Should we go straight in 25k over asking price?

Crashy_Time

MaryNB said:

Crashy_Time said:

Gavin83 said:

BikingBud said:

Gavin83 said:

BikingBud said:

nicknameless said:

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.

Absolutely fair and above board. Why throw your money away?

Just because some seem to do it with glee and brag about it readily should not deter you from being proud for getting the best deal you can.

Human nature is beyond comprehension sometimes.

It seems really a really underhand and frankly dirty tactic to offer a price and then later go back on it. If I house is up for say £250k and you choose to offer £270k you shouldn’t be at all surprised when the surveyor values it at £250k. That was after all the original asking price!

Personally if someone did that to me I’d stop the sale and re-list the property. It is ultimately the vendors choice though.

Why?

You make an offer on the perceived value at the time of viewing.

You tend to do that prior to getting a survey.

As you are not competent you seek a professional to survey the property.

If the professional advice tells you there are a raft of issues that as a lay person you were unaware of and had not accommodated within your bid then it is absolutely logical to seek to pay an adjusted price.

Now if the survey and valuation was completed once, by the vendor, and was deemed suitable for all potential buyers then you may have an argument but as EAs and vendors seem to be very adept at kite flying they should not be upset when some reality is brought back into the process.

The whole system is skewed and people play the games from both ends, underhandedness and dirty tactics abound. 

I would expect the value of the house to be at least as much as the asking price as set out by the EA. Therefore if I choose to offer say £20k over the asking price and the surveyor values it at £20k less than I paid, so the original asking price I can hardly be surprised. 

If they find problems with the house then fine, reduce the offer. 

If you offer asking price and then it gets down-valued then I’ve more sympathy but if you choose to offer over asking you should expect to be paying over the odds.

Many people are tied to what the bank is willing to pay.

If they are then it's unwise to offer over asking if the asking price is close to the market value. 

That was kind of my point.

Belleofthebooks

lhg91 said:

We have been looking for a property to buy for a few months; 15 viewings, 5 houses offered on, all rejected (even when offering 15% over asking, and we have no chain).

We have found a house that needs a lot of work, which we don't mind. It's not my 'dream home', but it has a lot of potential and is a sensible option. It is currently up at £195,000. We viewed it and put an offer in at full asking there and then with the estate agent. He said that he will put the offer forward, but it is unlikely to be accepted as they have a lot of viewings lined up, and he knows it will exceed the asking price.

I rang to follow up with the EA a couple of days ago, and the vendor wants to go ahead with even more viewings on Friday this week, and it's likely going to end up as a 'best and final offer' situation.

We like this house, and truth be told, we are starting to get a bit desperate (we are currently living with parents and thought we would have found somewhere by now!) We are only willing to go up to £220,000 due to the work that is needed. I am considering contacting the estate agent and raising our original offer to 220, and ask if they would take hte property off the market.

If you were in the same scenario, would you wait to see what happens once the viewings are done, or just go straight in now and raise your offer to really show your interest? We had a situation twice previous where the vendor accepted another offer and didn't even give us a chance to raise our original offer of full asking... It's annoying as we know we are paying well over the odds for the house, but unfortunately that is just the situation of the market at the moment.

Thankyou in advance from a VERY frustrated home-buyer   

No not at this stage. Leave your offer on the table. But make sure the EA knows what an excellent position you are in, no chain & 50% deposit. Ask him to get back to you after the viewings have taken place if it goes to best and final.

If it goes to best and final then you need to make a decision on how much you can comfortably afford, how much you're willing to pay for the house fully knowing the bank may devalue it at a later stage. If you willingly offer over what you think it's worth you need to be able to pay the difference. Don't assume the buyer will lower the price. 

Crashy_Time

Belleofthebooks said:

lhg91 said:

We have been looking for a property to buy for a few months; 15 viewings, 5 houses offered on, all rejected (even when offering 15% over asking, and we have no chain).

We have found a house that needs a lot of work, which we don't mind. It's not my 'dream home', but it has a lot of potential and is a sensible option. It is currently up at £195,000. We viewed it and put an offer in at full asking there and then with the estate agent. He said that he will put the offer forward, but it is unlikely to be accepted as they have a lot of viewings lined up, and he knows it will exceed the asking price.

I rang to follow up with the EA a couple of days ago, and the vendor wants to go ahead with even more viewings on Friday this week, and it's likely going to end up as a 'best and final offer' situation.

We like this house, and truth be told, we are starting to get a bit desperate (we are currently living with parents and thought we would have found somewhere by now!) We are only willing to go up to £220,000 due to the work that is needed. I am considering contacting the estate agent and raising our original offer to 220, and ask if they would take hte property off the market.

If you were in the same scenario, would you wait to see what happens once the viewings are done, or just go straight in now and raise your offer to really show your interest? We had a situation twice previous where the vendor accepted another offer and didn't even give us a chance to raise our original offer of full asking... It's annoying as we know we are paying well over the odds for the house, but unfortunately that is just the situation of the market at the moment.

Thankyou in advance from a VERY frustrated home-buyer   

No not at this stage. Leave your offer on the table. But make sure the EA knows what an excellent position you are in, no chain & 50% deposit. Ask him to get back to you after the viewings have taken place if it goes to best and final.

If it goes to best and final then you need to make a decision on how much you can comfortably afford, how much you're willing to pay for the house fully knowing the bank may devalue it at a later stage. If you willingly offer over what you think it's worth you need to be able to pay the difference. Don't assume the buyer will lower the price. 

Many will though if there are no other offers on the table, the OP can just say that they overestimated the value and the bank has put them straight.

nicknameless

goodwithsaving said:

@nicknameless
Gazundering is when you leave it until right before exchange, to almost force the other party to go with the flow. Gazumping is when a vendor does it whilst the buying process is underway. 

Many thanks for the explanation.

One for you.  To 'convey' is to get across one's meaning.

HoneyRoastedParsnip

Our house bought in May was on for 299,500 - I saw it on refresh on right move on the Thu, called immediately and secured the only viewing on Friday. Offered 306,000 to get it off the market. Sat was told by EA not accepted and wanted more - I said no as for 325 I can get everything at other houses nearby, this is far more expensive than any other house on the street! (It's got an extra room and is finished nicely). Monday - they've accepted! !!!!!!! Moral: Don't trust EAs!

Crashy_Time

Can you link to the general area OP, so we can see what PropertyLog is saying?

jimbog

HoneyRoastedParsnip said:

Our house bought in May was on for 299,500 - I saw it on refresh on right move on the Thu, called immediately and secured the only viewing on Friday. Offered 306,000 to get it off the market. Sat was told by EA not accepted and wanted more - I said no as for 325 I can get everything at other houses nearby, this is far more expensive than any other house on the street! (It's got an extra room and is finished nicely). Monday - they've accepted! !!!!!!! Moral: Don't trust EAs!

Congrats!