HELP! In the middle of negotiations...

Alibear

Hi, sorry to start another thread.

I've just put in an offer on a flat in London at around 15% below asking price. The EA said there's no way he'll accept that but if you can offer £xxx they might be able to do something. I've said I'd call back after speaking to the bf. Does the EA have an obligation to let the seller know our offer? We don't want to go in at the EA's suggested figure as it's right near the top of our budget, so I'm thinking of going back to them and saying we want them to call the seller with our price (maybe adding £2k onto the offer). She knows our budget and we're attractive buyers (cash and no chain)... Would I be doing the right thing?

DVardysShadow

The EA is obliged to pass on all offers, unless the vendor has given instructions not to pass on offers which do not meet certain criteria. You could just insist that the agent passes on your offer.

Are you truly cash buyers? Do you actually have the cash in the bank? If you are, you could always try the tack 'if I up my offer, I'll have to get a mortgage, so that would slow things down'. But beware, it could result in the agent trying to sell you financial services.

Alibear

EA passed on the offer but he rejected, which we knew would happen, but didn't come back with a counter offer. Hmmm.... How long do negotiations take?

Yep, money is there. Could say we could get a mortgage but don't want to because of interest rates increasing etc. Vendor wants closer to the asking price, which I can't see him getting in this market.

Hugbubble

Alibear wrote: »

EA passed on the offer but he rejected, which we knew would happen, but didn't come back with a counter offer. Hmmm.... How long do negotiations take?

Yep, money is there. Could say we could get a mortgage but don't want to because of interest rates increasing etc. Vendor wants closer to the asking price, which I can't see him getting in this market.

Just leave the offer on the table, stressing the point about you being cash buyers, and wait for him/her to ring you back

Alibear

Thanks, I think we're going to leave the negotiations for a few days and take another look at the property with a trusted (and knowledgable) friend. I think the cash buyer situation could be a clincher.

Jackinbox99

Alibear wrote: »

Thanks, I think we're going to leave the negotiations for a few days and take another look at the property with a trusted (and knowledgable) friend. I think the cash buyer situation could be a clincher.

I thought the same thing when i was buying a house a few months back, but in reality the EA`s and sellers i made offers to didnt really care less whether I was a cash buyer with no chain or not. They only seemed interested in getting the highest amount for their property.

The fact the seller hasnt got back with a counter offer signals to me that you are miles off the figure he is thinking of and wants you to come back with a figure which he feels is more realistic to him.

Alibear

Jackinbox99 wrote: »

I thought the same thing when i was buying a house a few months back, but in reality the EA`s and sellers i made offers to didnt really care less whether I was a cash buyer with no chain or not. They only seemed interested in getting the highest amount for their property.

The fact the seller hasnt got back with a counter offer signals to me that you are miles off the figure he is thinking of and wants you to come back with a figure which he feels is more realistic to him.

Thanks for this. I thought the same re lack of counter offer. BUT I've just seen a very similar property round the corner on for £15k less! Feel I have to see that to see that one to see what the extra is for. A good haggling tool as well, do you think?

shedifice

Same thing here.

We are no chain buyers with good deposit and agreed mortgage. put cheeky offer on a house got rejected. increased the offer to 95% of the asking, got rejected. Increased the offer to 98% of asking, after EA said he thought vendor would go with it....... rejected. Have now told them 'I'm out'.

The vendor has allready bought and is apparently not desparate for the money! Has been on market since sept with one sale allready falling through just before exchange. They say they have a full price offer but from a chain dependant not sold yet person.

As confusious says - bird in hand ....

So as Jackinbox says, it seems there are a bunch of sellers who are not prepared to budge without the full price! I would have thought that 5k drop in price would be worth the peace of mind for a good quick sale but people are blinkered by the pound signs.

L.

evoke

I really can't see the point of forcing the EA to pass on an offer that the EA has told you will be rejected. It'll just get rejected. Clearly the vendor has told the EA the minimum price below which no offers will be accepted.

The law is one thing. EAs are another.

The murky world of property has its own masonic rules and regulations that we must abide by.

Alibear

So true...

Well we've arranged to see the other property; told EA and they didn't seem too bothered, but suppose they wouldn't give anything away. We'll just hope the other property's just as nice and wait for the original EA to come crawling back to us!

Lifes_Grand_Plan

Jackinbox99 wrote: »

The fact the seller hasnt got back with a counter offer signals to me that you are miles off the figure he is thinking of and wants you to come back with a figure which he feels is more realistic to him.

I would disagree... in negotiation to not come back with a counter offer (or any comment on how far out you are) is just very poor negotiation...

OP assuming that this place you are offering on isn't a massive bargain or a once in a lifetime opportunity then I would just leave the offer on the table and keep looking elsewhere (let the EA know you are doing this).

RE: Forcing EA's to put offers to the vendor.... the EA works for the seller and gets paid commission on the sale price therefore its in their interests to get the highest price possible.

They are very likely to lie / not inform the sellers of offers if they think they can squeeze more out of the buyer... this is especially so if they know what your budget is.

So by forcing them to put the offer to the seller, the seller may well be happy with the offer and not give a damn what the EA thinks or how much commission they get.