Made two offers on a house, both rejected.

giddypenguin

You guys have been so good so far especially for us hapless first time buyers who for the most part don't have a clue what's going on. Now we need some more advice.

We've found a house for 309,950, but according to a past thread this is way over priced (they bought it for 295k in November 2007) We offered 280k first time (on Friday) which they rejected, then offered 285k yesterday, which they have also rejected. My question is what's our next move? We asked the estate agents what they realistically wanted, and the estate agent said late 290's maybe even early 300's. We were thinking of leaving it a week, then maybe offering a bit more? But we're really not sure. As far as we're aware we're the first to make an offer.

DVardysShadow

Before you think of your offer strategy, think of the price at which you would walk away, but buy if it was £1 less. And stick to it.

Your final goal is to get the vendors to accept an offer no higher than your walk away price. Your intermediate goals are to get counter offers which indicate that the vendor would move to your price.

So you did well to ask the Agent for an indication - there is some delay now, it would have been better to do this in the same conversation. You say something along the lines We could go a little further, but we would not go far into the late 290's [according to your top limit]. You need to be honest, giving a fair indication, but not in sharp focus. And then you say Would the vendors be prepared to indicate a price in that region? And if they don't, you can be fairly confident there is either no deal to be had, or if there is then the Agent will be back.

downshifted

I agree with DVs excellent advice

NAR

You need to try and guage what the value of the property actually is. You say they bought it for £295 in Nov 2007, but did they do much by way of improvements since? How much have your mortgage company valued it at (if this has been done).
Some realism still needs to set in with both sellers and Estate Agents. Also, how much do you really want this house, should be a factor in whether you want to improve your offer. I certainly would not be rushing back to the Estate Agent with another offer for a week or two.

Chinkle

I wonder if psychologically they just want to break even - so would accept £295?

Squish_21

Agree with Chinkle.

Sounds like they are holding our for a higher offer which wont materialise.

Tell the EA that £285 remains on the table for say 1 week but in the meantime you will be looking at more houses.

adg1

Are there any sold comparables in the local area? What level are other similar properties listed at?

You need to stick rigidly to the budget you have and don't be tempted to go over.

Leave your current offer on the table for now but continue looking for other properties. If it transpires this is the best and there is nothing else around then increase your offer but only to a level you can afford.

RabbitMad

giddypenguin wrote: »

We've found a house for 309,950, but according to a past thread this is way over priced (they bought it for 295k in November 2007)

Who says this is overpriced?

I saw a guy on the antiques roadshow who had a painting that his uncle had paid 50p for about 30 years ago and it was valued at £200-£300 now. Now by my reckoning he got a bargain.

Could the £295K price in 2007 been a bargain? Was the seller then in need of a quick sale?

redlady_1

According to a thread on here but not according to the valuation of the Estate Agent. Now I know they lie their butts off but...

giddypenguin

We have done a bit of searching on right move, and it seems there are a few houses on there a simular size and layout for £269950 (so glad we've just found them!) Although we love the house we made an offer on (all the decor is done to our taste, we could move right in) we're going to look at these other houses and if they are the same size make an offer and save ourselves over 10k.