Asking price and bidding war

chirp

Sometimes the estate agents tell us that a property has been offered a price which is much above the asking price. How does this happen and why would anyone offer a price above the asking price? It seems like a bidding war between 2 or more persons but shouldn't the prices offered be below the asking price. Why would any sane person offer a price more than what the seller wants (which is the asking price)?

anselld

... and sometimes estate agents invent things to inflate the price.

go_cat

The first question I would ask is does the buyer exsist at all?

EA are being paid by the seller to get as much money ( and commission ) as possible for the house

Only offer what you feel the house is worth and what you can afford - don't get into a bidding war

Doshwaster

If you were the seller and someone offered you more than the asking price, would you refuse?

the_flying_pig

Many EAs lie all the time.

Which is a big shame, really... a bit of trust makes it so much easier to do business.

As a buyer or seller my instinct is to disbelieve, well, that's not the right word, 'be sceptical towards' would be closer, EAs nearly all the time.

In many cases my instincts have been proved right but also wrong many times, e.g. not so long ago I lost on a house that went for full asking price, I actually might have been prepared to pay that much, but thought I'd get it for 5-10% less, when an EA told me that there'd been a bid that was only a couple of k below full asking I just didn't believe him at all. A few days later it was sold.

Like the boy who cried wolf innit. As it happens my further dealings with that EA have led me to believe that he's probably quite an honest one. I think experience helps.

betmunch

It could be an Offers in Excess of.... sale

I would ignor any other offers you are told about and only offer what you are comfortable with anyway. If there really has been an offer over the asking price then why would you be able to view it?

mimimt

I lost in a sealed bid. I offered asking price + £1k, the other buyer offered asking price + £5k. It is possible especially if it's a good area and similar properties rarely come to market. And it wasn't an "offer in excess of" sale

Beckyy

The asking price isn't always the price the seller wants. It's a 'rough guide'. Sometimes it's priced lower to attract more viewings and attention.

If somebody wants it badly, and knows the asking price is quite low then they may well offer above it.

I wouldn't believe verything you're told though, and definitely don't offer more than you can afford on a property.

GAH

Why does it always have to be the EA is lying. its quite concievable the a property simply comes on for the right price and gets offers from 2 or more interested parties.

At the end of the day asking prices mean nothing, its what some is prepared to pay for a home.

chirp

There was a property with asking price of £399,950 but the estate agent said that there was someone who was ready to pay £475,00. So if we were not willing to pay above that price there was no point in viewing it, as it would be a waste of time. How is £75,000 above the asking price justified even in a bidding war? It seems ridiculous to me and it also means that the asking price was not even a rough guide. It was totally misguiding and left me stunned.

dotchas

The asking price is just that an asking price. Some are about right and the property sells fairly quickly. Some are too high and the property won't sell as they are asking too much. Others are priced just under for a quick sale and those can attract a bidding war especially if the property is rare or in a good area. The actual value of a property is what someone is willing to pay for it, not its asking price.

If someone wanted to pay me £75K over my asking price, I would be delighted!