Only offer on table...but rejected!!

Carrot007

emskiness said:

I was under the impression you pay for surverys and valuation once an offer is accepted but if a house gets downvalued and you can't make up the shortfall then that would have cost you if you pull out, which was the danger I was facing. I think it's best I speak to my broker for further advice as these different responses are confusing me. Thanks

You generally negotiate after the survey if there is reason to. They of course don't have to listen and may well sell it for what you offered later buy not to you as they were not reasy to hear the news that it is not worth what they think. Such is the game.

For reference my last purchase went as follows.

"Offers over 180K", offer 180K with request to tell me what they want. (If i was feeing facetious I would have offered 180,000.01 fro "compliance" but they would just upset them ;-) )

"Want 183.5K", offer 183.5K (note this is an more than next door with an extension went for, they ovsiously decided their conservatory was an 2 floor extension comparable ;-) (but i liked the area so...) ).

Survery says worth 170K, pretty much as expected.

Send them tyhe survey, know they are not ready for sucha reduction so offer 175k.

Offer accepted and went ahead.

It's all a game, if the house is ticking all the boxes be prepared to pay a little more than the valuation. If it's not then tell them this is the max offrer from the start.

emskiness

Carrot007 said:

emskiness said:

I was under the impression you pay for surverys and valuation once an offer is accepted but if a house gets downvalued and you can't make up the shortfall then that would have cost you if you pull out, which was the danger I was facing. I think it's best I speak to my broker for further advice as these different responses are confusing me. Thanks

You generally negotiate after the survey if there is reason to. They of course don't have to listen and may well sell it for what you offered later buy not to you as they were not reasy to hear the news that it is not worth what they think. Such is the game.

For reference my last purchase went as follows.

"Offers over 180K", offer 180K with request to tell me what they want. (If i was feeing facetious I would have offered 180,000.01 fro "compliance" but they would just upset them ;-) )

"Want 183.5K", offer 183.5K (note this is an more than next door with an extension went for, they ovsiously decided their conservatory was an 2 floor extension comparable ;-) (but i liked the area so...) ).

Survery says worth 170K, pretty much as expected.

Send them tyhe survey, know they are not ready for sucha reduction so offer 175k.

Offer accepted and went ahead.

It's all a game, if the house is ticking all the boxes be prepared to pay a little more than the valuation. If it's not then tell them this is the max offrer from the start.

This is the response I was looking for! Thank you so much for your help! What you said makes sense and this is the feeling we had with that particular property comparing it to others in the area. It's not just based on what the seller wants for it but what the lender states what it is worth and whether there is room for negotiation. Why would you want to pay for loads more than the property is worth unless you have cash to burn? Fair enough if you do and some people want it that badly. But we are not well off to do that. We reached our max and were not prepared to go beyond that, which is why I stated the danger we could face if there was no room for negotiation and having to pull out, which would have cost us. Thank you

Mickey666

emskiness said:

Carrot007 said:

emskiness said:

I was under the impression you pay for surverys and valuation once an offer is accepted but if a house gets downvalued and you can't make up the shortfall then that would have cost you if you pull out, which was the danger I was facing. I think it's best I speak to my broker for further advice as these different responses are confusing me. Thanks

You generally negotiate after the survey if there is reason to. They of course don't have to listen and may well sell it for what you offered later buy not to you as they were not reasy to hear the news that it is not worth what they think. Such is the game.

For reference my last purchase went as follows.

"Offers over 180K", offer 180K with request to tell me what they want. (If i was feeing facetious I would have offered 180,000.01 fro "compliance" but they would just upset them ;-) )

"Want 183.5K", offer 183.5K (note this is an more than next door with an extension went for, they ovsiously decided their conservatory was an 2 floor extension comparable ;-) (but i liked the area so...) ).

Survery says worth 170K, pretty much as expected.

Send them tyhe survey, know they are not ready for sucha reduction so offer 175k.

Offer accepted and went ahead.

It's all a game, if the house is ticking all the boxes be prepared to pay a little more than the valuation. If it's not then tell them this is the max offrer from the start.

This is the response I was looking for! Thank you so much for your help! What you said makes sense and this is the feeling we had with that particular property comparing it to others in the area. It's not just based on what the seller wants for it but what the lender states what it is worth and whether there is room for negotiation. Why would you want to pay for loads more than the property is worth unless you have cash to burn? Fair enough if you do and some people want it that badly. But we are not well off to do that. We reached our max and were not prepared to go beyond that, which is why I stated the danger we could face if there was no room for negotiation and having to pull out, which would have cost us. Thank you

1. Beware of only listening to people who say what you're already wanting to hear.  There are reasons why you'll get a wide range of views on a house buying forum and most will be honest and correct because they will be based on personal experience.  The problem with house buying/selling is that there are so many variables involved, not to mention personalities and emotions.  Throw those last two into the mix and apparently irrational behaviours can be quite common.

2. You ask why would you pay loads more than a property is worth?  It's a reasonable question but I would say the answer is that almost nobody pays more than what it is worth TO THEM.  Just because it's not worth £x to you, or anyone else who viewed the property, or the mortgage valuation, or even the to EA who is familiar with all the similar properties for miles around, DOESN'T mean it's not worth £x+ to someone else. 

I sold my previous house to someone whose parents lived within a few miles and their brother lived around the corner.  No doubt that alone would put some people off ( ) but in this case it meant they were happy to pay a fair bit more than £x.  We can never be totally certain what is motivating a potential buyer (or seller) . . . even if they tell you, because you can never be sure if they are playing games.  Best ignore what people SAY and focus instead on what they actually DO.   Only the finally agreed price matters - and even then it only matters if things get to exchanging contracts!

Carrot007

Mickey666 said:

1. Beware of only listening to people who say what you're already wanting to hear.  There are reasons why you'll get a wide range of views on a house buying forum and most will be honest and correct because they will be based on personal experience.  The problem with house buying/selling is that there are so many variables involved, not to mention personalities and emotions.  Throw those last two into the mix and apparently irrational behaviours can be quite common.

2. You ask why would you pay loads more than a property is worth?  It's a reasonable question but I would say the answer is that almost nobody pays more than what it is worth TO THEM.  Just because it's not worth £x to you, or anyone else who viewed the property, or the mortgage valuation, or even the to EA who is familiar with all the similar properties for miles around, DOESN'T mean it's not worth £x+ to someone else. 

I sold my previous house to someone whose parents lived within a few miles and their brother lived around the corner.  No doubt that alone would put some people off ( ) but in this case it meant they were happy to pay a fair bit more than £x.  We can never be totally certain what is motivating a potential buyer (or seller) . . . even if they tell you, because you can never be sure if they are playing games.  Best ignore what people SAY and focus instead on what they actually DO.   Only the finally agreed price matters - and even then it only matters if things get to exchanging contracts!

I don't think I was saying what they wanted to hear! I was just giving my experience. I did pay more than it was worth and they were really delusional at first and was lucky to get it at 8.6K under what they thought it was worth but still 5K above the valuation (they did then atempt to sell us all the carpets and curtains and left them all when I said no).

I think the main point I was trying to make and failed to directly mention is. Paying over the valuation is fine by reasonable amounts (what is reasonable to everyone may vary, 5% seems about right to me), if and only if the property is something special (or you are desperate to move I guess). If it is neither of those them it is time to move on.

Also to OP if no one has said it. Being a FTB is generally a bad thing. FTB's tend to get scared about the survey results and want mopney off even when the valuation says it is worth it. The no lower chain just does not outweigh the negative sides to me. Also having someone buying a new build in the chain is a very negative thing as the builders insist upon a completion date at very little notice. That said on that sale I did sell to a FTB and it all went smoothly. Only niggle (again a FTB downside) is they wanted to align the move from rental exactly. Sorry it does not work like that, the chain has too many people. Expect to pay rent AND mortgage for at least a month.

House buying is a pain! Things could be done to make it easier but just as many people would see the changes as a bad thing as as a good one! I don't expect much to change!

Good luck with it though OP. The right place will come along at some point.

Crashy_Time

Is there a link to the house?

Mickey666

Carrot007 said:

Mickey666 said:

1. Beware of only listening to people who say what you're already wanting to hear.  There are reasons why you'll get a wide range of views on a house buying forum and most will be honest and correct because they will be based on personal experience.  The problem with house buying/selling is that there are so many variables involved, not to mention personalities and emotions.  Throw those last two into the mix and apparently irrational behaviours can be quite common.

2. You ask why would you pay loads more than a property is worth?  It's a reasonable question but I would say the answer is that almost nobody pays more than what it is worth TO THEM.  Just because it's not worth £x to you, or anyone else who viewed the property, or the mortgage valuation, or even the to EA who is familiar with all the similar properties for miles around, DOESN'T mean it's not worth £x+ to someone else. 

I sold my previous house to someone whose parents lived within a few miles and their brother lived around the corner.  No doubt that alone would put some people off ( ) but in this case it meant they were happy to pay a fair bit more than £x.  We can never be totally certain what is motivating a potential buyer (or seller) . . . even if they tell you, because you can never be sure if they are playing games.  Best ignore what people SAY and focus instead on what they actually DO.   Only the finally agreed price matters - and even then it only matters if things get to exchanging contracts!

House buying is a pain! Things could be done to make it easier but just as many people would see the changes as a bad thing as as a good one! I don't expect much to change!

It certainly can be, though I'm not convinced there are any easy ways to make it easier.  Anyone remember the HIPs that were supposed to make the whole process simpler?

The basic issue is that buying a home is a massive decision for most people and a massive decision demands a high degree of due diligence - hence searches etc.  Then there's the issue that most people need a mortgage so there's all that rigmarole to deal with as well.  Then there are all the legal and regulatory issues, so using a solicitor/conveyancer is high advisable.  Throw in the almost inevitable chain, because few people can buy without selling and the fact that relatively few people are experienced in big-money business negotiations and it all becomes a complex transaction. 

I'm really not sure how it can be simplified, especially because I'm pretty sure that greater minds than mine have thought about it a lot over the years and decades and have so far failed to come up with any workable answers.

sst1234

OP you seem to have an unrealistic outlook on house buying. Calling the vendor greedy is showing a certain lack understanding here. The vendor did nothing misleading, they wanted more than £200k and got more than you were offering. In the end the vendor was right to reject your offer. It was too low. If you stay in this mindset, you will find the house hunting process very stressful, more so than it tends to be anyway.

csgohan4

sst1234 said:

OP you seem to have an unrealistic outlook on house buying. Calling the vendor greedy is showing a certain lack understanding here. The vendor did nothing misleading, they wanted more than £200k and got more than you were offering. In the end the vendor was right to reject your offer. It was too low. If you stay in this mindset, you will find the house hunting process very stressful, more so than it tends to be anyway.

Nothing personal, it's business. The vendor could call you for being cheap as well and showing lack of respect to his house

emskiness

sst1234 said:

OP you seem to have an unrealistic outlook on house buying. Calling the vendor greedy is showing a certain lack understanding here. The vendor did nothing misleading, they wanted more than £200k and got more than you were offering. In the end the vendor was right to reject your offer. It was too low. If you stay in this mindset, you will find the house hunting process very stressful, more so than it tends to be anyway.

If you'd read my previous posts I clearly state several times that it's not meant to be and I am moving on. You clearly have issues of your own that you are projecting if you think I am stressing out and making a big thing when I already said "oh, well not meant to be." I got rejected and I was disappointed, which I am entitled to be. I am also new to this process so still finding my feet You are just repeating several times what everyone else has said. 

emskiness

csgohan4 said:

sst1234 said:

OP you seem to have an unrealistic outlook on house buying. Calling the vendor greedy is showing a certain lack understanding here. The vendor did nothing misleading, they wanted more than £200k and got more than you were offering. In the end the vendor was right to reject your offer. It was too low. If you stay in this mindset, you will find the house hunting process very stressful, more so than it tends to be anyway.

Nothing personal, it's business. The vendor could call you for being cheap as well and showing lack of respect to his house

Never showed any lack of respect for their home. I couldn't offer what they were asking for and got rejected so just a bit disappointed. I was very respectful to both the vendors and their beautiful home so not sure where you got that from. If I showed a lack of respect, I wouldn't have put an offer in. The whole idea is to negotiate and obv we couldn't afford what they were asking for so yeah maybe it was too low in their eyes but this is all part of the learning process I guess.