Closing date - think I've offered too much

[Deleted User]

@in_my_bumble_opinion @fewcloudy @Sarah1Mitty2 Thank you for your insights! I must admit, the seller hasn't been too knowledgeable regarding the process. In fact, he has given me a lot of information that most sellers would probably withhold in order to get a higher price. He, on the other hand, has been surprisingly forthcoming with this information, to the point I wondered whether I have offered too much (hence this thread). However, I don't know that what he is saying is accurate. There was a lot of interest in the house at the beginning, hence the closing date (they received an offer from someone who hadn't even viewed, for example).

Given the information he provided yesterday about the interest they've had recently, my offer was probably unnecessarily high, but I realise it's what I was comfortable with offering and what the property meant to me, before he gave me the information. Now I have the place, I don't want to lose it, which would be the risk I'd take if I went back to the solicitor and revised the offer. I also don't feel great about the prospect of upsetting the apple cart now they have my offer, by going back and revising it, though I know it is within my legal right to do so. It's a bit of a quandary, but I think perhaps the best thing to do would accept I may have overpaid (though I don't think it will help to know to what extent) and be pleased I have the place. I may still mention it to my solicitor, though.

user1977

As it sounds probable that there were other offer(s), even if not the number perhaps expected, there is the obvious risk that you lower your offer to less than the second-best one and lose the property that way.

Sarah1Mitty2

Some people don`t care about 30 or 40k, maybe the seller is one of them, maybe you are? If he goes with another buyer they might get a lower valuation from their mortgage lender (if they have one) because things are changing so fast at the moment and that is more stress for him if he wants to sell. If you overpay you might at some point in the future wish you had kept something back as savings. You don`t sound like a hard nosed negotiator, and neither does the seller actually! A harder nosed negotiator at this point might be flagging up the Scottish government recent actions that posters here are saying will lead to many more flats on the market, and the very rapidly changing lending conditions we have at the moment, and offering bang on the home report value, or even below it. It looks like you have to decide on what is more important, the flat or your savings (and potentially annoying someone)

[Deleted User]

user1977 said:

As it sounds probable that there were other offer(s), even if not the number perhaps expected, there is the obvious risk that you lower your offer to less than the second-best one and lose the property that way.

Exactly. I'm not willing to take that risk.

[Deleted User]

Sarah1Mitty2 said:

Some people don`t care about 30 or 40k, maybe the seller is one of them, maybe you are? If he goes with another buyer they might get a lower valuation from their mortgage lender (if they have one) because things are changing so fast at the moment and that is more stress for him if he wants to sell. If you overpay you might at some point in the future wish you had kept something back as savings. You don`t sound like a hard nosed negotiator, and neither does the seller actually! A harder nosed negotiator at this point might be flagging up the Scottish government recent actions that posters here are saying will lead to many more flats on the market, and the very rapidly changing lending conditions we have at the moment, and offering bang on the home report value, or even below it. It looks like you have to decide on what is more important, the flat or your savings (and potentially annoying someone)

Definitely not a hard nosed negotiator! You're right that the seller doesn't seem to be, either. Relative to the market, the price I have offered is still very reasonable (a 2-bed semi with a double garage for £122k) so I'm trying to view it in positive terms as opposed to 'Oh, I could have just lost a lot of money'.

I was gazumped back in March. Offered £118k on a property that was valued at £100k. After my offer was accepted, someone swooped in and the property was sold for £133k. In those terms, what I have offered is significantly above valuation, but still not outlandish for the market conditions. I guess my gazumping experience and my general bad luck in looking for a house (I've been looking for a long time!) in addition to what I thought was a lot of interest, and needing to get out of my rental property have all contributed to me offering what I did. This was a comfortable amount. However, I understand now why such a process is 'blind' because, despite it being an amount I was comfortable with, a little knowledge from the seller made me doubt my offer. That wouldn't have been the case if I hadn't spoken to him!

Sarah1Mitty2

Deleted_User said:

Sarah1Mitty2 said:

Some people don`t care about 30 or 40k, maybe the seller is one of them, maybe you are? If he goes with another buyer they might get a lower valuation from their mortgage lender (if they have one) because things are changing so fast at the moment and that is more stress for him if he wants to sell. If you overpay you might at some point in the future wish you had kept something back as savings. You don`t sound like a hard nosed negotiator, and neither does the seller actually! A harder nosed negotiator at this point might be flagging up the Scottish government recent actions that posters here are saying will lead to many more flats on the market, and the very rapidly changing lending conditions we have at the moment, and offering bang on the home report value, or even below it. It looks like you have to decide on what is more important, the flat or your savings (and potentially annoying someone)

Definitely not a hard nosed negotiator! You're right that the seller doesn't seem to be, either. Relative to the market, the price I have offered is still very reasonable (a 2-bed semi with a double garage for £122k) so I'm trying to view it in positive terms as opposed to 'Oh, I could have just lost a lot of money'.

I was gazumped back in March. Offered £118k on a property that was valued at £100k. After my offer was accepted, someone swooped in and the property was sold for £133k. In those terms, what I have offered is significantly above valuation, but still not outlandish for the market conditions. I guess my gazumping experience and my general bad luck in looking for a house (I've been looking for a long time!) in addition to what I thought was a lot of interest, and needing to get out of my rental property have all contributed to me offering what I did. This was a comfortable amount. However, I understand now why such a process is 'blind' because, despite it being an amount I was comfortable with, a little knowledge from the seller made me doubt my offer. That wouldn't have been the case if I hadn't spoken to him!

The two massive changes since March are mortgage rates and how far the Scottish government are willing to go in interfering in the rental market, maybe the Home Report valuation reflects those changes? What has also shifted is that you will probably have a lot more choice of property due to these changes, but if you are set on this property and scared of losing it maybe it makes sense to go ahead.

kandfs_mam

koalakoala said:

kandfs_mam said:

koalakoala said:

Deleted_User said:

It is a bank holiday in Scotland tomorrow

News to me! Maybe just a local holiday wherever you are?

No point worrying about your offer until you know whether it's even accepted, anyway.

Must be a local holiday then, since the estate agent and solicitor are in different regions. I hope I didn't get your hopes up! You're right, though I feel like it might be accepted if there has been little interest. I'm really hoping others will bid and the seller just isn't aware of it, which is perhaps a strange thing to say! The seller told me mine was the only one received so far, but perhaps if the bank holiday doesn't cover the area, other solicitors will be open and submitting on the day.

Don’t hope for that!
If there are no other bids you get to take your offer back

Really? I thought once offers were in they were in though nowadays most have clauses such as subject to satisfactory mortgage being secure.  Certainly when we sold our house 20 years ago we had one offer in so put a closing date on the sale, the person who had submitted an offer upped it by 5k before the closing date but they were the only “bidder” and they didn’t get the chance to take it back

In Scotland??

yes, in Scotland

[Deleted User]

Thanks @Sarah1Mitty2 The property was definitely undervalued, maybe this is why? What I have been looking for is quite specific, so I haven't noticed more properties that fit this. It's a difficult one as no one wants to feel like they are wasting money, but I don't think I'd go back and revise my offer now. For all I know, someone may have offered £2k less than me. I don't think I'll ever find out.

sheramber

You cannot just reduce your offer.

You would have to withdraw your offer through your solicitor,  then find another  solicitor to submit your reduced offer as the current one would not be allowed to act for you.

[Deleted User]

sheramber said:

You cannot just reduce your offer.

You would have to withdraw your offer through your solicitor,  then find another  solicitor to submit your reduced offer as the current one would not be allowed to act for you.

Thanks. It's good to know this, though I think I've decided at this point that I won't be going down that path anyway. I will have to accept the fact that I may have paid more than I needed to for the property, but I don't think I'm alone with that in the current market. I'm also paying exactly what I would be had I not been informed there hadn't been much interest.