Expectations of ‘offers in excess of’

Thrugelmir

View the property then decide what it's worth to you. Some localities are always in high demand. Proximity to good schools and transport links. Or simply one where few properties come onto the market. Some people don't move for decades. Discouraging time wasters is nothing new. There's always people that have multiple viewings then make an insulting offer. As they expect the vendor to fund their remodelling plans. In the current climate makes sense to restrict viewings to those with a genuine interest. 

[Deleted User]

We viewed a property with offers over. It was a stunning property on at offers over £650k. From all of our calculations that really did seem excessive already. It was a relatively new build and lots of comparables. It was done to a slightly higher standard but the top mark really seemed to be £630-635k. However, we were prepared to stretch to the £650k if it secured it. We saw it as 'this is the minimum we will accept' and perhaps if it was competitively priced and a few offers then you'd be looking at over that.

The vendors said they were looking for the £675k range instead. We felt a bit peeved really because we were already to the top end of our budget and we wouldn't have wasted theirs and our time if this was clear from the start and it all felt like a game. It was a stunning house and perhaps we could have really stretched to get there but it just wasn't worth the money. As others have said, you have to stick to your guns with that and not get swayed. We shouldn't have even offered the £650 in hindsight. We declined going any higher and we were the only offer. We found another property £100k cheaper that was a tiny bit smaller but pretty much comparable and wonderful. There was no messing around with the vendors and we were in in under 3 months and so glad we didn't spend the extra and get swept away with it all! A month or so later the vendors removed it from the market.

[Deleted User]

It's a blag. Offer what you think it's worth, more or less. The agent will tell you that there are 2 higher offers on the table, ignore them. If it's true then they are paying too much, move on.

eddddy

[Deleted User] said:

It's a blag. Offer what you think it's worth, more or less. The agent will tell you that there are 2 higher offers on the table, ignore them. If it's true then they are paying too much, move on.

TBH, that's a great explanation of why EAs generally don't make-up offers which don't exist.

If they made-up offers, they'd risk making serious buyers walk away.

lookstraightahead

I've never taken any notice of it. It just makes the whole process longer with all the pretence.

It's a game to get as many buyers outbidding each other to pay well over what they should be. People get drawn into the 'dream' of buying a particular property, then want it even more if they think someone else wants it. It becomes more attractive if they think they can't have it, especially if they think (wrongly) that there's "nothing else available" and they need to 'win' it.

Pure simple psychology. You just need to be aware that this is what's happening and everything else is noise.

lookstraightahead

eddddy said:

[Deleted User] said:

It's a blag. Offer what you think it's worth, more or less. The agent will tell you that there are 2 higher offers on the table, ignore them. If it's true then they are paying too much, move on.

TBH, that's a great explanation of why EAs generally don't make-up offers which don't exist.

If they made-up offers, they'd risk making serious buyers walk away.

Actually this happened with us, twice. And we walked away, twice.
In my experience they do do it, but it's a silly negotiation tactic, I agree. 

Both properties still on the market, 12 months later. 

propertyhunter

lookstraightahead said:

I've never taken any notice of it. It just makes the whole process longer with all the pretence.

It's a game to get as many buyers outbidding each other to pay well over what they should be. People get drawn into the 'dream' of buying a particular property, then want it even more if they think someone else wants it. It becomes more attractive if they think they can't have it, especially if they think (wrongly) that there's "nothing else available" and they need to 'win' it.

Pure simple psychology. You just need to be aware that this is what's happening and everything else is noise.

This is so true. It's all psychology. Just bid what you can afford on a house you like. Ignore everything else and if its meant to be, it will be. 

Gavin83

lookstraightahead said:

eddddy said:

[Deleted User] said:

It's a blag. Offer what you think it's worth, more or less. The agent will tell you that there are 2 higher offers on the table, ignore them. If it's true then they are paying too much, move on.

TBH, that's a great explanation of why EAs generally don't make-up offers which don't exist.

If they made-up offers, they'd risk making serious buyers walk away.

Actually this happened with us, twice. And we walked away, twice.
In my experience they do do it, but it's a silly negotiation tactic, I agree. 

Both properties still on the market, 12 months later. 

Out of interest how did you know this happened to you? Would be good advice so people know what to look for.

[Deleted User]

eddddy said:

[Deleted User] said:

It's a blag. Offer what you think it's worth, more or less. The agent will tell you that there are 2 higher offers on the table, ignore them. If it's true then they are paying too much, move on.

TBH, that's a great explanation of why EAs generally don't make-up offers which don't exist.

If they made-up offers, they'd risk making serious buyers walk away.

They do it all the time. The vendor has told them they want more than £X, so they put "offers in excess of" which sets a lower bound but no upper one. They always want your name and phone number before talking to you, so even if they lie and say there are higher bids and you don't increase, they can always call you next week and claim that the other ones pulled out so you are back in the game.

They aren't short of buyers at the moment, they don't need to worry.

Lespaul1960

[Deleted User] said:

It's a blag. Offer what you think it's worth, more or less. The agent will tell you that there are 2 higher offers on the table, ignore them. If it's true then they are paying too much, move on.

Every time an Estate Agent has said this to me ,IT HAS been true, and the property has gone on to sell for more than I would have offered.  Just my personal experience.