Etiquette around 'best and final offer'

ssot3

Hello MSE community,  I am looking for some advice and opinion around etiquette on giving 'best and final' offers. Currently there are 3 asking price offers  although only 2 of us have sold our own houses etc. They have now asked for best and final offers. We would be willing to offer significantly more for the house (up to 40-50k above the asking price), but don't want to jump in with that is is would be a stretch and the house needs plenty of work. We are currently the highest bidder (5k above asking price) and we are wary of artificially inflating prices in the area / risk of mortgage valuations getting rejected. 

Would it be reasonable to restate our existing offer, but say that we would also match other offers plus 3k up to our limit? We obviously will not know the details of the other bids unless we win, so they would remain confidential. 
Would this be acceptable?

NameUnavailable

Read the 'just got gazumped' thread!

I don't think it's wise to do what you propose, just offer what you are comfortable with. Ultimately it might not be the end of it and also if you do 'win' you still need the survey and mortgage valuation which might mean having to renegotiate.

Davesnave

What you propose sounds over enthusiastic and flakey to me. It might not be a good idea to show as much of your hand as you propose. Sadly, you may not know the details of other bids, even if you win.

I once won in a sealed bids scenario and although the EA's wink may have meant anything, I took it to be that I'd won by the £1  added as an afterthought. All he would say was "It was extremely close!" but then he would, wouldn't he?

The vendor doesn't have to accept the highest bid. Indeed, they may rule out someone if it is felt another is more likely to offer a smooth and reliable transaction.

As above, read the other thread and offer what it's worth to you (with one eye on your lender!)

eddddy

ssot3 said:

Would it be reasonable to restate our existing offer, but say that we would also match other offers plus 3k up to our limit? We obviously will not know the details of the other bids unless we win, so they would remain confidential. 
Would this be acceptable?

I suspect the EA would just come back and ask you to make a fixed offer.

Otherwise it just becomes a nonsense....   potentially all three of you could submit offers along the lines of "£x higher than any other offer".

Dark_Star

I have read that submitting an odd amount can help. In one instance the successful numbers resembled dates of birth or something daft.
So, if it's £450,000, perhaps offer £456, 789 or some other number that you're comfortable with.
 https://www.which.co.uk/money/mortgages-and-property/first-time-buyers/buying-a-home/gazumping-and-sealed-bids-a1zjr8n26011   When it comes to the figure you offer, the National Association of Estate Agents (NAEA) recommends avoiding round numbers to prevent making the exact same bid as someone else – so for example you could bid £200,075 instead of £200,000.

princeofpounds

eddddy said:

I suspect the EA would just come back and ask you to make a fixed offer.

Otherwise it just becomes a nonsense....   potentially all three of you could submit offers along the lines of "£x higher than any other offer".

To infinity. Then I'll offer infinity +1. Then infinity x infinity. Then infinity to the power of infinity! 

I agree with edddy. They will either ask you to submit a fixed bid, ignore you, or say 'congratulations! Would you believe the nearest bid was three k under your maximum threshold you are the winners!'

ssot3

Thanks all - we have decided to bite the bullet and stop seeing in as £25k that might not have been needed, and start seeing it as money we have to pay to try and live there. Thank you!

TheProfessional

The house we sold went to best and final. We chose the second highest as they were more proceedable.

AdrianC

ssot3 said:

Would it be reasonable to restate our existing offer, but say that we would also match other offers plus 3k up to our limit?

They have asked for your best and final figure. One number, no more, no less.

Are you submitting that "limit" figure as that best and final offer?
Or are you submitting your existing offer?
One or the other. Not both.
DEFINITELY not "well, we could sort of go a little more, but please be gentle on us".

anselld

Etiquette?  There is none.  There may not even be any other asking price offers.  You may already be bidding against yourself.  You will never know.  Someone else can still offer more after the best and final deadline, as can you.  It is just another price ramping tactic by the EA.

yllop1101

You have to give one figure that you are ultimately happy to pay, regardless of whatever anyone else pays.

As others have pointed out, it's not always the highest bidder, but other circumstances too, e.g. how 'safe' you are as a buyer. Do you have a good, local solicitor engaged? Do you have a full mortgage offer? What's the loan to value? The less you're borrowing, the better. Has your job been effected by COVID and thus the sellers may worry you may run into some issues with the mortgage? If not- emphasise that! Talk about how much you love the house and why you want to buy it. Some agents send a form for best and final so you can write down all these things. If not, make sure to put the above in your offer email and text.