Only offer on table...but rejected!!

gettingtheresometime

emskiness said:

Thanks for the response! I'm starting to suspect a lot of people on here haven't actually bought a house before if they think a bid of 209k on asking price of 212k too low and too cheap. Do none of you negotiate? I have never known anyone to jump straight in at the asking or over the asking price before unless there are a lot of bidders however a lot of people here seem critical of my offer. Strange... I never once asked for sympathy but didn't expect so many people to pour salt on the wound either. And yes we have a few more viewings booked, thanks for the good luck. We have since heard the house still hasn't sold so not sure if the latest offer placed was rejected for still being under asking. If there's no room for negotiation at all, then what is the point? Has to be a bit of give and take on both sides surely? It is up to the vendors at the end of the day but we ar enot caving either so I guess we both just move on.

It all depends on how much you want the house, how popular the area is etc as to whether negotiating is worthwhile.
As an example when we viewed our present house 26 years ago, we considered offering less than the asking price but decided as we wanted the house there was little point so we offered what was being asked.
Even now houses on our estate sell within a week on being on the market so I guess they are meeting their asking price - for contest we don't live in an affluent area. 

Crashy_Time

Gavin83 said:

Crashy_Time said:

Gavin83 said:

emskiness said:

This is disconcerting as it also tells me that should an offer be accepted and IF it gets undervalued, they may still not budge from 212k either.

To be honest I don't see why they should anyway. You offer what you want to pay. I don't think an undervaluation is a good reason to be reducing your offer later on in the process. If I was the seller in that case I wouldn't budge either and I'd give serious thought to pulling out of the deal entirely and remarketing the property as I'd assume you'd be difficult further down the line. The only reason you should be reducing your offer IMO is if the survey/searches turn up something that you weren't aware of before.

Many would disagree, sellers should be aware (especially kite flyers) that this can always happen and should be prepared for it, denying reality and hoping that someone else will come along and overpay isn`t a grown up way to approach things IMO.

Many would disagree and that is of course their choice. However it's the buyers who make the offer and they shouldn't make the offer if they can't afford it. Let someone else 'overpay' as you put it.

It's worth noting I'd have far more sympathy if they offer asking price and the lenders valuation comes in under. However if they offer over asking price (which is what we're talking about here) they should fully expect the lender valuation to come in at the original asking price and should be prepared to foot the extra out of their own pockets. To offer over asking price to secure the house and then expect the price to be renegotiated later on back down to asking price is a very underhand tactic.

I've yet to sell a house but if I did I'd expect the buyer to honour the price they'd offered, unless some major hidden repair works appeared on the survey. If they weren't willing to honour the price I'd cancel the deal and relist. Other sellers might act differently but that would be entirely their choice.

Many people fall for the media/EA/seller hype about how much property is worth, the bank valuation, professional valuer not hot air from an EA, might be their first taste of reality and they would be sensible to re-asses their offer in light of the new information? The reality is though that most FTB are fully reliant on the bank giving them most of the price and most people won`t pay much over the bank valuation even if they have the money to do so.

Greymug

emskiness said:

I heard house prices are set to drop so it's indeed a tricky climate right now.

People have been saying house prices are set to drop for the last 10-15 years and we're still all waiting for that to happen.

Newnoel

Houses round here are going for 5-10% above asking. It is a sellers market - the vendor is right to hold out. 

Greymug

If the area is good, it's always a sellers' market.

In 2016, after the brexit referendum, people were saying "oooh I wouldn't buy now, prices are definitely going to drop!" but I went ahead and bought my first property which I paid 7.2% above home report valuation.

Prices didn't drop.

Fast forward to 2021, take the still not fully known effect of brexit and add the covid-19 pandemic. People are still saying that prices are going to drop. Turns out in almost 5 years my property's value has increased by 40k according to the home report valuation, and I sold it for 12,6% above home report valuation.

RelievedSheff

emskiness said:

Thanks for the response! I'm starting to suspect a lot of people on here haven't actually bought a house before if they think a bid of 209k on asking price of 212k too low and too cheap. Do none of you negotiate? I have never known anyone to jump straight in at the asking or over the asking price before unless there are a lot of bidders however a lot of people here seem critical of my offer. Strange... I never once asked for sympathy but didn't expect so many people to pour salt on the wound either. And yes we have a few more viewings booked, thanks for the good luck. We have since heard the house still hasn't sold so not sure if the latest offer placed was rejected for still being under asking. If there's no room for negotiation at all, then what is the point? Has to be a bit of give and take on both sides surely? It is up to the vendors at the end of the day but we ar enot caving either so I guess we both just move on.

We have offered and paid asking price for both of our property purchases to date.

If we like a property and want to live in that property then we don't mess about trying to save a few grand, which in the scheme of things is nothing and generally just winds the vendors up. We go in with a firm offer and make clear that is will be our only offer.

I think your expectations of the property market are not living up to the realities of the property market. 

RelievedSheff

Crashy_Time said:

Gavin83 said:

Crashy_Time said:

Gavin83 said:

emskiness said:

This is disconcerting as it also tells me that should an offer be accepted and IF it gets undervalued, they may still not budge from 212k either.

To be honest I don't see why they should anyway. You offer what you want to pay. I don't think an undervaluation is a good reason to be reducing your offer later on in the process. If I was the seller in that case I wouldn't budge either and I'd give serious thought to pulling out of the deal entirely and remarketing the property as I'd assume you'd be difficult further down the line. The only reason you should be reducing your offer IMO is if the survey/searches turn up something that you weren't aware of before.

Many would disagree, sellers should be aware (especially kite flyers) that this can always happen and should be prepared for it, denying reality and hoping that someone else will come along and overpay isn`t a grown up way to approach things IMO.

Many would disagree and that is of course their choice. However it's the buyers who make the offer and they shouldn't make the offer if they can't afford it. Let someone else 'overpay' as you put it.

It's worth noting I'd have far more sympathy if they offer asking price and the lenders valuation comes in under. However if they offer over asking price (which is what we're talking about here) they should fully expect the lender valuation to come in at the original asking price and should be prepared to foot the extra out of their own pockets. To offer over asking price to secure the house and then expect the price to be renegotiated later on back down to asking price is a very underhand tactic.

I've yet to sell a house but if I did I'd expect the buyer to honour the price they'd offered, unless some major hidden repair works appeared on the survey. If they weren't willing to honour the price I'd cancel the deal and relist. Other sellers might act differently but that would be entirely their choice.

Many people fall for the media/EA/seller hype about how much property is worth, the bank valuation, professional valuer not hot air from an EA, might be their first taste of reality and they would be sensible to re-asses their offer in light of the new information? The reality is though that most FTB are fully reliant on the bank giving them most of the price and most people won`t pay much over the bank valuation even if they have the money to do so.

Yes we were genuinely surprised when the bank valuer for our remortgage valued our two year old new build at £30k more than we paid for it in 2019.