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What game is Estate Agent playing? What do you think?
ElsieMonkey
Posts: 268 Forumite
Wondered what you all think of this:
We viewed a property a few weeks ago, advertised at 180k. In our opinion, based on sold price of same properties on the same road recently, and taking into consideration that unlike the other properties, this one requires a complete renovation - electrics, plumbing, the works, it really is in a bad state of repair, we offered 155k. I didn't expect to hear back regarding this offer tbh. I wasn't even going to make the offer since I knew it would require quite an adjustment of expectation on the sellers part, but it was only when I was giving feedback to the estate agent it came up in conversation, and I said you're welcome to pass on that I would offer 155k.
Fast forward a few weeks and I get a call from the EA on Saturday morning saying he thinks the vendor may consider 165k. We then went for a second viewing same day.
Called the EA this morning and after discussion, said I will offer 165k on condition it's taken straight off market etc. We're in a very good position - selling our property to first time buyer and completing end of the month - we'll be going into rented. We'll be purchasing with 70% cash and a very small mortgage which is agreed in principle. The property in question is chain free and empty, and is being sold to free up cash. I made it clear that we wouldn't go higher than this. He said he will contact vendor straight away.
Now, a couple of hours later, the property has been reduced to 170k online! Only 5k higher than my offer. The EA has clearly spoken to the vendor, but no one has got back to me. I have a few theories, but would like to hear what you all think the tactic is here?
Do I call to ask if they've heard from vendor about my offer, since it's now been reduced to only 5k over what I offered? Or wait...
We viewed a property a few weeks ago, advertised at 180k. In our opinion, based on sold price of same properties on the same road recently, and taking into consideration that unlike the other properties, this one requires a complete renovation - electrics, plumbing, the works, it really is in a bad state of repair, we offered 155k. I didn't expect to hear back regarding this offer tbh. I wasn't even going to make the offer since I knew it would require quite an adjustment of expectation on the sellers part, but it was only when I was giving feedback to the estate agent it came up in conversation, and I said you're welcome to pass on that I would offer 155k.
Fast forward a few weeks and I get a call from the EA on Saturday morning saying he thinks the vendor may consider 165k. We then went for a second viewing same day.
Called the EA this morning and after discussion, said I will offer 165k on condition it's taken straight off market etc. We're in a very good position - selling our property to first time buyer and completing end of the month - we'll be going into rented. We'll be purchasing with 70% cash and a very small mortgage which is agreed in principle. The property in question is chain free and empty, and is being sold to free up cash. I made it clear that we wouldn't go higher than this. He said he will contact vendor straight away.
Now, a couple of hours later, the property has been reduced to 170k online! Only 5k higher than my offer. The EA has clearly spoken to the vendor, but no one has got back to me. I have a few theories, but would like to hear what you all think the tactic is here?
Do I call to ask if they've heard from vendor about my offer, since it's now been reduced to only 5k over what I offered? Or wait...
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Comments
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I think your being played like a well used fiddleNever, under any circumstances, take a sleeping pill and a laxative on the same night.0
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I think your being played like a well used fiddle
I'm sure you're right, cos that's what estate agents do! But what would you do?
It does seem silly to me though. If I had a good buyer offering 5k under asking price when I've been on market for quite a while (plus I was told they haven't received any other offers), I'd bite their arm off.0 -
Your interest has helped persuade the vendor that they need to move but at the same time i bet they now think they want to have a crack at the market at the new price to see if they get more luck than 165, plus its coming right into peak selling season now so if they can afford to wait it out a bit they willNever, under any circumstances, take a sleeping pill and a laxative on the same night.0
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Hmmm, thing is we can afford to go up to 170k if really pushed, but the house requires around 70k worth of works (no joke), and then once finished it really will be exceeding the ceiling price of properties on the road - even buying at 165k it will. However, we're not necessarily looking for a quick investment as we want a long term family home, so not overly concerned by this. I do get a bit stubborn though and feel I don't want to lose face by going in offering 170k, plus I'm peed off that they haven't even responded to me (maybe that's a good sign that they haven't yet though - who knows).
I was wondering if they think once we see the property reduced online, we would be straight on the phone trying to secure it for 170k, that they think this would panic us? Which is another reason why I'm not going to react...0 -
ElsieMonkey wrote: »Which is another reason why I'm not going to react...
You reaction could be to change your offer to £160k0 -
Why do people think it's the EA who decides whether to accept an offer or not?
It really isn't. It is 100% the vendor's decision. Vendors are people, individuals. They can do things that you might think are irrational. ESPECIALLY when there's thousands of pounds at stake...0 -
Why do people think it's the EA who decides whether to accept an offer or not?
It really isn't. It is 100% the vendor's decision. Vendors are people, individuals. They can do things that you might think are irrational. ESPECIALLY when there's thousands of pounds at stake...
If by "people" you're referring to me, I never said that I think that.
I can completely understand where both vendor and EA are coming from. My question was about understanding how, being on the receiving end, I should react.0 -
Problem is, you are probably accurate when you say the new price is partly a ploy to get you more firmly on the hook, but what can you do, move on or get the deal done ?
As for going over the ceiling, if the works are that sever surely you will only be bringing the house up to the standard it needs to be to compete with other house on the street?Never, under any circumstances, take a sleeping pill and a laxative on the same night.0 -
The EA will want the property sold. Perhaps they have been trying to get the vendor to reduce the sale price for a while and have been using your considered offer of £155k to get the vendor to do this. It just so happens that the vendor has agreed to reduce it to £170k when you come in with your offer of £165k?
Why don't you just ask the EA direct?Mortgage start September 2015 £90000 MFiT #060 -
The EA will want the property sold. Perhaps they have been trying to get the vendor to reduce the sale price for a while and have been using your considered offer of £155k to get the vendor to do this. It just so happens that the vendor has agreed to reduce it to £170k when you come in with your offer of £165k?
Why don't you just ask the EA direct?
I think you're right because on both viewings the estate agent said that she agrees the property is over priced but unfortunately they have to just do what the vendor asks. They also prompted my low initial offer too because they said it's good to share with the vendor since they're expectations for the property are too high. The EA even said they think my offer of 165k is more than fair.
My worry about calling now is that I look too desperate, or I play into the estate agents hands. If I rush in and offer 170k (the new asking price) they may well still decide to wait it out on the market at the reduced asking price of 170k to try and get some more bids...and then before i know it I'm being asked to go higher than 170. Whereas I could stick at 165k and this is the situation anyway...
I might not want to lose the house over 5k, but if I offer 5k more too soon, i could end up not leaving any room to move up if another bidder comes along...0
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