Advice on property offer?

chil_ros

A property recently went on the market for a very reasonable price and it seems perfect for us. We contacted the EA to arrange a viewing and he said the vendor only wanted to conduct an open house this Saturday (2nd Feb). When I said that we're unavailable that day, he contacted the vendor and arranged to let us come see the house earlier. We saw it earlier this week and we're certain that we want it.

The same night, the EA called and did a pretty unsubtle pitch about how there's 10 people interested and coming for the open house, and that we should put an offer in if we want the property so we're at least in the running by Saturday. He also said he wouldn't be surprised if the house went for £20k more than asking.

The house is priced about £40k below our budget, so my partner and I have agreed that if we have to we could go £20k over asking price without being stretched. However, we're now a bit confused about what our next move should be. It seems the agent wants us to put in an offer mainly so he can entice people at the open house to offer more. But at the same time we don't want to risk waiting until Saturday and having our offer overlooked because the vendor is quick to agree to one.

Should we put an offer in before the open house on Saturday?

If so, should we offer the asking price or slightly higher?

Appreciate any advice you can give!

babyblade41

It could all depend on how proceedable anyone is as if it's priced well and an open house it looks like they want a quick sale.

I don't think there is any advice as it's down to the owner but if it were me and I was in a proceed able position ie cash buyer nothing to sell offer a fraction under asking price so as not to insult and see what the response is

lisyloo

Are you proceedable?
If I was the buyer and proceedable the I'd offer the asking price on the condition that they take it off the market i.e. cancel the open house.

chil_ros

We're chain free but not cash buyers, so we do need a mortgage.

need_an_answer

I would be wary of putting your offer in before the open day unless the vendor is prepared to cancel all the other viewings,which I would think unlikely.(With 10 viewings they will be looking to get several offers and yours would need to be very strong)

If you put an offer in now its likely to be used to up the other offers...ie "we already have an over asking price offer on the table...blah blah"

What I would suggest is if you do wish to put an offer in tell the agent of your intention and say that you will submit it following the bulk viewing on Saturday.

Be realistic with your offer,you still have to get through the survey etc etc and be mindful that if you go over the asking price a mortgage wont always support an inflated offer.

If the house or property is genuinely worth a higher offer IMO it should have been priced higher in the first place so don't be steamrollered by a pushy EA!

spadoosh

You immediately spotted it as very reasonably priced. Apparently 10 others have too. From that it sounds like the property is priced to sell quick (ie under priced) as such you need to be looking at offer for or above the asking price.

Theres a lot of variables though so things like where is the property? How long exactly has it been on the market? Are there actually 10 other people viewing? And how many if any are interested in the property?

If you definitely want it, to put yourself in the best position i would avoid trying to negotiate. By going straight in at asking price (ensure it doesnt say something like 'offers over') the seller knows you really want the property and dont want to mess about. If offer then come in over, bearing in mind theyll probably be quoting yours as the benchmark, youd imagine theyd give you the opportunity of upping yours (not guaranteed though).

cloud_dog

Remember you can always increase your offer, although by the sounds of it I'm sure the EA will take the opportunity to practice driving the price higher.

You could offer the asking price and ask for it to be taken off the market (as others have said). If they refuse to take it off the market, withdraw your offer. You can always re-offer, and if the house is 'keenly priced' (as you indicated) then it is likely this is going to go to a bidding war (with the EA continuing to stoke the fire).

lookstraightahead

I doubt there will be ten there and the estate agent is trying to up it to start a bidding war. In my opinion of course.

You probably don't want to do this as it risks losing the property but I wouldn't change a single thing.

I wouldn't buy at the moment either. Again just my opinion.

lookstraightahead

I doubt there will be ten there and the estate agent is trying to up it to start a bidding war. In my opinion of course.

You probably don't want to do this as it risks losing the property but I wouldn't change a single thing.

I wouldn't buy at the moment either. Again just my opinion.

Linton

When I sold my fathers house there were more than 10 people very interested - the house was highly desirable from the outside but needed a lot of work. With that number of people interested we did not want a complex bidding war and were keen to sell quickly. So the EA set up an open house after which Best and Final offers were required. A large number of people attended and the house sold for £25K over asking price. The offer we accepted was not the highest but the winning bidder had cash with no house to sell. They had family reasons for wanting that specific house and so we were fairly confident they would not drop out or mess us about.



So if the same thing is happening here and you really want the house I am afraid you will have to go in with the maximum you are prepared to pay. No messing about. It is quite likely the EA isnt playing clever games, but rather disouraging time wasters and the deluded.

Surrey_EA

lookstraightahead wrote: »

I doubt there will be ten there

Given we don't know the price, type of property, condition or location, on what basis are you making such a statement?