rules on pricing houses

doncouple

been to look at a property that has been on the market since may 2010 and not sold it , it was first priced at 145, 000 but recently been put on rightmove for as it says OFFERS OVER 130,000 , the 130 and below bracket now show this property , but when we have put offer in for this property, we keep getting knocked back , we started at 130 then 132.5 then 135 , my problem is that, is it bad pratice on the estate agent that it as been put up at 130 with the client having no intension at selling even at 135 just to get people they.

CloudCuckooLand

There are no rules...

EAs make it up as they go. Sometimes under instruction of vendor.

If obviously cheap, they may hope to get people bidding against each other.

Make your best offer then go find something else.

Doozergirl

It does say offers over. If no one else has bitten in that time (and we're still in the same ballpark aren't we really?) then why are you still raising your offers? Time to stand firm and not be dragged up by the vendor. Ask what they are looking for exactly and then tell the agent that they won't be getting that number from you either. You need to be harder than just raising offers - anyone who knows what they are doing will play you like a guitar!

Jowo_2

No rules other than what the vendor is prepared to accept and what the buyer is prepared to pay.

cjmumto2

Thats how the Scottish system works (well similar) and it seems to be more in use in England now too

paul1964_2

doncouple wrote: »

.... we keep getting knocked back , we started at 130 then 132.5 then 135

Stop making offers!

In my experience of "offers over", they will reject every offer until you stop - then they will "change their mind" and accept your last offer. It is just a tactic to get you up to your maximum price.

shortchanged_2

Technically if you offer £130,001 they should accept that offer as it is exactly what it says on the tin.

Don't bother playing silly games with people, they are the ones that will ultimately lose out. Nearly all the 'offers over' sales I see never sell and they end up reducing their price.

Doozergirl

paul1964 wrote: »

Stop making offers!

In my experience of "offers over", they will reject every offer until you stop - then they will "change their mind" and accept your last offer. It is just a tactic to get you up to your maximum price.

Exactly. If you don't show any signs of stopping or slowing, then they won't stop you!

It's a negotiation - that means that you should be expecting a barter situation with them, especially as they don't even have an asking price that it's obvious they would accept, like a normal vendor. If you don't show signs of stopping or demand at least an idea of what they will accept, then they are simply taking the opportunity to let you push yourself higher (which is what is happening really) until you reach your best price, rather than you pushing them down as well to their best price.

I suggest you 'stick' now. Don't offer again, just ask what it is that they are looking for. And then think. And don't give in to that price - keep driving it.

Ciske

My estate agent once suggested this: put it up as 'offers over XXX', with XXX being an amount I told him we couldn't sell for, but then only accept offers which were well over that. I told him I wouldn't do that, as I would be mightily !!!!ed off myself if a house was up for 'offers over' and then that supposedly minimum offer wasn't considered acceptable.

Also, I think most people don't really look at the 'offers over' and 'offers around' type tags. They just see the figure that's after that and consider that as the maximum they will be likely to pay, and where they can negotiate down from.

If it hasn't sold at £145k for 10 months then £135k sounds like a very reasonable offer. Stop bidding, tell them the £135k is on the table for another week (or whatever you feel is reasonable) and then move on to look for other properties.

Eton_Rifle

It's very hard to value any asset when negotiation is involved and every asset is different.

Have you ever watched 'The Antiques Roadshow'? The valuer doesn't say 'this collectable Charles and Di toilet seat is worth £140.75' do they? They give a value range because they know that if the toilet seat is offered for sale anything could happen.
It might only fetch £20 because the market is suddenly flooded with Will and Kate loo seats or it might get £300 because a competing pair of constipated royal fanatics have been able to leave houses long enough to go to the auction that day.

Houses are similar - you can't put an absolute fixed price on them and say this is what it is worth.
Estate agents can only make an estimate of the value to a buyer based on past comparable sales just like the vintage royal loo seat appraiser.

madmish00

The property we are buying went on the market back in Feb 2010 at 215k with a local agent.

Then in September went with a sell your house quick agent for Offers over £179,950

By November is was on for Offers over £169,950

We offered £169,950 in February and it was rejected with the EA coming back saying the vendor was looking for £185k

We walked away and just over a month later were contacted directly by the vendor accepting our offer.