Making an offer- Bidding tactics

dominoman

After lots of searching we found a house we like this week. It is fairly priced (more expensive than recent local sales, but the London market is still booming).

We like the house - and are going to offer. What is the best way to have a decent chance of getting it?

Go in high immediately, at asking price, in the hope that it gets accepted and scares off other buyers. Or go in low, but risk a drawn out process where it ends up getting bid-up to over the asking price?

As a bit of context it went on the market two days ago and has had a lot of viewings already, but no offers yet. Houses in this area are generally selling at 5-10% over asking price.

monty-doggy

I was in same situation prob for a lot less money up here tho!

The house I'm buying was priced 10k lower than another on the street and in my opinion, a better house.

Asking price was 169

I offered 164 after viewing

EA told me lot of others want to view so vendor unlikely to accept as only on market for few days.

I upped my offer to 167.5 as long as it was removed from market.

Sometimes offering your highest to secure the house you want it worth it.

hazyjo

I've always gone in a little bit under in markets which are rising. Have been lucky enough to always get a reduction - apart from one time when I paid the asking price as it had just been reduced (below market level to sell).

It's easy to lose sight of just how much £500 or £1k is when you're buying a house. Just think about what you could do with that money. Even if you're only going in £6k under the asking price, it might be that you can meet in the middle and get £2k-3k off.

Good luck!

Jx

dominoman

Thanks. I am going to offer now I think. Will go in at 455k, which is 20k under (sounds a lot but its less than 5% under asking).

To be honest I would be happy to pay asking price, so will up the offer if they reject it, but at least that way they will hopefully feel they got a good price - so I won't end up getting gazumped...

Will let you know...