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

theoretica

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?

Look also at what else is available, or has recently sold.  Are there other properties you quite like for 260k?  Nothing you think you could live in for less than 300k?  Resale and what other people think the property is worth is important if you plan to sell in a few years. If you plan to live there for 10-20 years, whether you are happy paying the monthly mortgage is the more important question.  Selling after decades, you will have paid off a good chunk of the mortgage and what has happened to house prices will likely be more important than +/-5% on the purchase price.

ncmscnc

Thanks all. A lot to think about from your responses. 

I have now put forward the offer to vendor £262k. Not sure why EA accepted it all of a sudden.
They did ask if we are open to increase if vendor doesn't accept it. 

Let's see, fingers crossed. 

peterhjohnson

ncmscnc said:

They did ask if we are open to increase if vendor doesn't accept it. 

LOL! I hope you said "No F***ing way!" :-)

ncmscnc

peterhjohnson said:

ncmscnc said:

They did ask if we are open to increase if vendor doesn't accept it. 

LOL! I hope you said "No F***ing way!" :-)

Surprise. they promptly came back to me saying the other offer and ours are too close to call and asked for a better offer. 

  

ReadingTim

ncmscnc said:

Surprise. they promptly came back to me saying the other offer and ours are too close to call and asked for a better offer. 

  

So, stick or twist?!?  I'd be tempted to offer £265k, best and final.  

(if you're happy with £265k that is!)

nicknameless

ncmscnc said:

peterhjohnson said:

ncmscnc said:

They did ask if we are open to increase if vendor doesn't accept it. 

LOL! I hope you said "No F***ing way!" :-)

Surprise. they promptly came back to me saying the other offer and ours are too close to call and asked for a better offer. 

  

Lol.  So the other offer was seemingly much lower and now seems similar.  Gotta love estate agents.  

propertyhunter

A part of me wonders whether the other offer actually exists. 

HotPantsCruiser

ncmscnc said:

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. 

Oops! Do you think they did it deliberately? What does PropertyLog say about pricing in your area?

badger09

ncmscnc said:

Thanks all. A lot to think about from your responses. 

I have now put forward the offer to vendor £262k. Not sure why EA accepted it all of a sudden.
They did ask if we are open to increase if vendor doesn't accept it. 

Let's see, fingers crossed. 

Now I'm confused. 

In your 1st post you said you had offered £262k, but above suggests you've now offered £262k

ncmscnc said:

peterhjohnson said:

ncmscnc said:

They did ask if we are open to increase if vendor doesn't accept it. 

LOL! I hope you said "No F***ing way!" :-)

Surprise. they promptly came back to me saying the other offer and ours are too close to call and asked for a better offer. 

  

So EA has put forward your £262k which has instantly been rejected?

HotPantsCruiser

ReadingTim said:

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?  

Unless they are paying cash (very bad move not to get it properly valued if so) their lender will soon be telling them how much it is worth.