Tactics when offering please help!

Bobanna

Hi All,
We have made an offer of 585 on a property which is on the market for 675. It needs some work, and we can only purchase happily at under 610 at the very most. We hoped our offer potentially successful for a few reasons-

- its overpriced. Clearly above market value

- we offered cash (we can borrow a lot from parents then mortgage later to pay them back),

- we are chain free.

- We know the seller is desperate to sell - she has already packed up and just wants out for personal reasons.

- its been on the market since november with one offer in december which fell through although its not clear why. they said it was down to a problem with costs to fix a problem but its strange that someone would pull out over a cost of at most £5k. The agent told us this offer was at 670.

The agent encouraged an offer however low as the vendor was "desperate". Then, when we offered yesterday morning the agent took all day to come back and then just said "no". It was a bit odd as he must have told the vendor in the morning but he waited all day to come back to us. He was a bit stuttery on the phone and just asked if we wanted to make another offer. To be honest it really felt like a game so my husband said we can't really go any higher and we will leave it.

I really don't want to miss out on the property, its not the be all and end all but its lovely and feels right. I also know instinctively that the agent hasnt been completely honest and is playing on the fact she thinks we are desperate to buy it.

Sorry to ramble! The question is- what would your tactics be in this situation. 675 is overpriced for the area. there are other similar places on the market for 580-620 close by. besides, it doesnt work out for us if we buy over 610 and we are prepared to walk away...we just dont want to if we dont have to!!!

Any advice very very appreciated on how to act now?

Quimoi

If you really want that house and £610k is right for the area then why not offer £610k and make it clear that it's a best and final offer? Play on your positives (no chain, quick completion etc.) and at worst you'll get rejected and can move on with looking at other properties...

nubbins

Maybe have a look for a property in your price range. Depending on circumstances, if I was the vendor and I had received an offer (if it can be believed) near full ask I would definately be holding out for more than 610 especially coming up to the busiest period. Just offer what you feel comfortable with and leave it on the table. If she is that desperate they will soon come back.
I would also be doing a bit more digging on why the other buyers dropped out.

ultrafox

I would advise you to wait. Leave it until after the weekend and don't make any quick decissions. I caertainly won't offer more given the circumstances you've mentioned.

Lots of noise in the papers at the moment about the housing market slowing. Its always a buyers market.

ReadingTim

While you might think it's overpriced, the vendor will probably need a little more time to come to the same conclusion - 2 months really isn't very long, especially over the winter when the market is quite slow.

Furthermore, while the vendor might be "desperate to sell", you've now found out that that means "desperate to sell at £675k" not desperate to sell at £585k.

While you're only offering 14% under asking price, £90k is still a lot of money, which the vendor is probably having trouble with. The offer is also in the five hundred thousands, so (physiologically) a lot lower - it's the same reason why £9.99 seems a lot lower/better than £10.00...

I think you're going to have to offer over £600k to be in with a chance, but you may have to face the fact that however you play it, the vendor won't sell you her house at a price you can afford.

ultrafox

duplicate post :-<

inatdeepend

Having had a similar experience recently (way overpriced, seller "desperate to sell", yet said no despite no other viewers or offers and very much a buyers market in the area), save yourself the headache and find somewhere else.

rightsaid

Sit tight...

rosie383

inatdeepend wrote: »

Having had a similar experience recently (way overpriced, seller "desperate to sell", yet said no despite no other viewers or offers and very much a buyers market in the area), save yourself the headache and find somewhere else.

I agree with this. Our final offer of £10k under asking price has been rejected even though they have had few viewers and no other offers since going on the market in September. They want full asking price. So even though we love the property we are looking elsewhere. Still hoping for a phonecall to say they have changed their mind but not holding our breath. You are lucky that there are similar properties around that you can afford. We are getting frustrated that prices are rising for anything decent here.

Hoploz

As already said, they are desperate to sell, but more than likely they want much nearer the asking price. Often people bank on a certain amount to make another purchase. Most likely it is worth much more than the offer you have made, and If it went on the market in November that's hardly any time at all.

I assume it is better than the other houses you suggest are 'similar' as you want to buy this one not all the others

I have posted on here before, that I was selling at a similar level, I got an offer 100k less than asking. Man started upping his offer a bit at a time, I told the agent I was not interested in any more offers from him, even if asking price, as I would not trust he would go through at that level as he had initially offered so low. (I got its proper value from someone else quite easily).

So be careful with your next move, if you actually want to buy the house .....

Bobanna

Yes we do want the house.
I think the next step would be wait to hear from agent, and when/if she gives us the message that they are open to movement from us despite being pretty far away from asking, make our beard and final offer. Which will be 25-30k higher. That really is as high as this property is work to us. I guess what I wonder is how to handle negotiations between now and making our highest offer. I think leaving it for a few days is the safest thing as hopefully then we will be given a clear next step "there's been an offer of full asking price willl you match it?" Or "theres been an offer of x, how close can you get to it"...I have a really bad feeling about the agent and how honest she is, but I guess that's all part of the game and all we can do is offer best at the time that feels right.

How much of an advantage do you reckon it puts us at that we are cash chain free buyers? Or not that important?

She has a home and job overseas waiting for her, but I take point made - everyone has a figure they need at very least; everyone's has plans for the money!