Best and Final Offer

brownbagsFTB

I went 10% over the “offers over” listing price, this secured it and the valuation came back in line with my offer. Don’t bid more than you can afford but it needs to be your best offer, or you’ll risk losing the house. Don’t worry that you’re getting a bum deal, a house is worth what you’re willing to pay for it and a few extra grand will seem like a drop in the ocean in years to come. Good luck!! 

joe90mitch

We went through this similarly in Sheffield. Saw a place we loved, it had five others bidding, didn't know what to offer and got beaten. Happened twice more before we got the house we loved (10 bidders and 15 bidders).

My advice is that you only really start to get a feel as to how much properties are going above the asking price in best and finals by doing a few. Always ask the estate agent how many others are bidding also. On the first one you do, just go for what seems comfortable yet realistic for you and try not to overthink it. You might get lucky and win it. But if you don't, it will help you understand more how much you might need to go over by next time. 

If it's your absolute dream home, then go a bit above that amount above - but obviously still affordable. But always remember - other great houses that suit you will come along, so don't be disappointed if you don't win (we certainly were gutted about our first two, but the house we're about to move into was actually our favourite overall in the end, so things do work out) 

TheProfessional

We just sold a terraced house last month which was on guide price 319k and it went to best and final and highest bid was 331k. In the end we went with a 330k bid as they were more proceedable (FTB)

lookstraightahead

I wouldn't even offer (but that's me). I hate estate agents playing people off against each other. But I'm happy to walk away and find something else. If you really want it, go with what you think it is worth to you. Do remember that often valuations come back lower so you might have to make up the difference or re-negotiate.

Again I wouldn't go above valuation either. But that's not necessarily everyone's perspective.

badger09

AdrianC said:

There is no set percentage. It's simply who offers most. I have no idea how much the other potential buyers are planning to offer, any more than you do.

Just remember that if you offer as much as you're willing to pay, anybody who offers more is clearly a profligate loon with more money than sense, and is welcome to it for that price...

But if you offer less than you'd be willing to pay, and get beaten, you'll kick yourself.

Not necessarily!

We had 2 identical low offers on our house within hours of each other - A from family who'd viewed twice and B from someone who had viewed only a couple of hours before. We declined both and said we would not encourage a bidding war, so said Best & Final offers within 48 hours.

Both came back with over asking price offers.  B offered £4k more than A, but we accepted A because we felt they really loved the house and wouldn't pull out on a whim.
B then asked EA  'what if pay another £10k?'  - so now a difference of £14k  

But we stuck by our agreement and it still feels like the right decision. Only fleetingly do I think what we would have spent that extra £14k on

badger09

lookstraightahead said:

I wouldn't even offer (but that's me). I hate estate agents playing people off against each other. But I'm happy to walk away and find something else. If you really want it, go with what you think it is worth to you. Do remember that often valuations come back lower so you might have to make up the difference or re-negotiate.

Again I wouldn't go above valuation either. But that's not necessarily everyone's perspective.

Per my post above, it isn't always EAs playing people against off against each other. I think that's more likely when they encourage a bidding war rather than obtaining Best & Final offers.
I agree with the rest of your post though.

OP
offer what you think the house is worth to you. If your valuation comes back lower or a survey reveals things you weren't aware of, then you can try to renegotiate. PLEASE don't offer high with the intention of gazundering. Not all vendors are evil.

Crashy_Time

gwilson30019 said:

Hi Everyone,

We are from Scotland and are hoping to buy our first house in England shortly. We have found a house we like and offered asking price today. However we have been advised there have been multiple offers and therefore it will be going to a ‘Best and final offer’.

Having not done this in England before I wonder if anyone can advise approximately what percentage properties sell for over asking price in this situation. Property is in Headingley area in Leeds. We do not have a clue what to offer and asking price is more than one has sold for on street previously. 

Thanks all.

Run away, this is not the time to be paying sellers a bonus for basically doing nothing.

badger09

Crashy_Time said:

gwilson30019 said:

Hi Everyone,

We are from Scotland and are hoping to buy our first house in England shortly. We have found a house we like and offered asking price today. However we have been advised there have been multiple offers and therefore it will be going to a ‘Best and final offer’.

Having not done this in England before I wonder if anyone can advise approximately what percentage properties sell for over asking price in this situation. Property is in Headingley area in Leeds. We do not have a clue what to offer and asking price is more than one has sold for on street previously. 

Thanks all.

Run away, this is not the time to be paying sellers a bonus for basically doing nothing.

As always, you make meaningless sweeping statements without having a clue about the 2 properties mentioned.

You cannot possibly know that the vendor of the house OP is considering has 'basically done nothing', as you know nothing whatsoever about the 2 properties mentioned.  

joe90mitch

lookstraightahead said:

I wouldn't even offer (but that's me). I hate estate agents playing people off against each other. But I'm happy to walk away and find something else. If you really want it, go with what you think it is worth to you. Do remember that often valuations come back lower so you might have to make up the difference or re-negotiate.

Again I wouldn't go above valuation either. But that's not necessarily everyone's perspective.

Just depends on the area and the market right? Me and my partner viewed about fifteen houses in west Sheffield and every single one went to best and finals.  You'd never buy a house here if it you just had a blanket rule to avoid them.

NameUnavailable

I offered on a place that had lots of interest and went to 'best and final' - I offered what I thought it was worth, to me, and then had a call from the agents after the deadline to say they'd had several offers similar to mine and were doing a final 'best and final' for those of us that were close........I decided to walk away at that point.