Asking price offer

lookstraightahead

I can't wait for all the sellers market hype to fade away. 

I'm not sure going forward it's going to be a question of choice and vendors will need to work harder at selling. It's going to be a shock to those who haven't experienced it the other way around.

things have definitely slowed down around here (I moved in the summer). And I absolutely agree with some posters that it isn't about the price always, it's about the buyer's situation. 

I only hear on this forum how it's a seller's market, maybe that's because people come on here to talk about it, but I don't hear it much 'out there'. Lots of properties are selling then back in the market, reduced prices etc.

Going back to the op, hopefully you will hear soon - be fair the haven't had much time. But don't be left dangling or be sucked into games where they're picking and choosing one against another. Also ask them when they intend to move, because if they are not happy to move fairly quickly and want you to wait, that will be frustrating for you I expect (as it would me). Check their status like they check yours. Are they going to leave you hanging around while they find their "dream house"? Are they happy to rent to make the move speedily? Is the house likely to be down valued (as is common now)?

Personally I would give them til midweek. 

newsgroupmonkey_

Deleted_User said:

powerful_Rogue said:

Deleted_User said:

I didn’t say it was personal. 

I see from the sellers perspective they are greedy and want to try to squeeze more than they advertised for and from a buyers perspective it is unfair to have them waste time looking at a property which is advertised for a price and to then be expected to offer more than that. 

Again thank you for your thoughts, I have mine and you have yours 

Talk about being impatient! If this is your first time buying, good luck!

It’s a fast market and I have a full time job. I don’t have time to be messed around. I offered full asking, if there’s no other offers, accept. End of story. 

I'm afraid it doesn't work like that. They may have several offers, some over the asking, some meeting the asking.

Can I ask a frank and honest question.

If you were selling and moving up to your next property, would you not want the absolute maximum you could get, so that you can buy a better property?

But there's more to it. It's not like going in a shop and buying a newspaper, offering the money for it and taking it away.

Let me put a scenario to you. You are selling a house. All have offered bang on asking price.

Buyer 1 is a FTB with a 95% mortgage. You know your house is at the absolute top of the market, value wise.

Buyer 2 is an investor wanting a buy-to-let with mortgage agreed and 40% deposit.

Buyer 3 is a cash buyer who is currenly renting.

Buyer 4 is selling and buying and will need a 50% mortgage.

It clearly depends on what you,as a seller, have as circumstances.

For me, Buyer 4 is probably in the worst position. They almost certainly have a backwards chain. If you have a forward one too, it could be messy. But this is usually the normal position.

Buyer 1 next worst. For a number of reasons. Firstly, first time buyers can be a pain - they want electrical and gas certificates. They query and question everything. When the surveyor says there's a crack in the plaster or a loose roof tile, they want to renegotiate the price. But worst of all, if the surveyor down values, the FTB has absolutely no wiggle room.

So the next 2 buyers..... they have plenty of wiggle room. If the property is up at £200k and it's valued at £190k,, chances are, if they really want the property, they'll just find the money.

Buyers 2 and 3 are in a good position.

Mahsroh

newsgroupmonkey_ said:

Deleted_User said:

powerful_Rogue said:

Deleted_User said:

I didn’t say it was personal. 

I see from the sellers perspective they are greedy and want to try to squeeze more than they advertised for and from a buyers perspective it is unfair to have them waste time looking at a property which is advertised for a price and to then be expected to offer more than that. 

Again thank you for your thoughts, I have mine and you have yours 

Talk about being impatient! If this is your first time buying, good luck!

It’s a fast market and I have a full time job. I don’t have time to be messed around. I offered full asking, if there’s no other offers, accept. End of story. 

I'm afraid it doesn't work like that. They may have several offers, some over the asking, some meeting the asking.

Can I ask a frank and honest question.

If you were selling and moving up to your next property, would you not want the absolute maximum you could get, so that you can buy a better property?

But there's more to it. It's not like going in a shop and buying a newspaper, offering the money for it and taking it away.

Let me put a scenario to you. You are selling a house. All have offered bang on asking price.

Buyer 1 is a FTB with a 95% mortgage. You know your house is at the absolute top of the market, value wise.

Buyer 2 is an investor wanting a buy-to-let with mortgage agreed and 40% deposit.

Buyer 3 is a cash buyer who is currenly renting.

Buyer 4 is selling and buying and will need a 50% mortgage.

It clearly depends on what you,as a seller, have as circumstances.

For me, Buyer 4 is probably in the worst position. They almost certainly have a backwards chain. If you have a forward one too, it could be messy. But this is usually the normal position.

Buyer 1 next worst. For a number of reasons. Firstly, first time buyers can be a pain - they want electrical and gas certificates. They query and question everything. When the surveyor says there's a crack in the plaster or a loose roof tile, they want to renegotiate the price. But worst of all, if the surveyor down values, the FTB has absolutely no wiggle room.

So the next 2 buyers..... they have plenty of wiggle room. If the property is up at £200k and it's valued at £190k,, chances are, if they really want the property, they'll just find the money.

Buyers 2 and 3 are in a good position.

Great post. For me, I would probably put buyer 1 as least favourable, then buyer 4, then 2 then 3. Given those 4 choices, i'd almost certainly go with 3. In fact i'd probably accept a slight lower offer from buyer 3 ahead of all the others. 

Having sold to a BTL investor in the past, the reason I would probably put them below buyer 3 is that they're less "invested" (ironically) in the property, compared to a residential buyer, and personally I'd rather have the chain that take the risk on a FTB with a very high LTV. 

But it's a personal choice and further empathises the point that it's not a clear cut as the OP believes.  

Chris_English

Deleted_User said:

Thank you!

A little unfair all round to continue having viewings after being offered the asking price despite them not being obligated to accept in my opinion. 

Thanks for your thoughts  

Not at all. It'd be unfair had they accepted your offer and agreed to stop marketing it, but at the moment it';s completely reasonable for them to continue to show it. This isn't a shop, where there is an expectation that you can buy at the offered price; the offer prioce on a house is just a suggestion of what they hope to sell it for. If they pitched it at what they thougt was reasonable, but they now realise was a bit cheap then of course they'll want to see if there are any higher offers on the way.

TXC

God knows I am really struggling to see anything from the seller's POV lately as I'm biased but even I agree. You can't expect them to cancel all viewings because you've been so gracious as to bless them with an offer. In their shoes I'd absolutely want to keep all viewings just to get a full profile of different buyers. As others have said, different buyers suit diffrent circumstances. If you're this impatient now then god knows what you'll be like 12-18 weeks down the line (if you're lucky)

Being an FTB with a 90% LTV though I'll just agree to disagree on thoughts on buyer one... good luck getting anywhere if you were all stuck in chains with no fresh blood to keep the market moving etc etc.

newsgroupmonkey_

TXC said:

God knows I am really struggling to see anything from the seller's POV lately as I'm biased but even I agree. You can't expect them to cancel all viewings because you've been so gracious as to bless them with an offer. In their shoes I'd absolutely want to keep all viewings just to get a full profile of different buyers. As others have said, different buyers suit diffrent circumstances. If you're this impatient now then god knows what you'll be like 12-18 weeks down the line (if you're lucky)

Being an FTB with a 90% LTV though I'll just agree to disagree on thoughts on buyer one... good luck getting anywhere if you were all stuck in chains with no fresh blood to keep the market moving etc etc.

I'm not saying I wouldn't sell to you - and the fact that you're here means I'd be much more likely, because you know if you offer over asking (or a strong asking price), a surveyor is likely to under value. We're putting ours up shortly. If it gets into a bidding war, we'll be very insistent that a FTB knows this.

I'm just stating the facts of preference. Realistically, few of us get a 100% cash buyer making an offer and when they do, they often use it as a tactic to get it cheaper.

I think unfortunately for all of us too, in a seller's market, the new blood isn't needed. Right now, it's very easy to sell your house. Finding another one and having an offer accepted is a nightmare in many areas. FWIW, I was in exactly the same position as you a couple of years back. Our seller needed a quick sale and as an FTB, we were in a strong position and even got £10k knocked off the asking because of it (despite someone with a chain offering full asking).

lookstraightahead

Why all this issue over FTBs when they are the ones who are enabling chains to happen?

Apart from them being maybe a little naive, it seems the reason people "don't like them" is that they haven't got the funds to plug the gap when a lender says a house is overpriced. 

Mahsroh

newsgroupmonkey_ said:

TXC said:

God knows I am really struggling to see anything from the seller's POV lately as I'm biased but even I agree. You can't expect them to cancel all viewings because you've been so gracious as to bless them with an offer. In their shoes I'd absolutely want to keep all viewings just to get a full profile of different buyers. As others have said, different buyers suit diffrent circumstances. If you're this impatient now then god knows what you'll be like 12-18 weeks down the line (if you're lucky)

Being an FTB with a 90% LTV though I'll just agree to disagree on thoughts on buyer one... good luck getting anywhere if you were all stuck in chains with no fresh blood to keep the market moving etc etc.

I'm not saying I wouldn't sell to you - and the fact that you're here means I'd be much more likely, because you know if you offer over asking (or a strong asking price), a surveyor is likely to under value. We're putting ours up shortly. If it gets into a bidding war, we'll be very insistent that a FTB knows this.

I'm just stating the facts of preference. Realistically, few of us get a 100% cash buyer making an offer and when they do, they often use it as a tactic to get it cheaper.

I think unfortunately for all of us too, in a seller's market, the new blood isn't needed. Right now, it's very easy to sell your house. Finding another one and having an offer accepted is a nightmare in many areas. FWIW, I was in exactly the same position as you a couple of years back. Our seller needed a quick sale and as an FTB, we were in a strong position and even got £10k knocked off the asking because of it (despite someone with a chain offering full asking).

Same here. I put FTB bottom out of the 4 that doesn't mean I absolutely wouldn't sell to them.... Just feel with a high LTV (the example was actually 95% too rather than 90%) would increase the risk of a down valuation that couldn't be dealt with (granted that same issue could happen with my buyers related sale under option 4 though) so it's never straightforward.  

Marvel1

Deleted_User said:

I didn’t say it was personal. 

I see from the sellers perspective they are greedy and want to try to squeeze more than they advertised for and from a buyers perspective it is unfair to have them waste time looking at a property which is advertised for a price and to then be expected to offer more than that. 

Again thank you for your thoughts, I have mine and you have yours 

Spot on, if they wanted more then they should have advertised for more.

I say continue looking and book viewings.

lookstraightahead

newsgroupmonkey_ said:

TXC said:

God knows I am really struggling to see anything from the seller's POV lately as I'm biased but even I agree. You can't expect them to cancel all viewings because you've been so gracious as to bless them with an offer. In their shoes I'd absolutely want to keep all viewings just to get a full profile of different buyers. As others have said, different buyers suit diffrent circumstances. If you're this impatient now then god knows what you'll be like 12-18 weeks down the line (if you're lucky)

Being an FTB with a 90% LTV though I'll just agree to disagree on thoughts on buyer one... good luck getting anywhere if you were all stuck in chains with no fresh blood to keep the market moving etc etc.

I'm not saying I wouldn't sell to you - and the fact that you're here means I'd be much more likely, because you know if you offer over asking (or a strong asking price), a surveyor is likely to under value. We're putting ours up shortly. If it gets into a bidding war, we'll be very insistent that a FTB knows this.

I'm just stating the facts of preference. Realistically, few of us get a 100% cash buyer making an offer and when they do, they often use it as a tactic to get it cheaper.

I think unfortunately for all of us too, in a seller's market, the new blood isn't needed. Right now, it's very easy to sell your house. Finding another one and having an offer accepted is a nightmare in many areas. FWIW, I was in exactly the same position as you a couple of years back. Our seller needed a quick sale and as an FTB, we were in a strong position and even got £10k knocked off the asking because of it (despite someone with a chain offering full asking).

Lenders don't under value. They value at what they believe the property is worth, as they are the ones "buying" it. Rather, the property has been "overpriced".