Asking price offer

user1977

Deleted_User said:

I’ve read some posts, not all. This is a forum for advice. Not to be antagonised, judged, spoken to rudely or nastily. I have been accused of raging, I haven’t been raging ( now I am) , moaning, isn’t this is forum to ask advice? I wouldn’t be on here if I didn’t feel I had a problem I needed help with? 

It is a forum for advice, but I think the point is that after people kindly took the time to give their (free) advice based on their own expertise and experience, you started arguing with them as if you knew better than them - rather than give the impression that you've actually taken on board what you've been told. 

newsgroupmonkey_

Ramouth said:

I won't bore everyone with the rest of the story - my point/question is: if nine people were happy to bid between £1k and £20k more than the asking price (with the majority of them bidding above £190k) does that mean that the house was originally undervalued, or that all these people were overbidding....?

Mxx

I have always been of the opinion that a house is worth what someone is willing to pay for it but the bank valuation is what the bank is confident of selling it for in the next few years.  This means that in a competitive market the banks valuation may be less than what someone is willing to pay because the bank is protecting itself from the risk that prices will fall when there are fewer buyers per property.  They are also keen to price based on sold prices which can become out of date pretty quickly in some areas.

It's increasingly likely that interest rates will rise significantly shortly. WIth utlities about to double in the next couple of months, I would expect the buyers market to slow. There is already a huge impact on inflation and the utilities issue is going to hit supermarkets and other consumables directly which could potentially cause even bigger issues.

I'm not one for doom and gloom, but a dip (I'm not going to use the C word) is very likely in the next 12-24 months.

propertyhunter

Yes, let's be honest - the market will 'cool' (not the other c word). Budgets will be impacted for sure. I'm expecting house prices to either flatline or fall versus inflation. It's about time too - and I'm saying this having just had an offer accepted at 3% above asking and aiming to complete in 2-3 months (probate purchase). 

lookstraightahead

newsgroupmonkey_ said:

Ramouth said:

I won't bore everyone with the rest of the story - my point/question is: if nine people were happy to bid between £1k and £20k more than the asking price (with the majority of them bidding above £190k) does that mean that the house was originally undervalued, or that all these people were overbidding....?

Mxx

I have always been of the opinion that a house is worth what someone is willing to pay for it but the bank valuation is what the bank is confident of selling it for in the next few years.  This means that in a competitive market the banks valuation may be less than what someone is willing to pay because the bank is protecting itself from the risk that prices will fall when there are fewer buyers per property.  They are also keen to price based on sold prices which can become out of date pretty quickly in some areas.

It's increasingly likely that interest rates will rise significantly shortly. WIth utlities about to double in the next couple of months, I would expect the buyers market to slow. There is already a huge impact on inflation and the utilities issue is going to hit supermarkets and other consumables directly which could potentially cause even bigger issues.

I'm not one for doom and gloom, but a dip (I'm not going to use the C word) is very likely in the next 12-24 months.

Excellent realistic post.

Chris_English

Deleted_User said:

Morning!

I’ve read some posts, not all. This is a forum for advice. Not to be antagonised, judged, spoken to rudely or nastily. I have been accused of raging, I haven’t been raging ( now I am) , moaning, isn’t this is forum to ask advice? I wouldn’t be on here if I didn’t feel I had a problem I needed help with? Some people have questioned our position , we are FTB with a mortgage in place and the house being sold is part of a deceased estate so neither side has a chain. Update on their position, we were told last week to make the block viewing or miss out ( unless it didn’t sell) but yesterday we were told there are now more viewings this week and the vendor is going ahead. Someone suggested I put myself in their shoes, I completely understand they want as much as they can get but for now I am in MY shoes and I offered the price they advertised. If the estate agent told them they could get more, they should advertise more. I won’t be coming back to respond again or posting here again. To the people who offered help or their own stories, thank you. That is what I came here for, some wisdom and experience from others. To the people who just had rude, patronising comments who couldn’t put themselves in anyones shoes maybe you should look at your behaviour online and ask if you would behave like it to someone’s face. 

You are talking about what other people "should" do, but why "should" they do what you personally want? They have done nothing wrong, as others have politely pointed out.

Why "should" they accept the first offer thath comes in at the asking price? Where do you get the idea from that that's the way that people ought to operate?

Fundamentally, you seem to have just misunderstood how this whole process works. Sellers name a price at which they would like to sell, and then they see what happens. This idea of yours that the first person to claim they'd pay that much gets the house just isn't how it goes.

MToon

Just to add to the topic, I had an offer accepted on a property for the full asking price which I verbally gave at the end of the viewing, the house was perfect, well priced and I’d been searching for a while so I was sure.  

Luckily for me I’m a first time buyer and the property had just come back on the market after the previous buyer dropped out due to personal circumstances.

I then submitted a formal offer when I got back home and asked that if they were to accept my offer that they cancel all planned viewings (they had 6 arranged) and take the property off the market, which they promptly did and officially accepted my offer straight away. 

What I guess I’m trying to say is it depends on both your circumstance and the sellers.  Mine probably worked more so in my favour as they were so far down the chain and their buyer dropped out and they wanted to secure a faster sale to make up for lost time.  Someone in a chain might have offered more than me had they let the viewings take place but they’d then have to weigh that up against the extra timeframe and possible delays etc. 

eidand

Deleted_User said:

Morning!

I’ve read some posts, not all. This is a forum for advice. Not to be antagonised, judged, spoken to rudely or nastily. I have been accused of raging, I haven’t been raging ( now I am) , moaning, isn’t this is forum to ask advice? I wouldn’t be on here if I didn’t feel I had a problem I needed help with? Some people have questioned our position , we are FTB with a mortgage in place and the house being sold is part of a deceased estate so neither side has a chain. Update on their position, we were told last week to make the block viewing or miss out ( unless it didn’t sell) but yesterday we were told there are now more viewings this week and the vendor is going ahead. Someone suggested I put myself in their shoes, I completely understand they want as much as they can get but for now I am in MY shoes and I offered the price they advertised. If the estate agent told them they could get more, they should advertise more. I won’t be coming back to respond again or posting here again. To the people who offered help or their own stories, thank you. That is what I came here for, some wisdom and experience from others. To the people who just had rude, patronising comments who couldn’t put themselves in anyones shoes maybe you should look at your behaviour online and ask if you would behave like it to someone’s face. 

It's funny, that you seem to think the issue is with someone else.

The issue here is you, you need to realize how you come out with your comments.

You didn't come here for help, you came here hoping to open a nice moaning thread where everyone can complain how terrible your vendors are for not accepting your offer straight away.

You accused them of being greedy then you went on to add that you're a busy person, you don't have time for this. Take a step back and think how that makes you look. Everybody is busy, you're not special at all.

The vendor needs to make a decision and if you show them your unpleasant side then you can be 100% sure they won't choose you.

You had plenty of advice here, how you play it is up to you. Better learn how to tango if you want to dance with your vendors.

robatwork

eidand said:

You had plenty of advice here, how you play it is up to you. Better learn how to tango if you want to dance with your vendors.

OP preferred the Foxtrot. The Foxtrot Oscar dance. 

YoungBlueEyes

Seems to me that daddy's favourite aphorism would fit here. 

As the philosopher Jagger said - "You can't always get what you want!"

badger09

Deleted_User said:

Morning!

I’ve read some posts, not all. This is a forum for advice. Not to be antagonised, judged, spoken to rudely or nastily. I have been accused of raging, I haven’t been raging ( now I am) , moaning, isn’t this is forum to ask advice? I wouldn’t be on here if I didn’t feel I had a problem I needed help with? Some people have questioned our position , we are FTB with a mortgage in place and the house being sold is part of a deceased estate so neither side has a chain. Update on their position, we were told last week to make the block viewing or miss out ( unless it didn’t sell) but yesterday we were told there are now more viewings this week and the vendor is going ahead. Someone suggested I put myself in their shoes, I completely understand they want as much as they can get but for now I am in MY shoes and I offered the price they advertised. If the estate agent told them they could get more, they should advertise more. I won’t be coming back to respond again or posting here again. To the people who offered help or their own stories, thank you. That is what I came here for, some wisdom and experience from others. To the people who just had rude, patronising comments who couldn’t put themselves in anyones shoes maybe you should look at your behaviour online and ask if you would behave like it to someone’s face. 

In case you come back to read....

You mention the house is part of a deceased's estate. The Executors of that estate have a legal duty to protect the assets of the estate and achieve the best outcome for the beneficiaries. That does not necessarily mean holding out for months for the highest possible price. However, if the executors sold to you at your asking price offer, and cancelled all further booked viewings, they could be challenged by the beneficiaries, and ultimately could be personally liable for any shortfall in the price achieved. No executor in his/her right mind would risk that!

FWIW, I do think you are overly impatient. Even if the executors do ultimately accept your offer, you could have a very long wait, depending on where the Probate process is up to. My advice would be to leave your offer on the table but continue to look at other properties. And don't expect any vendor to automatically immediately accept your asking price offer. 

Good luck