Putting in 2 Simultaneous Offers

harrup

myhouse wrote: »

There probably are vendors who would react in this way, but I don't think it's a rational reaction. The buyer doesn't need to decide which one he wants to buy. It's a buyers market and many vendors will be keen just to get a viewing never mind an offer. The fact is, the housing market is a market, only now it's the vendors who are competing.

Personally I would prefer to be up front and open about it, and hopefully put some urgency on the sellers, but others might prefer to play it quietly to not upset sellers.

If the property is on for £255-285, but they won't accept less than £260 then they've mispriced their property by £5k.
Let us know how it works out.[/

I appreciate your viewpoint....although I don't entirely share it.

What Gopes is proposing is a kind of gazundering. Admittedly, a transparent form of gazundering , and I'm actually quite fascinated by it.

But What does making "an offer" mean ? Surely, it means " I would like to buy your house for £xxxx". If the vendor is agreeable to the buyer's proposal, the property is then withdrawn from the Market.

But who in their right mind would consent to do that if the buyer is also actively pursuing other properties? Would you allow your property to be blocked by a buyer who is offering on other houses? Respectfully I would suggest" no way in hell "'

Even if both vendors play along - albeit without allowing the respective property to be formally withdrawn - I can't see how this would benefit the OP. If the properties remain on the market the vendor might accept a better offer at the 12th hour...and no one could blame them for it.

catfish50

myhouse wrote: »

Even if both vendors play along - albeit without allowing the respective property to be formally withdrawn - I can't see how this would benefit the OP. If the properties remain on the market the vendor might accept a better offer at the 12th hour...and no one could blame them for it.

Yes, a big risk for the buyer is that once he has made his choice and instructed his solicitors and surveyor etc, the vendor may then receive a better offer -- even if the property is ostensibly off the market.

Under the circumstances, the vendor would probably feel perfectly justified in accepting the higher offer. S/he would feel no ethical obligation to the buyer. Greatly reducing the likelihood of ever getting to completion.

Ulfar

I would make an offer on the first property, I wouldn't say it is my final offer. If it is refused I would then offer on the second property and see what their response is.

This way you have the option to go back to either vendor and make follow up offers depending on what responses you get.

This way you haven't done anything to upset anyone as you have made an offer and it was rejected you therefore went to an alternative vendor.

Procrastinator333

I like these sort of tactics. Good for you.

Perhaps rather than putting in formal offers, maybe say in your opinion, house A is worth £235-£240k. House B £225k - £230k. Tell the agent it is a shame they wouldn't take that sort of number as you would certainly have made an offer if they would. Finish off by saying thanks for your help, and who knows, maybe in a couple of months if they haven't sold and you haven't found anywhere you might come back and be able meet in the middle somewhere.

You are almost making an offer, but not quite and it very much leaves the door open to come back in a months time and say you haven't found anything better and would be willing to offer a bit more. Of course, this risks them being bought by someone else in the meantime, but they are certainly the sorts of games I will be playing.

Please let me know how it goes, very interesting! Good luck!

Jaynne

Its a buyers market, while I wouldn't be as blunt as to force the buyers into getting into a bidding war I don't see why you can't be transparent and say to house A that you're an attractive buyer with no chain and in a position to move fast but you don't believe the house it worth more than x. If they say no then say thanks but you're going try property B but that you might be open to negotiation.

If property B doesn't work out then you're still in a good position to bargain and As owners will know you're willing to look around so might be more receptive to dealing with you. It sounds like you've not got your heart set on any property which is good as it lets you play a longer game and make the vendors be looking for your custom.

alezzandro

Gopes wrote: »

I was thinking of putting offers in on both simultaneously (probably £240k - does that sound like a reasonable opening offer?), and making it clear to the agents that I was doing this, and would go with the property at the lowest value.

Tell the agents about the double offer only if you think it is advantageous for you. Vendors play the same game all the time, they are usually not transparent, and nobody thinks bad of this. Surely it can't be a problem if you play the same game.

In any case, if you tell the agents something, I would be very careful in not letting them understand which is the other property you are interested in. Just in case they wanted to try and stop you.

JQ.

harrup wrote: »

myhouse wrote: »

There probably are vendors who would react in this way, but I don't think it's a rational reaction. The buyer doesn't need to decide which one he wants to buy. It's a buyers market and many vendors will be keen just to get a viewing never mind an offer. The fact is, the housing market is a market, only now it's the vendors who are competing.

Personally I would prefer to be up front and open about it, and hopefully put some urgency on the sellers, but others might prefer to play it quietly to not upset sellers.

If the property is on for £255-285, but they won't accept less than £260 then they've mispriced their property by £5k.
Let us know how it works out.[/

I appreciate your viewpoint....although I don't entirely share it.

What Gopes is proposing is a kind of gazundering. Admittedly, a transparent form of gazundering , and I'm actually quite fascinated by it.

But What does making "an offer" mean ? Surely, it means " I would like to buy your house for £xxxx". If the vendor is agreeable to the buyer's proposal, the property is then withdrawn from the Market.

But who in their right mind would consent to do that if the buyer is also actively pursuing other properties? Would you allow your property to be blocked by a buyer who is offering on other houses? Respectfully I would suggest" no way in hell "'

Even if both vendors play along - albeit without allowing the respective property to be formally withdrawn - I can't see how this would benefit the OP. If the properties remain on the market the vendor might accept a better offer at the 12th hour...and no one could blame them for it.

I don't think you understand what the OP is doing. He's openly negotiating with 2 vendors. He will reach an agreement (or not) on a price for each one individually and then make his mind up on which one he wants. So he might reach agreement on property 1 at £240k and £255k on property 2. At that point he'll decide which one he wants and then tell all parties and then proceed with the purchase of that property as normal, with it presumably being taken off the market at that point.

It's not gazundering in any way - it's a negotiation technique that will hopefully get the vendors accepting lower offers than they would have normally, as they know they have competition. It's no different to buying a new car and playing several garages off each other to get the best price.

It's not a very common tactic because most people fall in love with only one property. Sounds like the OP likes both and wants to save as much money as possible.

If the OP is a committed buyer, then any vendor not prepared to enter into such a negotiation is a fool. Each vendor just agrees a price they are happy with (or refuse the offers if they are too low) and then awaits the decision of the buyer.

Chris55_2

If it is OK for a seller to play off buyers in a rising market then it is surely OK for a buyer to do the same in a falling market.

Some years ago my wife actually drove between two garages to get the price down on a new car. It was at the end of the selling year - so in the end the business went to the one who just needed to sell one more car to to get a bonus from the manufacturer.

harrup

JQ. wrote: »

harrup wrote: »

I don't think you understand what the OP is doing. He's openly negotiating with 2 vendors. He will reach an agreement (or not) on a price for each one individually and then make his mind up on which one he wants. So he might reach agreement on property 1 at £240k and £255k on property 2. At that point he'll decide which one he wants and then tell all parties and then proceed with the purchase of that property as normal, with it presumably being taken off the market at that point.

It's not gazundering in any way - it's a negotiation technique that will hopefully get the vendors accepting lower offers than they would have normally, as they know they have competition. It's no different to buying a new car and playing several garages off each other to get the best price.

If the OP is a committed buyer, then any vendor not prepared to enter into such a negotiation is a fool. Each vendor just agrees a price they are happy with (or refuse the offers if they are too low) and then awaits the decision of the buyer.

Actually, buying a house vs a car isn't at all the same...and nor is playing off competing garages vs "competing sellers". Perhaps if those competing sellers consist of large scale property developers it may work well, but this is hardly comparable to 2 private vendors selling their home.

I'm intrigued by Gopes plan and you'd be wrong to think I'm on the side of the vendors for the sake of...well,why would I be?

However,I do think that this strategy has a HUGE potential to backfire on Gopes. Firstly, because I can't see that a vendor would accept an offer whilst Gopes is still ...and openly..pursuing other houses. Secondly, a vendor isn't all that interested in a buyer wanting to buy A house...but a buyer commited to buying ]their house. The potential to p*** off both vendors, or even just one, should not be demised.

Expressing an interest in making an offer if the price is negotiable..as one poster suggested..is one thing. Offering on several properties...I just cant see it as a convincing & successful negotiating strategy. This isn't
a scenario of a car salesmen trying to hit their sales target...but of people selling their largest asset. Not the same thing at all.

You think a vendor would reduce their price by ££££ on the sole grounds that the potential buyer has seen a house they fancy just as much?? Unlikely.

Nonetheless , hope Gopes keeps us posted. Will be interesting.

harrup

harrup wrote: »

JQ. wrote: »

.., should not be demised.

Demised?

I meant "dismissed". My iPad is filling in words left, right and centre ..