First offer rejected etc

shimano

We went in with a first offer (London) in writing for a property which was 4% below asking, and was a fair price based on an identical very recent comparable that sold, and the indisputable fact that the rises that were exhibited earlier in the year are well and truly gone in Q4 (evident given there are numerous properties that are being dropped in price, including this one, and the sudden influx of calls from EAs desperate for us to view properties).

At first, the EA said the vendor was not sure, but that they should take the offer as we have no chain effectively and ready to move whenever if needed. They came back a couple of days later and said the vendor wants near asking, what I thought about this etc, and I stood by our offer again citing the reasons for which the EA claims they understand/agree etc etc, and that they wanted to wait a week to see if anyone else bites. I then asked if they had any viewings/potential offers in the pipeline and their candid answer was no one has planned to view it at all etc. After this call, I sent in writing a follow up saying we stand by our offer, let us know if their view changes.

I am sorely reluctant to increase the price by any amount, given I am 99% sure our offer is of a fair value, and there is essential work needed on the place (which the EA agrees with). Apparently the vendor needs to relocate ASAP as well, and coupled with the price decrease only 3 weeks after it was listed, would indicate that they need a smooth sale.

In terms of next steps, I guess best to just stay quiet and let them chase us? I am thinking of leaving it, and if they come back stand our ground, and then send in writing that our offer will be withdraw in the next x days as we are not willing to wait around.

stator

Just give them a ring in a week or two and tell them that you have found somewhere else you might like and wanted to check if the seller has changed their mind before you put in an offer on the new place.

kiddakidda

I had this situation earlier in the year. Made an offer on a property which was rejected, discussed with EA who gave an indication of what the vendor was looking for. Offered what the EA advised and still rejected.

Feeling annoyed, I told EA to wish them all the best with it and walked away.

2 weeks later EA on the phone asking if my offer still stood?

My reply; Sorry chum, partner and I have moved on and had an offer accepted elsewhere

Be prepared that the EA may not chase you through.

Good Luck with it.

shimano

I don't think we will increase our offer at all given the direct comparable available and there are clearly no other buyers even looking. If it was in comparable condition to the comparable (sic) then sure it'll get more.

I'll give it until weekend then just say offer stands for another week and we are continuing viewings. I went through this on my last purchase and foolishly upped my offer a little when I probably should have stood my ground.

Thrugelmir

shimano wrote: »

In terms of next steps, I guess best to just stay quiet and let them chase us? I am thinking of leaving it, and if they come back stand our ground, and then send in writing that our offer will be withdraw in the next x days as we are not willing to wait around.

Game of poker. Vendor will obviously wish to see if there any other serious buyers around. Depends on how much you like/want the property.

shimano

They want more or less asking which is optimistic (got a follow up today). We said we can raise offer by 4-5 but verbally was told they want asking more or less.

We are going to up our offer by 5k in writing anyway with an expiry of several days. I'm pretty sure in 2 weeks we will get the call "Would you still buy it at x....."

nubbins

You can think and plan and put yourself in their shoes all you want but at the end of the day you do not know what position they are in regardless of what the EA has told you. For all you know they maybe quite happy to sit it out until next year. You say they have already dropped the price but you are asking for a further 4% reduction, if 4% equalled 16k they might go for it, if 4% equals 32k they will probably hold out, thats what I would do, especially in London.

shimano

It is approx 35k difference, but the biggest factor for our value is the almost identical comparable. EA seems to agree with us that our offer is very fair and reflective of its value as well.

Other problem we have is each day we speak to the EA, the story on their situation seems to be different and inconsistent. One day they need to sell as they found another place to buy, two days later they're going to rent then now they're thinking of staying.

Can't help but thinking its a mixture of seeing if we will raise significantly or see who else can buy. Problem they have is for it a price range and the type of property have, its type of buyer is limited, so would be surprised really if they get a buyer at asking.

The market in London has cooled massively this quarter, and properties going for asking is not happening anymore. Forecasts for next year are flat, which is not surprising given income is way behind the growth of values this year. An EA friend told me that a lot of buyers are struggling to pass the additional checks...

Thrugelmir

shimano wrote: »

It is approx 35k difference,

4% is a small %, however 35k is a lot of money. Which is the vendor may well be viewing the situation.

Remember an EA's job is to broker a deal between parties. So their opinion will differ depending on who they are talking to.

shimano

Final offer submitted with a marginal increase, and the EA seemed to be of a different view now and positive so will see.

Whilst I appreciate relative vs absolute argument, this is a situation akin to having 2 used Ford Fiestas side by side with the same mileage in almost identical condition; the only difference is one has sat nav and xenons, and sold for let's say x. The other is for sale and the buyer is wanting 6% above x, or in other words, their asking is too high (which is a trait of this specific agent anyway in this area).

burlington6

The only difference is the others aren't for sale now though