Right offer tactics when there are other bidders

phuket

Hi

I viewed a property today which I knew was going to be in demand, there were three other viewings after mine. Similar properties have gone within 24-48 hours, presumably for the asking price or very near or perhaps even over.

I contacted the agent when I got home and there are two offers on the table, I have to make mine tomorrow morning.

I would like any help or advice on pitching my offer. I assume as the other offers were made immediately they will probably be close to the asking price? Should I go in and offer the asking price immediately or should I offer a little lower, on the assumption the agent will come back to me and give me the chance to increase my offer? The agent has told me that it's possible the vendor may choose to do final highest bids.

I always believed that offering the asking price initially only pushes up the final price higher. Am I correct in this?

I have decided how much over the asking price I would be prepared to go if necessary.

Any advice?

Jabberwk

I'm new to this too, but my (one) experience contradicts the theory. We made our first offer on a place a little while ago. We offered the asking price, with clear info as to why we would be reliable and speedy buyers (no chain, decisions in principle, good deposit etc) as we knew the seller wanted a quick sale. Email back from the estate agent over a week later to confirm that it had gone under offer to a higher bidder. No opportunity was given to us to increase our offer (although this wasn't an option for us, anyway). I imagine there were probably several offers over the asking price.

Paulaviki

I don't know if offering the asking price drives the final price up, I guess it depends on what others offer and whether the owners choose to accept an offer at the asking price or try and get more.

We've made an asking price offer on a place today, it's a lovely house and we didn't see the point in offering under as we know there is a lot of interest and someone else would offer the asking price. We will see what happens next! Fortunately we do have room to offer more if we want, but I'm getting ready for disappointment right now. It's just so hard not to get your hopes up!

phuket

It's so hard to know how to pitch it to give yourself the best chance of succeeding.

If I was the vendor and received two offers for the asking price and two offers a bit lower (say 2k), I would be asking the agent to go back to those people to say there were higher offers in the hope they would increase their offer and maybe offer a bit more than the asking price or ask all bidders for highest and final bids.

Paulaviki

Yeah that's the problem, both the agent and seller are going to want as much as they can get so they will try to get anyone who is willing to up their bid. Plus at the moment in our area there is little for sale and lots of interest, which isn't helping prices!

The house we want is ideal and as there are only 4 like it in the whole estate we know if we don't get it there won't be any others like it anytime soon. I'm starting to understand how buying a house can be so stressful and that's before we even start the paperwork!

Jenniefour

Difficult one. Either it's best and final - which I can' see because they're not asking for sealed bids but I might be wrong. Otherwise it's going to be a bidding war. In which case knowing how high you're prepared to go is helpful. Is there anything about your situation that could help? Like massive deposit, nothing to sell etc.? Vendors don't always accept the highest - they make consider the highest of those who are in a better position to proceed and less likely to pull out.

phuket

Just wanted to post what happened with my offer for the benefit of anyone else in a similar situation.

After having slept on it I proposed the amount I was thinking about offering to the agent which was just a little below the asking price and was told it was a strong bid (there were two offers already).

All offers were put to the vendor. As the house had only been on the market 48 hours the vendor decided that they would accept the asking price or wait for higher offers. I offered the asking price immediately. My offer was accepted within an hour. I don't know if anyone else offered the asking price but I was told the vendors liked the fact that I am chain free, not in a hurry and will give them reasonable time to find their next property.

I feel I have got the house I wanted at fair price, considering the high demand and vendor has achieved their goal. Fingers crossed now.

Jenniefour

Well done! Hope all goes well.