Offer process

Newbie321

We are FTB, so completely new to the process. If our example if anything to go by, I am wondering how "bidding wars" ever come about.
Last week we went to view a property. It had been on the market for about a week and the EA said that they already had a offer from another family, but well below the asking price. Honestly I thought he was just saying that, as I gather most EA's do, even if there is no existing offer.
Anyway, the next day we told the EA that we were very interested and would like to book a second viewing. The house is like nothing else on the market in our area, within our budget. We had been looking for a while, and this was the first house we were ready to offer on.
The day before the 2nd viewing appointment, the EA called to cancel because the first offer from the other buyer had been accepted after a bit of negotiating on the price, on the condition of no more viewings. It's been a few days and the house is still on rightmove and the EA's website, with no "under offer" or STC mentioned. The EA said they would be in touch is the purchase fell through.
So they have accepted an offer lower than the asking price, in the knowledge that they had a very interested FTB with an AIP coming for a 2nd viewing in 3 days time. Is this usual? Is there some kind of time limit for the vendor to decide?
Now we're in the dilemma of whether to put an offer in anyway, but I would never do that in the knowledge that the other buyer has spent any money on solicitors or surveys etc. Is this something that the EA would tend of know? and if so, is it something they would tell me? And even if they hadn't spent any money, would we be being out of order?

AdrianC

Newbie321 wrote: »

Is there some kind of time limit for the vendor to decide?

No, nothing LIKE that formal.

The vendor is a person, an individual. They can choose to accept or reject any offer, in any circumstances, on whatever whim. Maybe they just got on well with the person who put the offer in.

You can put an offer in - of course you can. But the vendor doesn't have to actually seriously consider it, no matter how much higher it is.

Argghhh

have you considered the estate agent might prefer the other buyer to buy as they may be using their mortgage advisor and you arent so maybe they havent even told te vendor you were interested

eddddy

There aren't really any "rules" that a seller (or buyer) must adhere to during the negotiation process.

Sellers are free to accept/decline viewings and offers as they wish.


There is nothing to stop you making an offer now. The EA may put it to the vendor positively, or the EA may try to dissuade you and present your offer negatively to the sellers. The sellers may or may not accept the offer (even if it is higher than the other offer).

Newbie321

That makes things clearer, thanks all.
Will have a further think on whether to still offer.

Bossworld

Chances are that the EA will have spun your interest as a boot up the backside to the first party that put an offer in.

Cakeguts

The usual system with houses still being advertised is that they stay on the marketing website until the buyer has spent some money. So arranged a surveyor or instructed solicitors. Once that happens they usually get marked as sold subject to contract or under offer. If this doesn't happen then it is possible that the sale might have fallen through so if you are still interested look at that advert while you are looking for another house.

You won't get everything you want in a house you will have to compromise.

Hoploz

To answer your question, bidding wars come about when the seller decides not to accept any one offer, but instead they give all interested parties a fair chance to put in a best and final bid. They tend to happen when prices are rising fast, or there are few properties on the market to choose from. A bidding war will often drive the price up above the asking price.

Some sellers do not do this, instead deciding whether or not to accept an offer on its own merit. This is probably a less stressful way of going about it, and is often preferred, but does not necessarily achieve the highest price possible.

You perhaps weren't quick enough with the second viewing so they thought you weren't that keen and stuck with the people they already knew wanted it.

You will read and hear a lot about EAs being liars and cheats, hence you had the view that the EA was making up the other offer. Think about it. If there hadn't been another offer why would they be discouraging you? They just want it sold ASAP. The odd amount of difference between two offers is of little consequence to them as it will hardly affect their commission at all.

So perhaps consider next time that EAs do not lie every time they open their mouths ... and if you see a house you like then get yourself sorted as quickly as you can so nobody else gets a look in. That's my advice.

Newbie321

We will definitely try to be quicker next time. The second viewing was scheduled 6 days after the first, because the EA was fully booked for viewings on that weekend, and I was away for a couple of days.
As suggested I'll keep an eye on the advert whilst looking around elsewhere.