No good at this game!

claire_mc_2

I viewed a house at the weekend that is on the market for £315k, and made an offer of £289,500 this morning. This is the first offer we've ever made so obviously we've completely misjudged it, as the offer has been declined. According to the EA, there has been another offer of over £300k that has also been declined.

I never know what to believe, and I know to take what EAs say with a pinch of salt, but what would you do? We made the low offer with a view to ending up at around £300k anyway, so we're considering another offer. The EA wouldn't say exactly how much over 300 the other declined offer is, but did say it wasn't much. I'm considering maybe £301,500, which really would be as high as we can possibly go. I would love to hear what more experienced buyers would do here!

Hoploz

You can offer what you like, but the odd figures don't really help (especially if it is just below round figures like your first offer!) My gut reaction would be that if they've already had an offer over 300k then your second offer is unlikely to be accepted. Others on here will tell you agents always lie about other offers, but you never really know for sure.

What you need to do is sell yourself as the better buyer (as well as a reasonable offer). Do you have a mortgage agreed in principle? You are in no chain so that's in your favour. Do you have a good large % deposit? Are you keen but easy with timescales (seller may or may not have found an onward purchase). Tell them the reasons why you are particularly committed to this actual house (therefore less likely to pull out in some whim).

These factors can outweigh a few thousand when you are selling and choosing between two potential buyers, depending on the seller's own situation.

claire_mc_2

Thanks Hoploz, that's very helpful.

The odd number was a knee-jerk reaction this morning, I was all ready to go in at 290, when hubby was advised that it was too high and we should go in at 284. I was chased by the agent for our offer first thing as well, so this gave me the courage to go slightly lower, although my overwhelming Britishness wouldn't allow me to drop it by much.

I do also have the feeling that a second offer would be rejected. It's so hard without knowing for sure, and I have to wonder if this is a ploy to get us just over the 300k barrier.

We do have AIP, and 10% deposit, which I know isn't massive. We're renting and very flexible on move date - we can move anytime from mid April and won't really NEED to move until November. The EA knows all of this. I asked the EA about the position of the other potential buyer, and while he wouldn't give me any specifics, he did say that they were equally proceedable. It's the lack of any specifics about the other party that's making me suspicious.

I think we're going to mull it over tonight, and possibly go in with our maximum offer, and re-stress our position and how serious we are - but we're not very hopeful at this stage.

benjus

What works with one seller won't work with another. Some people are desperate to sell, others don't actually need to move and will only do so for a good price. Even if they are keen to sell, they are unlikely to accept an offer as low as that until the place has been on the market for a while with no activity.

It sounds like it's time to either back off (you never know, it might still be on the market in a couple of weeks' time and the seller may be more flexible) or go in with your best offer.

JencParker

I think your title is the problem.


Buying and selling isn't a game, or it shouldn't be. You realise now that you have made an offer way under what you wanted to pay with a view to increasing it. All you will have succeeded in doing is showing the buyer that you are either not serious, or you are going to play games. What most people really want is a decent price, a genuine buyer who isn't going to change their minds and start demanding more off because they realise they need to redecorate etc. or play games.


As Hoploz says, your situation could benefit the buyer, but be aware that each buyer is in an individual situation and it may be of no benefit to them whatsoever.


As and example, I was in no rush to sell my house, although I could have upped and left within weeks if needed as I was going to live in a relative's annex until I had explored the new area where I wanted to live. While a FTB or cash buyer with no chain is often cited as being an advantage, there was no advantage to me, so I would not necessarily favour that kind of buyer if they were offering less than someone in a chain.

Bear in mind too that it may be that if you can only go to 300K then the house is above your budget and you need to be a bit more realistic.

claire_mc_2

Thanks benjus (love your signature quote - I need to put on MY fighting trousers :-))

I do know what the seller's position is (they're going into rented), so probably not all that desperate, but hey, you live and learn and I will think twice about submitting a low offer in a similar situation next time. It has been on the market for over a month so we thought it was worth a go. That seems to be a long time around the area in question, most things are moving quicker.

There is another place we're considering so I will drop that in with our final offer to prompt a swift conclusion to this (while stressing that we would vastly prefer THIS house).

claire_mc_2

JencParker wrote: »

I think your title is the problem.


Buying and selling isn't a game, or it shouldn't be. You realise now that you have made an offer way under what you wanted to pay with a view to increasing it. All you will have succeeded in doing is showing the buyer that you are either not serious, or you are going to play games. What most people really want is a decent price, a genuine buyer who isn't going to change their minds and start demanding more off because they realise they need to redecorate etc. or play games.

Thank you.

I WISH it wasn't a game, I would love it everyone was completely straightforward and honest as that's how I'm inclined to be. I would love to go straight in at 300k, as that's genuinely what I think the property is worth and would be willing to pay, but I know that in that case they'd just try and push us higher. I know that most sellers price their properties a bit higher than they'd realistically expect to achieve, to give room for manoeuvre, and expecting that sellers will offer a little below the asking price. 300k is 95% of the asking price and I would consider that reasonable.

I'm already so frustrated with this whole process but thanks everyone for all the valuable input.

ReadingTim

claire_mc wrote: »

I WISH it wasn't a game, I would love it everyone was completely straightforward and honest as that's how I'm inclined to be. I would love to go straight in at 300k, as that's genuinely what I think the property is worth and would be willing to pay, but I know that in that case they'd just try and push us higher. I know that most sellers price their properties a bit higher than they'd realistically expect to achieve, to give room for manoeuvre, and expecting that sellers will offer a little below the asking price.

Then why don't you? Go back to the EA, state £300k is your best and final offer and see what happens. Yes, they might try and get you to offer more, but if they do, simply repeat the info above - that £300k is your best and final offer. In the end, they'll either accept your offer or not. If they do, happy days. If they don't, move on.

claire_mc wrote: »

300k is 95% of the asking price and I would consider that reasonable.

You might consider it reasonable. However, a sale will only take place if the vendor does too.

DRP

Decide how far you want to go and work your way to it in 3 hops, with the last being a small increment.

That's always worked for me!


The trick is to make the ea and vendor feel like they've extracted the most they'll get.

claire_mc_2

ReadingTim wrote: »

Then why don't you? Go back to the EA, state £300k is your best and final offer and see what happens. Yes, they might try and get you to offer more, but if they do, simply repeat the info above - that £300k is your best and final offer. In the end, they'll either accept your offer or not. If they do, happy days. If they don't, move on.

Thanks, ReadingTim. I think that's what we will do tonight. Then, if it was a game to get us to 300k, happy days. If it wasn't, and they are determined to get close to asking price, which is too far for us, then we can move on and focus on something else. The reason I feel confident that 300k is a good offer is that similar 4 bed places nearby have recently sold for 315-320 so I really think they're aiming too high!

Hoploz

If this house is better than anything else then offer as much as you afford.

If its rejected you'll know you did your best.

If there are other houses you're interested in, that's fine. Perhaps you'll find something you like equally within budget.

If you've got specific criteria and you know you'll never find anything as good, and you'll still be looking this time next year then it'll be worth paying a little over the 300k you've decided it is currently worth, as prices are likely to rise in the future and sometimes people get left behind by the market.

Perhaps it has been on for a month because they keep getting offers too low fom people trying to bag a bargain and they are waiting for no one who wants it, and can afford, that bit more.