First and final offer

TheMoon

What do you think, is that a good idea? Basically, we like a house, it is up for 159K and we are willing to pay 150K for it. Rather than playing the game and offering 146, then up-ing to 148 and then offering 150K, we were thinking to offer 150K as our first and final offer. Do you think it is better to 'play the bidding game' or just go straight it with the offer? thnx

themull1

Just go straight with the offer, if you do the bidding game, the estate agents/sellers will just try and make you up your price, i think its a fair offer.! make sure you tell them its your only offer!

Mazzawa

Exactly as above. Offer and ensure you state strongly that it is your only offer. Don't be tempted to enter negotiations if they play hard to get - stand your ground and let them mull it over if that's the case.

SuzieSue

Only go straight in with the offer if you are definitely prepared to walk away from it if they say no. If you really want it and would find it difficult to walk away, then it would be best to play the bidding game as that is what most people expect when they are negotiating.

TheMoon

This would be the second time to would walk away from a house we like so I am slowly getting used to it. Last time we went in with 10% off the asking price, then upped to 9% and then stopped on 8% and walked away. I would rather cut the cr** and go straight in. Don' have the nerves for negotiating.

chewmylegoff

i tried doing this a couple of times, although i didn't frame it as a "first and final offer". it went a bit like this:

me: i offer £290k

agent: ok, that's a bit low, i'll put it to them.

....

agent: yeah, as i said, a bit low, they've rejected it.

me: ok, that's fine, we'll carry on looking elsewhere.

agent: what??? you're not going to increase AT ALL?



it really seemed to confuse him.

tyler80

We were thinking about the relative merits of going in with one offer versus going in below what we wanted and having the opportunity to increase.

We went for the more traditional approach in the end, put in one very low offer then a second final offer. First offer was 15% below asking, second (accepted) was 12% below asking.

Part of the thinking behind that was it's sometimes nice as a buyer to have an offer refused, just to get out of the 'did we offer too much' mindset

lellow_lorry

I did this a couple of years ago. was effectively a 1st time buyer offered 94.5% as first and final offer. They turned it down so looked elsewhere. Week later EA called whether we had considered raising our 1st offer. What part of final do you not understand was my reply.Next call was they would reluctantly accept.......sorry too late as found somewhere else........... Ea's do seem to think that there is always a 2nd offer at least so if you do this make real sure that final offer to them means final offer.

TheMoon

Thanks everyone, I will let you know how it goes. Second viewing on Saturday, following with the offer...:)

DVardysShadow

TheMoon wrote: »

... Don' have the nerves for negotiating.

tyler80 wrote: »

... it's sometimes nice as a buyer to have an offer refused, just to get out of the 'did we offer too much' mindset

I think to go in with first, best and final offer, you need to be supremely confident that you could not have got it for less. OP, it may ease your issues over negotiating now, but it certainly leaves a large question hanging over whether you have offered more than you need to. You don't strike me as supremely confident.

To me, getting an offer refused and having a counter offer is part and parcel of being confident of having offered the right price.

TheMoon

DVardysShadow wrote: »

I think to go in with first, best and final offer, you need to be supremely confident that you could not have got it for less. OP, it may ease your issues over negotiating now, but it certainly leaves a large question hanging over whether you have offered more than you need to. You don't strike me as supremely confident.

To me, getting an offer refused and having a counter offer is part and parcel of being confident of having offered the right price.

Good thinking, you definitely have a good point. I might review my strategy...