moral dilema when making an offer

epz_2

billinge wrote: »

I am at a position to make an offer on a property, probably 15k less than the asking price, possibly moving up a little. My concern has to be Gazumping. Is Gazumping Insurance worthwhile?

This house has been under offer twice in the last 6 months, both accepted, both fell through one with the buyers about to move in.

We are next time buyers, but would consider a Bridging loan if our house did not sell in time as our house has over 60% in equity. Is this a good idea?

Our house is a 2 bed terrace, near bottom of the ladder, and these tend to sell quickly.

gazumping insurance???

assuming it only pays out what you have lost eg survay and legal costs why not just get a simple agreement saying if you pull out they get 2k and vice versa, im sure your buyers will jump at the chance if they have had 2 failed sales as it shows how serious you are.

as for gazumping, its mostly an aspect of a rapidly growing market, with the way interest rates are going up and banks tightening credit i would be more on the look out for gazundering.

telfordwhite

Forget the mora dilemma, that shouldn't be an issue.

If you are at full stretch with mortgage I'd stick with the offer you put in, sounds as though they are considering it.

You can still make the offer subject to them taking it off the market even though it is lower than they want.

franklee

I don't see there's anything to justify the increase in price since they purchased. It's important not to overstretch yourself. So if they refuse your latest offer I'd suggest you say you'll leave your offer on the table and that they are welcome to contact you again should they change their minds. Tell the EA the same, stress your chain free position and that you can move quickly then leave it be and continue looking. That way the vendor can decide where their priorities lie and come back to you if they want or they may get lucky and find someone else to pay more. But you are chain free which is worth a lot! Chains can take months to shift! Even if it goes under offer with another buyer it may fall through now the market is so patchy and then your offer will look even better!

barnaby-bear

franklee wrote: »

I don't see there's anything to justify the increase in price since they purchased. It's important not to overstretch yourself. So if they refuse your latest offer I'd suggest you say you'll leave your offer on the table and that they are welcome to contact you again should they change their minds. Tell the EA the same, stress your chain free position and that you can move quickly then leave it be and continue looking. That way the vendor can decide where their priorities lie and come back to you if they want or they may get lucky and find someone else to pay more. But you are chain free which is worth a lot! Chains can take months to shift! Even if it goes under offer with another buyer it may fall through now the market is so patchy and then your offer will look even better!

The market has shifted round here and if it's the house I think it is (1970s, 5-bed, something unusual for the kiddies to play on in the garden) it is relatively reasonably priced for the area, good school, nice village very near city, right side of city and within cycle of city centre. I would suspect the lack of any sort of housing round here will make them fairly confident some fool will pay nearer asking. It looks a fantastic house and area and relative to the 3-bed ex-councils at £300k a couple of miles nearer in you get a lot lot more for your money. Your mortgage level sounds frightening to me as one who errs on the side of security. However I thought the windmill estate idea was more crackers . I know it's a fast market with little choice and very compressed i.e. 1-bed at 200k, 2-bed 250k, 3 bed 300k but your choices have been very 'varied'. I don't think they'll accept look for 4-beds in the same area under £300k - how many available - any? Tried comberton - £280k for 3 bed in need of modernisation was nearest recently added. I guess the budget or the criteria/size will crack I don't know which is better for you - only you can judge. A house is only worth what someone is prepared to offer/pay - I suspect psychologically they'll want more than they paid plus a bit for the new bathroom and fees - no one wants to make a loss on a house. Having said that it's not shifted and things do go in hours to sealed bids round here....

Nenen

Thank you all so much for your very helpful posts... lots for us to think about and many good points made. I do feel far less guilty now too! :beer:

I know it's very unlikely we will get this house... we only had the cheek to go and see it because we knew what they'd paid for it and that it had been on the market for several weeks and they had already dropped the price. It was just a wild gamble to even try!

Following all your advice (and our own instincts/reasoning) we will play the waiting game and see what happens. No call from the EA today. Mind you, when they refused our first offer and my dh asked the EA what sort of price the vendor had in mind, the EA told my dh 'very near asking price as they have already turned down an offer 5K below asking price!'

Either the vendors are not as desperate to sell as they appear or the EA is telling porky pies (difficult to believe such a thing I know;) )


Barnaby-bear... you know me toooooo well

barnaby-bear

Nenen wrote: »

Thank you all so much for your very helpful posts... lots for us to think about and many good points made. I do feel far less guilty now too! :beer:

I know it's very unlikely we will get this house... we only had the cheek to go and see it because we knew what they'd paid for it and that it had been on the market for several weeks and they had already dropped the price. It was just a wild gamble to even try!

Following all your advice (and our own instincts/reasoning) we will play the waiting game and see what happens. No call from the EA today. Mind you, when they refused our first offer and my dh asked the EA what sort of price the vendor had in mind, the EA told my dh 'very near asking price as they have already turned down an offer 5K below asking price!'

Either the vendors are not as desperate to sell as they appear or the EA is telling porky pies (difficult to believe such a thing I know;) )


Barnaby-bear... you know me toooooo well

I know the local market for family houses very well and basically you are a little out of league in requirements vs. budget so pretty well every house has some serious oddities that identify it.

Nenen

barnaby-bear wrote: »

I know the local market for family houses very well and basically you are a little out of league in requirements vs. budget so pretty well every house has some serious oddities that identify it.

Will suit the serious oddities that plan to live in it then :rotfl: :rotfl: :rotfl: :rotfl:

In all seriousness, you are absolutely right BB... so we just have to keep looking until we find one where the serious oddities are not an issue for us! Do let me know if you happen to stumble across anything that might be suitable!:beer:

barnaby-bear

Nenen wrote: »

Will suit the serious oddities that plan to live in it then :rotfl: :rotfl: :rotfl: :rotfl:

In all seriousness, you are absolutely right BB... so we just have to keep looking until we find one where the serious oddities are not an issue for us! Do let me know if you happen to stumble across anything that might be suitable!:beer:

Fundamentally you are after an ok area and a 4 bed house, 4 bed houses are like golddust in the local housing stock and plenty with the budget - only your budget is realistically a 3-bed budget. So any house you are considering sticks out like a sore thumb - a really good 3-bed with potential to extend and add the value yourself sounds more likely -