Estate Agent Games? Offers

Jackdaw75

I am just wondering if it's normal practice for EA to use non proceedable buyer's offers to get proceedable buyers to bid higher?

We have been considering making an offer on a house that's been on the market for about a month. They haven't had much interest, so the vendors have said to us.

We would need to spend quite a lot of money to get the house right for us...it's current marketed price is IMOH very over priced and that's why they've struggled to get interest.

Anyway, we were thinking of offering about 7% under list price, but the max we'd be willing to offer would be about 4% under, which would be about 20k less than asking.

After sounding their EA out on what the vendors expectations are on price, they said they'd had an asking price offer, but buyer wasn't proceedable. 

I always thought an offer from a non proceedable person wasn't worth the paper it's written on...?

So now we are put off a bit offering them 30k under, even though we feel that's a fair price. 

Just wanted to know if it was now the done thing to hold out for the price a non proceedable buyer offers you???

We are in a good position,  have agreed our house sale to a first time buyer and have solicitors in place and broker has sorted our mortgage.

[Deleted User]

It's always been the done thing. If they've had an asking price offer, they will believe they will likely get another. If it's not forthcoming, they'll be more likely to accept a lower offer.

You need to offer the price you think it's worth.

SpiderLegs

People do seem to get hung up on EAs and their sales tactics. I suppose because most of us are not that great at negotiating.

That’s why the advice is invariably for buyers to simply not get involved. You know what your starting offer is, you know what your max is, that’s perfect.

1. Make your 7% offer.
2. if rejected, make your 4% offer and says it’s the max.
3. if rejected walk away, if accepted buy the house.

do not listen to stories about other offers.

teachfast

SpiderLegs said:

People do seem to get hung up on EAs and their sales tactics. I suppose because most of us are not that great at negotiating.

That’s why the advice is invariably for buyers to simply not get involved. You know what your starting offer is, you know what your max is, that’s perfect.

1. Make your 7% offer.
2. if rejected, make your 4% offer and says it’s the max.
3. if rejected walk away, if accepted buy the house.

do not listen to stories about other offers.

Exactly this. It sidesteps the shady tactics.

AdrianC

Put yourself in the vendor's shoes.

"Oh, look - this person's offered asking, but isn't proceedable. This one's proceedable but offered lower. Clearly, we can get the asking price... If this one ups his offer, great, otherwise that one might find a buyer, or somebody else'll be along soon."

If 4% is £20k, then 7% will be about £35k. That's not a figure that the vendor is going to ignore just to suit you. Upping your offer £5k is not going to make a big difference. 

Surrey_EA

In addition to the very good points already made, how about if the other interested buyer manages to sell their own property this weekend, and the EA calls you on MOnday to say that the offer you put forward and the vendor has gone with another offer at asking price.

You may very well be asking "why on earth didn't the EA tell me there was another buyer interested at a higher price?"

They're not games, it's a negotiation.

Decide what offer you want to make, put forward to EA. Decide if that's the max you are prepared to pay. The end. 

lucypilates

You can't know everybody's situation or what their priorities are except your own. So if you're priority is not to over-pay (in your opinion) then you need to make your best offer and the fact you are proceedable, MAY have some bearing on the vendors decision.

If the vendor is in need to sell quicker rather than price, then you will be the most attractive offer.

If the vendor is most interested in maxing the money, they'll prefer to hold out for a full asking price offer .... 

So you should make your offer and see what happens. It's not really estate agent games, it's just that the situation is constantly evolving until a decision is made .. 

Good luck

MaryNB

If you think it's overpriced but offer near asking, will you still be able to afford it if the bank downvalues it? I'm presuming your broker has sorted an AIP, not a mortgage. You need to have an offer accepted on a property before a lender will process your application.

AnotherJoe

Jackdaw75 said:

I am just wondering if it's normal practice for EA to use non proceedable buyer's offers to get proceedable buyers to bid higher?

We have been considering making an offer on a house that's been on the market for about a month. They haven't had much interest, so the vendors have said to us.

We would need to spend quite a lot of money to get the house right for us...it's current marketed price is IMOH very over priced and that's why they've struggled to get interest.

Anyway, we were thinking of offering about 7% under list price, but the max we'd be willing to offer would be about 4% under, which would be about 20k less than asking.

After sounding their EA out on what the vendors expectations are on price, they said they'd had an asking price offer, but buyer wasn't proceedable. 

I always thought an offer from a non proceedable person wasn't worth the paper it's written on...?

So now we are put off a bit offering them 30k under, even though we feel that's a fair price. 

Just wanted to know if it was now the done thing to hold out for the price a non proceedable buyer offers you???

We are in a good position,  have agreed our house sale to a first time buyer and have solicitors in place and broker has sorted our mortgage.

Why do you think the EA are using that offer to get you to bid higher?

Did they actually say that you'll have to offer higher to match it or get closer? And if so, is it the EA or the vendor saying that?

Maybe the vendor wants that, but dont blame the EA.

Make your bid as you were going to and explain your positives such as short chain.

In your position i would ignore a non proceedable bidders offer in terms of it affecting my offer, but if the vendors dont, they may get hung up on that and you'll have to wait and see if they get fed up waiting.

Thrugelmir

Jackdaw75 said:

After sounding their EA out on what the vendors expectations are on price, they said they'd had an asking price offer, but buyer wasn't proceedable. 

I always thought an offer from a non proceedable person wasn't worth the paper it's written on...?

If the other potential buyers receives an offer on their property then they are in the game.  Making an offer as a sign of serious interest lays down a marker. 

steve866

It depends on the vendors situation and if they are rushed or not. The non proceedable off might not be real, it could be the EA trying to get you to offer as close to asking as possible. Start with your 7% under offer, if it gets rejected after the vendor to counter.