Putting in an offer

firebird082

Hi all,

First time here, and also a first time buyer. We have just put in a (low) offer on a house. We think the asking price is too high, and we were the first people to view the place (and therefore, presumably, the first offer they received).

The offer was (as expected) rejected. We've left it on the table for them to reconsider,/suggest negotiation. My real question is: can we expect the agent to let us know if another offer is put in, or do we have to show more willing with a slightly higher offer ourselves first? We don't want to go too high before we really start negotiating!

This is obviously all completely new territory for us, so any similar experiences or advice most welcome!

Thanks

da_rule

The estate agent isn't under a duty to let you know. However, they may well let you know in the hope that you will increase your offer (they are paid commission after all). If you like the house and can afford a bit extra then you could increase your offer.

firebird082

Yeah, that's what I figured. I was just hoping that since they earn commission, any increase in the price is to their benefit. On the other hand, I don't particularly want to get into a bidding war! The more we can save on the intial cost, the more practical doing the necessary building work becomes.

The house has problems, which we think we can work around, so I guess we're hoping at the moment that the bedroom size (can't fit a double bed and wardrobe together in any of the bedrooms) will put others off and mean that after a while they'll realise that our offer wasn't so silly after all. I wouldn't be distraught if we didn't get it, it's just the trouble of finding somewhere else suitable (we're on a bit of a short timescale with buying, unfortunately. Out of our control).

Holding your nerve is difficult...my OH is sure it's worth waiting a week after our first offer before thinking about offering an increase. This just makes me very nervous!

AdrianC

If you'll be happy to pay more later, when somebody else puts in an offer, why would you not be happy to pay that price now?

firebird082

I don't want to pay more than I have to! If no-one else makes an offer, then we'll be in a better position to negotiate a lower price, no? Our need to move in not ridiculously desperate, so waiting a few weeks is not much of a problem (paying too much would be more of a problem!).

TeamMCS

firebird082 wrote: »

I don't want to pay more than I have to! If no-one else makes an offer, then we'll be in a better position to negotiate a lower price, no? Our need to move in not ridiculously desperate, so waiting a few weeks is not much of a problem (paying too much would be more of a problem!).

In my recent experience if you've not offered within 5-10% range they may simple write you off. Any low ball offers I gave (and by low ball I mean 7% under) I simply got a "no thanks".. and never heard anything more.

If it is truly overpriced then they'll get back to you as you'll be a viable buyer.

My recommendation would be offer a percentage under your expected offer price. If that flat out gets refused look elsewhere

firebird082

What we've offered so far (and been rejected) was 16% under the asking price, but around 8.5% under what we consider a reasonable value for the property.

When I spoke to the agent, the impression I got was that if we offered even a small increase then we would be seen as a more serious prospect. Think they thought we were taking the p***!

It's a just a bit of a gamble as to whether anyone else thinks it's a viable property for the asking price I suppose.

betmunch

firebird082 wrote: »

I don't particularly want to get into a bidding war!

If this is true then you want to get it tied up quickly with a condition to take it off the market.

Slow playing your hand will only increase the chance of getting into a bidding war as you are increasing the time available for someone else to see and fall in love with the property.

Your tactic will only work if there is no one else interested.

Please keep us posted

ognum

Any replays are purely hypothetical unless we have some idea of where this property is.

As you know the housing market is very different in different areas of the country, a 16%below asking price offer in some places would be treated with ridicule in others it could be taken seriously.

You have not given enough information to make helpful judgements!

yoshiyella

I suppose it depends where you are based as well. We had an open day the other week and someone came in with an offer of 10% less - our response was no and don't come back unless you offer the asking price.

We were open to negotiations but not to people taking the mick. I know we are in London but I am of the opinion if you want to be taken seriously then you have to act seriously.

Fortunately for us though we had 8 offers of the asking price that day after she had come.

DRP

if you are the fist to view and the first to offer, i imagine they're not amenable to big discounts. Given how attractive their house is, they may as well wait at least a few weeks/months to get better offers.