Best and final offer

hethmar

Well, we looked at a lovely cottage which would be ideal for us when we retire in about 5 years or so. There is currently a tenant who has been given notice to leave - he has been there 7 years and is only a young guy.

The cottage needs a fair bit of work and was on offer at £172,500. By the time we saw it, 30 couples had already been - on two open days - it is in a very desirable area where cottages rarely come up for sale.

The agent who took us round told us they had had several offers including one at asking price. We put in an offer of £175000 and told him it would be chain free as we are going for a buy to let until we retire and move in ourselves. The cottage is rented at £500 per month - in its current condition.

That was Monday, today we received a phone call that due to the number of offers received the owner - who lives abroad - has asked for highest and final offers by Friday lunchtime.

Im not sure what we should do. It is rare that places come up in this particular conservation area - the place next door was sold (by same chap I think) last year at £200k as it has a slightly bigger garden and possible off road parking.

We were told by the agent on Monday that we were the final viewers and as far as he knew the highest bid. I asked if all the other offers were from people who were chain free and he shook his head (non commital these blokes!)

So guys - those with experience - what should we do - go in with a higher offer or just sit tight and hope the seller will decide someone with no chain behind them is the best bet. If we go for a higher offer how much higher should it be - we dont want to throw money away.

I know in the end its down to how much we want to secure this place for our retirement but it would be nice to have unemotional input.

Doozergirl

I'd stick, but I'm virtually emotion free when it comes to property now. Ultimately, you have to ofer what you are comfortable with and that is fair to the condition of the cottage. Don't feel pressured into offering higher than you might otherwise.

Put your offer in a letter and explain your reason for the offer; the type of work required, which may seem obvious but will reflect well if you understand the full extent of the work required (no surprises for anyone!). Be as comprehensive as you can as this will put your offer above the others. Include details of your chain free position (if you're buying with cash or mortgage). If you're buying cash or have a good sized deposit, it really wouldn't hurt to include the amount and your bank manager's contact details to confirm. If you're buying with a mortgage, enclose a copy of your AIP.

Include your solicitor's details, that they are ready and waiting and that you would like to exchange in x number of weeks (the sooner the better).

In my view, the more comprehensive you are, the more serious your offer looks and it will stand out against the others, regardless of amount.

Jorgan_2

As per Doozergirl, the only thing I would add is to make your final offer an odd number. Somebody may go £3k over asking price to £175,500 so you would want to go in at £175,541.

Whilst ability to proceed is a very important factor, some sellers will look at the final figure they receive & decide on that. Nowt as queer as folk.

hethmar

Many thanks guys, I think we shall stick at our offer and let fate take its course. It is lovely, it is in a rare and special position but I think the offer we made is a fair one and Im a bit miffed as the agent gave us the impression he would recommend us to the seller.

I guess if they think they can knock it up a few thousand more they will try.

Jorgan_2

Don't be miffed with the agent, they can recommend your offer to the seller but it is the sellers decision who they choose to go with.

hethmar

In this particular case the chap is in Africa, rarely available and only by email so I am pretty sure he would be relying on the agents advice.