time limit on offer

Dan-Dan

Commited to selling does not mean they and/or their EA arent savvy enough to see if they can get some sort of bidding war going etc
You should have put your offer in , THEN asked here for advice

You know for next time now though !

ReadingTim

You've actually done 2 things which are a bit unusual in the game that is housebuying:

1 - you made only 1 (best and final) offer. Usually there's an element of pre-survey negotiation so to skip the haggling (no matter how much of a set piece/charade it might be) and cut straight to a "here it is; take it or leave it" approach might throw some vendors.

2 - you imposed a pretty tight time limit on what is generally the largest single transaction you're likely to make in your life. Coupled with the above, I suspect most vendors will tell you to stick it. A day's limit is madness, I'd suggest a weekend as a minimum, a full week better. You're also not the most attractive buyer as you still need a mortgage and you're trying to but in a very competitive market (London) - who's to say one of the other buyers you saw on one of your viewings hasn't got the asking price and more sat in a bank account ready to purchase the place as an investment property?

Therefore I think you've ruled youself of this one, but will know for next time - you clearly know your limits etc in terms of price and are willing to stick to them, but you need to be prepared to play the negotiation game up to that point!

Halle71

I would say you are out of the running because of your time limit and non negotiable offer.

I don't know where you are in London but in our area the asking price is now almost always the starting price with people expecting to have to offer more, often with the added pressure of sealed/final bids.

For example, a house in a road adjacent to ours was on at £520K before Christmas and we all chuckled thinking it was ridiculous price but they must be aiming to achieve just below the £500k stamp duty threshold (although this was still high by mid 2013 standards). A week later they went to sealed bids and the highest offer was £559k. A house a couple of doors down has just gone on the market, same EA, for £549k. Hey presto - £30k increase in asking price in 3 months.

unbeareableLightness

Hi all,

So an update on this situation - it's been very interesting. I walked away from this property due to my time limit. Everyone told me it was a bad move but a few days ago the property came back on the market, reduced by 25k! Obviously, my offer (for asking price at the time) had been the highest they ever received and after 3 more weeks on the market the vendor realised that it was overpriced. So my time limit saved me from seriously overpaying. I'm now considering whether to go back in with a cheeky offer 20k below my original one.

It's strange because there were tons of other viewers, on both occasions when I went to see it. The EA also talked up how in demand it was and seemed almost distainfull of my offer. It goes to show, even in a market like London, things may not be what they seem. I think EAs and the media alike hype things up and inflate the feeling of panic because it benefits them - but it's not necessarily true. I will definitely be a lot more careful now with my offers and play a more hard ball.

By the way, there was another property that I went to see that was tiny, cramped and seriously overpriced. I told the EA my honest opinion on the price it ought to be, regardless of the London panic premium. A week later, I found it reduced by 25k, another week later it's been reduced by another 5k. Perhaps there is hope for us afterall.

DRP

it sounds like a very good decision - what's your plan now? tell us how it goes

dominoman

Sounds like you did well. You could end up getting it for less!

If you like it go for it. Offer the new asking price (25k less than before) and be prepared to add a few grand if it does end up going to last and finals.

Try and build up some rapport with the agent. Ask what the process would be if you offer. Ask what other interest there is and what others have offered (he won't tell you but his answers will give you a good idea of whether they are above or below asking). Ask him what you would need to offer to get it taken off the market immediately. Ask why they are selling, timeframes etc. Only then offer after you have all that.

BTW - 35% deposit and chain free in London isnt going to be a big advantage, though it certainly helps.

da_rule

Or perhaps there's something wrong with the property? Maybe an offer got accepted but the buyer pulled out after finding something in the searches? Ask the estate agent what happened.

unbeareableLightness

I'm thinking about why it's been reduced as well. I don't think it's because someone pulled out - it's only been 3 weeks since I made my offer and the vendor was very slow to respond to anygthing, surely not enough time for it to get that far?

My personal theory is that the second bedroom is really small and so is the kitchen. It's also a pretty average new build and I think most potential buyers would be investors, who are the best kind of competition cos they won't get carried away. I think only certain things in London get runaway prices, things that couples/families fall in love with which gives a great lifestyle. Anything that compromises that dream, no room to cook a lot or entertain for example, may well be deal breakers and that flat won't get above a certain amount, no matter its other strengths.

I will call and ask. Though I'm not even sure I want it anymore.

DRP

What a bad EA though - surely he should have contacted you prior to dropping the price by 25 grand... could lose his client a lot of money