Negotiations- offered £4k under asking

HenryHippo

Hi,

I don't want to link the property incase the vendor sees this, but the asking price is £239,950.

I have made an intial offer of £236,000 which was rejected within an hour of telling the estate agent.

The agent informs me that a month ago they were offered the full asking price and they accepted, but the buyer had to pull out for some reason.

Should I increase my offer to say £238k? Or just go straight in at the asking price? And how long should I leave it before I get back to the agent? Don't want to reply too quick and sem too keen.

Thanks

smallblueplanet

How keen are you? Is this going to be your long-term home?


If so why not offer the asking price, if you think the house is worth it.

csgohan4

Have you given the EA your AIP/DIP which shows the maximum what you can afford?

If you have you will likely have to offer the asking price if not more due to 'mystery buyers'.

Otherwise offer what your prepared to pay depending on how bad you want it.

If it's in London, you will likely have to offer asking as a minimum

HenryHippo

smallblueplanet wrote: »

How keen are you? Is this going to be your long-term home?


If so why not offer the asking price, if you think the house is worth it.

I am pretty keen, just don't want to offer asking if they might go lower!

csgohan4 wrote: »

Have you given the EA your AIP/DIP which shows the maximum what you can afford?

If you have you will likely have to offer the asking price if not more due to 'mystery buyers'.

Otherwise offer what your prepared to pay depending on how bad you want it.

If it's in London, you will likely have to offer asking as a minimum

My AIP expired actually, so I haven't.

I think I will go for £239k next

kellaree

HenryHippo wrote: »

Hi,

The agent informs me that a month ago they were offered the full asking price and they accepted, but the buyer had to pull out for some reason.

Thanks

If this is true you need to find out WHY they pulled out, was it due to an issue with the survey etc? If it was down to issues solely with the buyer, just because one person wanted to offer the asking, it doesn't mean they'll get it again.

Keep calm, don't appear too keen and do not overstretch yourself

smallblueplanet

kellaree wrote: »

If this is true you need to find out WHY they pulled out, was it due to an issue with the survey etc? If it was down to issues solely with the buyer, just because one person wanted to offer the asking, it doesn't mean they'll get it again.

Keep calm, don't appear too keen and do not overstretch yourself

How long has it been on the market? Go back to the estate agent and ask what if any offers have there been and, why didn't they proceed? Why are the vendors moving? Is there a chain?

somethingcorporate

For the sake of £1k I'd probably offer asking to secure the house that you want. Over the life of the mortgage you won't even feel it.

That's me though!

csgohan4

Make sure the EA does not know your financial ability. It is a conflict of interest.

Don't use the EA services either.

dinkylink

Personally I would go halfway to start with at £238k, always gives you a chance to offer full asking if they flatly refuse. They know you are keen as you only offered £4k lower in the first place, so are unlikely to accept another offer at full asking without consulting you first. IMO of course!

Wassa123

AIP's are a load of rubbish really. Yes they show how much that lender will lend you, but thats not necessarily how much you will want to borrow. I can borrow 70k more than I currently want to, but I know in the future the rates will increase, I'll want to spend money on doing the house up, getting married, and having kids and will need more money to play with every month rather than paying interest.

Also, in the time between your AIP and your offer being accepted, there may be other mortgages available with better rates.


Our current purchase had a previous buyer that dropped out. They then accepted our offer of 18k less than they had previously accepted. It also went to "best and final offers" so it suggests that they wouldn't get anymore.

csgohan4

Wassa123 wrote: »

AIP's are a load of rubbish really. Yes they show how much that lender will lend you, but thats not necessarily how much you will want to borrow. I can borrow 70k more than I currently want to, but I know in the future the rates will increase, I'll want to spend money on doing the house up, getting married, and having kids and will need more money to play with every month rather than paying interest.

Also, in the time between your AIP and your offer being accepted, there may be other mortgages available with better rates.


Our current purchase had a previous buyer that dropped out. They then accepted our offer of 18k less than they had previously accepted. It also went to "best and final offers" so it suggests that they wouldn't get anymore.

But some EA's/ Vendor's insist on them before offer being accepted. If you have a broker that is easy to deal with and they can confirm affordability. But if your direct you only have the AIP given at the time.