Is it best to make two or three offers?

smiddy_2

Just after a bit of advice when placing offers as a FTBer.

I am prepared to offer up to £205k on a property and was wondering wether to go £198 - £202 - £205k in three offers OR £198 - 205k in two offers. £205k is my absolute maximum.

Basically i do not want them to turn around after the first offer and say they will take a minimum of £210k for instance. It is priced at £220k.

Cleaver

Without knowing anything about the property, the sellers or you it's difficult for anyone to advise on this. If I were the seller and had had the house on the market for a year at £220k then I'd accept £205k, if I'd put it on the market last week I might be tempted to wait a bit longer. How long has it been on the market?

You may also want to post this question on the House Buyers board too. As you may get people on here telling you to wait until 2034 when you'll be able to get the same house in exchange for a tin of beans and a gold nugget.

lostinrates

OP has my sympathy. I hate the whole offering thing. We are looking at something this afternoon and should we want it I'd really like to get it for 90% of asking price, or less, but the 90ish - one pound %would be a ''sensible'' round number for tax/fees etc.

Its horrid deciding how to approach this.

Cleaver

If I loved the house then my personal approach would be to go to the vendor and say, I can pay up to £205k. I can't haggle, that's my limit. At least they know where you stand and can't mess you about. If they come back with £207k or something, then just look elsewhere.

As I say, without knowing the property, what other stuff in the area sells for and how long the house has been on the market it's difficult to know whether £205k is a decent offer. If properties on the road have been selling for £250k and these guys want a quick sale at £220k then they're not going to take £205k.

I know lir, the offer thing is a right pain. All psychology and a battle of wills.

Davesnave

It depends on the sellers feelings about you too! We had a horrible family look at our place, and almost no offer from them would have been good enough!

When we did sell, the offer we received was less than expected, but because we liked and believed the buyers, who said they'd taken a £30k hit, we went through with it. Subsequent investigation on Nethouseprices proved they weren't fibbing.

When we bought, our sellers' agent tried to get us to up our offer in various ways, but we declined. When it later came to a gazump, the sellers decided not to accept the higher offer because they liked us and our straight approach. They are very honest and straight people too.

What goes around comes around!

LydiaJ

I hate it too. I was so stressed by it on Wednesday that I spent the entire offer phone call pacing up and down. And that was after the friendly surveyor had told me what to offer and what to try to get it for. I think I'd prefer this to the Scottish "offers over" sealed bids system, though.

smiddy_2

Ok in response to a few of the above.

It has been on the market for two months and has already been reduced £5k in this time. Reason for selling is a marital split so a quick sale may be needed. I am a FTB so nothing to sell and can move immediately, with deposit and mortgage in place.

I went ahead with the £198k offer and it was (as completely expected) refused. The sellers said they would be very happy with me as a buyer but want alot closer to the asking price. TBH it is quite a bargain already but with all things considered think i may be in a strong position to hopefully get the price down. After a very unexpected turn of events i now have £210k that i can go to - do i try £205k first then go to £210k or just offer £210k to secure it?

I have viewed many properties so far and this is about the only one that i cannot think of anything i do not like about it and also it needs nothing doing to it. Therefore do not really want it to slip away. I know it would make sense to go straight to £210k but just wondering if the sellers are issuing a 'smoke screen' to get me to go higher when they may well accept £205k. Hmmmm, any thoughts?

Generali

smiddy wrote: »

Just after a bit of advice when placing offers as a FTBer.

I am prepared to offer up to £205k on a property and was wondering wether to go £198 - £202 - £205k in three offers OR £198 - 205k in two offers. £205k is my absolute maximum.

Basically i do not want them to turn around after the first offer and say they will take a minimum of £210k for instance. It is priced at £220k.

Personally, if my first offer was rejected I'd be looking to the vendor to make the next move.

smiddy_2

Generali wrote: »

Personally, if my first offer was rejected I'd be looking to the vendor to make the next move.

Ok and see if they name a price? They want closer to the asking price (quite standard i assume ) but not really clear how close.........

Generali

smiddy wrote: »

Ok and see if they name a price? They want closer to the asking price (quite standard i assume ) but not really clear how close.........

Exactly. So the conversation would be something like:

smiddy: I offer £198,000
Vendor: Nope
smiddy: How much do you think is reasonable?
Vendor: £2xx,xxx

Given the way that Brits negotiate, I reckon you'll end up paying in the middle of the two figures, assuming you're both British.

smiddy_2

Good advice Generali, so much so ive phoned the EA and gone ahead with it. Basically i told them if it is too high i am prepared to walk away (so it hopefully means they will be reasonable) but if the price is right they have sold it. Yes, i would expect to meet in the middle somewhere so fingers crossed it goes well.