What's the best way to 'up' an offer?

AppleCore

So we put in an offer on a house just over a week ago which was declined immediately. House on the market for £370k, we offered £335k which I know is low but seemed fair considering the asking price is very high and the property needs work. After speaking to the vendor the EA mentioned a figure of £345k as being more likely to be accepted (whether the vendor told him this or he just pulled a figure out of the air I don't know). The property has been on the market for 6 weeks with no offers and the EA has recommended they drop the price but this is yet to materialise.

We've decided we can afford to go to £340k which would 'meet in the middle' so to speak but this would be the absolute max. I could do with some advice on the best way to submit this offer. Should we go up say £2k at a time or go straight up to £340k? We put the original offer in in person at the EA office but should we do it in writing this time? Its been a week since the offer was declined, should we wait a bit longer before making our next move?

Any hints/tips would be gratefully appreciated!

DVardysShadow

I would go straight to 340 and say this is best and final.

As I read it, your offer is basically acceptable - they feel they 'can do business with you' and want to squeeze and undefined 'more' from you. 5 should do it.

Of course I could be wrong - 345 could be their best and final, in which case there is no deal to be done, so you should walk away. If it happens like this and no one offers, I think that there would be a good possibility that the Agent would come back to you sooner or later.

brit1234

I would make the seller and EA sweat a bit. Where I work its called a pregnant pause, it makes them eager to contact you.

Wait a few days till next Friday and they should be in contact before then. If they contact you before say you are still looking around and seeing how much you can get.

On Friday say the £340k is your maximum take it or leave it.

Never rush things, it is a strategy game using your brain rather than heart.

AppleCore

brit1234 wrote: »

I would make the seller and EA sweat a bit. Where I work its called a pregnant pause, it makes them eager to contact you.

Wait a few days till next Friday and they should be in contact before then. If they contact you before say you are still looking around and seeing how much you can get.

On Friday say the £340k is your maximum take it or leave it.

Never rush things, it is a strategy game using your brain rather than heart.

Thanks for the advice. I was going to call the EA on Monday but I'll wait until the end of the week now. TBH I thought they'd have been in contact by now seeing as its been a week and I'd pretty much give up hope that they might actually call me. I had a bad feeling that we may have offended the vendor and that's why we hadn't heard anything from them - do you think its normal for the EA not to make contact for this long after a rejected offer?

DVardysShadow

AppleCore wrote: »

Thanks for the advice. I was going to call the EA on Monday but I'll wait until the end of the week now. TBH I thought they'd have been in contact by now seeing as its been a week and I'd pretty much give up hope that they might actually call me. I had a bad feeling that we may have offended the vendor and that's why we hadn't heard anything from them - do you think its normal for the EA not to make contact for this long after a rejected offer?

Bear in mind [look at his sig] that brit1234 has a particular perspective on the housing market.

Negotiating is not purely a matter of bargaining the other side down or up, it is a matter of finding a price at which business can be done. If you cannot find such a price, then you should just get on with your life.

I really don't like theatricals like taking an age to reply to make it look like you are scraping the money together - by all means take the time if you are scraping it together of course. Playing games can be counter productive, because there are always subliminal clues that you are playing a game. Someone who is perhaps minded to drop to a particular level could become very reluctant if they perceive a game is being played.

Far better if you know your top is 340 and you are invited to bid at 345 to just go straight in with 340 as best and final. Your decisiveness would be a distinct plus in indicating to the seller that you are straightforward.

sharkie

How much are the other houses selling for in that area? Why are they moving? How soon do they want to move? What happens if they do not move? Are you or they stuck in a chain?

All these determine how much you can negotiate.

£340k may still be too high - think the market is still going to drop a bit more!

jockosjungle

If you want to offer 340k as your final offer then do so, do it on Monday. The sellers have a price in mind, I would say it was £340k, hence the comeback to £345k. There is no way you can trick them into accepting a lower offer than they otherwise would.

By waiting, all you are actually doing is increasing the chance someone else is going to make an offer in the meantime.

myhouse_2

If the house has been on the market for a long time then you can certainly afford to wait it out. There are not a lot of buyers out there at the moment. Put your next offer in with a deadline and be prepared to wait it out if they don't accept.

AppleCore

Well I put the 'best and final' offer in this morning and have heard nothing since! I called the EA at about 3pm and he said the vendor hadn't responded to the voicemail he was left. So the waiting continues, hopefully I'll hear something tomorrow...

Cannon_Fodder

don't be too keen to chase, they will assume its not 'best and final'....

AppleCore

Cannon_Fodder wrote: »

don't be too keen to chase, they will assume its not 'best and final'....

Thanks for this. I have decided not to call them tomorrow so I don't look too keen

Just hoping I get a call with some good news