Is the agent trying to get me to start bidding high?

KMacc

I recently viewed a flat I love and had an offer in mind. However the agent told me that ‘this one will be going for home report value and above’. The offers over value is £16,000 lower than the home report. Also when the property was last sold (3 years ago) it sold for £15,000 less then home report value.

Now this property has had no notes of interest and about 15 viewings in 2 weeks so I’m trying to figure out what on earth makes the agent think that it will go for home report value or above? There hasn’t been any rework or renovation within the property in those 3 years. Should also add the that property is above a shop.

Is the agent trying to trick me into bidding highly?

davidmcn

You're better to look at recent sold prices for comparable properties, rather than rely on what this flat sold for 3 years ago. Your solicitor (if they're aware of the local market) should be able to advise further - no harm in you starting at a low price if there is no competition.

Also bear in mind that mortgage lenders tend not to like flats above commercial properties, so that might limit your mortgage options (as well as potentially being an issue when you come to sell).

KMacc

Hi David. Thanks for that. I’ve been doing considerable research into nearby prices but I don’t see any properties going for the price this one is in the home report. Tends to be around my bidding price, maybe slightly higher. It’s also very unusual for the property to still have not had even a note of interest as the area is very popular and places are usually under offer within a week. I think the fact it is above a commercial property puts people off so don’t know if that’s part of it.

G_M

Ignore what the agent says. Decide what you are willing to pay.


* have you checked 'sold' prices of other similar local properties?
* how much can you afford?
* is it a 'nice to-have' or your perfect property?
* are there other similar properties that would suit you just or nearly as well?
* if you offered say, £XK, and did not get it, would you spend the next 6 months regretting?
* If you offered, say, £XK + Y and did get it, would you spend the next 6 months kicking yourself for over-paying....!?

comeandgo

Can you get a mortgage on it if it is above a commercial property? Maybe that's why no interest.

KMacc

This was my worry but I got a mortgage in principal based on this. Think it will depend on the survey I get done afterwards.

System

Estate agents always try funny business like that. It just means he has to resort to tricks, because he can't get the price up by legitimate methods. Don't be fooled.

AdrianC

Of course the agent's trying to get you to bid high. It's what their customer - the vendor - is paying them for...

System

Best just to ignore what estate agents say. They try to play mind games with you, and if you listen and let their words in, that's what happens. Put in your low offer, then forget about it and walk away.

ReadingTim

He might be. He might also be hinting that his client (the vendor) isn't going to entertain any offers below that figure, regardless of what your research and the market says, so don't waste your time with offers if you're unwilling or unable to pay that amount.

System

ReadingTim wrote: »

He might be. He might also be hinting that his client (the vendor) isn't going to entertain any offers below that figure, regardless of what your research and the market says, so don't waste your time with offers if you're unwilling or unable to pay that amount.

Yes, it sounds like the OP should forget about this property. Either the EA is determined to play games, or the seller has completely unrealistic expectations about the desirability and value of their flat above a shop. All in all, sounds like a non-starter. Move on, and find something else with a more reasonable seller and agent.