Best and final

Thrugelmir

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.  

A couple of years ago I sold my late mothers house. Was an unusual one off property in a prime location. Bags of potential and as a consequence difficult to value accurately.  As there was nothing comparable in the market.  I received 4 offers in the space of a weekend. Three of which were for the asking price. Agent suggested full and final offers with a 72 hour window. One party didn't budge, another up by £5k and the other £25k. Ultimately I did sell to the highest bidder. They've subsequently submitted plans and had the house totally redeveloped. Now around 2.5 times the floor area. If somebody has a dream they'll do anything to achieve it. 

Beartricks

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.

I hope you don't have to walk past any 'starter homes' on your way to the shops. I don't know how you'll cope!

Ramouth

Beartricks said:

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.

I hope you don't have to walk past any 'starter homes' on your way to the shops. I don't know how you'll cope!

I really didn’t mean it to come across that way!  We chose the village we wanted to live in based on a variety of factors (cycling distance and number of hills from work, access to public transport, access to water) and snootiness wasn’t one of them, it just happens that other people like these things too so it is expensive.  When we were starting out 15 years ago we chose a cheaper area with more compromises - my presumption is that others buying their first home would do the same.

My point was simply that some houses / locations will attract more buyers with higher levels of cash which puts a buyer who has offered over asking in a weaker position when they try to negotiate following valuation as the vendor will know that there will be other buyers who are able to make up the difference.  If a house a number of first time buyers are competing for a property all with only 10% deposit and the valuation comes in under the selling price then the vendor is much more likely to negotiate as many of their prospective buyers will be in the same position.

chasingfreedom

verytired11 said:

Thanks all! We had our offer accepted!! Apparently the vendor liked the sound of us so it was worth it in the end 😊
Now we have to live there for a while to get our money back!!

Congratulations

youth_leader

Congratulations @vertired11, may the packing commence! 

I viewed this bungalow and immediately offered asking price, but the vendor said she wanted to continue her viewings over the weekend.  On the Monday her EA rang me to say two of the viewers had offered asking, the third had offered under, but had just phoned to offer full asking.  The vendor chose me and invited me to offer over to secure it - as it was October and I hoped to save on stamp duty,  I offered 1% over asking and luckily she accepted.  I was a cash buyer in rented.  I suffered great anxiety over the next few weeks hoping not to be gazumped, one of the viewers that had offered was someone I knew in the village.  I paid £237,450 for a 96 sq m three bed bungalow in a popular seaside village, hopefully my kids will be able to sell it easily.

lookstraightahead

Ramouth said:

Beartricks said:

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.

I hope you don't have to walk past any 'starter homes' on your way to the shops. I don't know how you'll cope!

I really didn’t mean it to come across that way!  We chose the village we wanted to live in based on a variety of factors (cycling distance and number of hills from work, access to public transport, access to water) and snootiness wasn’t one of them, it just happens that other people like these things too so it is expensive.  When we were starting out 15 years ago we chose a cheaper area with more compromises - my presumption is that others buying their first home would do the same.

My point was simply that some houses / locations will attract more buyers with higher levels of cash which puts a buyer who has offered over asking in a weaker position when they try to negotiate following valuation as the vendor will know that there will be other buyers who are able to make up the difference.  If a house a number of first time buyers are competing for a property all with only 10% deposit and the valuation comes in under the selling price then the vendor is much more likely to negotiate as many of their prospective buyers will be in the same position.

I see your point but I don't think people do want village life particularly. I lived in a quaint village for a number of years and it was dire - we used to have those suppers where you snoop round other peoples houses under the guise of dinner .
Everyone was always extending / maintaining their houses so when you wanted to sit in your garden on a Sunday afternoon, all you could hear was drills and hedge strimmers. Awful it was!
This time round we are almost semi rural with a little very old property where people do do some maintenance but the properties are too small to extend. They are really expensive though. But probably no bigger than some 'starter' homes.
some people who are cash rich want smaller houses - I bet you would find people in these villages have mountains of debt and huge mortgages. 

Tiglet2

Great news, OP!

youth_leader

Ha ha yes, as a Londoner moving to a NE village I always rejected the 'shared supper nights' invites, what a !!!!!! fest.  My husband and I were in the pub and overheard one of the couples discussing the cobwebs in their friend's house - they'd noticed them whilst guzzling their friend's best malt, probably.

sohsidge

Firstly - Grew up in a village and would have to be dragged kicking and screaming back to one thanks!   
Secondly - Hello! I'm new - just put in an offer on a house for the first time (FTB) EA advised to put in asking price first, then Best and Final offers would be in a few days.
One thing I'm learning from my research is looking for advice thats even 2yrs old is often massively out of date and cant be applied anymore. The market how i've researched in in the last 6 months is nuts, these covid years have turned everything inside out and upside down and some old rules just dont seem justified anymore. My parents would love to help but they bought their houses in the 90's for £60k and both houses are now worth £400k+, my brother's £££ range is 3x what mine is so his advice doesnt really apply either (He insists on waiting and playing a game, maybe you can afford to do that if youre buying at the higher end of the market, but if you're buying a cheap starter home like me, the nice ones get snapped up immeeeeeediately and no one even has a chance to wait!
Happy to learn from past experiences, and of course respect all the past experiences of those with knowledge of the market, but from babys-first-house perspective it seems a lot of advice online is massively out of date already for FTB!

Skiddaw1

lookstraightahead said:

Skiddaw1 said:

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).

How on earth can you check that out? What type of questions did your friend ask? I'd be mortified! 

Nothing sinister. It was in the height of the BTL market and she wanted a family to have the house rather than a LL. She didn't go as far as to ask them what colour their underwear was or anything. In the end, a mother & adult daughter bought it.

OP, that's splendid news! Congratulations!