...And then 2 come along at once

scooter_chick

So, my flat been on the market since July last year...

Now I have not one, but two offers! Am hoping you folks can give me a bit of advice (I've never sold before!)

Offer 1 - FTBs, with MiP in place. EA has 'better' gut feeling about these people.

Offer 2 - 2.5k above offer 1. Not a FTB, but someone who completes on their sale next week (has already exchanged).

Offer 1 was made just before the Stamp Duty announcement (my asking price is 250k), Offer 2 was made knowing that Offer 1 existed (they wanted to come back for another viewing, so the EA told them the offer to see if it was worth their while). Offer 1 have said they won't increase, but they don't know about Offer 2 yet.

I'm thinking of getting the EA to ask them both for their 'best & final' offers by say cob Monday, along with (written) details of their position & solicitors. Am saying solicitors to ensure the FTBs are motivated enough to have actually got one!

Would that be a sensible way to proceed? I want the best price, obviously, but I also want the one that I think is most likely to actually happen, if you know what I mean.

Thanks....

Doozergirl

My choice would probably be for people that have already exhanged on their sale.

You should ask your EA to check this but they are more likely to have a larger deposit to put down on your place, making the valuation easier and the fact that they have already exchanged essentially puts them in the position of a FTB but with experience of owning a home. FTBs can be twitchy and expect prefection in a house when the simple fact is that most are not perfect.

zzzLazyDaisy

My concern would be - where are they going to live after they have sold their house and while the purchase of your's is going through?

The reason I ask is that if they are going into privately rented accommodation the minimum rental period is six months. Also they might be keen on your place now - but once they are in rented, they may continue to look around and find somewhere else.

But if they plan to stay with family/friends temporarily, and are looking to move in quickly, then that would sway me in their favour.

olias

Doozergirl wrote: »

My choice would probably be for people that have already exhanged on their sale.

You should ask your EA to check this but they are more likely to have a larger deposit to put down on your place, making the valuation easier and the fact that they have already exchanged essentially puts them in the position of a FTB but with experience of owning a home. FTBs can be twitchy and expect prefection in a house when the simple fact is that most are not perfect.

Re the above. There has been a lot of talk about mortgage providers valuers valuing property at considerably lower that the offer price. Therefore, if for example the FTB has a 10% deposit, but the mortgage valuation values your property at 10% below what has been offered it could effectively lead to the FTB having to find considerably more as a deposit or the mortgage provider pulling their offer as the LTV would end up being too great IYSWIM.

I think I would be tempted to go with scenario 2 as the deposit is likley to be much greater. You really need more information from the EA and to discuss further the various likely scenarios with each offer.

Olias

mr_fishbulb

olias wrote: »

Re the above. There has been a lot of talk about mortgage providers valuers valuing property at considerably lower that the offer price. Therefore, if for example the FTB has a 10% deposit, but the mortgage valuation values your property at 10% below what has been offered it could effectively lead to the FTB having to find considerably more as a deposit or the mortgage provider pulling their offer as the LTV would end up being too great IYSWIM.

I think I would be tempted to go with scenario 2 as the deposit is likley to be much greater. You really need more information from the EA and to discuss further the various likely scenarios with each offer.

Good point, but I think an undervaluation would make a non-FTB think twice aswell.

scooter_chick

zzzLazyDaisy wrote: »

My concern would be - where are they going to live after they have sold their house and while the purchase of your's is going through?

The reason I ask is that if they are going into privately rented accommodation the minimum rental period is six months. Also they might be keen on your place now - but once they are in rented, they may continue to look around and find somewhere else.

But if they plan to stay with family/friends temporarily, and are looking to move in quickly, then that would sway me in their favour.

EA isn't sure what they're doing, but has the impression that they aren't going into rented. But I guess staying on someone's sofa is different from a proper spare room!

scooter_chick

Thanks for all the replies. I've spoken to the EA again, he's going back to the FTBs to see if they'll go up in view of the other offer & waiting for the folks with the other offer to send in proper info about their position. So I've got to wait & see. Sooo nervous - it's been so long time even getting this far.....

verytricky69

we had a v similar situation last week. I found it v stressful (even though a good situation really) my husband just told the EA to get best and final and we ended up with 1k over the asking price- result!

Defo best to find out what their deposits are like and what they plan to do etc.

Good luckxx (we put in an offer on a house that was excepted today- yay!)

missile

If buyer 1 has offered £250K, I would bite their hand off.

It is most unlikely that anyone will offer more than the SD threshold.

scooter_chick

verytricky69 wrote: »

we had a v similar situation last week. I found it v stressful (even though a good situation really) my husband just told the EA to get best and final and we ended up with 1k over the asking price- result!

Defo best to find out what their deposits are like and what they plan to do etc.

Good luckxx (we put in an offer on a house that was excepted today- yay!)

I know what mean, I'm really stressed too!

Won't get 1k over the asking price though, not for 2.5k Stamp duty!!!!! They're both off the asking price, but within what's an okay price in my head.