Offered 10% below asking price

jaelato1

jaelato1 said:

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.

 Well No 2 just happened.

Flugelhorn

ah so they have got back to you - not rejected out of court, have they come up with a possible figure?

I significantly under offered on a property and all went quiet for several days, apparently LOTS of discussion in the background but they came back with a sensible figure in the middle .

jaelato1

They didnt, which is weird. I was just asked if i wanted to up my offer, so i said i'll let them know

 

Slithery

jaelato1 said:

Is that weird or am i overthinking it? 

You're overthinking.

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.

Not true.

EA's legally have to forward all offers unless they have been told by the vendor in writing to not pass on specific offers.

This could easily be covered by an EA contract that states that they will only pass on offers above the asking price that has been signed by the sellers.

jaelato1

UPDATE:

EA never mentioned if our offer was refused or accepted but asked if we can increase offer but we said No and left the offer on the table. EA then send an email saying if we want to increase offer we should let and he also added an attachment of 2 houses around that area that sold for similar amount (NOT SOLD price, mind)  - not sure what he is tryin to do here.

Which also made me think maybe something else is wrong with the house if it not selling then.....

DE_612183

I guess they are obviously trying to push - the attachments - were they the advertised price or the actual sold price?

jaelato1

There were advertised price

DE_612183

jaelato1 said:

There were advertised price

So can you find any advertised properties with a lower price and send them back?
Advertised price does not always equate to sold price.

Land registry data of actual sold prices is usually only about 8 weeks old - so you should be able to find actual sold prices from late March to use as a proper comparison.

HM Land Registry Open Data

jaelato1

Thank you! Just had a quick check but most houses sold last year seem to 3 bed detached within 375k to 385k price while the house we offered 450k on was 4bed

This house was sold 2020 for £270k it seems....

alelly

If the house has been up for that long you might have luck putting a timeline on it. Just say you are unclear if the EA has yet relayed the offer or received any feedback but the offer is on the table for the next 48hours.