Tactics from the estate agent

gemr93x

This is our first house sale so we are complete novices. Getting mixed messages from the estate agent so just wondering what usually happens.

We have found the perfect home and when we spoke to the estate agent to arrange a viewing, we advised that our house wasn’t on the market yet and asked if this was ok to proceed with viewing and potentially putting an offer in. She told us absolutely fine it happens all the time. We loved the house and made an offer a little under the asking price. When I spoke to the estate agent about this she said she would pass this on to the seller but added it would likely be rejected as they were after closer to the asking price. Still no mention of any issue at this stage..

A few hours later she called me back and said it had been rejected and to be honest there were a few viewers booked in for tomorrow who will likely pip me to the post as we aren’t able to proceed. She said I’d be welcome to put another offer in but she ‘couldn’t do anything with it’ because our house isn’t on the market, but that she could submit the offer subject to our house sale. Added again that it’s likely one of the buyers over the weekend will be picked over us. 

I’m wondering if this is a tactic to get us to up our offer. Why not mention before we went for the viewing that any offer wouldn’t be taken seriously, or at the point I made the first offer. I do understand it’s in the seller’s best interests to have a buyer with an offer on their own house, but the seller in this case is moving into a new build property which isn’t ready until the summer (he has his partners house to move in to when his buyer needs to move in) so I suppose he may be willing to wait for us to sell? We also know him personally but the estate agent doesn’t know this - not that it means he will give us any preferential treatment of course. 

gemr93x

Oops wasn’t finished before it submitted. Basically what I’m wondering is, is it as unrealistic as the estate agent is making out,  to make an offer on a property before having a buyer for your own? It just seems strange that one minute it was fine for us to go ahead and now that there is competition we are now being told we won’t be taken seriously.

NameUnavailable

A lot of agents won't even book viewings if you're not in a proceedable position. Maybe the agent should have suggested that you waited until your home was at least on the market before viewing other properties.

The vendor rejected your offer, they have other viewings booked - of course they will want to see what comes from those.

If you really want the house and are willing to pay the asking price, why not speak to the vendor and explain your position? But don't blame them for accepting an offer from someone who is ready to go.

moneysavinghero

Look at it another way. When your house is up for sale you get three bids:

1. For slight under asking price from someone who does not yet their house on the market
2. For asking price from someone who's house was on the market and already had a buyer found
3. For just over asking price from someone who is cash buyer

Who would you rather sell to?

The EA is probably just being realistic about who's offer will be accepted.

Scotbot

No it's not a tactic, a buyer will always choose someone proceedable. Unless this house has been on the market for ages, which I guess it hasn't as there are a number of weekend viewings booked, offering under asking when you can't proceed is  completely unrealistic 

saajan_12

Not a tactic, sounds down right honest to me! 
Maybe your viewing was one of the early ones, so they'll entertain anyone & everyone, proceedable or not. Since then there have been more viewings & offers, so they can afford to be more choosey. The preference will naturally be a proceedable buyer over someone who isn't. They're actually helping you by saying no point in upping your offer and creating a bidding war, as you'll be less favourable anyway. 

gemr93x said:

This is our first house sale so we are complete novices. Getting mixed messages from the estate agent so just wondering what usually happens.

We have found the perfect home and when we spoke to the estate agent to arrange a viewing, we advised that our house wasn’t on the market yet and asked if this was ok to proceed with viewing and potentially putting an offer in. She told us absolutely fine it happens all the time. - yes, viewings are cheap, and if the house isn't so popular yet, then they'd welcome any and all offers at this stage. 
We loved the house and made an offer a little under the asking price. When I spoke to the estate agent about this she said she would pass this on to the seller but added it would likely be rejected as they were after closer to the asking price. Still no mention of any issue at this stage..- normal, the seller may have a target in mind based on what they think / what they paid when they bought / what they need for the next place.. that might not be wise, but many do. At this stage, they may have no other offers so a non-proceedable one is worth considering at the right level. 

A few hours later she called me back and said it had been rejected and to be honest there were a few viewers booked in for tomorrow who will likely pip me to the post as we aren’t able to proceed. She said I’d be welcome to put another offer in but she ‘couldn’t do anything with it’ because our house isn’t on the market, but that she could submit the offer subject to our house sale. Added again that it’s likely one of the buyers over the weekend will be picked over us. - normal, maybe those viewers got booked in those few hours, or they double checked the seller's position and a quicker sale / proceedable buyer is more important to the seller than the agent thought. She's actively discouraging you from putting in another offer, which would only create a bidding war and up the price should you become proceedable quickly. 

I’m wondering if this is a tactic to get us to up our offer. - how? she's saying don't bother putting in an offer as she can't do anything with it! 
Why not mention before we went for the viewing that any offer wouldn’t be taken seriously, or at the point I made the first offer. - maybe things were clarified with the seller later. Maybe there was less competition before so they'd entertain a non proceedable buyer, but now that's changed. 
I do understand it’s in the seller’s best interests to have a buyer with an offer on their own house, but the seller in this case is moving into a new build property which isn’t ready until the summer (he has his partners house to move in to when his buyer needs to move in) so I suppose he may be willing to wait for us to sell? - sometimes the builders need them to exchange within a short timeframe eg 28 days and they need to make sure the sale is confirmed (ie exchange on both at the same time). Also even if not, its in their interest to sell sooner and get the money in the bank, saving mortgage interest. Given they put the house on the market now, indicates they likely prefer to sell now, might be able to wait but not the preferred route. 
We also know him personally but the estate agent doesn’t know this - not that it means he will give us any preferential treatment of course. 

eddddy

gemr93x said:

I do understand it’s in the seller’s best interests to have a buyer with an offer on their own house, but the seller in this case is moving into a new build property which isn’t ready until the summer (he has his partners house to move in to when his buyer needs to move in) so I suppose he may be willing to wait for us to sell? 

Often, new build developers want buyers to exchange contracts within 28 days of reservation, then wait a few months before completion.

So the seller might well be looking for a buyer who can exchange contracts within 28 days - and if your house isn't on the market, that's unlikely to be you.

Realistically, it might not be worth doing serious viewings until your house is on the market and, ideally, under offer. Sellers are unlikely to accept your offer until that's the case.


FWIW, the EA might have encouraged you to view the property to impress their client (the seller) with the number of viewings they had managed to arrange, and/or to create a bit of a buzz by telling other prospective buyers that there have been loads of viewings.

princeofpounds

You weren't in a proceedable position. Your offer is basically never going to be accepted until you are, that's why conventionally you agree your sale first before trying to pin down your purchase. You can put in an offer, you can even agree on a potential price. But no sane EA or vendor is going to accept the offer and stop marketing the property at that point. 

The EA probably assumed that you would know or understand this. It's fairly basic knowledge but of course you never know until you are told, so I'm not trying to say you did anything wrong.

gettingtheresometime

Many many moons ago we put in an offer for a house, where the sellers were buying a new build, not having already put our house on the market.
Although it was accepted (and we're still here 25 years later) I think the biggest difference (which will be your problem) is that the seller can move into his partner's house) so effectively it doesn't suit him to have buyers that still have to put their house on the market - the moment all the legal stuff is done and dusted, he can complete.

Thrugelmir

gemr93x said:

 but the seller in this case is moving into a new build property which isn’t ready until the summer (he has his partners house to move in to when his buyer needs to move in) so I suppose he may be willing to wait for us to sell? 

To secure the new build the vendor will need to exchange contracts fairly soon.  Unless you sell your own property very quickly. Then you aren't proceedable.  That's all matters.  Your friend cannot afford to wait for you as is in danger of losing the property they wish to buy. 

Focus on selling your property. Rather than looking for conspiracy theories that do not exist.  There's no estate agent tactics involved. The estate agents role and business is to find a suitable buyer for the property. No time to play games far too busy for that. 

UnderOffer

It’s great that you were able view the property, but you really now need to be on the market with an offer secured on your current home before even thinking of liaising with the EA and vendor and offering, you are just not proceed-able so in a weak position. 

We were in a similar position ourselves, property nearby on market and we asked to view and explained not on market. Viewed Saturday, loved it, so listed ours the following Saturday with photos Thursday. Viewings on ours over weekend, (now 2 weeks since we viewed) offer received the following week, we then made offer on house. So 3 weeks in total from when we visited the property, so it is possible, if you are serious enough to get yours marketed and sold then be in a position to negotiate.