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Offer accepted... but...

Hi there, first post here an also a first time buyer.

Just had an offer on a property accepted following a bit of a bidding war and I have a bit nagging doubt about how it all happened and am hoping that someone might be able to offer some advice to put my mind at ease, hopefully!

I called the estate agent this afternoon and after I said I'd like to make an offer, before asking me what the amount was, the agent asked a number of questions about my situation but also the size of deposit. Before I'd really thought about it I'd told him.

The last thing he asked was what the offer was and basically implied that another first time buyer had offered more. This was OK as I expected the offer would be a little low so upped it to the next obvious figure which the agent said matched the other offer.

An hour or so later, the call came back to say the vendor couldn't pick between the two offers as we were in the same position with mortgage and deposit etc. and so the only way would be if either party was prepared to make an increased, 'full and final' offer.

Technically, I informed the agent to make an offer of just £50 more than full asking price as that was a round figure but the agent said he would put forward an asking price offer.

An hour later it transpired that the two offers were identical. At this point I raised the point that I had said to offer the rounded number which he acknowledged but then said the party had also rounded up as we had.

The agent said, again, the only thing to do was if we were prepared to make one last offer rise. He said the other first time buyer had tabled a higher offer and that it would only stay on the table until 5.30pm (it was 5pm).

We upped our offer one last time and secured the property but can't help but feel we might have been played around with.

A friend has suggested that we might be able to request written details of the other offers, but I'm a little apprehensive about asking. Besides, what would they be able to produce as evidence? And how could I be sure it's legit?

Please help put my mind at ease!

A
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Comments

  • evoke
    evoke Posts: 1,286 Forumite
    Tenth Anniversary Combo Breaker
    The agent is acting in the interests of the vendor and his fat commission cheque for selling the property. He has sussed you out and is getting you to your maximum bid, which I presume he already knows.

    The answer is simple. How much is the property worth to you? Bid up to that figure and no more. Be prepared to walk away and tell the EA to roll up the offers and shove them up where the sun doesn't shine.

    If you don't do this then you are going to become a victim of the EA. And that's never a good thing.
    Everyone is entitled to my opinion!
  • Gwhiz
    Gwhiz Posts: 2,322 Forumite
    Part of the Furniture Combo Breaker
    You've been played like a piano, a violin, a banjo and a mouth organ all at once!

    The good news is all is not lost!

    You need to really think your next move..... it's either accept what you've done on he basis you think the price is reasonable OR, and this would be my move, go back and say "with more thought and some research you've decided the property is only worth asking price less 10% (or whatever) and go from there (or stick to that as a final offer if it is).
  • Cissi
    Cissi Posts: 1,131 Forumite
    acg83 wrote: »
    Please help put my mind at ease!

    Sorry, but I think they saw you coming...
  • I agree with Gwhiz.

    Reduce offer and don't believe EA or his imaginary FTB friend.
  • annie123
    annie123 Posts: 4,256 Forumite
    1,000 Posts Combo Breaker
    Its not an uncommon situation.
    Put yourself in the sellers position, how do you choose between buyers who are in the same situation?

    Time scale maybe something else that could be important to the sellers or the ability to be flexible with it.

    You should not have been told that your offer matches the other unless the seller instructed him to tell you. This is unfair to the other bidders. That information is private and confidential to the seller and their agent.
    If the agent spoke to you, got your offer, then put that forward, the seller would want to know what the other bidders thoughts were, so its common practice to go to both buyers but should not play off one of against the other with both parties being what the other offer is. This is called conducting a private auction and is illegal now.

    How ever much you offer over the asking price is irrelevant in the long run as the valuation for the mortgage will be down valued to the asking price.....the surveyor will contact the agent to get these details.

    I suggest you put in writing to the agent (and the sellers if they are nearby ) the following:
    • your full name and address
    • address of the property you want to buy
    • confirm you're a ftb
        with xyz%£ deposit, any timescale requirements that you have or if you can be flexible say so, and your best and final offer, even if it means you having to pay over the mortgage valuation (think very hard about doing that unless its a small amount)
      but I doubt this happens much these days. You have to be happy with the price you are paying for it. It's you paying the mortgage not the agent or the seller.

      Then be prepared to walk away if you don't get, even in a good market 20% of sales fall through so you may get re offered it later.

      And Evoke........the agent doesn't get the seller's fee, the company he works for do, he will get paid a very small % of it and only then after many months of work
    • fimonkey
      fimonkey Posts: 1,238 Forumite
      Part of the Furniture 500 Posts Name Dropper Combo Breaker
      Or wait until you get the survey done and then try to re-negotiate back to your original offer IF there is further work to be done.
    • Cissi wrote: »
      Sorry, but I think they saw you coming...
      No No, property is always marketed for months and then within one hour two buyers appear and go into a bidding war. This always happens it is a law of nature. Happened to us recently, the seller preferred us and the EA was very keen for us to win. We refused to increase the offer and said the other people could have it. This was last September; it is still for sale and not even SSTC.
    • acg83
      acg83 Posts: 7 Forumite
      Ok, I'm going in tomorrow and I will ask them for the written confirmation of offers and seller's replies as per section 6a & b of this document:

      ww.tpos.co.uk/downloads/ies02_code%20of%20practice_sales.pdf

      If they don't have that information then they have technically broken the law. If they do, I will know what the vendor would have accepted because at no point did the EA actually say that offer had been accepted - only that the offer had matched the other one that was supposedly on the table and come to think about it - is that not evidence of them trying to create a bidding war/auction?

      They want me to talk to their broker as well - no doubt so that he can get his valuer on board to say 'yes, the house is worth that'. I will tell them where to go with that.

      The email they have sent includes an item on it that " Survey to be booked within 14 days or the property to be remarketed". Over the phone the EA said not to worry about it, but frankly I'm not going to accept that. I guess that's just more pressure tactics.

      I suppose another issue I have is that the house is rented out so that will really make it difficult to find out about the other offers - if in fact there were any.
    • acg83 wrote: »
      Ok, I'm going in tomorrow and I will ask them for the written confirmation of offers and seller's replies as per section 6a & b of this document:

      ww.tpos.co.uk/downloads/ies02_code%20of%20practice_sales.pdf

      If they don't have that information then they have technically broken the law. If they do, I will know what the vendor would have accepted because at no point did the EA actually say that offer had been accepted - only that the offer had matched the other one that was supposedly on the table and come to think about it - is that not evidence of them trying to create a bidding war/auction?

      They want me to talk to their broker as well - no doubt so that he can get his valuer on board to say 'yes, the house is worth that'. I will tell them where to go with that.

      The email they have sent includes an item on it that " Survey to be booked within 14 days or the property to be remarketed". Over the phone the EA said not to worry about it, but frankly I'm not going to accept that. I guess that's just more pressure tactics.

      I suppose another issue I have is that the house is rented out so that will really make it difficult to find out about the other offers - if in fact there were any.
      The other 'offer' may be verbal so they can't show you anything!

      If the property is rented check the details, depends on when the AST started and notice period etc. You will need the tenants to be gone at exchange but the EA may say that this is not important as they will be gone before completion ... ask your solicitor about the implications of having to complete with tenants in situ who refuse to leave.
      Their broker will make it easier for the sale to progress, nudge nudge ...
    • hazyjo
      hazyjo Posts: 15,476 Forumite
      Part of the Furniture 10,000 Posts Name Dropper Photogenic
      So there's a tenant in there too? OMG does it get any worse lol? Don't start any proceedings until the tenant's out.

      tbh, I'd walk away and chalk it up to experience. Shame people don't ask on here before the horse bolts... yes, it sounds very much like they've played you and I really don't think you have a leg to stand on by trying to decrease your offer. You've laid your cards on the table, face up, and then grabbed them back and asked to carry on playing.

      Jx
      2024 wins: *must start comping again!*
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