Guide Price

Ang24ang_2

So I got out bid yet again, they had nine offers and it sounds like it went for around 50-60 grand above asking!
The market is currently ridiculous!

juliedee4663

I really feel for you. We have just put a silly offer in on a house that we viewed and loved on Saturday which has now gone to best and final bids, decision being made tomorrow.  We can afford it but know we are paying way over what the house would get in a "normal" market. We found out this morning that we missed out on another house we had put a best and final offer in on a week ago.

Beginning to really, really despair.

Ang24ang_2

The Estate agent who called me to say I was unsuccessfull admitted it was ridiculous, he basically said houses were currently going for way more than they are worth, and in a few years time it's going to be a nightmare for them, because these people may want to sell their house and find out it's not worth what they paid for it. He said his advice to me is to ride it out and bide my time.

Ang24ang_2

I just had a thought. 
I wonder if people go in with a ridiculous offer to get the property, knowing that the mortgage company valuation would come back and say it's not worth that, then giving them the excuse to re negotiate and knock the price down?

Ang24ang_2

juliedee4663 said:

I really feel for you. We have just put a silly offer in on a house that we viewed and loved on Saturday which has now gone to best and final bids, decision being made tomorrow.  We can afford it but know we are paying way over what the house would get in a "normal" market. We found out this morning that we missed out on another house we had put a best and final offer in on a week ago.

Beginning to really, really despair.

Let me know how you get on.

juliedee4663

Ang24ang_2 said:

I just had a thought. 
I wonder if people go in with a ridiculous offer to get the property, knowing that the mortgage company valuation would come back and say it's not worth that, then giving them the excuse to re negotiate and knock the price down?

Definitely think this is happening a lot

cheeky-peach

Ang24ang_2 said:

I just had a thought. 
I wonder if people go in with a ridiculous offer to get the property, knowing that the mortgage company valuation would come back and say it's not worth that, then giving them the excuse to re negotiate and knock the price down?

Funny you should say that as I thought the same thing. We did a BAFO yesterday and I asked the EA if there was a consideration for mortgage companies etc etc. with this one though, a 'cash buyer' put in the same offer as us so obviously that is a moot point for this one in particular but of course, it is madness.

mooncake89

juliedee4663 said:

Ang24ang_2 said:

I just had a thought. 
I wonder if people go in with a ridiculous offer to get the property, knowing that the mortgage company valuation would come back and say it's not worth that, then giving them the excuse to re negotiate and knock the price down?

Definitely think this is happening a lot

It surely must be the case with at least some of these buyers, I reckon, as it gets their foot in the door. I also wonder whether some buyers are getting so desperate they're not even thinking as far ahead as needing to get mortgages approved and valuations carried out and are panic bidding. Part of me thinks surely you wouldn't overlook such things but then it is so crazy out there in many areas at the moment that you do have to wonder!

It would be interesting to know what actually happens behind the scenes, when people have bid substantially over the asking price... whether it often ends up falling through and going to the second bidders in line, or whether most of these people do actually turn out to be OK with swallowing up any difference between what they offered and what the property is valued at.  

Thinking at it from the other side, I'd probably be delighted as a seller to get more money for my home than I might have anticipated. However, I'm sure I'd also feel very nervous if someone came along and offered substantially more as I'd almost be expecting a later attempt to gazunder, problems with the buyer getting their mortgage offer (assuming they needed one) or buyer's remorse.