Offers over...

SarahWhitesands

Hi everyone

Looking for some advice on what I think is a much discussed topic! 

I have seen a property I love. It's on the market "Offers over £230k". It's under what I can afford as it needs some work which I am happy to do. 

It went on the market 2 days ago, and the agent has now stopped booking viewings as they have had loads of interest. 

Now my question is... What do people realistically offer when it states "offers over"? I know it's kind of irrelevant and that I should only offer what I think it's worth, but I'm torn as I know I could afford £245k, but I'd obviously never go that far over. 

I wondered if anyone had experience of what expectations actually were in these situations? The house and area is sought after, and the market is crazy here at the moment (Devon) so I have no doubt there will be other offers on the table.  I'm thinking of going in at £237 (they are going to do best and final, which I hate), but I can't decide whether I will just end up paying way over the odds as do some people when it's "offers over" just throw in an extra grand or two?

I know it's a pretty impossible question, but any advice or experience would be great.  

Also, I've read that "Best and Final" isn't actually legally binding, and if I made an offer and it was rejected, I could re-submit a higher offer - has anyone done that before??

Thanks so much!  

[Deleted User]

It doesn't really mean anything other than "we'd really like at least £230k but will almost certainly accept less."

Put your bid in on the basis of what it worth to you, other similar properties, the state of the local market and how much you want it.

seradane

So the answer to your question is of course, it depends.

Are equivalent properties on the market selling for £230k or closer to £250k currently?

But based on what you say - the market is crazy, there is so much interest they have stopped viewings - it sounds like there will be lots of offers and so you'll have to be fairly keen to win out.

Ultimately all you can do is offer an amount you would be comfortable paying, but also comfortable that if it was turned down, you wouldn't be disappointed as you weren't willing to pay any more anyway. 

e.g. if you offer £237k, and the best offer happens to be £240k, would you kick yourself for not having offered 1.5% more to secure the house?

And as to your final question, no, Best and Final is not legally binding at all, but the agents/seller will likely chose one offer to accept and proceed with, and won't come back to you aside to say 'thanks but no thanks', so you likely won't get an opportunity to submit a higher offer.

TheJP

It means that they want no less than £230k but know the house will attract a lot of interest, this way attracts people that could fill the gap if the house is down valued. Of course you could re-submit another bid but the seller may instruct the seller not to accept any more bids, the EA don't have to send your revised offer if the seller instructs them not to. The seller depending on their next purchase and if they have identified the best proceedable may have a figure in their head that they will accept.

propertyhunter

If the market is one where houses are scarce and there are multiple offers, then you should put in the offer that you are happy with and would not regret losing the house for. However, if you lose at 237k, and find out it went for 240k when you could afford 5k more, how would you feel? I'm not saying offer 245k, I'm just posing a question for consideration. Put the offer in that you won't regret.

You could come back with a higher offer if you lose the best and final, but the vendor could have said to the EA "I'm not accepting anything else after best and final", in which case your offer isn't guaranteed to reach the vendor. Also, the whole point of best and final is exactly that, best and final. You wouldn't like to be the successful bidder and then have someone gazump you.

comeandgo

You don’t get a chance to gazump after a best and final, if you want the property then you may have to put your best and highest offer.  If you don’t mind loosing it then offer lower.

BV88

I was involved in a few of these bidding wars when looking for a house last year, not too far from Devon and also coastal. Based on what you say and the closing of the viewings it does sound like there may be lots of competition. Best and final was practically never best and final, usually the EA would go back to the bidders to see if any higher offers are going to be made and to enquire further on the buyers financial situation. One property was on for 325k, I did a 'best and final' offer of 340k then the agent shopped around and I increased my offer to 360k (yes 35k over the asking price!), I still did not secure the property, bowing out when the bids went past 360k. 

What is your buying situation? if you are chain free I think you can afford to be on the lower side relative to buyers in a chain and the EA will probably let you work up your offer. BAFO means nothing and higher bids can be accepted at anytime prior to exchange and for any reason.

deeboy12

I used to ask myself the same question about "offers over" hoping it would help me play a good game but, having now been through a recent search process, I can assure you it doesn't mean anything at all.

Just to add my own data point here, I recently viewed a house at "offers over £3xxk". There were something stupid like 15 viewings on open day, in a very hot market in the South East and my offer at exactly £3xxk was accepted the following day.

I lost out of plenty of houses on the way, of course, but don't get caught up in the "offers over" question.

Put your energy instead into selling yourself as the best buyer, asking the right questions of the agent about other offers and status of the potential buyers, and bid what you can afford and think you'd be happy to pay.

Regarding the BAFO process, I actually wouldn't trust an agent or seller who welcomed any other offers afterwards, as it would tell me they're not trustworthy and I'd worry they'd do the same to me the day before exchange!

lookstraightahead

To me it means someone wants to play games with their viewers.

just offer what it's worth to you (or of course what you think the lender will be happy with). I've never bothered viewing a house with offers over anyway. I can't be bothered with it.

Schwarzwald

You say you love this property, how likely and how much time might it take that you find a similar property?
plus how long will it take you to save another 5-15k?

if answers are unlikey/long and short, then I wouldnt mind paying up to your max.

if answers are likely/few weeks and long, then probably would not pay up much.

koalakoala

This is how the system works in Scotland. When there is a lot of interest the offers are usually way above the asking price.