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

Phantom151

HotPantsCruiser said:

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.

How accurate are those valuations though? Our bank valued it at exactly what we paid for it. Seemed like a rather odd coincidence.

HotPantsCruiser

Phantom151 said:

HotPantsCruiser said:

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.

How accurate are those valuations though? Our bank valued it at exactly what we paid for it. Seemed like a rather odd coincidence.

Probably depends on how much deposit you are putting up, the bank don`t care if your deposit gets eaten by a house price drop.

ReadingTim

HotPantsCruiser said:

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.

Most lenders tend to agree that it's worth what the buyer has offered, assuming the LTV or property isn't too marginal. 

Down valuations might make lots of noise, but that's because no-one posts angrily on internet forums complaining that their mortgage company agreed that it was worth exactly what they'd offered and lent the money willingly....

HotPantsCruiser

ReadingTim said:

HotPantsCruiser said:

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.

Most lenders tend to agree that it's worth what the buyer has offered, assuming the LTV or property isn't too marginal. 

Down valuations might make lots of noise, but that's because no-one posts angrily on internet forums complaining that their mortgage company agreed that it was worth exactly what they'd offered and lent the money willingly....

Why do you think the only other offer in this case is 25k less than the asking price?

HotPantsCruiser

propertyhunter said:

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

Why would the EA`s assistant leak a number that was 25k lower than the asking price?

propertyhunter

HotPantsCruiser said:

propertyhunter said:

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

Why would the EA`s assistant leak a number that was 25k lower than the asking price?

Isn't it more that the other offer "too close to call" to the OPs offer? I took this to mean that they want to put pressure on the OP to increase their offer. As long as the OP sticks to their final price, all should be ok. If it goes for higher, all you can say to yourself is that you did your best. 

HotPantsCruiser

The OP`s offer was about 12k higher than the other supposed offer, I reckon the assistant just thinks the seller is too greedy.

kimwp

Something else to consider (though it complicates things rather than simplifies them, sorry), is that if the vendor is messing you about (not saying that they are, but it sounds close to getting there), they may mess you around during the rest of the buying process. 

Unless it's your dream house and you'd regret not getting it (see my above comment as to why it almost certainly won't be), I'd stick at your offer or only go a couple of thousand up. 

Noneforit999

I am not sure why vendors mess people about, surely they have a figure in their hear they want to achieve as an absolute minimum?

As a vendor, I don't want a protracted back and forth with a buyer so I would say to the EA, I want £X as a minimum so unless the buyers offer this or more, I am not interested. If I get an offer of the minimum or above and all viewings had been done, jobs a goodun. 

newsgroupmonkey_

Noneforit999 said:

I am not sure why vendors mess people about, surely they have a figure in their hear they want to achieve as an absolute minimum?

As a vendor, I don't want a protracted back and forth with a buyer so I would say to the EA, I want £X as a minimum so unless the buyers offer this or more, I am not interested. If I get an offer of the minimum or above and all viewings had been done, jobs a goodun. 

Unfortunately, doesn't matter what a vendor says, the EA is legally obligated to put the offer to the verndor.