Offer of 50k over declined

Amberpu

Hi, recently made a 50k over offer on a property I love. Unfortunately was declined. House is in Scotland so I have a note of interest in but wondering what next steps to take - do I not make another offer for a bit while owners see what other interest there is or do I make a higher offer? Obviously worried that bidding higher I’ll still be rejected and as far as I know there’s no other offers yet. House has only been on the market for a few days. 

gettingtheresometime

My concern as a seller would be why were you willing to pay so much over when there was no other interest.

Sandtree

gettingtheresometime said:

My concern as a seller would be why were you willing to pay so much over when there was no other interest.

You read that it was in Scotland where the norm is to bid 5-20% over asking yes?

£50k is relatively irrelevant without knowing the asking price

user1977

Your solicitor should be guiding you through this. Do you have a note of interest in because others do, and is a closing date inevitable? If so then generally you wait until the closing date is set and make your offer then. In that sort of situation, offers in advance of a closing date need to be high enough to be snapped up by the sellers.

theoretica

Ask the sellers if they are definitely planning to go to a closing date?  When I was buying, several sellers told me there was no point making an offer in advance as they definitely planned to go to a closing date.

Amberpu

EA said owners haven’t mentioned a closing date yet, which is why I made a high offer hoping to get it off the market

sammyjammy

What is the offers over price?  Its all relative.

RoyalDad

Was your offer 50k over the "Offers Over" price or the Valuation Price? I'm buying in Glasgow in the summer and have done lots of research. Average flat in west end if going for 12% ove the valuation price - one went for 29% over (£90k). Give us some of the key numbers and we can help.

googler

Your solicitor should know the level of interest, the number of notes of interest that the selling agent has already. It's simply a matter of picking up the phone and asking. 

Did you consult with your solicitor about the amount of your offer? 

What's the asking price, what's the HR valuation?

Are you buying in an area where there's a lot of activity, e.g. Edinburgh, or is this a "rural" purchase?

Northern_Wanderer

If it's just on the market the seller will probably want to see what interest there is. Most likely it will go to a closing date so that the seller can get maximum revenue where bidders bid stupid prices well above the valuation, pushing prices up for everyone.

As said, the 50K needs to be considered relative to the valuation. 50K above asking is odd on a £150K property and as a seller I would question why anyone would do that. 

Also, a lender will only lend valuation price as per the home report, but I'm guessing you are a cash rich buyer.

If you have a note of interest, you will get informed of any closing date set and can then do your sealed (best offer) bid which has to be submitted by a solicitor.

You can offer whatever you like at any time, they say yes or no.

googler

Northern_Wanderer said:

If you have a note of interest, you will get informed of any closing date set and can then do your sealed (best offer) bid which has to be submitted by a solicitor.

You can offer whatever you like at any time, they say yes or no.

Yes, the OP has done this. Made their offer without a closing date being declared. Seller said no.

Their question is essentially now "Should we just wait until closing is declared, should we revise our offer and resubmit, or do we do something else"

In order to advise on this, we really need to know how £50k compares to asking, what kind of market the OP is moving into, etc