How do you know if an offer is genuine?

pickles13

We found a house last week (I posted about it on here already, its on a private road) and were told that there had been an offer made by someone and what that amount was, we offered a few grand over what they offered (I wanted the seller to know that we are serious buyers, who aren't going to get into a bidding war). We were told that if we didn't make an offer the vendor was definitely going to accept the offer from the other person. Anyway, the EA has told us that the vendor says that the offer is acceptable but that they have gone back to the original couple and told them how much our offer is and that this couple are now trying to find a way to up their offer and that we will hear back next week. Now this house is about 40K under our maximum (but we would not even consider going anywhere near that amount as we still want a nice life!). Anyway, my question is, how do we know that this other couple even exist? Surely the EA can just come back and say that we need to up our offer and we would be none the wiser?

Secondly, if we are told they have upped their offer and decide to put in a higher offer, how much over would you suggest we go?

Thanks all- feel so naive when it comes to this house buying/EA lark!

Tuscan

i would tell the vendour your offer is your full and final and if you dont have an answer in say 48 hours your withdrawing it and moving on. see what they come back with...

pickles13

Thank you. I know that that is the totally sensible thing to do but I am so scared of losing out (which of course means they have me exactly where they want me).

Baby_Angel

You can only offer what you think the house is worth and what you are willingly to pay. The EA can tell you all sorts of things. You just have to tell them your final offer and hope for the best.

Good Luck.

Tuscan

whos in the strongest position, you or the other buyer. are you a cash buyer or have you got a mortage offer in place anything to sell or chain free etc. if your in a strong postion the seller wont want to loose you.

same has just happened to my neighbour who are the vendor, had offer at asking and excepted it then someone offered a few grand more, and they excepted that only for buyer to pull out a few days later and first buyer has moved on as not happy with them so now back on market..

pickles13

Well we are FTB with AIP already in place. I asked about the other couple and were told they were also FTB but they offered their maximum and are now trying to find a way to offer more so I guess we are both in the same position ish, albeit we are in no way struggling to get a mortgage for the amount offered.

I am not sure if the AIP helps us or not as I get the feeling that if the other couple agree to use the broker attached to the EA, they would be preferable to the EA (we most definitely will not be using them as we have our own broker who is fab).

stator

Unfortunately there is no way of knowing. You have to guess.
You can ask a friend to go and see the house and ask if there's been much interest. Maybe they'll let the cat out of the bag "There are currently two offers on the table" but maybe not.
You could ask the vendor directly, but it's not in their interest to be honest.
It's a shame estate agents aren't honest.

Tuscan

sounds like your the better bet as the other buyer is at there max and trying to raise more to beat your offer. Chances are they may not even be even able to get the extra money or if they do, then a few weeks down the line they may start to think they have bitten of more than they can chew and pull out.

If i was the vendor i would go with you for sure, sounds like the seller is trying to have his cake and eat it. If you can hold your nerve i would stick to your offer and give them a 48 hr deadline

cloo

I would hold your ground... the better you hold it earlier on, the less they'll feel able to mess you around later potentially. It is hard, but I'd advise being firm here.

moneyistooshorttomention

It really is just down to intuition and how well you can "judge" your vendor. I came to a bad verdict about the vendors character pretty much straight off with both houses I have bought so far and was perfectly correct with both of them in the event:(

On the other hand, I might have chosen different houses and thought "Now this is an honourable vendor/decent sort of person".

It really is a judgement call as to how well you can assess the vendors integrity (or otherwise).

It is the case with many vendors that "money doesn't just talk...it screams" and that is likely to be the case with all too many vendors unfortunately...hence its such a judgement call.

pickles13

Well bearing in mind the EA told us we would hear next week, I got a call today just before they closed saying that the vendor has accepted our offer as she doesn't want any messing about and does not want to lose us as we are in a good position. The EA also passed on that the vendor said that she does not want to put us in a position where we are trying to outbid each other, which I quite liked to hear. So, hopefully this one will work out for us! I still have a few reservations about the private road but not enough for it to be a deal breaker.