Best and Final Offer vs Incremental Offers

WR83

Hi,

We put a fairly cheeky offer in on a house on Friday at 86% of asking price - house has been on market since March, properties priced correctly moving very quickly in the local area, and this one needs a bit of rejigging downstairs structurally to make it a modern family home.

Vendors have refused, which I expected. Estate Agent has come back saying they would accept c94% of asking price. Obviously a house is only worth what someone will pay - we like this, but don't love it and are happy to see what else comes on the market over the next couple of weeks before we start panicking. 

Question is - better to go to a best and final offer now, I would imagine c89 -90% of asking and leave it with them, or try an do something incremental. First time buying, and my gut it always to be very transparent. But I realise there can be more of a game to be played.

Thoughts welcome, but realise almost irrelevant as depends on how the vendors view the world!

foxy-stoat

If 86% wont buy it and the maximum you want to pay is 90% then offering 87%, then 88%, then 89% probably a waste of time.  Just go with your best offer then ask the Estate Agent to view other properties they have - that will let them know you are serious about your final offer and will look at other properties.

FinallyStoppedLurking

I'd stick in your best and final now and make it clear tis is your absolute maximum (and the reasons for it).

blue_max_3

May be worth asking the agent what plans the seller has. If they are going to be looking for another place, they may not have enough funds. But if they are a motivated seller, you may have more luck.

WR83

House is currently vacant - they downsized and moved out in March. Think they are getting pressure from family to retain the inheritance levels!

RelievedSheff

I have never been a fan of messing about with incremental little increases in offer.

We have gone in with best and final offers at our first offer on both properties we have bought and have secured them both.

WR83

Thanks everyone - as I thought, looks like best and final is the way to go, and I think we are content to walk away if it doesn't work. Second viewing at an alternative property in a couple of hours and will then make the call on which.

WR83

Final offer submitted, and then subsequently rejected. Appears the estate agent is a little despondent - he asked them to reduce 6 weeks ago as now obvious it is on for too much, and they won't. Time to look for something else / wait and see if they take any price action before I have found anything.

FinallyStoppedLurking

At least you now know. Good luck on the property hunt. 

warby68

I think that's the right way to play it - a firm sensible second offer and then leave it.
Looking around will show you're keen but not that keen.
See what happens once they realize you aren't coming back with more, presuming you went in around 90% versus their indicative 94%
Unmotivated sellers can be tough to budge so a good firm offer there or thereabouts is probably the best you can do. The agent will be in their ear too.
Remember its just what its worth to you, forget that you want to rejig downstairs, they're not interested so don't risk offence by pushing that angle.

pinkteapot

They may well come back to accept your offer in a week or two. For now they’ll be waiting for you to increase again (people say “final” then offer more - the wording around an offer is pretty meaningless). 

You said you don’t love it so see what else comes up. If in time you realise you actually really do want that one you can always offer more to clinch it. 

I always offer the amount which will leave me with no regrets. The amount above which I’d feel like I’d paid too much, and wouldn’t mind if I didn’t get it.