House bidding advice

wpearson92

Hi all, been looking at a property which is on the market for 119,500
I've placed a bid of £106k to test the waters with and then 111k as a serious bid.

Now the vendor as rejected this bid due to the property not been on the market long enough. The agents have said to me that if I bid 115k they would negotiate on my behalf and that its a very good offer.

I'm a first time buyer so Ive no experience on the issue, I've been told agents can use tricks to get a better price do you believe this could be what's happening here.

What advice would you have if you were bidding on this property

Gadge2011

It’s your money, bid what you think the property is worth to you.

martinsurrey

What do you think the house is worth, going on the local market and recent sold prices in the area?

If the house is newly listed and you've put in a low ball offer (meaning the list price is resonable in an area with fast turn over), I think you may have shot your self in the foot!

Hoploz

If you don't want to pay more than 111k then leave it and look elsewhere. Are you confident you can find an alternative for 111k that you like just as much, or is this one actually better (and thus worth more?)

People always do this, try to play hard ball and start bidding low. Then 6 or 9 months later when they've had loads of rejections they realise prices have increased and where asking prices were at 120k and you hoped to get for 106k they have now increased to 150k and you end up paying 145k for a flat in the same block!

wpearson92

Well im up to 115K and one of the sisters selling the house wants to accept and the other sister is being stubborn, the estate agent as told me to take a back seat for a week or two and see if there is any more interest, she doesnt believe I should offer any more as im offering a good amount for the property, and she said it is rare for the area to get the asking price matched.

The estate agents are annoyed there are not willing to go into negotiations and for the time being are going to ring me if there is any more interest on the property.

Has anybody had any problems like these when purchasing an house

ognum

wpearson92 wrote: »

Well im up to 115K and one of the sisters selling the house wants to accept and the other sister is being stubborn, the estate agent as told me to take a back seat for a week or two and see if there is any more interest, she doesnt believe I should offer any more as im offering a good amount for the property, and she said it is rare for the area to get the asking price matched.

The estate agents are annoyed there are not willing to go into negotiations and for the time being are going to ring me if there is any more interest on the property.

Has anybody had any problems like these when purchasing an house

The EA is paid by the vendor, they will be unwilling to upset them.

Maybe they are waiting to see if better offers do come in. I guess you have two choices, pay more or wait!

missis_amber

Depends how much you love the property and want to part with that much cash. First house we saw we lost out on there was so much to & fro between us and another interested buyer increasing prices based on what the EA and seller were telling us. Next property we saw I fell in love with the house, the location everything we offered full asking price on the condition they did no more viewings. To us it was worth the full asking price, we'd seen other properties, we knew what houses in the area had sold for and we really wanted it. You need to right down all your financials, what others houses in the area have sold for, what price other houses are on in the area etc. I would say one offer under the asking price and then one near/at the asking price is sufficient. You shouldn't have to make three offers if you've worked it all out properly.

ognum

missis_amber wrote: »

Depends how much you love the property and want to part with that much cash. First house we saw we lost out on there was so much to & fro between us and another interested buyer increasing prices based on what the EA and seller were telling us. Next property we saw I fell in love with the house, the location everything we offered full asking price on the condition they did no more viewings. To us it was worth the full asking price, we'd seen other properties, we knew what houses in the area had sold for and we really wanted it. You need to right down all your financials, what others houses in the area have sold for, what price other houses are on in the area etc. I would say one offer under the asking price and then one near/at the asking price is sufficient. You shouldn't have to make three offers if you've worked it all out properly.

It is entirely dependant on the area you are buying in. In some areas in demand houses always sell above asking, in other areas they don't. In my area EAs put properties on the market at acceptable prices to get people through the door and then the fighting begins and the price goes up and up. An offer under or even at asking wouldn't work.

wpearson92

Well ive offered 118k on the property, and im led to beleive the vendors are going to agree to this!!! they have told the estate agents this was the lowest they were willing to go, so to avoid missing out ive made the offer. I feel this is a fair price as me and my gf love the house and the area as was said above, Ive just listened too much to people trying to haggle the price down in the past that I could of potentially missed out on the property

BarleyGB

What you can get off depends on the area but the two places I've bought I've gone just slightly under asking price.

Having looked for so long and made my mind up I've not wanted to lose out on the place I want by haggling over a few thousand. In both cases I was buying in an upward market and prices continued to rise, had I lost out on the purchases I'd have paid 5-10% more 3-6 months later for similar.

Pay what you think it's worth, what it's worth to you as a home.