Keep getting outbid any advice

mooncake89

I would say, just keep trying. We've suffered from the same problem (constantly outbid, even though we too have usually been offering decent chunks over the asking price!) and on our 6th attempt have finally had an offer accepted (not that it's looking plain sailing, as they won't remove the house from the market until we've sent a myriad of documents across and booked a lender's survey, so we are nervous about starting proceedings and potentially losing out to another offer anyway).

Surely all of the people out there offering absolutely ridiculous amounts over the asking price will run out eventually, I would think (hope?). Plus they have surely got to realise soon, if they haven't already, that the chances of them still benefitting from the stamp duty holiday are  incredibly slim and so if they've got any common sense they'll begin to factor that into their offers. Maybe I'm wrong but it seems as though some people are definitely going beyond all reason in their attempt to get their foot in the door and secure a house against multiple bids, but sooner or later they're going to come unstuck. 

It really is brutal out there right now in certain areas. I completely empathise!

theoretica

paul82uk said:

over the past 9 months I’ve been viewing houses and have put 6 offers

Sounds like you are being fairly discriminating about which houses you put an offer in on, and unfortunately other people share your taste and you are picking popular houses.  A pain that.

Perhaps have a look out for properties which seem in the same value range but you feel the initial asking price is high - you may find they are less popular, but the end selling price is the same. 

NameUnavailable

I've just been outbid on another property. It's happened a few times, with places that have been on the market a while, I try a cheeky offer, negotiate up to a level I'd be happy with and (I'm told by the EA) so is the vendor to then be pipped at the post by a new higher offer. 

It's annoying to be used just in order to get some pre existing offer increased, I guess it's human nature the moment someone wants something, then others want it as well. 

Redwino222

But you aren’t being used?  You are bidding on a house and someone is prepared to bid higher.  If you were the highest bidder you would get the house. 

Nebulous2

I've sold very recently. Scotland, so the system is different, but we had 5 offers over asking price. 

We have been in the same position as you, many years ago - and our solution was to buy new. You get a fixed price, and know if you offer it the house is yours.

Getting_greyer

I heard on the radio that in last year, 1 out of every 6 (or was it 12?) homes sold were for more than original asking price.  Not sure what the usual figure would be but there's a lot of rockets up a lot of bums it seems.  Hopefully you get sorted soon.

peterhjohnson

theoretica said:

Perhaps have a look out for properties which seem in the same value range but you feel the initial asking price is high - you may find they are less popular, but the end selling price is the same. 

Excellent suggestion! Worked for me ina crazy market years ago :-)

lookstraightahead

Market appraisal. House goes on market. Bidding war. Vendor gets well greedy. Buyers offer ridiculous amounts. Vendor accepts a high offer and rubs hands. House gets 'undervalued' by lender. Buyer has to pull out. Vendor still thinks house is worth £X. Vendor now feels uneasy selling for less as has mentally spent that money on "dream home". Vendor stays put, less houses available. Then happens again with another buyer and vendor.

Doesn't always happen like this, but I don't ever offer over asking. It's all a bit like watch with mother. 

Redwino222

lookstraightahead said:

Market appraisal. House goes on market. Bidding war. Vendor gets well greedy. Buyers offer ridiculous amounts. Vendor accepts a high offer and rubs hands. House gets 'undervalued' by lender. Buyer has to pull out. Vendor still thinks house is worth £X. Vendor now feels uneasy selling for less as has mentally spent that money on "dream home". Vendor stays put, less houses available. Then happens again with another buyer and vendor.

Doesn't always happen like this, but I don't ever offer over asking. It's all a bit like watch with mother. 

Why is the vendor painted as the villain?  Is it greedy to accept highest offer?  

Yes there are unscrupulous people selling house, people are behaving poorly.  But that is happening at all levels in the market.  

brownbagsFTB

Redwino222 said:

But you aren’t being used?  You are bidding on a house and someone is prepared to bid higher.  If you were the highest bidder you would get the house. 

It actually isn’t that simple anymore. I’ve been the highest bidder (marginally) on a couple of houses, going around 15K over asking but they’ve gone to the bidders with the highest deposits as there is a big trend of down-valuations at the moment. For every house I’m looking at there are around 40 viewings and 10-20 offers. It’s mental.

The only advice I can give is to claw together as big a cash deposit as possible (it matters) and go through the motions with the EA’s on-site broker in terms of financing the mortgage. I’ve been told several times that the EA will promote the buyers who go through them for finance over the buyers who use their own brokers, it’s really unscrupulous but I’m prepared to do anything if it helps in this competitive market! Good luck