Offering on overvalued house

eddddy

twoLou said:

Perhaps say you are very interested but would like to know how the agent came to that price?

I've done that myself and it gives you a little bit of an advantage as the agent is taken unawares, it can be interesting how they answer too, the truth or waffle!

It's sometimes fun to make an EA squirm, but I don't think it will help in the offer negotiation.

More realistically, you want to get the EA on your side, to help you get your offer accepted. Playing games of 'one-upmanship' with the EA doesn't usually help with that.

The key things you want to know are:

• What are others offering
• What it the minimum price the seller will accept

So 'chat' with the EA to see if you can get any clues on that.



FWIW - I have asked EAs questions like "What kind of offer do you think I'd need to make to be successful?" and got sensible answers.

In one case, I had a conversation with an EA that went something like this:

• If I offered £250k, would I be likely to be successful?  EA "No" 
• If I offered £255k, would I be likely to be successful?  EA "No"
• If I offered £256k, would I be likely to be successful?  EA "No"
• If I offered £257k, would I be likely to be successful?  EA "Yes - you'd probably be successful"  (And I was.)

But, to be honest, I don't think most EAs would be that "helpful".

Gycraig

It’s not really worth debating how they got to there price and what other ones have sold for in the area. 

Offer what you think it’s worth and you either get the house or you don’t, maybe the other house needed a quick sale, or had structural issues, or he just wanted to give some youngsters a cheaper house. 

thelastofman

Gycraig said:

It’s not really worth debating how they got to there price and what other ones have sold for in the area. 

Offer what you think it’s worth and you either get the house or you don’t, maybe the other house needed a quick sale, or had structural issues, or he just wanted to give some youngsters a cheaper house. 

Are you suggesting it’s not worth doing the research and asking for second opinions? Better to just take their word for it?

eidand

thelastofman said:

Gycraig said:

It’s not really worth debating how they got to there price and what other ones have sold for in the area. 

Offer what you think it’s worth and you either get the house or you don’t, maybe the other house needed a quick sale, or had structural issues, or he just wanted to give some youngsters a cheaper house. 

Are you suggesting it’s not worth doing the research and asking for second opinions? Better to just take their word for it?

do your research but at the end of the day it will be what the vendors want. Their word is the only thing that matters because its their house. Offer what you feel it's worth, but you will more than likely have to let this one go.

robatwork

I want to pick up on a point a previous post made. That post said the vendor determines the value of the house. That's wrong.

The vendor determines the price of the house. The buyers determine the value. 

thelastofman

Was told other offers are much higher than ours and have been asked for a best and final offer. Apparently the others at least exceed the guide price. Can’t see this property being worth that much so will walk away

jimbog

thelastofman said:

Was told other offers are much higher than ours and have been asked for a best and final offer. Apparently the others at least exceed the guide price. Can’t see this property being worth that much so will walk away

or more accurately: 'can't see this property being worth that much to me' 

If it sells in excess of the asking price then it was worth more to someone else. If you're finding that this is continually the case then either you will need to up your budget or look in a different area

thelastofman

jimbog said:

thelastofman said:

Was told other offers are much higher than ours and have been asked for a best and final offer. Apparently the others at least exceed the guide price. Can’t see this property being worth that much so will walk away

or more accurately: 'can't see this property being worth that much to me' 

If it sells in excess of the asking price then it was worth more to someone else. If you're finding that this is continually the case then either you will need to up your budget or look in a different area

Of course, it goes without saying that this is just my opinion and my own valuation. I'm not concerned about whether other buyers agree, hence why I'm happy to walk away and let it go to those who may value it more. We've done our research so if a house does end up selling for that much it'll be more to do with the buyer's circumstances and the success of the EA tactics if that becomes more prevalent in the area then sure we'll consider it. That does not mean I will start offering way above market value out of fear.

Zerforax

thelastofman said:

jimbog said:

thelastofman said:

Was told other offers are much higher than ours and have been asked for a best and final offer. Apparently the others at least exceed the guide price. Can’t see this property being worth that much so will walk away

or more accurately: 'can't see this property being worth that much to me' 

If it sells in excess of the asking price then it was worth more to someone else. If you're finding that this is continually the case then either you will need to up your budget or look in a different area

Of course, it goes without saying that this is just my opinion and my own valuation. I'm not concerned about whether other buyers agree, hence why I'm happy to walk away and let it go to those who may value it more. We've done our research so if a house does end up selling for that much it'll be more to do with the buyer's circumstances and the success of the EA tactics if that becomes more prevalent in the area then sure we'll consider it. That does not mean I will start offering way above market value out of fear.

It's a sensible way to approach it. The market is tough and a lot of desperate people have been paying higher and higher amounts with limited stock coming onto the market.

jimbog

thelastofman said:

jimbog said:

thelastofman said:

Was told other offers are much higher than ours and have been asked for a best and final offer. Apparently the others at least exceed the guide price. Can’t see this property being worth that much so will walk away

or more accurately: 'can't see this property being worth that much to me' 

If it sells in excess of the asking price then it was worth more to someone else. If you're finding that this is continually the case then either you will need to up your budget or look in a different area

 That does not mean I will start offering way above market value out of fear.

You're quite right to keep a level head. The frustration for any buyer is determining just what is the 'market value' is as it is always changing