EA keeps pushing for asking price. Is this normal? FTB noob here.

ncmscnc

I appreciate that it is a possibility that the vendor has instructed them to hit the asking price, EA can turn down the offer and not submit to vendor and bother them. 

Is it worth it to go by EA's advisory and offer the asking price? How does one place an offer with just what EA says?

I think the trainee showed us around the place slipped out that the other offer is just over £250K. 
Asking price is £275K for a one bed place. We offered £262.

Yopa says the following which includes the sales in the neighbourhood I believe. 

Average estimate:

£257,200

Lowest estimate:

£231,500

Highest estimate:

£282,900


I think I just need assurances that the bank will not let us down by down valuing, EA is not sharing with us any reports. Like surveys done or valuation reports done earlier. EEC report looks okay, not much maintenance needed in the place. 

The difference between £262k and £275k is either missing the place or £13k on a 25-35 year mortgage. 

I think I just someone to hug me and say all if okay, go for it at £275 at 0.86 LTV. 

wjr4

Pay what you think it is worth. It’s a business transaction and don’t get attached to the property until you actually own it. 

ncmscnc

wjr4 said:

Pay what you think it is worth. 

Thank you. I think this is the part I am struggling with. 

The only guide I have are online valuations, and trend prices from nearby sales. 

I chose a similar property in the same street. Found the valuation from 2011 and how much it increased to in 2021 from Land Registry. Applied the same trend to our place, and it comes around £265 mark. Vendor asking is £275k about 3.7% more but within the instant valuation range from Yopa.


How does one determine how much a place is worth? Especially with no experience in the field. Should we just pay a valuation expert?

steampowered

Remember that the EA works for the seller. It is the EA's job to get the best price possible - so of course they are pushing you to offer a higher price.

Ask the EA to put the offer to the seller. The worst that can happen is they say "no". 

The way I've always done it is like this:
1) Put in an offer a bit less than I think the property is worth. 
2) Seller rejects it and makes a counter-offer.
3) Meet in the middle.

You should expect to have a negotiation with whatever you offer. I wouldn't offer asking price straight off the bat. I might make an exception if you are in a really super competitive market and you really want this particular property, but otherwise leave a bit of room for negotiation. 

TheJP

Yopa says the following which includes the sales in the neighbourhood I believe. 

Average estimate:

£257,200

Lowest estimate:

£231,500

Highest estimate:

£282,900

These estimates are finger in the sky and should not be relied upon. You need to compare recent sales of comparable properties in the area, that will better help you understand the value of the property, from there you can add your own value based on how much you want the house.

diggingdude

Offer to pay what it's worth to you and nothing more. When I was looking q few years ago, the agent showed me a starter home going for £120k. For me it wasn't worth more than £105k and wasn't really what I wanted. So I made that offer as for that price I was happy to have it. The seller didn't accept, an offer elsewhere was accepted and whilst I was buying that house the estate agent was calling me offering it to me for £102k so clearly there was no interest. It's still on the market, though rented out 3 years later 

eddddy

ncmscnc said:

....EA is not sharing with us any reports. Like surveys done or valuation reports done earlier. EEC report looks okay, not much maintenance needed in the place. 

Are you saying that some surveys and valuation reports on the property were done earlier, and the EA won't share the details? If so, why were they done, and by whom?


But if you're just saying that no surveys or valuations have been done, so no reports exist - that's normal (in England/Wales).

ReadingTim

ncmscnc said:

How does one determine how much a place is worth? Especially with no experience in the field. Should we just pay a valuation expert?

You are the expert - only you can determine what it's worth to you.    

You seem happy to live there for £262k.  Can you afford to live there for £275k?  What would you have to sacrifice to afford the extra £13k?  What other places could you buy for £275k, or even £262k?  Are they better or worse than this place?  If you decided not to pay the additional £13k and didn't get it, how disappointed would you be (or not)?  Also, what else has been coming up lately - if you didn't get this one, how long do you think it might be before something else pops up which might be of interest?  

Noneforit999

You will probably find the vendor has given the EA a minimum price they want and your offer just doesn't meet it.

Maybe give the EA a call and ask them what the vendor is willing to accept. Ask them if any other offers are on the time.

Valuations are difficult at the moment as most property is selling for above its asking/guide price but some (no idea how many) are being down valued by the lenders.

I would check sold prices for similar properties in the area via the Land Registry to see if any similar ones have sold and for what price.

If the asking price is £275k, do not not feel its worth that or is it simply above your maximum?

If the EA has told the vendor he/she feels they can get £275k for it, they may simply be holding out for that but if they don't get offers of this or above, they may be forced to reduce in a few months anyway.

We had 6 offers on ours after the first set of viewings, all over asking so I wouldn't have entertained an offer below asking. 

kimwp

First thing to remember is that no house is perfect. There will be things that you discover that need fixing or that just don't work for you. 
I "lost out" on two houses that eventually (after a long time) went for their asking prices which were far more than I'd valued them at and I have no regrets. This house is not perfect and neither would those have been, but I'm happy here and happy that I paid a price that I won't lose money on. 

badger09

The advice to check sold prices on Land registry is sound, EXCEPT, there are very long delays @ LR so 'recent sales' could very well be from a year or more ago. And, depending on area, current sold prices could be much higher.

Zoopla/Yopa prices are simply guesstimates and pretty much pointless.

OP, offer what you can afford and what this place is worth to you.
Would you be gutted to lose it for an extra few £k?

What is the vendors' position? If they're just testing the market, they will probably hold out for asking price. If they're committed to an onward purchase, they might negotiate, rather than lose their next house.

Are there other properties you like within your budget?


Basically, a house (or flat) is worth what someone is prepared to pay for it, subject to their finances/mortgage lender obviously.

Good luck