FTBs first offer made - negotiation advice needed

pete96

Thanks for the kind words pops. What should we do if we're willing to go to say 157ish?

pops5588

I don't think you would really have much to lose by phoning the EA and saying "look, we like the house but we aren't paying £160,000 for it. £157,000 is our highest and final offer" and leaving it at that.

But it's always tough to know where to draw the line and leave it. It could be EA tactics to get more out of you, I know you originally said that the most you were prepared to pay was £155,000 so it seems to be working! I'm not the most experienced at these things but I think if it were me I would stick to my original limit of 155,000 and put it out there on the table. You did say that the house ticks all the boxes.

Seabee42

If the vendor wont accept less than 160k then thats that.

It has already been mentioned on here that the most acceptable reason to offer less is affordability.

I would try and go back you do after all want it if you can. Something along the lines of " I really like the house I would love to buy it if I can. I have looked over my sums and I feel we can push it to 157k (if thats your limit) and will have to wait to spend money on house furniture etc as that is everything we have.

There is no harm is also adding if she changes her mind we are interested.

pete96

We ended up offering £158k, highest and final offer. Her response was neither a yes or a no....she want's to think about it over night to have time to discuss it with her partner (in the states)! Better than a straight no I guess! A bit more than we wanted, but hey ho. I think with 157 there was a good chance she would refuse, 158 I knew she was likely to consider it.

YoungBusinessman

Good luck with that then. Think she will accept as to be totally honest what is £2k for a £150-160k place, could cost her more in the long run by not taking that offer.

lessonlearned

Sorry to hear you have reached stalemate in your negotiations , however I am not surprised.

You did rather go in "bull at a gate".

Your written offer was a bit OTT.The second part, the lecture about market values, was patronising and totally unnecessary. The Vendor may well have been outraged by your "hectoring" tone.

Also you should not have asked for any extras at that stage. It was beyond cheeky. It made you appear greedy and grasping.

The extras are things that either the Vendor "throws in" to package the deal or that you then ask for as a condition of you upping your offer.

Offers, even cheeky ones, should be made with grace and charm. You don't just bulldozer your way through.

The offers should be verbal to start with, followed by a written confirmation when the offer is accepted.

In your written confirmation you then list your terms and conditions of the offer, after they have been agreed verbally. You do this just to make sure that everyone is crystal clear and that there are no mis-understanding.

You went in far too heavy handed and were far too demanding. You probably put the Vendor's back up and that could be the reason why they are digging their heels in.

Gently does it. A little charm goes a long way.;)

pete96

Thank you.... we live and learn!

Where do we stand if the valuation comes in lower than the offer?

lessonlearned

Indeed we do live and learn. Hence my nom de plume.;)

Re lower valuations. It all depends on the reasons for the lower valuation.

If it is because work is required - eg urgent remedial must do works then you can probably go back and re-negotiate. It is fairly common practice to try and meet each other half way.

However this will depend on your finances. Do you have enough cash to top up any shortfall.

If it's just a general down valuation due to market conditions then a lot will depend on your vendor. They may come down on their price, A lot will depend on their circumstances. They may not have enough equity, perhaps there is not much wriggle room.

Either way you just have to play it by ear.

Try not to overthink things.

I understand that you are new to all this and that you are just "swotting" so you can prepare yourself in advance.

The thing is you cannot prepare for all eventualities, there just too many scenarios with this house buying and selling malarky.

The best advice I can give you is this. If you find yourself in a situation and are unsure what to do next - whether it's making or accepting offers, or whether it is responding to valuations etc - always ask for a little thinking time.

You don't have to make snap decisions so don't let anyone push you. 24 hours to mull things over is not unreasonable.

pete96

Ha! Yeh I saw your name after making my previous post! So true though.

MAJOR UPDATE!

Our offer of £158k was accepted!! She's keeping the white goods mind, but HAPPY DAYS!

lauraland

pete96 wrote: »

Ha! Yeh I saw your name after making my previous post! So true though.

MAJOR UPDATE!

Our offer of £158k was accepted!! She's keeping the white goods mind, but HAPPY DAYS!

:T Thats great news. Heres wishing you a smooth journey to completion!