Offered 10% below asking price

jaelato1

So after been gazumped, we viewed a house yesterday that has been on the market for over 7 months so we offered 010% below asking price as we believe that is what the house is worth to us based on the area but EA didnt acknowledge the offer sent via email yesterday, called today to chase up but was told he is out and they will relay my message to him.

Is that weird or am i overthinking it? 

donutandbeer

Well it could be weird or they could really be out. It’s possible that the agent knows the vendor won’t accept the number (perhaps someone had offered the same before and got rejected already), but you can only try. You can always up your offer after being rejected. Agent might also tell you what number the vendor is hoping for. You just have to try to speak with the agent when they are back. 

eddddy

The EA will want the property to be sold, so they get their commission.

(The EA won't be too bothered that the offer is 10% under asking price, but the seller probably will be.)

So the EA will probably do all of the following at the same time:

1. Pass your offer to the seller and try to persuade the seller to accept it.
2. Try to persuade you to offer more.
3. Tell other people who viewed the property over the last 7 months that there's been a lowish offer. So do they want to get an offer in before the buyer decides? (i.e. get indecisive people to make a decision.)

Point 3 sometimes confuses buyers. A property has been on the market for 7 months without any offers. Then you make an offer, and suddenly there are 2 other offers as well.



Edit to add...

FWIW, some EAs tell me that they purposely take a long time to reply to a buyer when an offer has been rejected. They think that the anticipation and build up of stress makes them more likely to increase their offer. 

So maybe try to keep your cool.

Norman_Castle

You're overthinking, its likely the seller hasn't responded yet so no reason for the EA to contact you.

jaelato1

eddddy said:

The EA will want the property to be sold, so they get their commission.

(The EA won't be too bothered that the offer is 10% under asking price, but the seller probably will be.)

So the EA will probably do all of the following at the same time:

1. Pass your offer to the seller and try to persuade the seller to accept it.
2. Try to persuade you to offer more.
3. Tell other people who viewed the property over the last 7 months that there's been a lowish offer. So do they want to get an offer in before the buyer decides? (i.e. get indecisive people to make a decision.)

Point 3 sometimes confuses buyers. A property has been on the market for 7 months without any offers. Then you make an offer, and suddenly there are 2 other offers as well.



Edit to add...

FWIW, some EAs tell me that they purposely take a long time to reply to a buyer when an offer has been rejected. They think that the anticipation and build up of stress makes them more likely to increase their offer. 

So maybe try to keep your cool.

Well EA have been radio silent since offer went in yesterday. I know they will try 2&3 but we have decided that we are going to stay put and leave offer on the table.  Just annoyed that we don't know if he submitted our offer or even got our offer email.

DE_612183

I seem to remember somewhere that EA's are obliged to put forward offers even if they know they will get rejected out of hand.

jaelato1

Norman_Castle said:

You're overthinking, its likely the seller hasn't responded yet so no reason for the EA to contact you.

Ok, will keep my cool but i wasn't even expecting response from seller at the moment but just a confirmation that EA got my offer.

eidand

EAs don't have to do anything, if the vendor instructed them to not put forward anything below a certain number. I can't speak for all vendors but when I was selling we did the same, don't send me anything below that.

Wait until Monday and give them another call, maybe things are moving a bit slow, the vendor might be away. Basically, patience ...

p00hsticks

DE_612183 said:

I seem to remember somewhere that EA's are obliged to put forward offers even if they know they will get rejected out of hand.

I don't believe they are - if the seller has told them that they're not prepared to e.g. consider offers below a particular price, or from people who need to sell a property in order to proceed but don't yet have it on the market, then the estate agent won't normally  pass such offers on.

pipscat

When we put in an offer for a house - it was below offers over price and it got rejected right away. We then upped it to the asking price and they took a while to get back to us. We didn't get that house in the end as they wanted way more than we were prepared to pay. 

I always find its best to call with things like this rather than email - EAs are so busy they usually take longer to respond via email. If you call and speak to someone you'll get an idea there and then if they are likely to reject an offer.

jaelato1

eidand said:

EAs don't have to do anything, if the vendor instructed them to not put forward anything below a certain number. I can't speak for all vendors but when I was selling we did the same, don't send me anything below that.

Wait until Monday and give them another call, maybe things are moving a bit slow, the vendor might be away. Basically, patience ...

In this case, shouldn't they tell us they wont be putting in the offer or how are we suppose to know?

i will wait till Monday and give them a ring