multiple offers at the same price - how is the 'stingiest' calculated?

underthesea

I've offered 250k on a house and the agent has informed me they have received multiple offers that are the same. The house is a repossession so I presume the agent is acting for the bank.

How is the 'strongest' offer calculated? Is there some sort of hierarchy or order of points they go down in a list to check off and whittle people down?

Thanks!

PasturesNew

The person judged most likely to complete in the shortest of time and with the minimum of fuss.

e.g. a locally-known BTL LL who wants to increase his portfolio > somebody with their house on the market.

It's a mix n match of situation, speed/urgency and how you 'present' your case .... so partly which one they like the most if they've met everybody and end up having to choose based on which one they felt "deserved" it most .....

Or they might just ask everybody for their "best/final" .... and see who comes up with more.

underthesea

2 minuets for a reply! That's fast...

Thanks for the advice - i'll present my case that we can act with speed.

Any other advice in the thread appreciated!

Marmaduke123

I don't know where you are located, but they might come back and ask proceedable potential buyers who have already offered the asking price for "best and final offers" to be submitted by a certain date and time.

In that case you are expected to increase your offer, and it will be guess work by how much. If it's a repossession I believe the mortgage company has an obligation to achieve the best price possible.

underthesea

Expensive SE..

They have asked that as you said but you can always put in a higher offer from my understanding after the date and time.

I'm hoping (and have to try..) that nobody ventures above 250 as the stamp duty crucifies even a small increase in the offer

Marmaduke123

Good luck!

silvercar

How is the 'strongest' offer calculated?

Whoever provides the largest brown envelope to the estate agent.

AdrianC

underthesea wrote: »

I'm hoping (and have to try..) that nobody ventures above 250 as the stamp duty crucifies even a small increase in the offer

A tad melodramatic.

Yes, a step up from 250,000 to 250,001 increases the stamp duty bill from £2,500 to £5,000, but that's only a £2500 increase. If you're thinking of offering another £5,000 to £15,000, it becomes a smallish part of the extra you pay.

If anything, it goes in your favour - because a lot of people DO have that mental block, so offering an extra £5,000 - £7,500 out of your pocket - gets you ahead of the others who are "stuck" mentally below the threshold.

underthesea

AdrianC wrote: »

A tad melodramatic.

Yes, a step up from 250,000 to 250,001 increases the stamp duty bill from £2,500 to £5,000, but that's only a £2500 increase. If you're thinking of offering another £5,000 to £15,000, it becomes a smallish part of the extra you pay.

If anything, it goes in your favour - because a lot of people DO have that mental block, so offering an extra £5,000 - £7,500 out of your pocket - gets you ahead of the others who are "stuck" mentally below the threshold.

Thanks for the reply

It doesn't go up 2.5k, it's 3% so goes up 7.5k = 5k more. It might be mental, but my wallet feels it! Plus my lender is paying the stamp duty so it's a little more then melodramatic. It's painful!

AdrianC

Ah, you're right. Sorry. I was thinking the big step was the next one up. But the theory remains. Offer £10k extra, pay £15k extra, but stand ahead of the others offering.