Making an offer

Kerrypolka

What's the best way to figure out how to pitch an offer when you know there are other offers likely to come in? We don't want to open too high at first, of course, but neither do we want to lose out to someone else's offer on a price we would have matched or beaten.

We are currently looking at a flat priced at £350,000. The agent told us there had been a previous offer for £310,000 that was rejected. My husband thinks £325,000 is a good opening offer, but I am worried one of the other viewings this week* will come in with a higher offer and ours won't even get looked at.

And is there anything else we can do to make our offer more likely to be accepted? We met the seller briefly and she was really friendly and nice - I was thinking of sending her a card saying how much we liked the flat, because it is wonderful.

*the agent has mentioned these, and I know real estate agents are notoriously untrustworthy, but is it likely he would be lying about this?

janz70

Personally I'd take 10% off the asking as a min as they are always overinflate the price, this is a buyers market at the moment what with the economy the way it is.

Please dont send a card!, that will indicate your interested more than than the norm and they will hang out for more cash.

You dont mention if you are have a house to sell yourself, if not you are in a better position as youare not in a chain so can complete quickly without relying on your house sale - a great position that may even see a lesser bid win the day.

Kerrypolka

We aren't selling our house, but we are still in the middle of transferring our current mortgage to our housemate (including conveyancing and all the lovely faff that goes along with that). So we're not in a place to complete ASAP, but on the other hand, we have the benefit of knowing it will definitely go through and nobody will pull out, as we're all good friends.

SilverSix

Sending a card would be showing your hand.

It's a grey area. Whether you want to pay what you feel the flat is worth or pay what you would like to secure it. Providing you're not overpaying of course.

I'd expect the EA to tell you that whatever your first offer is is too low. So going in at £320k could be a good idea and then up to £325k, £328k and finally £332k.

Did you ask the seller what her situation is? if she's in a rush to sell? has been on the market for long?

Kerrypolka

She is trying to sell quickly, and it's been on the market for two months. I think we'd like to pay enough to hold it, rather than faff around bargaining for too long - even though it has been on the market for a while, it is London, and I know there is less leeway for faffing around than there is in less competitive markets.

hazyjo

I wouldn't take any notice of 'previous offers'. They often fail to tell you they also weren't proceedable, or that the offer was a year or so ago when it was previously on the market. They have a great way of bending the truth to make something seem more appealing.

Every house that we viewed we were told that people were lined up to view it, and how up to half a dozen viewers were lined up for the Saturday or whenever. I remember being told how one such house had tonnes of viewers lined up, other interest, etc - but it was still on the market 6 months later. We'd offered on it, increased once or twice, but they didn't accept. Was eventually on the market for around £35k less than it started off at, way under what we'd offered.

Definitely find out how long it's been on the market - 'property bee' it too to see what price changes have been made, if any.

Also check what similar properties nearby have actually sold for. Base your offer on that - not by knocking off whatever percentage from the asking price.

Jx

Kerrypolka

Thank you very much for the advice! It is quite reassuring that the agents' picture of people banging down the doors to see it doesn't always translate into highly competitive demand.

PropertyBee isn't working for me (only shows today's date as a first entry) - are there any other ways to find out similar information? And how would you recommend finding out what similar places in the same area have sold for?

hazyjo

Haven't used property bee so can't help, but am sure others will.

Zoopla should have sold house prices, albeit several months out of date (don't use their selling price estimator - totally out). If you can see something similar still with a sold board outside, just ring the agent and ask what it's selling for. I've always been told.

Jx

devotee

Kerrypolka wrote: »

Thank you very much for the advice! It is quite reassuring that the agents' picture of people banging down the doors to see it doesn't always translate into highly competitive demand.

PropertyBee isn't working for me (only shows today's date as a first entry) - are there any other ways to find out similar information? And how would you recommend finding out what similar places in the same area have sold for?

Do you have a rightmove listing number? We can have a look for you here.
Sometimes agents do have other viewings lined up, so they are not always fibbing, the flat I'm buying I'd put an offer straight away and the agent canceled other viewings as he knew they would accept the offer.

ukcarper

You can look here http://www.nethouseprices.com/to see what property has sold for but property does take a couple of months to get on it. As hazyjo said don’t just knock of a set percentage off, you only have to look at rightmove to see some properties are more overpriced than others are.

Kerrypolka

Bother, I can't do links as a new poster. However, if you go to Rightmove and search for a 1 bedroom house in Tufnell Park for £350,000 it's the only one that comes up - there are two links as the seller is using two different estate agents, but it's the same flat.