Another offers over

3mph

2 bed Flat been for sale for £520k for 6 months then they put it with another agent now offers over £490k and only had 1 offer and of £450k in 5 months with new agent. Rejected our offer £470k we are cash buyers no finance needed. Told what is our walk away offer. I laughed and said that is meaningless (ie if £480k rejected and then told would not accept less than £481k you wouldn't walk away, but would if told say £515k)
We offered £480k
Can the agent go back to the other bidder (£450k) and ask them to trump me or are they obliged to reject my bid first?
I thought it would be simple bargaining but am concerned it could become an auction
What are estate agents professionally meant to do?
Thanks

VinnyC

I believe they can pretty much do what they like. They are likely to go back to the other bidder and ask them to trump you if it will make them more money in fees. Some estate agents are more transparent than others. I guess it depends on who you are using!

Crashy_Time

VinnyC wrote: »

I believe they can pretty much do what they like. They are likely to go back to the other bidder and ask them to trump you if it will make them more money in fees. Some estate agents are more transparent than others. I guess it depends on who you are using!

Not if their fees are about to be banned? They need sales and if it means price drops so be it, that is the new reality IMO. Many vendors still won`t go for it, we need interest rate rises to force their hand, but the direction of travel seems clear.....

VinnyC

Crashy_Time wrote: »

Not if their fees are about to be banned? They need sales and if it means price drops so be it, that is the new reality IMO. Many vendors still won`t go for it, we need interest rate rises to force their hand, but the direction of travel seems clear.....

Which ban is this? I was only aware there was going to be a ban on letting agents fees for tenants.
However, in answer to the question I still do not believe the estate agents have to follow any set procedure. Really, if they are reputable, they should be acting in the interest of the seller i.e. trying to get the highest offer for the property, as that is who they are working for. Hence, you would hope that they wouldn't reject your offer and would go back to the other bidder in an attempt to see if there is a higher offer.

Mickygg

Without doubt they could go back to the other bidder if they feel there is any value in it. But having bid £450k it shows they aren't very serious so may not bother.

glasgowdan

If the flat's overpriced I would expect an offer of £480 is reasonable. I wouldn't play the game, just leave it with them, wait. Maybe book another viewing with the same agent so they think you've moved on.

The agent SHOULDN'T tell the other bidders what you've offered. Don't get into a game of raising your offer because they suggest you need to.

It all depends on the area really...Is it an area that's selling well? If so then it's definitely overpriced. In my area everything is still selling within days at prices way over the offers over. Multiple offers and closing dates. But your area might just be a slow one.

Be careful here taking advice from people with no house buying experience!

3mph

The area is slow generally but the flat we are going for is pretty unique. Will ring today since there are a couple of small houses we could be interested in instead so will make sure agent knows we are not just sitting and waiting. But we would like the flat though!

AnotherJoe

Crashy_Time wrote: »

Not if their fees are about to be banned? They need sales and if it means price drops so be it, that is the new reality IMO. Many vendors still won`t go for it, we need interest rate rises to force their hand, but the direction of travel seems clear.....

You are confused with rental fees.

OP If you really want this, make your best and final even if that's just £1k or £2k more, and be sure the EA knows it is. At present by saying you would go to 481 if that would clinch the deal you have left it open you can be levered up so they think you will go up a bit more. Make sure they know what your walk away price is, as they asked.

Crashy_Time

AnotherJoe wrote: »

You are confused with rental fees.

OP If you really want this, make your best and final even if that's just £1k or £2k more, and be sure the EA knows it is. At present by saying you would go to 481 if that would clinch the deal you have left it open you can be levered up so they think you will go up a bit more. Make sure they know what your walk away price is, as they asked.

No confusion, if they can`t charge rental fees they will need to get fees from sales, and that means getting delusional vendors to drop prices, or else the EA will go out of business. Many EA`s have been kept afloat by ripping off tenants while they had delusional kite flyers languishing on their books for years, the loss of their rental fees income, and the motivation to get prices down to get sales that brings, plus Brexit and Trump hell bent on getting rates up spell interesting times for UK property prices!

Surrey_EA

Crashy_Time wrote: »

No confusion, if they can`t charge rental fees they will need to get fees from sales, and that means getting delusional vendors to drop prices, or else the EA will go out of business. Many EA`s have been kept afloat by ripping off tenants while they had delusional kite flyers languishing on their books for years, the loss of their rental fees income, and the motivation to get prices down to get sales that brings, plus Brexit and Trump hell bent on getting rates up spell interesting times for UK property prices!

If "getting delusional vendors to drop prices" was as easy as you appear to be suggesting, then I can assure you this would already have happened.

The fact that a consultation on banning rental fees charged by letting agents will be taking place, is unlikely to have any impact on how persuasive an EA will be in getting an unrealistic owner to reduce their price. Ignoring the point that not all EAs will have a lettings department.

AnotherJoe

Crashy_Time wrote: »

No confusion, if they can`t charge rental fees they will need to get fees from sales, and that means getting delusional vendors to drop prices, or else the EA will go out of business. Many EA`s have been kept afloat by ripping off tenants while they had delusional kite flyers languishing on their books for years, the loss of their rental fees income, and the motivation to get prices down to get sales that brings, plus Brexit and Trump hell bent on getting rates up spell interesting times for UK property prices!

And that will affect EAs that don't do rentals how?