EA pushed us in a bidding war - advice (can I make 2 offers to the seller at the same time?)

pp556677

So I am at a best and final round against 4 other bidders - 3 of them with a mortgage and one with chain (not sure if also mortgage).

We are chain free and I already offered 5% lower than asking price, the EA is now asking for best and final

The EA is getting the offers and we are pretty sure they have not told our offer to the seller yet as they are as shady as they come.

I could:

• Keep the same offer (70% deposit 20% mortgage, 5% from askign price)
• Make an higher offer -- adding more cash to my "with mortgage" money
• Offer lower (8% from asking price) but all in cash

I am thinking of putting both higher offer with mortgage and cash offer on the table and let the seller decide. It makes no difference to me.

This property is definitely a seller market property as it is a designer home

Can I do it? What are your thoughts?

eddddy

Why are you thinking that the seller might accept a lower offer, if you decide to buy without a mortgage?

houghton91

We recently had six offers on our home - half were full cash offers but we didn't even consider them as they were 5% under asking, whereas the FTB with mortgages offered 5% over (and who expressed how much they loved the house). I wouldn't sell at a discount to cash buyers unless I was worried that the lender would under-value it.

Thrugelmir

pp556677 said:

The EA is getting the offers and we are pretty sure they have not told our offer to the seller yet as they are as shady as they come.

There's obviously serious interest in the property given by the number of interested parties and you appear to be the one playing games. Hardly surprising you aren't being taken seriously. A best and final offer, is just that.  No need to over think matters. 

parkingadvice1212

70% ltv mortgage vs cash pretty much the same thing no difference to the seller 

SameOldRoundabout

I would not for a second consider a lower offer that was cash. It makes absolutely no odds. You get any money you are owed post mortgage anyway! Just bid your best and final, but with 4 other bidders I would be very surprised if it went for asking or under! Your strategy seems daft. 

getmore4less

what message are you trying to send with these multiple offers.

if it is the most obvious one that somehow a cash buyer is more attractive usually the quick sale no complications storry.

That is not a lot of use if their move is complicated by the usual chain mortgage etc. 
Do you have any idea of the vendors motivations? 

The bigger issue you have with you mind games with the cash or mortgage option is they know you can go a LOT higher than any of your offers.

If they think you are keen can call your bluff.

There can be more than one round of best and final if it is obvious there are game players in the mix.

steve866

Option 2 would be the best. You can offer 2 but I don’t think a buyer would take such a lower offer for cash given the demand.

ssparks2003

You are being asked to offer your best and final offer on a house that is being chased by other buyers. Your offering needs to be the most attractive offer on the table. Others may well be offering a fair wedge over the asking price, so how are you going to make your offer stand out above and beyond the others?

The 2nd option is the only realistic one you currently appear to have. The next question is hom much extra...

Murphybear

I get the impression from your original post that you don’t  care whether or not you get this property.  Apologies if that is not the case.

if this house is as desirable as you say I would be a bit concerned about being gazumped. This happened to us some years ago.  We found a house that we liked and the price was the maximum we could afford.  We made a lower offer which was accepted.  We had just started the process and had a call from the EA saying they had accepted a higher offer.  We didn’t offer to match it.  A few weeks later we had another call from the EA, the buyers had withdrawn and were we still interested at our original offer, they really couldn’t understand why our answer was a resounding “no”.  We found our dream bungalow shortly after.

If I were you I’d look for another property unless this is really your “dream house” in which case I wish you luck. 

AdrianC

Just give a single figure. That's how the buyer will view it - they'll ignore all bar the biggest number. And they'll compare that to the other numbers to see which is biggest.

Whether there's a mortgage involved or not - especially at a very low LtV - is only likely to be an issue if the lender will find the place undesirable security and put a £0 valuation on.