I think I've offended the vendor!!

cathsmith38

I went to view a house on saturday which I loved and met (almost) all of my needs. As I am renting my house out I went to my mortgage advisor and the sum of the mortgage offered to me is less than I originally thought. This is due to the fact that I'm renting my house out and I've recently reduced my working hours on a temporary basis whilst I undertake a research programme. Anyhow, I have a £60k deposit and a mortgage offer of £70k, and the house I viewed is on the market for £165k. I was in two minds about whether to put such a ridiculously low offer in (130k) but thought 'nothing ventured'....
Really wish I hadnt now as the EA said the vendor was shocked by my offer as he felt I really liked the house. Despite explaining my circs to the EA and the context of my low offer she didnt pass this on when the vendor asked her why I was putting in such a low offer. I have gone back to my mortgage advisor to look at other companies to see if I can increase my mortgage and am also exploring other avenues such as increasing my deposit etc. The EA said that the vendor is unlikely to accept anything below £150k but even if I can go that high I am now scared that the vendor will refuse me thinking I'm not a serious buyer (which I am).
Does anyone have any advice about how I can regain some credibility with this vendor and hopefully secure the house at the best possible price (given its unlikely I can go to the full asking price)?
Many thanks for your time
Cat

anselld

Firstly, don't believe the EA. Most of what they say will be negotiating tactics.
Secondly, don't feel guilty about offending anyone. Finally, do your own research (sold prices etc) and decide
(a) What is a fair price
(b) What you can afford

Then just stick to what you have been doing, emphasising that you are in a good position to move and you have secured funding for your offer (which is your best offer).

TrickyDicky101

House buying is a commerical transaction - do not think of it in any other fashion. The vendor should be extremely pleased in the current climate that he was getting any offer (I know i would be, given my house is currently on the market). It is irrelevant whether you 'offend' the vendor or not - he wants to move, you want to buy. Unless he's an utter moron, he wouldn't disregard any further improved offers.

EAs DO NOT WORK FOR YOU (as a buyer) - THEY WORK FOR THE SELLER (as they are the ones who pay their fees). Take anything they say with a pinch of salt.

seraphina

The EA is breaking the law in not passing on your offer. Go back to them with the original offer and insist they pass it on before you even think about increasing it. If they smell that you love the place, they'll just wait until your heart kicks in and says "oh okay then, of course I'll pay full asking...."

pararct

In the cold light of dawn and in the absence of any other offers that property is only worth £130,000 today as per your offer.

As a famous Governor of the Bank of England once said Property values are pure speculation it is only the debt that is real....

Don't worry about it. Yours may be the only game in town at the moment, you will either be lucky and get it or you won't.

whitesatin

It is so difficult to know what to do best as you feel that you should put in low offers just now, given the economic climate, but you don't want to risk losing the house you really like.

We saw one yesterday for £345k and want to pay no more than £310k for it (although we could). When looking on Mouseprice, it was sold in 2007 for £370k so they are already taking a hit, can we possibly offer such a low amount?

Although it all seems straightforward just now, i.e. it is a buyer's market, vendors don't always want to admit that.

Grimbal

I really wouldn't be worried about offending the vendor - it's a business transaction at the end of the day. Everybody (including you deciding the price you want to pay) should be looking out for their own best interests. I'm in a similar situation to you. I have a chain free buyer & have just offerred 91% of asking to an owner which has been turned down. They have a "value" in mind which I don't agree with (given my situation & the current market). The EAs spent 2 hours with them trying to get them to see reason, but they won't, so we've walked away. You have to stick to your guns, and go with the price you feel is right - if it upsets the vendor, that's their problem, not yours

MobileSaver

cathsmith38 wrote: »

the EA said the vendor was shocked by my offer as he felt I really liked the house.

This is a classic negotiating tactic known as "flinch at proposals" and as can be seen from your reaction it works very effectively!

You are made to think you have seriously under-estimated the price and immediately start looking at ways to increase your offer significantly. Don't forget that the EA is a seasoned professional negotiator, this is what they do day in and day out, and never forget they work on behalf of the vendor.

Ignore "unlikely to accept anything below £150k" and just concentrate on what you believe is the right price and what you can afford.

So for example let's say you could afford £140k and believe it's worth that then in your shoes I'd wait a day and then offer £137k next. When putting in the offer explain the reasons why you've increased your offer but also why it's less than the asking price.

If that offer is rejected then wait another day or two and then offer £140k as your best and final offer explaining how you've managed to scrimp together as much as you possibly can, you love the house, you're really motivated but that is simply as much as you can afford and you believe reflects a fair price in the current market.

If the seller's walk away price is more than you can afford then there's nothing you can do but at least you tried.

poppysarah

Tell them your offer is valid for 10 days only and you'll be looking at other propertys after that.

Play hard.
The mortgage market is getting tighter. Those who need to sell will be softer targets than those who just want to sell.

TrickyDicky101

In addition to what MobileSaver said, choose a non-rounded figure for your Best and Final Offer eg like £139,793 because it gives the apearance you really are scrimping from the bottom of your piggy bank.

cathsmith38

Thank you all so much for your quick (and heartening!) responses. I feel a little more confident and reassured now that I havent made a big mistake. Its been very reassuring to get some alternative views and I hadnt really considered that the fact that the EA might be playing games (naive I know). I think I will take the advice of more experienced and sensible posters on this forum and carefully consider my next move......