Advice about making an offer please!

andrew8018

Here's our dilema, I'll try and make it as short as possible!

Myself and my wife have been renting in South London fot the past 7-8 years and simply dont earn enough to buy a property. We recently had a baby and my parents have kindly agreed to help us and buy a property which they'll rent to us cheaply for the next few years while we can save to buy ourselves.

Unfortunately, we've been told by local estate agents that there are 15 people chasing every property and investors are snapping up everything they can due to the promises of a rail link being built here soon that will extend to East London (olympics). This is evident by virtually every property in the area being under offer. I saw a Flat up the road which was under offer three hours after it went on the Agents website :eek:

This morning there was a new instruction up, within my Parents price range and it looks absolutely lovely. They have said we can make an offer on their behalf as they live abroad. I contacted the agent this morning but unfortunately they said they can only take requests for viewings by email (It's a web based estate agents). I left my details this morning at 09:20 stating that I would eagerly like to view the property but haven't heard anything.

This flat looks like our dream home and there's been nothing available on sale at this price within the past two months but I'm almost certain that when I log on the site tomorrow it will be under offer.

What I want to know is, if the agent doesn't get back to us, what's the best way of going about this? Can I put a private offer on the place by simply puting a letter through the door. Would this be deemed inappropriate or rude, is it likely to be a fruitful venture and what should we say in the letter? We could put in an offer at the asking price or even a little over but I dont want to appear naive and desperate. Then there's the added complication of the fact that it's not actually us putting in an offer but my parents. How do I deal with this?

If anyone could give us any advice it would be so much appreciated. :A

Thanks in advance

Miss_Sharon

Hi Andrew,

I am not sure how much help this will be, but here goes (sorry for the length of my reply) -

My experience of 'web-based' estate agencies is that they are pretty useless (not to be confused with sites that that vendors use to sell their houses privately). They typically advertise a number of great listings that have long since gone (only telling you what you can't have) and contact is limited/ non-existant. Keep trying them via email to see if you can get a response.

If the property is updated as 'under offer' on Monday, ask if the property has been taken off the market AND if the potential buyers and the offer have been qualified. I would still ask for an appointment, stressing how serious a buyer you are and that you are in the position to move quickly. The agent is supposed to get the best price for the property and the property is fair game until exchange. If the agent is reluctant to do this, ask them if they will go to the vendor with your interest and ensure that it is the seller's wishes to withdraw the property from the market at this time. If that is the case, ask the agency to formally register your interest and ask to keep you informed if the property becomes available again - keep in regular contact as they probably won't. Many sellers will (rightfully) refuse your advances if they have already accepted another offer. The MAIN THING to avoid is a bidding war and remember that if the seller has no loyalty to their current prospective buyer, they probably won't for you either (unless you are paying seriously over the odds).

My feeling is that as the vendors have appointed agents they will probably want enquiries to come through the agent. If this agency is active in your area with the type of flats you want, it may not be worth burning your bridges.

If you are desperate, get a friend to help. Ask them to approach the flat in person and have a letter prepared. Ask the neighbours for information (owner occupied or rented). Keep your names to yourselves until you can view the property and want to take it further.

Have you actively promoted yourself to all of the agents? You need to stress your situation (chain-free, in rented & finances sorted are always good) and your immediate requirement. Try to develop a relationship with agents (get the sales manager's name, call them every week to ask about new listings and let them know you are still looking). I've found that going into the office to register makes no difference but always ask for advice. You need to be on the inside track to get the call about properties about to come on the market.

When you find a property of interest, do ask the question (or similar) - So, what would it take to buy this property?/ What number is the seller looking for? You may be surprised at the answer! If the agent plays their cards close to their chest, listen to the response. Ask at what level would they recommend an offer to the vendor, keeping in mind your strong position as buyers (it is worth something, even if only the agent's support for a more straightforward sale).

Keep your chin up. If you keep shaking enough trees, something's gotta fall out. All the best - S.

(I actively looked for 18 months in our price range and slightly above. Then slightly above that. Eventually got a fab flat (in an originally unobtainable price range) by asking what the vendor would accept. The property had just come back on the market after an offer falling through and both agent and vendor were keen to sell. The agent gave us an indication- we couldn't believe it. I made it clear that we wouldn't mess them around and we bought the flat with 2500 pounds to spare.)

linlin_3

Great advice from Miss Sharon but I'll add that you should never show eagerness to an estate agent. Never exclaim how much you like somewhere when viewing. Lay your financial cards on the table with them - you're a great prospect - register with the lot, and don't forget that (a) you are the customer so make appropriate conditions; and (b) they want every penny they can wring from you!

Doozergirl

I'm pretty gobsmacked by it all frankly.

We're selling and on the verge of exchanging on our flat and the prices have just sky rocketed due to this East London line link. Our original buyers called our bluff over something and we refused. The agent immediately asked for the nod to remarket over the weekend and we were back under offer at the new asking price on Monday morning. A couple of months later and again, there's nothing for sale at the price we've accepted!

I don't know what to suggest, frankly. I have a rightmove search that emails me every day with new properties, which is quite handy but you're always up against it at the bottom of a rapidly rising market.

The beginning of the week is usual, I think for new instructions, so it might be worth scouting each agent by phone on a Tuesday/Wednesday before the weekend viewings start? At the very least they will start to know who you are!

I'm not particularly sure that a few extra trains will make as much difference as the rise in prices suggest. Parhaps over time we will see regeneration by the people who have bought as they do up their houses but the issues surrounding empty shops and local amenities won't be solved by people who won't be putting money back in because they have bought specifically to commute back into town!

House prices don't seem to do very much at all where I live now. I much prefer it steady!

Doozergirl

Unfortunately, there's no game to play in these parts of town right now linlin, the agents have that many buyers lined up that if you don't take it at the asking price, someone else will.

I'd be sorely tempted to extend the search, tbh. Places that seem great when you're young and carefree are suddenly entirely unsuitable when you have a little one in tow. Hence I live about 125 miles away from that part of the world now!

mr.broderick

lol at your signature.....x

Miss_Sharon

Andrew,

Also, I wouldn't put in an offer for a property I hadn't seen. I don't think it is a credible situation. The vendor won't want to be messed around either.

I would ensure your friend states that he doing some leg work for some friends looking to buy in the area and had heard that their property was on the market. If there isn't a sign outside, he will probably have to say how he heard, so be prepared for that. Stress your situation as genuine and ready to go and ask for an viewing appointment asap.

As you will not ultimately be the purchasers, I recommend that a letter be prepared and signed by your parents authorising you to act on their behalf to select an investment flat for them. The agents/ sellers need to know who they are dealing with and your relationship (Who will have the final decision on the property? You or your parents?) They want to know you have the money to fund the purchase and where that money will come from (especially if your parents are overseas). Some agents will ask for a breakdown of cash/ mortgage. I would also recommend that your parents make financial enquiries, so that you can say that you have gained *provisional approval* from a lender. A lender's letter confirming this fact will only strengthen your position.

Any offer you make should be made in writing on behalf of your parents subject to satisfactory valuation and survey. Include your parents' letter of authority and lender's letter. Also, your parents' contact details with a phone number, should the agent/ seller wish to call them directly to verify. People need to believe that you are a serious prospect not that this is a bit iffy or too complicated.

andrew8018

Thanks a million guys, some wise words here but not sure if I feel less or more confused about the whole thing now! It sure is a minefield and I'm really just going to have to play this one by ear.

Thanks again.........