fast completion etc to differentiate between the buyers.

At the end of the day you listed your house for sale at £250k, which you state was the value you wanted to achieve, and the EAs have got you five offers of what you wanted. Take the best sounding buyer with the smallest chain and run with it.

getmore4less

EA might have been hoping for fewer offers to get a deal for a mate.

I would not go to sealed bids yet,


Find out more about the offers(chain free,cash etc) and gauge how many are interested in increasing their offers to make them more attractive.

Keep marketing make sure any new viewers know that there are allready excelent offers on the table.

PasturesNew

Looking at your estate, I can see sold:
- £250k fixed price, 3 bed terraced http://www.rightmove.co.uk/property-for-sale/property-13365921.html
- £239k, 2 bed end of terrace with 3 parking spaces http://www.rightmove.co.uk/property-for-sale/property-23226145.html

For a 2 bed, mid terraced, in your estate, £250k looks fair. So I think it's that people want to be on your estate, but not at any price.

There's only one other 2 bed house within 1/4 mile of you, for sale at £230k http://www.rightmove.co.uk/property-for-sale/property-28419104.html

pastmybest

getmore4less wrote: »

EA might have been hoping for fewer offers to get a deal for a mate.

Reading this board I would of thoughts EAs had no mates:D

Joking aside just how many times do I read, on this board, that the EA is trying to line somehwere up for a mate. Sorry but whilst it may happen on the odd time I find the idea that it is widespread to be ludicrous.

Doozergirl

I don't think this is something to worry about at all - it's great news! If your EA has any brain, they will already be telling these potential buyers about each other and lining them up either for an auction situation where they start bidding each other up or indeed, sealed bids (my personal preference - it's harder work for the EA - but I'd let them bid each other up rather than scare them with sealed bids, they might be intimidated into not offering again)

If five out of five of them only offer £250k then you know it's a fair price - it is true that people don't like to spend more. However, if one or more of those five really want it then they will start bidding higher.

All you guys need to do is sit back and wait for them to fight it out amongst each other. Getting another agent in is insane when you have five buyers lined up already! People who have agreed or suggested that simply haven't though this through correctly. The house will find it's true level with one of these potential buyers.

Setting your price low isn't a problem - in fact it's wonderful that you've attracted so many potential buyers. Just make sure that the EA properly verifies the winning offer. You woulndn't want it to fall through for the EA not having done proper homework on them.