Probate being greedy or is it me?

jimpix12

Hi all, please can you offer some advice? A probate came onto the market on the 15th of May and I was the first to view. I really liked it, although felt it was overpriced, but put in an offer around a week later of -8% under asking price. It was rejected which I thought it would be given it was the very first offer they had received. At the time, the EA advised me that the executor is looking for a specific figure 'at minimum' and this figure was my second offer. It was rejected by the executor because the property 'has only been on the market for a few weeks'. The EA sounded like he would have accepted the higher offer if it were up to him, and I was quite shocked and surprised.

I feel like my offers were very close to the market value. I'm now wondering if I should reiterate my previous offer, or even up it by small increments, in a few weeks as this seems like the best bet? How long would you wait? I am in South East where properties (if priced correctly) sell within a few months.

Or should I offer an ultimatum to the executor, for example my new offer is slightly higher than before but only valid for 2 weeks? I don't want to be playing games, as I know people here often frown upon that, but the fact I offered what the EA initially told me would be their minimum desired price and they rejected it in order to wait the market out, makes me think there may be problems ahead.

FWIW, I know it doesn't carry as much weight in probates, but my offers were cash. There have been"a couple" of other viewings the EA has said.

chris_m

The executor has a duty to achieve the best price possible for the estate. If there's, presumably, no-one waiting to move out and no urgency to wind up the estate they can wait as long as they want.

jimpix12

I appreciate that, but I'm asking more from my (the buyer's) position.

To put it in a simpler way, as my earlier post is quite long... If you had been told the minimum price expectation, and offered it cash, and then been refused because the seller wants to leave it on the market to gauge further interest - what would you do, assuming you were highly interested in the property?

Part of me isn't comfortable with the way the executor is conducting it. I'm not even sure if I should pull out entirely, although don't think I will.

vanilla_twist

As an executor you have to do what is best for the Estate.
It might be that the property has been marketed at the Probate value so the Executor doesn't want to go lower. Probate values used to be quite low but don't seem to be anymore.
I have just sold a house as an executor at the probate value as felt it was a very fair price. The solicitor wanted us to hold out for more.

I have noticed that a lot of agents use 'offers over' or even 'offers between' now. If you really want the property then offer the amount it is marketed for. In the South East someone else will.

V x

jimpix12

I have noticed that a lot of agents use 'offers over' or even 'offers between' now. If you really want the property then offer the amount it is marketed for. In the South East someone else will.

Thanks, but I will offer what the home is worth to me and won't overpay.

By the way, if what you say were were true, wouldn't 100% of houses in the South East sell...? You can leave an overpriced property to linger on the market for months if not years round here but it won't sell unless the price is lowered or house price inflation catches up. I can show you at least 10 examples on Rightmove that have been sat on the market since 2013 and haven't even gone under offer. Although maybe things are different at this end of the market (over £500k).

By the way, why did the solicitor want you to hold out for more? Are they paid a %? Presumably it is in their interests financially, but I thought most were paid a fixed fee.

Beancounter

vanilla_twist wrote: »

As an executor you have to do what is best for the Estate.
It might be that the property has been marketed at the Probate value so the Executor doesn't want to go lower. Probate values used to be quite low but don't seem to be anymore.
I have just sold a house as an executor at the probate value as felt it was a very fair price. The solicitor wanted us to hold out for more.

I am currently executor of my dad's estate and have his flat on the market right now. As the single beneficiary of the estate I can surely sell for whatever price I decide? If as seems likely I need to accept a smaller offer than the 123K fixed price I have (due to woodworm and damp issues) I hope I won't be getting into bother doing that.

lincroft1710

Beancounter wrote: »

I am currently executor of my dad's estate and have his flat on the market right now. As the single beneficiary of the estate I can surely sell for whatever price I decide? If as seems likely I need to accept a smaller offer than the 123K fixed price I have (due to woodworm and damp issues) I hope I won't be getting into bother doing that.

As sole beneficiary the only person you have a duty to as executor is yourself. A completely different situation from one where there is more than one beneficiary.

G_M

i really don't see wht the fact this is a probate sale is relevant at all.

Seller and buyer have to agree a price.

If the seller, whether an executer or owner-occupier, thinks he can get a better price than is being offered, and has no other pressures (ie need for a quick sale), then he'll reject the offer.

Buyer can then either offer more or walk away. Why is this different?

Part of me isn't comfortable with the way the seller is conducting it.

Then don't do business with this seller.

theoretica

The executor is just a person and different people think differently. That your offer was not accepted may well mean that they are not in a great hurry for the money and may be thinking that if they were offered the sum they discussed with the estate agent after only 2 weeks then it is worth waiting to see if other people are interested. If they aren't in any hurry, and as you say properties are selling then maybe they are right to wait. Either someone will offer higher, or not.

AdrianC

Look at it from the vendor's p-o-v.

The first person to view has put an offer in. They've upped the offer. But it's still nowhere near the asking price. Well, hold on a mo... If that's just the FIRST person, maybe it'll get the asking price before long?

You only have the EA's word about this "expected" price - and, even if the EA and vendor have discussed it, it's certainly in no way binding.

Frankly, they'd be daft to leap at an early offer way below asking. No matter what the potential buyer says about "oooh, it'll never fetch that." - if it really won't, waiting a bit to prove your point won't be the end of the world, will it? Anybody'd think you were scared a higher offer'll be in before long...

jimpix12

I don't think they are in a hurry. I just find it odd that a cash offer that is 5% under the asking price was rejected, even if they aren't in need of a sale desperately. I suppose I feel like they are sitting on my offer and chancing that another one may or may to come along; if one doesn't come along within X amount of time I expect they will be ringing me up and asking if I want to buy it still. So I want to communicate to the agent that I am not willing to do that, but just wanted opinions if that was shooting myself in the foot by offering a time limit before my offer expires of, say, 2 weeks.

AdrianC I agree with what you're saying but is 5% below asking price considered "way below" nowadays? Looking at sold vs asking prices round here in this price range the norm seems to be 5-10% below. That isn't how I came up with the figure mind, I went on similar sold prices rather than percentages.