What is a Sensible Offer - Advice Please

Rachael87

Hi everyone

Im new here, recommended from a friend and thought i would ask everyones advice. I have been looking at houses and have just seen one we like. Having downloaded Property Bee i can see the house has been up for sale since May 2010.

It was originally put on market for 250k and is now on for O.I.E.O 190K on one estate agent, and 190-210k on another.

I cant afford the Excess of price (Mayb 5k more at a push) but would like to put a bid in for the 190k. My mum said bid 185k first and go up to 190 - but the estate agent told me tonight that they are looking for the higher end of offers really. (Which obviously everyone is looking for the higher end of offers, but does she mean they wont take the lower end?)

I dont want to look silly with going in under the asking price, when i did that b4 on a flat the estate agent said 'you do realise thats below the offers bracket they were looking for' and when i argued it was a flat, shorter lease, bought in the market peak etc so would only go up to the low end of the asking price, he said well we cant help you! And wouldnt deal with me.

So i dont want that to happen again! Should i just go in for the 190 and hope that i get it?

Thanks!

jenhug

i'd go in lower, the worst they can say is no. the estate agent isn't going to tell you they will take less as they will get less commission. Good luck.

SG27

I found that when dealing with estate agents as a first time buyer they basically take the pi$$ out of you and assume you are naive. They will try and intimidate you into paying more than you would like and make you feel stupid when trying to negotiate low offers! Don't let them talk you into paying more than you want to. It's your hard earned money you are spending not there's!

I think the best thing to do is decide what the house is worth to you then start below that as the vendor/EA will always try push up your first offer. Be firm and confident when making offers and don't get pushed around. A perfect example of this is the estate agent that said "you do know that's below the price range" and "we can't help you" a good reply would have been "if the vendors become more realistic in their price call me back, but I will be offering on other properties in the mean time". As a buyer YOU are in control of the transaction, especially in a Market such as today's. It's your money, you decide the price your willing to pay. It is both the vendor and the estate agent that need YOUR help not the other way round.

Good luck.

chambta

jenhug wrote: »

i'd go in lower, the worst they can say is no. the estate agent isn't going to tell you they will take less as they will get less commission. Good luck.

Not necessarily. I've negotiated a flat fee with mine.

boots_babe

Rachael87 wrote: »

I dont want to look silly with going in under the asking price, when i did that b4 on a flat the estate agent said 'you do realise thats below the offers bracket they were looking for' and when i argued it was a flat, shorter lease, bought in the market peak etc so would only go up to the low end of the asking price, he said well we cant help you! And wouldnt deal with me.
Thanks!

Assuming they are registered with the NAEA then they are duty bound to send ANY offers to the vendor. Not to do so is a breach of the terms they've agreed to by being an NAEA member.

Plans_all_plans

Go in under the OIEO price. Our house was on for OIEO 110k. Our first offer was 92k, then 95k, then 96.5k which they agreed on.

Also do a search of the forums as there was a thread with hints and tips for buyers on it. Think Chickmug started it? I followed all the tips and got the house for quite a bit under the asking price.

ETA: found the thread http://forums.moneysavingexpert.com/showthread.html?t=1907059

mikthe20

The average selling price these days in 92% of the asking. So, giving some room to negotiate, I'd go in at 85% of asking and then meet at 92%. Having said that, I'd go in at 70% of asking considering it's been for sale for so long - "if you're not embarrassed by your offer, it's too high". Don't forget, every pound you save on the buying price saves £2 in mortgage payments!

womble12345

jenhug wrote: »

i'd go in lower, the worst they can say is no. the estate agent isn't going to tell you they will take less as they will get less commission. Good luck.

If the vendor hasnt negotiated fixed fee then its likely it willbe about 1%, therefore for every £1000 extra you offer the agent gets an extra £10, is he really likely tojeopardise a sale (and the other 2k or whatever) of his fee for a tenner more?? In these times it is far better for the agent to get his fee full stop than try and get an extra tenner!

Rachael87

Thanks everyone, i offered 185k and the estate agents said they have been asked to decline any bids under 190 automatically, and they are really looking for around 205k.
Did feel like arguing why was it even up for 190-210 if they wouldnt take 190 but cant be bothered! Will offer 190-195 and hope they become more reasonable.

Thank you though everyone!

quantic

Tell them to put the offer forward regardless, they tried this !!!!!!!! on me too. They ended up accepting 15k less then our original offer when we walked away.

poppysarah

Don't offer more. It shows how keen you are.

Wait a while.