When is a BAFO not a BAFO??

Teresa_Green

So my boyfriend and I are looking for a house to buy to live in together .. viewed a house earlier this week, he had already viewed it and we asked for a second viewing, I really liked it and it ticks all the boxes for us. Slightly more that we were originally looking at, but not over the maximum we can afford.

Estate agent arranged viewings at same time as another couple, both times. First thing next morning after our second viewing we phoned up and offered the full asking price of 172,500, subject to survey and also property to be taken off the market. EA then launches into 20 questions about our position and starts booking me in to see their in house financial advisor. Hang on a minute I said, please could you let me know if our offer is accepted? They are already aware we are in FTB position with AIP and proof of deposit as we are registered with them already. OK she said, our FA will call later to confirm.

Late afternoon I get a call from FA, apparently there has been another offer from others in a similar position and similar amount, do we want to come in and get qualified asap?

So I said we were unable to do that and was told we needed to be qualified first and vendor would pick best offer, when I queried this was put through to Manager who said "this is the way they do things" i.e wait for all offers to come in, and it was priced keenly to promote interest. Manager left it as would speak to vendor and get back to me in the morning.

OK I said, then call following morning from Manager was told going to BAFO, could we let them know our final figure by the end of the day, I said needed to discuss with boyfriend and would try but more likely to be next day before I could get back.

So boyfriend not happy and thinks we are being played, said house not worth more than we have already offered, last house on street sold for 170 in 2010, similar condition. Also house two doors down come on at 175 that day and in similar condition. So, what to do?

I phoned EA next day with response as above and said as we do like the house please could you contact vendor and ask what price they are looking for to take off the market today? We are viewing the other 175 house on Saturday (today) plus one on next door street done up with extension which sold last year for 213 and now back on 215, for comparison. These two are different EA but both are with the same EA.

EA not very happy but apparently did as I asked and response came back two hours later that vendor does not have a figure in mind, does not want a bidding war, has other viewings booked over weekend and will decide on Monday which is their best offer. So I said OK, so I do not need to do anything now but wait until hear from you on Monday? She said, no unless you want to increase your offer. So we left it at that.

Then later that afternoon got a call from their FA asking when coming to be qualified so I have booked for late Monday afternoon to take in copy of AIP and proof of Deposit.

We really like the house and want to buy it, prefer to other one at present but not sure if being played or what and looking for other perspectives please on how to get EA to play ball?!

Thanks in advance for any comments or advice

BitterAndTwisted

You are most definitely being played. They are wanting to see your AIP so they can figure out how much more they can squeeze out of you.There may not actually be another keen buyer competing against you although they would like you to think there is. Offer what you think the property is worth to you and not a penny more unless this one is truly unique and you'll never see its like again at that price. Which I doubt very much

Teresa_Green

BitterAndTwisted wrote: »

You are most definitely being played. They are wanting to see your AIP so they can figure out how much more they can squeeze out of you.There may not actually be another keen buyer competing against you although they would like you to think there is. Offer what you think the property is worth to you and not a penny more unless this one is truly unique and you'll never see its like again at that price. Which I doubt very much

Yes, seeing it all written down together does help clarify things!

They are asking for passports and wage slips etc but we are only going to take in copy of AIP produced specifically for this offer and proof of deposit for the same purpose.

Thing is, I can see this going on and on as it already is, which leads me to suspect that there is no other offer, or that the other viewers are under offer with themselves so that they are proceedable, although in a chain, which makes ours the better offer, but the other one if as above is more attractive to EA as double commission for them.

If my suspicions are correct, or even if not, how can I get them to close the deal and take off the market?

BitterAndTwisted

Contact the vendor directly, and make it clear that the offer you made via the agent is your only offer, and that it will only remain an offer if they confirm that they will take the property off the market.

All this alleged communication between the vendor and their agent may not have taken place at all. Remember: an estate-agent is only lying as long as their lips are moving....

eddddy

This sounds like a perfectly reasonable approach by the vendor:

Teresa_Green wrote: »

... vendor does not have a figure in mind, does not want a bidding war, has other viewings booked over weekend and will decide on Monday which is their best offer.

Regarding the qualification.. if it were me, I would say something like "Immediately after my offer is accepted, I will ask my solicitor to confirm to the vendor that all funding is in place, and that this purchase is not dependent on any other sale or purchase"

And if you want to play hard ball, also say... "Immediately after my offer is accepted, I will speak to your FA to see if he/she can offer me a better mortgage deal and win my business". This might act as an incentive for the EA to recommend your offer.

(But once my offer was accepted, I might say that I have been advised that there is a potential conflict of interest, so I wont speak to the FA after all!)

Teresa_Green

BitterAndTwisted wrote: »

Contact the vendor directly, and make it clear that the offer you made via the agent is your only offer, and that it will only remain an offer if they confirm that they will take the property off the market.

All this alleged communication between the vendor and their agent may not have taken place at all. Remember: an estate-agent is only lying as long as their lips are moving....

Unfortunately, no-one is living in the house as the elderly lady has moved out (not sure where to) and is selling the house along with her daughter who lives away I think, but EA is doing all viewings, allegedly also over the weekend. Otherwise I may have considered dropping a note through the door....

I think you are right about the communication being suspect and or not taking place as I am being told, as there are some inconsistencies in the story about what is / has supposedly happened and when!

Teresa_Green

eddddy wrote: »

This sounds like a perfectly reasonable approach by the vendor:



Regarding the qualification.. if it were me, I would say something like "Immediately after my offer is accepted, I will ask my solicitor to confirm to the vendor that all funding is in place, and that this purchase is not dependent on any other sale or purchase"

And if you want to play hard ball, also say... "Immediately after my offer is accepted, I will speak to your FA to see if he/she can offer me a better mortgage deal and win my business". This might act as an incentive for the EA to recommend your offer.

(But once my offer was accepted, I might say that I have been advised that there is a potential conflict of interest, so I wont speak to the FA after all!)

I like your style!

Although I do think one of the reasons they are dragging this out is because I am resisting going in, so am only taking a specially prepared AIP and POD.

The FA even said when booking us in for Monday afternoon, that "we may know something by then" ... so I may phone before we go in or ask when we get there about the offer being accepted or not. Sigh.

These lot definitely play hard ball with buyers though, I suspect that if we don't do as they want we won't get the house as they will drag it out and play games until you give in or walk away...

How hard can it be to buy a house?

I kept asking what do they want and was told 172,500, so I said but I have offered that already!!!

And breathe...

G_M

An alternative approach is to put your offer in writing (+ confirm your financial status which solicitor will confirm)

Teresa_Green

G_M wrote: »

An alternative approach is to put your offer in writing (+ confirm your financial status which solicitor will confirm)

Thanks G_M. Our Mortgage will be with Nationwide and includes conveyancing so we do not have a Solicitor to do this, however would it be possible to use one just for this?

Also, would they give actual figures of our accounts and available mortgage, or just the offer amount?

BitterAndTwisted

Not only do they want their percentage on selling at the highest price possible, they are rubbing their hands at the prospect of the commission on selling you the mortgage as well. Whatever you do, do not let them have the tiniest inkling that you could offer more or they'll be stringing you along until Doomsday BUT you must be prepared to make them think you'd be willing to lose it altogether. Ask them for viewings on other properties in the same price-range, even if you aren't interested in them. Never forget that estate-agents are much better poker players than you are.

Teresa_Green

BitterAndTwisted wrote: »

Not only do they want their percentage on selling at the highest price possible, they are rubbing their hands at the prospect of the commission on selling you the mortgage as well. Whatever you do, do not let them have the tiniest inkling that you could offer more or they'll be stringing you along until Doomsday BUT you must be prepared to make them think you'd be willing to lose it altogether. Ask them for viewings on other properties in the same price-range, even if you aren't interested in them. Never forget that estate-agents are much better poker players than you are.

I have definitely let them know we are viewing the other 175 one today, and could hear panic in her voice as she obviously didn't know about it coming on, so I'm using that as leverage.

As you say though, they are much better poker players than me... that's why I thought to come on here for tips.