Best and final

verytired11

lookstraightahead said:

verytired11 said:

Thrugelmir said:

In your previous thread this was your dream house. To secure it you'll need to give a knock out bid. Not worry about %'s.  

The first decision is whether to enter a bidding war; if we do decide to do so, the second decision is what constitutes a knock out bid.  I can afford a knock out bid as I am moving out of London.  And of course no one can tell me what bid would secure the property. However, it may be helpful to know the range that people are having to offer, in percentage terms.  But yes, it is helpful to frame it in the way that you do and to decide whether this is indeed our dream house. The house itself is nice and ticks boxes, but would be overpriced if not for the beautiful location.  So yes, we need to decide how important the setting is in deciding whether to pay over.

I think it will be very difficult to get these stats at the moment - whatever anyone bids still comes down to whether a property actually is sold and goes through at that price. You can't really put a value on what you should offer, because it's up to you (and of course the vendor, and more importantly the bank).
it sounds to me that you don't want to pay over the odds, which is understandable, so just offer what you would be happy with.

Yeah the process is mainly about clarifying what we want!  I am downsizing and moving out of London so will actually be going mortgage free.  That's the other factor to weigh up - how much might that be worth to the vendor.  It removes any possibility of down valuations getting in the way of the sale.  I would hope in the current market that this would be a strong factor in my favour.

chasingfreedom

I wonder if you are one of the other bidders for the house I'm offering on? lol. I have till 5pm today to submit my offer in a DE postcode, anywhere near you?

verytired11

chasingfreedom said:

I wonder if you are one of the other bidders for the house I'm offering on? lol. I have till 5pm today to submit my offer in a DE postcode, anywhere near you?

Ha ha!  Thankfully, no it's not a DE postcode (not even sure where that is?) and I have until 1pm today to submit an offer!  It would be weird if we were bidding on the same place!  Good luck with your offer and fingers crossed.

chasingfreedom

verytired11 said:

chasingfreedom said:

I wonder if you are one of the other bidders for the house I'm offering on? lol. I have till 5pm today to submit my offer in a DE postcode, anywhere near you?

Ha ha!  Thankfully, no it's not a DE postcode (not even sure where that is?) and I have until 1pm today to submit an offer!  It would be weird if we were bidding on the same place!  Good luck with your offer and fingers crossed.

Phew! but I had to ask because that would have been bizarre (DE is Derbyshire by the way) Best of luck with your offer too, I'll be keeping an eye out to see how you got on. Fingers crossed.

eve824

We offered £505k on a 'do-er upper house' listed for £450k, and lost out to higher bidders. I wanted to walk away when it went to best & final as I hate the practice but my partner loved the place & wanted to so I went along with it. I am still waiting to see what the final sale price was when it gets uploaded to the land registry. In hindsight we offered too much and would have struggled a bit financially to do the renovations with the budget we had left over. Some mug has seriously overpaid for that place!

A few weeks later we found an even better place (a plot with full PP), offered asking the day we viewed which was accepted.

verytired11

eve824 said:

We offered £505k on a 'do-er upper house' listed for £450k, and lost out to higher bidders. I wanted to walk away when it went to best & final as I hate the practice but my partner loved the place & wanted to so I went along with it. I am still waiting to see what the final sale price was when it gets uploaded to the land registry. In hindsight we offered too much and would have struggled a bit financially to do the renovations with the budget we had left over. Some mug has seriously overpaid for that place!

A few weeks later we found an even better place (a plot with full PP), offered asking the day we viewed which was accepted.

That is a crazy amount over!  I wouldn't contemplate offering over 10% over at the moment.  Although having said that the first house I ever bought we went for 12.5% over. But that was back in the 1990s when you could buy a 3 bed semi in North London for £100 000.  We got in a bidding war and paid 112 500.  It was also a do-upper house.  The other bidders eventually bought a few doors down and we became friends!  Well done for finding a better place.  Also hoping that will be true for us if we lose out on this one.

Ramouth

We bid just over 10% over for the place we are currently purchasing.  The lower valuation doesn’t affect our mortgage because we have a low LTV.  We know it is too much for the property but see it as a long term home.  It is in a popular village we really want to be in and we were not willing to stay in our rental for several years in the hope that we would eventually get something for asking price.

Maybe “starter home” properties that are valued less than people have offered end up back on the market but nice houses in pretty villages have plenty of cash rich buyers competing for them so are much likely to be re-listed IMO.

lookstraightahead

Ramouth said:

We bid just over 10% over for the place we are currently purchasing.  The lower valuation doesn’t affect our mortgage because we have a low LTV.  We know it is too much for the property but see it as a long term home.  It is in a popular village we really want to be in and we were not willing to stay in our rental for several years in the hope that we would eventually get something for asking price.

Maybe “starter home” properties that are valued less than people have offered end up back on the market but nice houses in pretty villages have plenty of cash rich buyers competing for them so are much likely to be re-listed IMO.

Very random way of looking at it. "Nice houses in pretty villages" doesn't suit everyone's agenda.
if it's way over valuation even with cash buyers that's just chucking money away (except I accept if you're renting).
If you're staying very long term though I guess you will make your money back eventually.

verytired11

Thanks for everyone's input.  We have gone in at 3% over asking in the end, because we felt the asking price was on the high side anyway.  I had a very weird conversation with the agent when I put the bid in.  He said the vendor wanted to know more about us and who would be living in the property.  I do understand it - she has lived there 20 years and is having to leave due to divorce - but at the same time being put through the hoops of a bidding war and then being asked to reveal a load of personal information to a complete stranger left a bad taste in my mouth tbh.  We will see what happens.

Skiddaw1

She may be factoring in what the potential purchasers will be like as neighbours. A close friend of mine did the same when selling her house (it was a close-knit, community orientated street and she wanted to do the best she could to ensure that whoever moved in would be a good neighbour).