Should we go straight in 25k over asking price?

JCarmello

For what it's worth, we've made four offers on properties as follows:

1st - went to BAFO, we went over asking, highest bidder, didn't get it as another buyer was in a better position (it's now back on the market, but we've moved on)
2nd - our opening offer was over asking. Never went to BAFO as a cash buyer came in 40k over and they wanted to move fast. Interestingly it's still showing as "under offer" 3 months later

3rd - we offered asking, it was accepted. Sellers later changed their mind about moving

4th - offered asking, accepted

Goes to show that over asking is not always necessary

lhg91

JCarmello said:

For what it's worth, we've made four offers on properties as follows:

1st - went to BAFO, we went over asking, highest bidder, didn't get it as another buyer was in a better position (it's now back on the market, but we've moved on)
2nd - our opening offer was over asking. Never went to BAFO as a cash buyer came in 40k over and they wanted to move fast. Interestingly it's still showing as "under offer" 3 months later

3rd - we offered asking, it was accepted. Sellers later changed their mind about moving

4th - offered asking, accepted

Goes to show that over asking is not always necessary

Hopefully that same pattern follows for us then, we have just had so much bad luck with houses recently, I'd be over the moon if we managed to get it for asking price!

BikingBud

pretamang said:

If you'll have no regrets paying 'over the odds' for it and want it that much then go for it OP.

And we wonder why house prices are running away!

What about the regret that we may feel as our children cannot afford housing?

What about the regret that we pay massive amounts in interest on sums we perhaps did not need to borrow?

Crazy behaviour for people on a money saving site to encourage people to spend more.

Greymug

FaceHead said:

lhg91 said:

... we know we are paying well over the odds for the house ...

You should not be paying well over the odds for anything. Let alone a house. What are you doing? (Rhetorically, as a homeowner who has every incentive to stoke house-price-mania.)

If you believe the price is well over the odds and you believe you can only sell it for the fair price, you are effectively flushing the difference down the loo. Offer what you think it is worth. If someone buys it for 'well over the odds' then think that its better someone else overpays rather than you. 

Ask yourself, how would you feel if someone bought it for £220k? Is it 'Better them than me' or 'dang, I should have gone to 222-and-a-half'? 

says anyone who has no clue about how the current housing market works

nicknameless

Monsternextdoor said:

Gavin83 said:

Monsternextdoor said:

It all comes down to the rics valuation. 

We put in an offer over the value of the house and we were happy to pay it, but the rics came back and it was valued at £17,000 under what we offered. 

So we renegotiated on the house and we are not far off completion now.

Will you get a mortgage on it if you go in over its worth and at what rate will it be at, lower the value of the property even with deposits means you will pay a higher rate as the house is not worth what you have paid for it.

How much did you offer over the asking price?

£17,000.

We were happy to pay it but the bank got a bit antsy when we said we could pay the extra ourselves. 

Spoke to the EA and sent them the rics, who in turn went back to the client and told them the exact issues and we were still happy to buy it but we would give them £12,000 under the top line.

They agreed because they were still getting £5,000 over asking and they were happy that they didn't have to find comparable properties to contest the rics.

nicknameless said:

Monsternextdoor said:

It all comes down to the rics valuation. 

We put in an offer over the value of the house and we were happy to pay it, but the rics came back and it was valued at £17,000 under what we offered. 

So we renegotiated on the house and we are not far off completion now.

Will you get a mortgage on it if you go in over its worth and at what rate will it be at, lower the value of the property even with deposits means you will pay a higher rate as the house is not worth what you have paid for it.

Monsternextdoor = gazunderer ?

Nope, we did all this well well before contracts and exchanges took place, My husband said I should be a poker player. 

We made the offer and sat back and let them stew for a weekend - admittedly my bum was twitching but we got the property and we complete in 2 weeks.

You sure it was the bank that caused you to go back to the vendor?  They wouldn't lend with you putting up the difference for definite?  Or it is was a good opportunity to revise your offer?

We've resisted this tactic so far (and will continue to do so), but obviously keep getting beaten to properties by people who are willing to operate in this fashion.

nicknameless

Greymug said:

FaceHead said:

lhg91 said:

... we know we are paying well over the odds for the house ...

You should not be paying well over the odds for anything. Let alone a house. What are you doing? (Rhetorically, as a homeowner who has every incentive to stoke house-price-mania.)

If you believe the price is well over the odds and you believe you can only sell it for the fair price, you are effectively flushing the difference down the loo. Offer what you think it is worth. If someone buys it for 'well over the odds' then think that its better someone else overpays rather than you. 

Ask yourself, how would you feel if someone bought it for £220k? Is it 'Better them than me' or 'dang, I should have gone to 222-and-a-half'? 

says anyone who has no clue about how the current housing market works

And how other buyers are acting.

Monsternextdoor

nicknameless said:

Monsternextdoor said:

Gavin83 said:

Monsternextdoor said:

It all comes down to the rics valuation. 

We put in an offer over the value of the house and we were happy to pay it, but the rics came back and it was valued at £17,000 under what we offered. 

So we renegotiated on the house and we are not far off completion now.

Will you get a mortgage on it if you go in over its worth and at what rate will it be at, lower the value of the property even with deposits means you will pay a higher rate as the house is not worth what you have paid for it.

How much did you offer over the asking price?

£17,000.

We were happy to pay it but the bank got a bit antsy when we said we could pay the extra ourselves. 

Spoke to the EA and sent them the rics, who in turn went back to the client and told them the exact issues and we were still happy to buy it but we would give them £12,000 under the top line.

They agreed because they were still getting £5,000 over asking and they were happy that they didn't have to find comparable properties to contest the rics.

nicknameless said:

Monsternextdoor said:

It all comes down to the rics valuation. 

We put in an offer over the value of the house and we were happy to pay it, but the rics came back and it was valued at £17,000 under what we offered. 

So we renegotiated on the house and we are not far off completion now.

Will you get a mortgage on it if you go in over its worth and at what rate will it be at, lower the value of the property even with deposits means you will pay a higher rate as the house is not worth what you have paid for it.

Monsternextdoor = gazunderer ?

Nope, we did all this well well before contracts and exchanges took place, My husband said I should be a poker player. 

We made the offer and sat back and let them stew for a weekend - admittedly my bum was twitching but we got the property and we complete in 2 weeks.

You sure it was the bank that caused you to go back to the vendor?  They wouldn't lend with you putting up the difference for definite?  Or it is was a good opportunity to revise your offer?

We've resisted this tactic so far (and will continue to do so), but obviously keep getting beaten to properties by people who are willing to operate in this fashion.

Definitely the bank and some degree  the EA they didn't want to us pay over the odds considering the amount of work that needs to be done in the property - New kitchen, bathroom, no flooring upstairs, new windows, doors not fitting correctly, ceilings that need to be taken down and loads of cosmetic work. 

There was us and 1 other person bidding on the house but the other party exceeded her top line and the bank could have refused my offer and gone with the other bidder but they didn't partly because she would not have got the mortgage with the deposit they had and the fact that we had been completely reasonable with the offer made and reasons why. 

Once they had seen the L2 Rics and they knew that the surveyor who did it does pretty much all of them for this area coupled with the fact it was on the database. 

We were totally happy to pay for the house, but the girls in the EA were absolutely fantastic, They wanted them to take off the full £17,000 but I told them to take £12,000 off and they went for it.    

So not so much gazundering more asking a question well before exchange with the proof.

nicknameless

Monsternextdoor said:

nicknameless said:

Monsternextdoor said:

Gavin83 said:

Monsternextdoor said:

It all comes down to the rics valuation. 

We put in an offer over the value of the house and we were happy to pay it, but the rics came back and it was valued at £17,000 under what we offered. 

So we renegotiated on the house and we are not far off completion now.

Will you get a mortgage on it if you go in over its worth and at what rate will it be at, lower the value of the property even with deposits means you will pay a higher rate as the house is not worth what you have paid for it.

How much did you offer over the asking price?

£17,000.

We were happy to pay it but the bank got a bit antsy when we said we could pay the extra ourselves. 

Spoke to the EA and sent them the rics, who in turn went back to the client and told them the exact issues and we were still happy to buy it but we would give them £12,000 under the top line.

They agreed because they were still getting £5,000 over asking and they were happy that they didn't have to find comparable properties to contest the rics.

nicknameless said:

Monsternextdoor said:

It all comes down to the rics valuation. 

We put in an offer over the value of the house and we were happy to pay it, but the rics came back and it was valued at £17,000 under what we offered. 

So we renegotiated on the house and we are not far off completion now.

Will you get a mortgage on it if you go in over its worth and at what rate will it be at, lower the value of the property even with deposits means you will pay a higher rate as the house is not worth what you have paid for it.

Monsternextdoor = gazunderer ?

Nope, we did all this well well before contracts and exchanges took place, My husband said I should be a poker player. 

We made the offer and sat back and let them stew for a weekend - admittedly my bum was twitching but we got the property and we complete in 2 weeks.

You sure it was the bank that caused you to go back to the vendor?  They wouldn't lend with you putting up the difference for definite?  Or it is was a good opportunity to revise your offer?

We've resisted this tactic so far (and will continue to do so), but obviously keep getting beaten to properties by people who are willing to operate in this fashion.

Definitely the bank and some degree  the EA they didn't want to us pay over the odds considering the amount of work that needs to be done in the property - New kitchen, bathroom, no flooring upstairs, new windows, doors not fitting correctly, ceilings that need to be taken down and loads of cosmetic work. 

There was us and 1 other person bidding on the house but the other party exceeded her top line and the bank could have refused my offer and gone with the other bidder but they didn't partly because she would not have got the mortgage with the deposit they had and the fact that we had been completely reasonable with the offer made and reasons why. 

Once they had seen the L2 Rics and they knew that the surveyor who did it does pretty much all of them for this area coupled with the fact it was on the database. 

We were totally happy to pay for the house, but the girls in the EA were absolutely fantastic, They wanted them to take off the full £17,000 but I told them to take £12,000 off and they went for it.    

So not so much gazundering more asking a question well before exchange with the proof.

Lol.  Talk about an inconsistent account.  If it was just a question before exchange then it is not the case that the bank weren't going to lend - or else it wasn't just a question, it was a must surely?  More like they wouldn't give you a certain interest rate more like based on LTV?

The EA didn't want you to walk or the vendor to storm off in a huff more like.  They want their commission asap.

You over offered to get accepted, it was valued appropriately, you negotiated a new price even though you say you were prepared to pay the offer made = ..........

Call it what you want - it worked for you and it's working for others.  It's also heating the market, causing sales to fall through, and causing others not prepared to play that way to miss out repeatedly.

But please just own what you did and not make cognitive leaps and excuses to call an apple an orange.  You're in a thread where the OP is asking should they offer well over asking essentially recounting a tale of how you did the same and didn't pay the offer - therefore by implication they could simply use the same (gazundering) tactic.

Monsternextdoor

nicknameless said:

Lol.  Talk about an inconsistent account.  If it was just a question before exchange then it is not the case that the bank weren't going to lend - or else it wasn't just a question, it was a must surely?  More like they wouldn't give you a certain interest rate more like based on LTV?

The EA didn't want you to walk or the vendor to storm off in a huff more like.  They want their commission asap.

You over offered, it was valued appropriately, you negotiated a new price even though you say you were prepared to pay the offer made = ..........

Call it what you want - it worked for you and it's working for others.  It's also heating the market, causing sales to fall through, and causing others not prepared to play that way to miss out repeatedly.

But please just own what you did and not make cognitive leaps and excuses to call an apple an orange.  You're in a thread where the OP is asking should they offer well over asking essentially recounting a tale of how you did the same and didn't pay the offer - therefore by implication they could simply use the same (gazundering) tactic.

The vendor is the bank who are out for the best possible price as it is a repossessed property - They could have gone to the other bidder and told them it was theirs, But she had less of a deposit than us so really would have struggled.

We are just exceptionally lucky that they didn't go to the other bidder as we would have lost the property.  

I'm not the only person that has had to do this and I won't be the last, We didn't offer the price at the last min, the price has been on the table for 3 weeks and no one has come forward to better it and we can be gazumped right up till we exchange, which is next week. Then and only then will it be taken off the market.

Again we have been extremely lucky to find a house in the area, keep hold of it and get a corporate client to agree to just above what it is worth. 

Whilst you think of me as an unethical gazunderer, The EA, Client and solicitors all have agreed that what we have done is fair and right.

nicknameless

Monsternextdoor said:

Whilst you think of me as an unethical gazunderer, The EA, Client and solicitors all have agreed that what we have done is fair and right.

ROFL - over and out.