Feeling a little bit forced...

frannieannieee

Hello all!

So FTBs - have found the property we love after viewing loads and even making (and withdrawing) an offer on a previous house. This is the one for us.

Background - house was bought by a property developer only 18 months ago, they have completely renovated the house, new kitchen, bathroom, new drive etc. It is beautiful. It was sold for £107,000 and is now on the market for £185,000 and has been on for over a month.

We initially offered £170,000 to test the waters which we knew would be rejected. When the EA called back for a secondary offer, I said £174,000 to which she went silent and responded 'can you do £180k'. I was a bit taken back but said I would speak to our broker and asked him to set the wheels in motion for a AIP for £180k. Which has been accepted.

My issue is I feel as though we've been backed into a corner because the EA knows we're FTB, new to the experience and obviously wants as much as possible. She said the buyer is set on the fact he wants pretty much as close to asking price as possible. She used the usual 'there's lots of interest so you need to be quick' despite ours being the only offer since it's been on the market.

I wanted to know if 'waiting' helps matters - we have discussed privately that we would be willing to pay £180,000. The EA knows that this is what our AIP is for and so our max. My partner feels we should 'wait a couple of days' to give them the inevitable and expected news that we will offer the £180k she asked. Is there any benefit in doing this? If they know we are at our max? I'm tempted to just call now and say 'there it is' and then we know where we stand by my partner is trying to look more nonchalant (and it's driving me crazy). Are they putting a carrot on a stick infront of us by giving us the 'can you afford 180k' to pull it back?

Any advice welcome!

SeasideSally

Estate agents don't always say that there's been a lot of interest. And sometimes there really has been. If you're willing to go to 180k and it's definitely the house you want, I can't see the point in waiting. As you said, the EA knows it's the most you can afford, so there would be no point is trying to squeeze more out of you.

I'm impulsive and impatient, so it would drive me mad if I had to wait a couple of days. I'd probably lose sleep... maybe even hair.

Cakeguts

It is the EA's job to get as much money as possible for the house. If you can't afford or don't want to afford 180k don't.

Grezz24

It all boils down to how badly do you want this house. Would you be upset if you lost out on it? Are you happy to pay £180,000 to get your dream house?

Crashy_Time

I`m going to be cheeky and suggest that 180k won`t be buying anyone`s "Dream House", and that at 180k this house is probably over-priced as well

AdrianC

frannieannieee wrote: »

Background - house was bought by a property developer only 18 months ago, they have completely renovated the house, new kitchen, bathroom, new drive etc. It is beautiful. It was sold for £107,000

All completely irrelevant.

and is now on the market for £185,000 and has been on for over a month.

We initially offered £170,000 to test the waters which we knew would be rejected.

No great surprise there...

When the EA called back for a secondary offer, I said £174,000 to which she went silent and responded 'can you do £180k'. I was a bit taken back but said I would speak to our broker and asked him to set the wheels in motion for a AIP for £180k. Which has been accepted.

OK, great. So the answer is "Yes, you can".
The next question is "do you want to?" - and later on, you say...

we have discussed privately that we would be willing to pay £180,000.

Great. So we've got an EA that says £180k should be acceptable to the vendor, you've got an AiP for £180k, and you're happy to pay £180k.


What's the problem here?


Anyway...

...the EA ... obviously wants as much as possible.

No, the vendor obviously wants as much as possible. The EA is merely their mouthpiece.

She said the buyer is set on the fact he wants pretty much as close to asking price as possible.

And why wouldn't he? Especially when it's only been on the market for a month.

cloo

You *can* probably wait in the current market, which isn't exactly bubbling over, but then again if it is newly-done and of good quality, you might want to just declare your position and go for it if you really want it. Things are still selling, but there is definitely more of a gap opening up between really good properties and so-so ones.

Crashy_Time

cloo wrote: »

You *can* probably wait in the current market, which isn't exactly bubbling over, but then again if it is newly-done and of good quality, you might want to just declare your position and go for it if you really want it. Things are still selling, but there is definitely more of a gap opening up between really good properties and so-so ones.

Good. Probably shows that a lot of "demand" was coming from BTL and house flippers. The more BTL`ers who sell up, the more prices will soften for genuine money savers


https://www.property118.com/stopped-letting-properties-fergus-wilson/

Grenage

Don't be rushed, and don't pay more than is comfortable.


There is no one perfect house - there are loads of good houses; it's also a buyers market at the moment.


Be wary about renovated houses bought cheap and tarted up. I'm sure there are plenty of good workmen out there doing a decent job, but many have done the bare minimum.


With a house that hasn't been freshly plastered and painted you can see what's what.

iammumtoone

I don't see the problem if you are prepared to pay 180K then why wait? If not find something else.

I am not sure why people make it out to be so complicated.

They are property developers and whilst will be keen to get their investment back, they should have taken into account this may take a while. Its not like they are in a chain and about to lose their dream home if they don't accept an offer from a buyer now. I would say with it only being on the market a month you don't have much leeway for negotiation, they seem to hold all the cards here at this time.

If you are prepared to wait a few months and its still not sold the situation may be different but that's the chance you take, it might sell in the meantime.

AnotherJoe

Thought experiment.
It's Friday 9am and you call to offer £180k.
"Sorry they accepted £178k yesterday."

How gutted would you be? That should guide you.

In the meantime, why not go back for a second visit tomorrow and if its as good as you remembr, then make your offer there and then.