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

gazfocus

We listed our house 18 months ago for a straight £x.xx and got offers £20k over asking price. The sale fell through in the end so we took the house off the market. Listed it this time round with an EA that’s known for ‘offers over’ so they listed it as Offers Over £x.xx (£30k more than the highest offer 18 months ago) and got one offer asking price, one offer at £1k over asking price and an offer £5k over asking price. 

We accepted the offer £1k over as they were the most likely to complete in our opinion, but the offers over was sold to us as a way of getting a better price… didn’t work out that way but we set the starting price as the price we wanted anyway so are happy. 

theoretica

The seller may be correct and get a higher offer in a couple of weeks.  Or they may not...  How will you react in each case?

Sarah1Mitty2

lookstraightahead said:

Offers over is just a marketing ploy, plus a way of inflating a seller's ego by the EA to win business. Makes sellers think they are in the driving seat. It is also quite a good way of making buyers believe a 'real' valuation has taken place when it hasn't.

Excellent point, many sellers will be undergoing a hard learning curve at the moment, the EA just wants the business on their books as you say.

ThisIsWeird

theoretica said:

The seller may be correct and get a higher offer in a couple of weeks.  Or they may not...  How will you react in each case?

A very good point.

You obviously like this house! But, do you really think it's the only one that's going to be out there for you? Of course not - there will be a steady steam of houses appearing, some of which will almost certainly be better in a number of respects. And if the market is levelling off, even slightly falling, this could end up saving you money and/or giving you an even better house for your money.

Been there. Gazumped on what we believed was our dream home - on a leafy 'church' street, inglenook fireplace (and house name!), and wife was in tears, especially as we'd been shown around by the vendor, agreed a price, and shook hands over it. A week later an apologetic (and I think sincere) EA called us to say we'd been g'umped and did we wish to meet the new price? Non.

Found a better house in an incredible location, was invited to meet (and be approved by!) the lovely neighbours, and it was 'ours' - no question. 2 weeks later, old EA called us - buyer on Inglenook had pulled out - do we want it? Non.

EssexHebridean

There is a whole interesting question here around whether it is possible to buy/sell in a morally sound and ethical way these days. (Or possibly indeed whether that has ever been possible!) We’re trying to do so - we’ve been honest on pricing ours - we’ve gone “offers in the region of” and will realistically take a few k below the level we’ve pitched it for, but won’t be playing people along trying to get every last penny out of them. We did debate about an offers over structure but the problem is now people still seem to see that as a price to be negotiated from below, not above. When we accept an offer it’s not even in question the place will come straight off the market - we’ll take the for sale board down ourselves if there is a delay on the agent doing it. And if once we have accepted that price we do get a higher offer from an earlier viewing they will be told “sorry, it’s taken, we’ll contact you if things change” and we’d only go back to them if the first buyers pulled out or were clearly significantly messing us about. I want to be able to live with my conscience afterwards - and if that makes me foolish or naive in some folks eyes, well that says more about them than me, I reckon!  If everyone just stopped playing games, and was a little more truthful and honest, it’s hard not to think that the world might run a little more smoothly! 

BMTH

theoretica said:

The seller may be correct and get a higher offer in a couple of weeks.  Or they may not...  How will you react in each case?

They have me on strings in this situation though. It's all good and well me continuing to look at other houses just as it is they can keep taking viewings while my offers still on the table, but waiting days/weeks before giving me a response just so they can possibly squeeze a little extra out of someone doesn't sit well with me.

I'm not denying this is the process/welcome to the world of buying a house etc but meh I dunno, it's a bit !!!!!! when so much money and a persons livelihood is involved.

Emily_Joy

OP, we all know it is difficult to de-attach emotionally from the situation, but in all honesty, try to find something to occupy your mind for another week. Leave your offer on a table and find something else to do. 

theoretica

BMTH said:

theoretica said:

The seller may be correct and get a higher offer in a couple of weeks.  Or they may not...  How will you react in each case?

They have me on strings in this situation though. It's all good and well me continuing to look at other houses just as it is they can keep taking viewings while my offers still on the table, but waiting days/weeks before giving me a response just so they can possibly squeeze a little extra out of someone doesn't sit well with me.

I'm not denying this is the process/welcome to the world of buying a house etc but meh I dunno, it's a bit !!!!!! when so much money and a persons livelihood is involved.

They only have your offer on the table if you let them - the longer they take to reply the more likely you are to have found somewhere else or changed your mind.  You may of course tell a seller your offer is only valid for a short fixed period if you want a rapid and definite answer either way.

lookstraightahead

You sound level headed. What I suggest is go with the flow for now. Either you will get it, or you will get fed up of the shenanigans and walk away and say phew. You can't really lose if you stay sensible. 

[Deleted User]

BMTH said:

Hi, FTB here living in the midlands. We saw a house we really liked which had 'offers over'. We had a couple of viewings and did our research and thought we'd go in at 240k. They rejected which is fair enough. However, we've gone back in at 242.5k which we're expecting to get rejected aswell. The EA haven't been helpful at all with us but we reckon the sellers are trying their luck for 245k + . I know this doesn't seem like much more but I can't justify paying the extra 5k on what we've seen. Is this normal or am I making a mistake because of how much we liked it? This is all very new to us so I'm on my mind a lot!

Just to add this only went on the market a week ago today so wondering whether the sellers are lapping up the interest.

I think your second bid was a mistake in terms of timing and rationale. The vendor did  not accept 240k, and within no time you are bidding 242.5k which objectively is barely more. Presumably they will reject your latest bid for the same reasons as they rejected the first, an outcome which seems to be your expectation too.

Different scenarios may play out here. Others may bid. That wont suit you much, you seem to have decided on your limit, and probably wont have the scope to trump other offers in a bidding war, which is fair enough.

Alternatively, if you are the only bidder in town after another week or two, let your offer sit on the table.