FTB - are we being paranoid or being messed around by the agents?

jozbo

Hi there
As first time buyers my husband and I have been actively looking for a 2 bed flat in London for about a month now.

After a couple of bogus flats and refused offers we found something we liked a lot last week. The vendor showed us round and we built up a rapport - she seemed honest about its pros and cons (including a lease of 81 yrs at present). We got the mortgage in principle agreed with the ifa and put in an offer for 187 to start (its on the market at 200) but stipulated the lease needed to be extended by the vendors within the deal - the quote they have to fully extend it is 7k. ie the offer to them effectively was 180.

Offer refused, I asked what they were expecting and was told 190-200. Offered 192 (jnc lease) and said it was our max budget (strictly our max is 195 but we can borrow 7k on top of that without issue).

That was refused. Was told the vendors wanted 200 WITHOUT extending the lease - ie asking price. Cant believe that to be true - can see one flat has sold in the area for 205 recently but nothing above 185 otherwise.

I'm wondering whether to trust the EA at all on this. We thought long and hard and put in a seriously end-of-the-line offer at 200k including the lease extension (or 193 without). It has been refused but we are going to hold it there a while.

Now the agents have gone silent on us for a couple of days - trying to get us worried and push us up I imagine. We like this place a lot but as we have already exceeded the budget set I'm trying to keep a cool head on this but it's so tough!

Should we increase our offer? Or sit tight? Ask for a second viewing? Or put our offer in writing to the vendor directly?

Thanks!

keith969

You haven't been looking long. I'd look at others if I were you - unless you have a reason to rush, don't. Take your time and find something at a price that suits you.

Cannon_Fodder

So, you've moved up £20k, without any sign of willingness to negotiate on their part ?

Including finding £5k after your first offer, to a supposed "maxmimum offer" of £192k.

But then miraculously finding another £8k, to offer £200k, which you call "a seriously end-of-the-line offer", and yet you are still considering offering more..?

Having already exceeded your budget, you do not need to keep a cool head, you need to find a cool head.

Of course they are waiting for you to offer more. You undoubtedly will.

Do not take up poker.

ninky_2

i'd call the estate agent and tell them that the offer you made really was your final offer and that as it has not been accepted you are now starting to look at other properties. tell them that you still really like their property and if they change their mind to get in touch but you are not prepared or able to go beyond the offer you have already made. be really nice and upbeat about it.

believe me if they don't take your offer you will find something else (that you possibly even like more). EA know that first time buyers get jittery and that as they don't have experience as sellers they can by more readily manipulated into increasing their offer.

sit tight and good luck.

Lance

Maybe offer 220,000 without the lease being extended and pay their removal fees. Tell them that is your definate final offer and if they refuse you will only go up a further 10,000! Sorry, but they must think it's Christmas early.

jozbo

hmm i know you're right cannon fodder! thats why it's eating me up - and my husband and dad are saying 'go for it - increase if you want it!' but i already feel we've moved so far away from what i had planned to offer. totally been sucked in by them and what they wanted us to do.
also inconvenient is that the ifa happens to be with the agent (just chance - in fact the first time we dealt with these agents i resolved never to use them because he just boasted about how much money he was making)
i feel like a chump.
thanks for being straight with me unlike anyone else!

keith969

jozbo wrote: »

also inconvenient is that the ifa happens to be with the agent

Ah well, that's probably why then. The EA knows what you can afford...

Pass this one by, and make sure in future your EA, IFA, solicitor are in no way connected.

jozbo

well, the broker only has knowledge that we can go up to 192.
i know it's inadvisable for them to be connected but i will be disappointed to let this one go as it really is far better than the 20 odd others we've seen. then again, i know we will find something better if we look long enough.
i tried to pull a trick today in desperation by getting the ifa to pass on our agreement in principle to a rival estate agents for a property we're also making offers on.

Old_Git

they want you to bid against yourself .They know they are not going to get the asking price and they know the lease will have to be extended .
Dont increase your offer .Do not bid against yourself .You have your mortgage in place and are ready to move ,that is a great bargaining tool

$$$_12

Walk away now (unless you really must have this one - in which case be prepared to pay whatever they think they can squeeze from you).

Never get emotionally engaged. You might find my previous negotiating post useful:

http://forums.moneysavingexpert.com/showpost.html?p=34110397&postcount=9

Always remember that £200,000 pounds is a huge amount of money - and you will pay roughly double that as a mortgage.

Properly read up on it. This is probably the biggest financial transaction you'll ever make and the consequences will be with you for years.

jonewer

As $$$ says, walk away from this one. Your have no other choice really, other than be ripped off.

You learnt a lot this time. Next time you will know better and save yourself a fortune.