Gutted on losing a house but can't justify the price

[Deleted User]

BMTH said:

Makes sense. 2 things with this though , that's obviously a risk which could backfire. Secondly, makes you wonder how much it would take for them to say yes to an offer now.

But it’s not a game of poker. Apologies if that sounds a bit blunt. Concerning risk, they might be thinking the risk in accepting your offer is they didn’t get the best price. 

When selling anything, early offers can often be seen as coming from chancers trying to snag a bargain before anyone else sees it.

They likely won’t know what price they’d accept now because they don’t know what (a broader range of) people are willing to pay. After a month or two of offers (or none) they’ll have a better idea of what they’re likely to achieve. 

I would expect, for them to accept anything right now, it would have to be way more than the listing price. Throwing an offer within days just confirms to them the house will sell, it’s desirable. 

BMTH

Learning off this then, how on earth would I approach houses that come on the market in the future? Lets say another one comes on today which we really like, put an offer in again a couple days later maybe £5-10K over this time only to be told the same thing... 'the sellers know its desirable so are waiting for any better offers'.

Doozergirl

BMTH said:

Learning off this then, how on earth would I approach houses that come on the market in the future? Lets say another one comes on today which we really like, put an offer in again a couple days later maybe £5-10K over this time only to be told the same thing... 'the sellers know its desirable so are waiting for any better offers'.

Everyone is different.  You can't really learn from it.  Some people might take a bit less straight away, others might be steadfastly expecting way more than their house is worth for years on end.  

You're a human dealing with humans.   All you can decide is whether something is worth it.   If something is perfect then you have to decide if it is worth it to you, or whether you think there is better to be had and are willing to potentially let it it go.  

Trying to second guess vendors or other potential buyers is impossible.  

In your situation I'd book another viewing and try to build a rapport with the vendors themselves. People buy people and that might ease their opinion, but it might not.  

What I will say is that any agent worth their wage will work on vendors to reduce expectation as well in order to get a deal over the line.  

housebuyer143

Personally I would pay the extra if it secured my dream home. Don't get me wrong, I would not pay massive amounts higher, but in the scheme of things £5-£10k is nothing over your lifetime if it means you get the house you want.
I overpaid for my first house by probably £7k and I lived there 12 years and never regretted it..I probably overpaid on my new house, but it's the exact place I had been looking for, for a long time. 

Only you can decide, but personally I would offer more if you can afford it. Obviously if you can't then that's different, but not getting it out of principal is just silly in my opinion.

lesalanos

For me it's better not to get carried away with it.  

You don't want to be in a position where they accept 250 but the mortgage valuation comes in at 240, leaving you scrambling for options 

BMTH

Interesting views , thanks.

Now I'm wondering whether 245 would have been the better and final offer! In the grand scheme of things it's not a great deal more.

[Deleted User]

BMTH said:

Learning off this then, how on earth would I approach houses that come on the market in the future? Lets say another one comes on today which we really like, put an offer in again a couple days later maybe £5-10K over this time only to be told the same thing... 'the sellers know its desirable so are waiting for any better offers'.

There’s no way of knowing beforehand how things will go. As mentioned above, trying to second guess how people will respond is nigh on impossible.

This vendor might have priced low to attract attention but with no intention (or need) of selling it for under, let’s say, £250k. Another vendor might be the complete opposite, keen to sell, and accepted your first offer. Pure guess work.

Don’t be disheartened by it, though. I agree with others, be careful when upping offers after offer, it can make sellers curious to how deep your pockets actually go. Some even expect an offer to be upped, as though it’s a given part of the process. It can be useful to factor this in before making the initial offer so you don’t stretch your finances beyond what’s comfortable.

You never know, give it a month or two, they might decide your offer is acceptable after all. Depends on how the winds blow between now and then,

ThisIsWeird

BMTH said:

Interesting views , thanks.

Now I'm wondering whether 245 would have been the better and final offer! In the grand scheme of things it's not a great deal more.

As folk have advised, make any offer based on how much you really want this house. If it's a stand-out property for you, then fair enough. But, really, are there no other options in the area, if given a little time? And what is the market doing there - levelled off? Even falling slightly? Where are you living now - can you stay there for as long as it takes, or are you keen to/have to move soonish?

In a situation like yours, always be reasonable and pleasant in your dealings, even if you 'think' the EA is trying to do you over. Express your natural disappointment, yes, but not in a churlish way; just show you are keen, but not daft. And leave your offer on the table, so they'll hopefully consider you again should the slightly higher offer they were presumably chasing doesn't come about. So, "Ah, shame - we love it, but that's what it's worth for us/what we believe is a fair offer/all we can manage. Please let us know if they change their mind - we'll always consider it if we haven't found anywhere else before then."

What do folk on here think about the other type of approach - the "Please ask the vendor what they'd accept to take it off the market and move quickly on it"?

lookstraightahead

lesalanos said:

For me it's better not to get carried away with it.  

You don't want to be in a position where they accept 250 but the mortgage valuation comes in at 240, leaving you scrambling for options 

This is a very valid point. 

Op, there will be lots of dream houses. I too wouldn't get carried away. I never even view 'offers over' houses as I think it is a marketing ploy.

Lenders will value the property on the property, not on what you've offered, and certainly not on what the vendor wants to get.

I'm not saying you shouldn't pay what you're comfortable with and can afford, but my thinking whenever I buy is there will be something else if I don't get this one. And there always has been. 

Level headed is the key. 

mi-key

BMTH said:

Interesting views , thanks.

Now I'm wondering whether 245 would have been the better and final offer! In the grand scheme of things it's not a great deal more.

It may well have been, and nothing is stopping you calling the agent and saying you really like the house, are keen to proceed and you have had a look at your figures and that is your best offer. It may get rejected, but the agent may come back and say 'if you can find another £2000 then they will accept that'

I think really it is down to it having been on such a short amount of time. If I was selling and got an offer within a week, but also had other interest or viewings booked, I probably wouldn't accept it unless it was for a decent amount over the asking price.