Offer Rejected Today. How Do I Offer On A 15k Range Guide Price?

strawberries1

Hi Everyone!

I offered on a property advertised with a #15k (apologies, US keyboard) guide price range; it was rejected and I increased my offer but still waiting for a response. The EA says someone else has come in with a higher offer and my next offer must be my final. My offer is #5k over a similar flat sold in Jan this year though it came on the market Sept 2014 so technically that price might be a Sept 2014 price with completion delayed because of a chain etc. I'm buying in London, a FTB trying not to buy a new build or shared ownership!! My knees are wobbly and I almost want to cry!:(

Hoploz

The selling price will depend on the sellers position, how keen and ready they are to sell, and the amount of competition for buyers. Did the ea give you any feedback? It's a bit late asking now, as you've already put in your bid with the intention of it being the final offer!

You are right about the time lag on sold prices. The spring market is very different to the autumn one so I'd say it would be a reasonable assumption that the price would have increased in that time as this is London. (But without knowing the exact details of the condition etc it's hard to know how much difference there is in value between flats.)

Landofwood

You should offer only what the house is worth to you. Forget the asking price, it's a made up number.

strawberries1

Oh my poor heart!!
Offered at #200k guide price #200k-#215k offered #207k. I she said my next offer must be my final offer so I said I'll think about it. Will perhaps offer #210. The postcode isn't a London postcode but it's within London zone transport. I'll appreciate constructive input re my conversation with her in the morning.

Hoploz

Oh so the second offer wasn't the final one? How long can these 'final' bids go on for?!

Well you must ask yourself whether if you don't get this one how soon will you find something else? Will prices have risen by the time you do, and you'll end up at 230k for another flat in the same block this time next year? It happens all the time!

Then consider how much you can afford. Have you been through everything with a broker? Do you have a mortgage agreed in principle?

strawberries1

Thanks Hoploz!
Unfortunately the buyer decided with the other seller. My higher bid came too late. Yes I have a mortgage in principle etc. I'm a FTB so I guess I'm new to the bidding buying process and lost out.