Putting in 2 Simultaneous Offers

rodent

Gopes - i think your plan is sound and sensible.

You can open up negotiations with as many vendors as you like - just depends how good your negotiating skills are !

Buyers would be foolish not to get into negotiations with interested parties ready to close the deal quickly.
I have >30 properties and negotiate buying prices with vendors regularly - if someone doesn't want to talk to me 'cos i might talk to another vendor about another prop more fool them !

Gorgeous_George

I'd do it too.

Remember, Stamp Duty rises to 3% at £250K.

You just need to work out how much you are prepared to pay for each house (there must be some differences that make one more attractive than the other - even the fact that one is empty with no chain). Once you know your top limit for each house, make an offer. I'd start low - perhaps 85% to 90% - and negotiate upwards hoping to agree around the 95% level.

If I was selling at the moment I would welcome your offer. I'd welcome any offer!

GG

Gopes

Wow,
Thank you all very much for your responses and contributions to what is becoming an interesting philosophical discussion.

I think, having considered the various opinions, that I won't be quite as brash as explicitly playing them against each other (at least not initially), but if one vendor declines my offer, I will then explicitly inform them that I will be placing an offer elsewhere, and will proceed according the outcome of that offer, and so on and so forth.

Out of curiosity, is there any difference between a "verbal offer", and a written offer? I.e. I place a verbal offer on the phone, making clear that I am considering other properties also, but not stating that I have put in an offer on a different property. Then if one or other vendor verbally accepts my offer, I can then put it more formally in writing, subject to contract, survey, and the vendor removing the property from the market with immediate effect. Clearly a written offer is no more legally binding, than a verbal one - but somehow and psychologically it feels a bit more binding. Certainly, I am not looking to be unethical. If my offer is formally accepted, and the vendor agrees to remove the property from the market, I will cease to pursue the other property (although I appreciate that the vendor might worry that I would proceed otherwise)...

Bcfaigg

Bcfaigg

Gorgeous_George

It's different in Scotland.

In England, nothing is binding until Exchange of Contracts. However, if I shake hands, the deal is done as far as I'm concerned.

GG

alezzandro

Gopes wrote: »

I think, having considered the various opinions, that I won't be quite as brash as explicitly playing them against each other

are you sure? both Vendors would have no problems in putting you against another potential buyer, if that helped getting more money.

Gopes wrote: »

Out of curiosity, is there any difference between a "verbal offer", and a written offer?

there is no difference, none of them has any legal value. in fact, if the Vendor finds a better buyer than you, he can pull out up to day of the exchange. and he will not give back all the money you have spent in surveys, solicitors, mortgage, etc, etc.

Hailstorm

I did exactly what the OP is proposing when I bought 2 years ago. I saw 2 houses that both ticked my boxes so I thought I would try offering on both to see if that helped get a better deal. I was completely upfront and when I made the offers I told both EAs what I was doing (the two properties were with different agents).

One accepted my initial offer. The other rejected it but made a counter offer. I did explain to the agent that I made my initial offers at a level where I believed the two properties were an equal proposition, so they would need to come back down to my original offer. They came back with another lower counter offer but wouldn't go lower than that. I then withdrew my offer and this property and went with the one that accepted my initial offer.

In terms of creating any bad feeling with the vendors, not at all in my experience. In fact, I ended getting along well with them and we send each other christmas cards. They said what I did was tough negotiating but completely fair as I told everyone what I was doing.

gordonbennet

Gopes - are you absolutely certain that there is no difference between the properties? Unless they're identical new builds it seems unlikely. You may manage to get one for 5k less than the other, but what if it ends up needing 10k more work done on it over the next few years? Think about (say) the next 5 years. Would you want to replace either of the kitchens? Bathrooms? Re-do the garden? Rewiring? New roof? Repaint the outside? Replace windows? Any one of those will set you back a few K.

Also, are you sure their positions / outlooks are the same? Is one closer to that sewage works? Night club? Bus stop? Electricity pylon? These things will matter more once you move in.

Dave101t

this isnt a dinner dance, you dont have to be kind. offer 230k max and thats that, you have the power here to save money, isnt that what you want?

gordonbennet

Actually it is a bit of a dinner dance! You're dealing with people's homes here and they tend to make emotional (as well as financial) decisions. Mess them around too much, be too 'cold' about it, or offer insultingly low and they may decide they don't want to deal with you.

Dance nicely but try to be the one taking the lead!

Gopes

Guys and gals,
Thank you for all your contributions. I rang up the first EA this morning, and he has informed me that the vendor has taken the property off the market, and decided to rent it out. Apparently he was insistent that he wouldn't listen to offers under £260k, and not surprisingly all the interest was at £250k and below.

Going to think a little more about the 2nd property. Went to both properties yesterday to time the walk to the station. The 2nd property is a little further from the station, and the garage is a bit smaller, but the rest of the house is slightly larger.

Will give it a bit more thought, before making a decision. The cautious (indecisive) side of me is kicking in.

Thanks again.
Gopes