Offer Rejected on house, now what

wls52

I could do with a bit of advice. We offered £565k on a house which is on the market for £625k. The house has been on the market for over a year, but it's in a very popular location and it's really nicely done on the inside. We've done quite a bit of research on sold houses in the area and it looks like it's worth closer to £575k. 

The problem is the vendor is only selling to downsize and to release cash as they've lived there some 20 years and the property is fully paid off for them. She even said they are not in a rush to move and hasn't started looking at any properties yet. 

So here comes our problem, the EA has said someone else is coming for a 2nd viewing later this week and would let us know of the outcome. A broker friend of ours have told us to wait with increasing our offer until they've been to view so we are not just "competing with ourselves" and don't show we are too keen. My worry is, what if the other people who are interested makes an offer and the seller accepts, then we've lost out on the house? 

Does this seem like a good tactic? To wait and see if other potential buyers make an offer?

AdrianC

You've offered £565k. Rejected.
You think it's worth £575k... So offer £575k. What's the worst that'll happen? Rejected...

If somebody else offers £600k+, and they accept it, then... you didn't think it was worth that much, so it's not as if you'd have paid more, right?

UnderOffer

Did the EA not suggest a figure the vendor was seeking, or counteroffer? If you really like it, I’d make another offer to the maximum you are willing to pay, then at least you know you’ve done as much as you can before the other viewer revisits and if they offer substantially higher, you can walk away knowing it wasn’t meant to be. Others may suggest that by offering a higher value the EA will use this to barter with the other viewers. Difficult choice. 

MaryNB

If the EA knows you're still interested they'll tell you if someone has offered higher in the hope that you'll increase your offer. It's unlikely the vendor will accept the other offer right away if they think you'll submit a higher offer. They might sit on the other offer for a bit to see what you come up with rather than accept right away.

RelievedSheff

Offer what you think it is worth to you.

Doozergirl

AdrianC said:

You've offered £565k. Rejected.
You think it's worth £575k... So offer £575k. What's the worst that'll happen? Rejected...

If somebody else offers £600k+, and they accept it, then... you didn't think it was worth that much, so it's not as if you'd have paid more, right?

There's no answer other than this one.  

You have to offer your best, which doesn't really sound like it's close to what the rather unmotivated vendor wants. 

If someone else offers more than you're prepared to pay, or even if your offer drives their offer up, they were still prepared to pay more.  

You don't have a motivated vendor, is the bottom line.  No little mind games are going to work when you're making a low offer.  It's either acceptable or it isn't.  

You're not 'competing with yourselves' - the offer was rejected!   The vendor gets a say in this too, it's a negotiation.  As it stands, you're nowhere.  

dinkylink

As you've already offered and are clearly a serious buyer, no halfway decent EA would let their client accept another offer without at least coming back to you first to give you a chance to up your bid 

AdrianC

dinkylink said:

As you've already offered and are clearly a serious buyer, no halfway decent EA would let their client accept another offer without at least coming back to you first to give you a chance to up your bid 

A "serious buyer" doesn't offer 10% below asking to a buyer that's indicated they really aren't bothered about moving unless they can get a good price - then have a little pout when it's rejected, and get into a flap that somebody else might want be about to pay closer to asking...

Mickygg

I'm not sure what help anyone can give you here. You have answers your own q. You have offered well below asking price and the vendors are not in a rush. Only you know what it's worth and what you are prepared to pay.

You viewed it and someone else is, so maybe asking price isn't too far off. 

eidand

I don't understand these games. you either want to buy the house or not. waiting to see if someone else offers seems like a great tactic, if you want to lose the house. If you think it's worth 575k then offer that. If they say no and you're not prepared to offer more then walk away and find another one. 
If you really want this house and it suits you for a number of reasons then go in at 600k that's far more likely to be accepted, although not guaranteed. It's all down to you at this point.
Each seller is different so we can't really provide a "winning" way. Also, talk to the EA to gauge what would be acceptable to the vendor. House buying has nothing to do with mind games. We're talking numbers only.

dinkylink

AdrianC said:

dinkylink said:

As you've already offered and are clearly a serious buyer, no halfway decent EA would let their client accept another offer without at least coming back to you first to give you a chance to up your bid 

A "serious buyer" doesn't offer 10% below asking to a buyer that's indicated they really aren't bothered about moving unless they can get a good price - then have a little pout when it's rejected, and get into a flap that somebody else might want be about to pay closer to asking...

Perhaps, but if it's been for sale for over a year that asking price is probably pretty unrealistic.