How to make a best offer

masatoi

Hi,

Today I had a viewing on a property and I really liked it and it looked perfect for my family too.

This property came on the market yesterday at £325k and when I called the EA to book a viewing I was told that this property was recently under offer at £340k but the buyer didn't have enough funds so they had to re-listed it.
I was also told that the vendor is looking to sell it for somewhere between £325k and £340k. (It's probably unusual for EA to tell this before even showing the house?).

When I went into the property for viewing I was told by the EA that there already have been a couple of offers on the property. And there are 8 more viewings on the same day.
I asked the EA a couple means 2? But she just said a couple.
I did my research on the house prices around the area and £325k is quite cheap for the property.

I'm now looking at making an offer tomorrow on Monday.

I'm going to tell the EA that

1. My flat is under offer with sales memorandum and both solicitors in place.
2. The buyer of my flat is a first time buyer.
3. I have a mortgage certificate available.
4. I have a solicitor for buying ready.

I'm thinking to offer £340k plus providing above facts.


In such a situation can anyone please advise if this will be the best offer? Or is there any better way to win this game?

I can afford even more and I want to buy this property but at the same time I don't want to overly offer because "The couple of offers" could be a lot less considering the market is very quiet at the moment.

Thanks

anselld

Firstly, assume everything the EA tells you is a lie. You won't be far wrong.

Personally I would not offer 15k over asking in a slow/quiet market, but if you really want it and you think it is worth that then why not. Even so, better to keep that amount up your sleeve and start offering at asking price or below.

Linton

If the EA has asked for best offers he means that this is the last opportunity you will get to bid. The vendor will make his decision on the basis of the best offers.

Do not assume that. everything the EA says is a lie. The house would not have gone to “best offers” unless there were several serious bidders. The EA has helped you make a sensible offer because it is n everyone’s interest that the house is sold at a realistic price. Someone putting in a far too low price is wasting their time, someone going way over the top may well have second thoughts later.

If you really want the house, and you think k it is worth £340K to you, put in a bid of £340K, or better make it marginally over, say £340050. If you are more after a good deal I suggest you look elsewhere.

AdrianC

The precise details of how many people have viewed and/or offered are irrelevant to you. All that matters TO YOU is that the vendor (not the EA - the vendor is the one making the decisions. The EA is just his mouthpiece and advisor) doesn't want to continue playing ratcheting-up, and wants you to say exactly how far you're willing to go before you walk away. Final offer. Best offer. Same difference. Only you know how much that is.


Some things about that offer can't be altered (your proceedability), others can (the amount you're willing to pay). Likewise, whether there's others who may or may not bid more, or who may or may not be more proceedable, is irrelevant to you. The only question that matters to you is whether the vendor accepts your offer or not. He may accept somebody else's, he may decide not to sell after all. Irrelevant to you.



If you're going to offer substantially over the asking, then be prepared for your lender's valuation to go with the asking price. Will that reduction in loan/increase in LtV leave you in a quandary, unable to complete? If so, don't offer. There will be another property. You've already been told that one putative buyer has gone to £340k but then couldn't go through. My money would be on that being because their lender's valuation wouldn't go above £325k - and the vendor does not want that to happen twice. YOU might have a DiP for £340k+, but that doesn't mean the lender will regard that property as suitable security for £340k. If you're relying on 90% LtV at £340k (£306k mortgage), then remember that would be 94% at £325k valuation. So in your offer, it might be worth stressing that you have sufficient equity to ensure proceedability even if downvalued to asking price or below.

getmore4less

masatoi wrote: »

I did my research on the house prices around the area and £325k is quite cheap for the property.

How thorough was that research?

I would want at a sample of at least 20 in the £300k-£350k range SSTC to see where it sits in pecking order.

And then go through the sold prices of similar stuff for the previous 6-12months

If you have been looking for a while you should have most of the asking prices of the more recent sold through.

This houses history should guide you into the sellers motivation,

Have they have priced to flush out buyers get offers and want it moved.

Could be it was overpriced and this is now more realistic.

eddddy

masatoi wrote: »

...I was told that this property was recently under offer at £340k but the buyer didn't have enough funds so they had to re-listed it.

I'm guessing this might mean the lender valued the property at less than £340k, and the buyer didn't have funds to make up the difference.

I would ask the EA if that happened - and if so, who the lender and valuer was.

Many lenders use the same valuers - so your lender may end up getting the same low valuation.


Would you make up the difference if the property is valued below £340k?

robatwork

I'm a bit old fashioned, but it's on the market for £325k
So I'd go in with £325k.

Sibz

As a poster above has already stated - the lenders valuation would be important.

Also, if the EA is saying a couple of sales have fallen through already, I'd be wondering why - the valuation would be a realistic reason. Have you had any surveys done on the property yourself? Maybe the previous offers were subject to survey and the survey highlighted something(s) that put those buyers off.

Maybe all's well and the previous bidders had put the cart before the horse and just didn't have their finances sorted...

masatoi

Thank you everyone for the comments.

I made an offer for £340k yesterday then I was advised to see their in house broker.

1 hour after I saw the broker today I had a call from the EA and I was told that there was a cash buyer offered a bit more than me and my offer was rejected.

It looks like I wasted my time with [STRIKE]Good[/STRIKE]fellows

Tom74

Commiserations. I was in a similar situation a few months ago, with a house that had just come on the market and with a lot of viewers. I offered over the asking price and was outbid. Looking back, I feel it was a lucky escape as I probably offered too much.

Crashy_Time

masatoi wrote: »

Thank you everyone for the comments.

I made an offer for £340k yesterday then I was advised to see their in house broker.

1 hour after I saw the broker today I had a call from the EA and I was told that there was a cash buyer offered a bit more than me and my offer was rejected.

It looks like I wasted my time with [STRIKE]Good[/STRIKE]fellows

Do you have a link to the house?