How to increase your offer when buying a house

Bea787

Hi, I would really appreciate some help with understanding the best way to manage increasing your offer on a house. I have made an initial offer, which was rejected as expected, and I wonder what advice there is regarding how to manage increasing it? I mean, should you increase your offer the same day, wait a period of time - in which case how much - days, weeks, increase in what kind of increments etc etc? I understand there are no set protocols but I wonder what the best approach might be. Any advice would be greatly appreciated ... Thanks

hazyjo

Depends on too much to give definite rules - I've nearly always agreed a price within hours. If you're offering way under the asking price (and they're optimistic to say the least), you may well have to leave an offer on the table and walk away.

What you shouldn't do, is keep upping your offer every time the EA calls, and don't let the EA know there's more in the 'purse'.

Can you tell us where it is, how much it's up for, what you offered, and what similar nearby properties are going for?

Jx

Bea787

Thanks for taking time to reply. Asking price is £115, initial offer £105 250. Cash buyer ready to go. There's some work needs doing on the property IMO. Zoopla average (debatable I know) is around £105 for sales in the last year with a max sale price of £107 on the same street. I would like to get an offer accepted but don't want to look too keen but also don't want to sweat it out for nothing ...

advice_please_2

What's your max you would want to pay?

At 115, 5% off would be £109
If it hasn't been on for long go in at £109 which is fair
But if its been on a while and prepared go with £107 based on your findings

cramg

I would only increase the amount in multiples of £500 to £750 a time.
Once you increase by a large amount, you've shown your hand and let the seller and agent know you have funds available.
Also, make your offer in person, not over the phone. You can then watch and listen to the agent relay your offer to the vendor and gauge their response.

andy.m_2

I would hold out at your current offer, seems reasonable.
State that you will leave the offer ont he table and continue to look.
Offer is retracted upon you getting an offer accepted elsewhere.

They will call, ask you to increase even a small amount to play ball and you can delcine.

Fire_Fox

Wait at least 24 hours, don't make the offer when the estate agents have telephoned you just say you are still thinking about it. Submit your second offer in writing clearly stating your strong position as a buyer and the terms of the offer. Normally you only do two offers, no more than three.

Lizling

When they refused your offer, did they come back with another figure they'd accept?

Assuming you haven't got your heart set on this house, I would try pushing for this before putting in another offer because I'd want them to show some willingness to compromise and not have all the negotiation going in their favour.

Bea787

Thanks so much for all your replies. Frustratingly - and against everything I told myself about how I would do this - I have got myself quite set on this house. When the offer was rejected they told the agent they were looking for £109, then changed it to £112. I think the higher figure is kind of pushing it in this climate (who knows!) but can see the first is more reasonable. I am willing to offer closer to this, maybe £108 max but am unsure whether to dilly dally with small increments and risk someone else putting in an offer or to up mine by say two thousand and leave it with them, and also when to time what I do. I am keen really to get on with it but know that looking too hasty may not work in my favour. Any further thoughts really appreciated ...

Fire_Fox

Small increments would make you look like a petty timewaster to me. They will be expecting your next offer to be best and final, you might actually have more in reserve but they do not know that. If you keep increasing by £500 there will be no way for them to know what is best and final so could well hold out. Have you researched land registry sold prices for the street and area?

Bea787

Ok, this may sound pretty dumb but how do I do that (the land registry search)? I checked zoopla and net house price but i know the former is not too sound. My instinct is to offer more rather than small rises as it seems like I mean business which I do. Thanks so far ...