Help on next move as buyer

Propertynewbie

9 days ago we've put in what we thought was a more than reasonable offer on a 2-bed terraced house. What makes us say it is reasonable is that a 3-bed on the same street has sold 4 months prior for only 5k above our offer, and around 14 months before a couple of 2-beds for around 50k less. An outsider estate agent also let slip that the asking price was too steep.

Our offer was rejected last week, about 4 days after we put it forward (which was on the day we viewed it). Part of it we feel might have been due to the estate agent not communicating our offer straight away, perhaps to start some bidding action or await further offers — there were requests for us to come in to their branch for affordability checks, 2 days after our offer, despite us saying we already have a broker we're happy with. We received confirmation on the post stating our offer was made 3 days after we actually did, which makes us think it might have unnecessarily put us in a bad light with the vendors, as it left them only a day to decide (we specified a deadline, after which we withdrew the offer). In the end, though, we feel it is the vendor's decision they went the way they did.

Tomorrow will be a week since the rejection of offer and a month since their ad has been up. From what we can suss, there's been little to no movement with offers — none has been mentioned to us, when usually, from what we've read anyway (we're FTB), EAs usually make it a point to point it out.

My question is this. Is it a good idea to initiate some interest again with the EA? Won't this just be seen as a sign by him that he can make us wait some more and perhaps take our previous offer less seriously, given we've previously just withdrawn the offer? We're considering upping our offer by 3-5k, if this'll somehow help seal a deal.

Or is it better to just wait for them to re-establish contact, count ourselves lucky should it happen?

We're happy to do either as we're in a position to wait. To that end, we have been looking for other properties in other, less desirable, towns. That said, the location ticks a lot of boxes for us — but which is another source of issue with there being almost no ready trickling of houses going on the market; it is currently the only 2-bed house on sale in the area within our budget.

Any advice on how to 'play' it?

Thanks.

nubbins

So what was your offer in term of percentage below the ask?

Propertynewbie

16% below asking price. With the 5k, 14%.

missile

If the house is worth more to you raise your offer or look elsewhere.

Employ a local solicitor who will be better able to advise you

nubbins

That I suspect is your problem and I think you are over analysing everything. If I had an agent round to value my property and someone came in with an offer at 16% or 14% below the ask I would probably dismiss them from that point on. In one breath you are saying its over priced and your offer is reasonable and the next you are saying its the only 2 bed in your price range. I suspect you are going to have to get a lot closer to the ask to be taken seriously.

Propertynewbie

Hi, missile. I did mention considering raising our offer, but wanted ideas on how best to go about it given our situation.

Could you elaborate a little bit, with what or how would a local solicitor be helping us in this particular instance or stage? We're FTBs, so not fully clued up yet on the whole process.

nubbins

missile wrote: »

Employ a local solicitor who will be better able to advise you

Sorry but why on earth would a local solicitor be better able to advise?

Propertynewbie

nubbins wrote: »

That I suspect is your problem and I think you are over analysing everything. If I had an agent round to value my property and someone came in with an offer at 16% or 14% below the ask I would probably dismiss them from that point on. In one breath you are saying its over priced and your offer is reasonable and the next you are saying its the only 2 bed in your price range. I suspect you are going to have to get a lot closer to the ask to be taken seriously.

That it is the only one within our price range has more to do with the current lack of properties in the area in general, we think. 4 months earlier and we would've been able to get a 3-bed just a couple of doors down, so we feel we're not at all being unreasonable or too optimistic.

nubbins

The fact is you are stll offering 14- 16% under the ask, even if you think its overpriced the seller probably doesn't which is why he rejected your offer. Its coming up to prime house sale time so they maybe holding out for something nearer the ask and be in no rush themselves. Also be aware if you are not on the ladder the market can easily run away from you in that you are unable to save as much as prices are rising, you could quite easily be looking back in 6 months wishing you had just bought this. I had friends who at the end of 2013 could have bought a semi for 290k, mucked about and the house was taken off and put back on 7 months later for 350k. If it was me and I found a house that ticked a lot of boxes I would be going somewhere a lot nearer than 14% under.

Good luck with whatever you decide.

Propertynewbie

Appreciate the comments, nubbins. It confirms some of the perception we suspect on the part of the vendor. The 5k we're considering raising happens to be our maximum, unfortunately for us, but which also means there's no regrets down the road, in any event. I'm asking around in the hope there might be a way to maximise any chances we might have -- FTBs, ready to proceed, possible 5k final bid, property having had no activity, reasonable first offer, another local EA hinting for us to wait it out -- while there are currently no other properties (in the other areas) that has taken our serious interest. We do not mean to play the waiting game for its sake; we're just at the moment waiting for the next property.

nubbins

No problem. When it comes to people and their houses and especially money they do not necessarily think like you or I do.
I would imagine the EA has told the sellers that you will probably come back with a higher offer at some stage so maybe wait it out a bit longer and go in with your final max offer, if it gets rejected again then at least you know you can do no more.
Just picking up on one point you mentioned, being a FTB in ready to proceed is not so much of a major plus anymore. If your area is anything like mine you have to be in a proceedable position to be able to get anything half decent.