Please help offer rejected and need a way forward

sarahmoo

Hi

Found a house which I really like. I am a cash buyer.It is on at 250k in a good area where property prices dont seem to have dropped dramatically. It needs new kitchen, bathroom and generally decorating but seems solid sound and well looked after apart from this.. Because of the work doing...and I explained this ... I put an offer in of 235k this am. The ea agrees with me that the place does need updating. She says the venodr really wanted the asking price in order to buy the place she wants but will talk to her about the offer (and explainto the vendor that shecould also put an offer in her place she is buying.) I had a phone call from someone else in the ea office 15 mins after placing it simply saying the vendor had rejected the offer. What do I do now? I am thinking of upping the offer a bit but how much and when? I can't afford the asking price considering the work that will need doing. Would really appreciate some ideas. Thanks

Running_Horse

Nearly all first offers are rejected. It's part of the game.

Wait a few days then offer what you think it is worth to you.

If the answer is no, walk away.

poppysarah

Say it's your best offer and leave it.

Look at others.

Offer 10k less in a months time.

henpecked1

add 2k, tell them you will have to cash in shares to add this 2k and say this is your full and final offer.

Generally speaking a house's asking price generally reflects condition so i am always curious to know why buyers try and offer less when something is priced in.

DVardysShadow

henpecked1 wrote: »

... Generally speaking a house's asking price generally reflects condition so i am always curious to know why buyers try and offer less when something is priced in.

Price generally reflects condition as perceived by the vendor and agent. But always there is a negotiating margin within the price.

westlondonbuyer

Running_Horse wrote: »

Nearly all first offers are rejected. It's part of the game.

Wait a few days then offer what you think it is worth to you.

As Running Horse and Poppysarah have intimated, you're being played like a fiddle here.

An offer from a cash buyer at this price on a stamp-duty priced house needing fairly thorough modernisation (have you ever replaced a bathroom and a kitchen?) is a superb one.

They probably just think you have more money on top and they want as much of it as they can get (completely understandable, it's a business transaction after all).

In about a day or two, they'll phone you and tell you there's another offer on the table, and ask if you want to increase your bid. That's all part of the game too...

shortchanged_2

henpecked1 wrote: »

Generally speaking a house's asking price generally reflects condition so i am always curious to know why buyers try and offer less when something is priced in.

Not convinced this is always true. It can be obvious sometimes that the value put on some houses is a price put on by the vendor as they are seriously over optimistic.

westlondonbuyer

Agree with Shortchanged. And prices at the stamp duty thresholds, in particular, seem almost entirely arbitrary.

LE3

What I did was to simply say to the estate agents that
"Having taken into account everything about the property, and mindful of what similar properties are selling for, I consider that my offer of <£235K> for the property at <address> is very reasonable. You know that I am <a cash buyer> and can proceed immediately. Please advise the vendors that I am not interested in playing games with the price - and let me know if they wish to accept <£235K> which is my final offer."

I offered on 3 properties in total, one I withdrew after survey, one was rejected as the property was "worth a lot more than that" (apparently!) - They accepted an offer 5K more than mine - but then then had a *lot* of problems with the chain (I was chain free).
The one I eventually bought, I made my offer, they came back with a counter offer - which I rejected in the way described above - the vendor took the weekend to think on it as it was a little less than they wanted for the property but I made it clear that I wasn't playing games & they accepted the offer.

Of course if you are the emotional type who will "be devastated if I lose my dream house" then this sort of approach won't work!

Eric1

henpecked1 wrote: »

Generally speaking a house's asking price generally reflects condition so i am always curious to know why buyers try and offer less when something is priced in.

That does not explain quite a few recent, step-by-step price drops in my area, usually 5K, 10K or 12.5K, all nice and round figures.
Very often just waiting another two weeks is worth 10K.

shortchanged_2

At the end of the day LE3 a property is only worth what you think is worth paying for it. Your opinion may differ to others. However if you feel your offer is a fair one, bearing in mind you are a cash buyer then stick with it.
The problem with buying and selling property is that everyone thinks that the first offer that comes in from someone is generally a starting point for haggling. This may not always be the case. To be honest you are offering (if my maths is correct) 6% under the asking price which in the current climate seems a very reasonable offer.

All offers depend on certain variables such as cost of any rennovation, how much you really want the property, current market climate etc.
The only problem can be sometimes is if people let their hearts rule their heads which can end up being a problem.
Anyway good luck.