Offers & rejection

Fleabag

I'm sure this is a common theme for posters, but hopeful the wealth of experience & varied viewpoints might be a help (sorry in advance for the long tale).

My partner and I are in a very advantageous position as buyers - we have savings of around £87k. Between us, we also own properties which, when sold, could realistically bring in about £90k- £95k.

We're looking to relocate 20 miles within Merseyside to a nicer area closer to my family. We've not been looking very long, but have found a property that ticks a lot of boxes (unexpectedly having many of the features that weren't deal breakers, but we're on my list of things I'd like to have).

For various reasons I won't bore you with, getting a mortgage was going to prove more difficult than anticipated, so my parents have agreed to lend us a lump sum that we will repay as soon as we have sold our other properties.

We are, therefore, cash buyers without a chain, but really don't want to spend more than 150k (70k of our own & a loan of 80k), leaving us some savings for the temporary extra stamp duty I have to pay on my existing property until it sells, costs of improving my property to sell, fees and inevitable spending on the new home.

The fly in the ointment is that the house we like only came on the market a week ago. The owners inherited a larger property, so are not in a chain themselves, nor desperate for the money. They did indicate that they want to rid themselves of the property and enjoy life (it has been let and used by one of their sons more recently).

Though it has good features and offers more space than many similar property types, it's not in an expensive area and I do feel that this places a cap on how much extra these features can command. Local properties are mostly marketed between 124k & 150k, but this is advertised at 160k.

I put in what I accepted was a low offer of 140k this morning (87.5% of asking price). Vendor refused without a counter-offer. I gave it a while and increased to 145k, telling the agent that the Zoopla estimate was 148k (135k-160k), and that average sales at 94% of asking price would come in at 150k, so as attractive buyers willing to complete ASAP, 145k wasn't unreasonable. This was also refused with the response that vendor doesn't want to take less than 155k.
I increased to 148 & then 150, but the agent did not indicate that he was going to pass this on to the vendor.

I feel that, for the sake of commission on 5k, the agent would probably be more than happy with 150k, but equally, I understand that the vendor probably thinks he can hold out for a better offer given how recently it was listed.

Given the research I mentioned, I really think we have offered the highest reasonable, especially considering our situation.

Right now, I'm playing a waiting game, hoping they might decide it's worth meeting me in the middle to avoid the hassle of viewings & continued expense on the property.

But bottom line - I want the house and we could pay the extra 5k, but would leave us with nothing for any sprucing/furnishing.

Thoughts?

Am I deluded to think they might come back to me & accept my offer once my silence suggests I've reached our limit?

Lokolo

So from this morning you've gone from £140k to £150k? In a matter of hours?

If I was the vendor I would think you are desperate to get the property and hold out for an extra £5k. You say you are playing "The Waiting Game", doesn't sound like it to me.

I don't get why people don't just offer what they think it's worth and if it gets rejected, walk away.

Fleabag

I agree - but then these tend not to be things we go through very often & emotions play a part.
I did make it clear between each call that it was with some thinking & juggling of funds that was bringing about a further offer, but equally, my lower offers were to try to negotiate the 150 I was willing to pay. If I'd gone straight in at 150, I'm sure it wouldn't have been accepted and I doubt I would now know that they'd be willing to accept 155.
I was clear with the agent that by the time we got to 145, we were making inroads into money that would ideally be reserved for the new home (and the kitchen does need some modification to allow room for fridge/freezer and remove an ancient & smelly dishwasher)

jimbog

Lokolo wrote: »

I don't get why people don't just offer what they think it's worth and if it gets rejected, walk away.

Because you may get it for a lot less. I saved £30K on what I thought my house was worth.

Fleabag

jimbog wrote: »

Because you may get it for a lot less. I saved £30K on what I thought my house was worth.

I may not buy houses often, but I do barter in Indian markets.
My starting offers are never what I'll pay, but if I go in with what I'll pay, I'll end up paying something between that and the asking price (about 50% too much!!)

Fleabag

Or alternatively they're a buyer on a tight budget who need to secure the best possible price.
Putting in offers is accepted and expected. Local prices and valuations on that property in particular do suggest that they're trying their luck by pricing at the top end of its 135-160 valuation range.
87.5% of full asking price might be low, but not insultingly so, and raising to 94% is pretty fair

Hoploz

Putting in a series of offers is a mistake. Particularly in such quick succession. The seller and the estate agent think you are playing games.

It happened to me. I told the EA I would not accept any further offers from the same person, even if at asking price, as I would not trust him to go through at the agreed price (he clearly considered it not to be worth it, unlike the person who did buy it shortly afterwards.)

Best advice I can give is sit tight for a couple of weeks, and if nobody else has bought it, go in at the maximum you're willing to pay (what it is worth to YOU and your family, not what some convoluted online calculation has decided it could be worth)

KRB2725

I think it was a mistake telling the agent you had valued it via Zoopla & making 4 different offers in a day. If your max is £150k then just leave that offer open and see what the next few days bring.

lynz68

You have made four offers in a day that is not playing a waiting game it's just playing games one you could lose. The current owners may be perfectly happy to wait for another buyer to come along at the price they want they are not in a chain or dependent on selling the house.

You need to ask yourself if you are prepared to lose a house you want for the sake of £5k

AdrianC

In addition to all the above excellent points, waving the "But the Zoopla estimate is..." card marks you down as being a bit clueless. Sorry, but... The Zoopla "valuation" is a standing joke.

You're going to be in the vendor's shoes with your own place, soon enough.
If - a week after you put it on the market - somebody came up to you and said "I'll give you £20k below asking", you'd laugh at them, right? If they then almost immediately shot up to only £10k below, wouldn't you think "Oooh, I wonder what else is in reserve here from this numpty?"...?

oystercatcher

Fleabag wrote: »

I may not buy houses often, but I do barter in Indian markets.
My starting offers are never what I'll pay, but if I go in with what I'll pay, I'll end up paying something between that and the asking price (about 50% too much!!)

The thing is you aren't in an Indian Market you are buying a house in the UK. I would be massively annoyed at recieving multiple low offers and wouldn't trust that person at all. Especially if the house hadn't been on the market for long.
If you really want somewhere put in a decent offer with maybe a little wiggle room for negotiation.