Why would EA suggest likely to go to best and final offers with only one offer on the table?

AskAsk

Jemma01 said:

Offering over the asking price is already too much. You're pushing the price up for yourself and for other people. 

The OP wants the house and there is already an offer for the full asking price so the OP wants to secure the property by offering a little bit more.  Unfortunately, as you say, this in itself is self propagating the bidding war, but if they offered the same as the other offer, the seller may choose the other person.

It is rare that properties sell for more than the asking price but if it was advertised with the word "guide" or "offers over", it may get more than the asking price.

And if there is a proceedable offer at the asking price, you would have no choice by go above it if you want to get the property.

jonnydeppiwish!

AskAsk said:

amboo.13 said:

It’s been on the market a week. I have offered a bit over asking, which was my plan and I felt like I wanted to do after being told the existing offer is at asking. 

I am interested in making a best and final offer to try to secure it, but I am worried such an offer made too soon would be used as leverage for another offer to be made, since EA told me about offer at asking. I’m wondering if I wait til next viewings are completed before making my best and final? Or wait til/if the sea calls a best and final round (which they’ve said is likely). 

Any tips on probing questions I could ask EA?

A week is too early for a seller to accept an offer, although it isn't impossible that they could accept an offer and take the property off the market that early.

I think the agent is trying to get a bidding war going.  You could ask the agent if your offer as it stands is acceptable to the seller, so you could buy time and let them think that you may increase your offer or you may not, but you are still in the race.

Why? I accepted 2 offers on day 2 and 3 respectively and took the house off the market, and have had an offer accepted before a property was even put on RM.

AskAsk

jonnydeppiwish! said:

AskAsk said:

amboo.13 said:

It’s been on the market a week. I have offered a bit over asking, which was my plan and I felt like I wanted to do after being told the existing offer is at asking. 

I am interested in making a best and final offer to try to secure it, but I am worried such an offer made too soon would be used as leverage for another offer to be made, since EA told me about offer at asking. I’m wondering if I wait til next viewings are completed before making my best and final? Or wait til/if the sea calls a best and final round (which they’ve said is likely). 

Any tips on probing questions I could ask EA?

A week is too early for a seller to accept an offer, although it isn't impossible that they could accept an offer and take the property off the market that early.

I think the agent is trying to get a bidding war going.  You could ask the agent if your offer as it stands is acceptable to the seller, so you could buy time and let them think that you may increase your offer or you may not, but you are still in the race.

Why? I accepted 2 offers on day 2 and 3 respectively and took the house off the market, and have had an offer accepted before a property was even put on RM.

I have accepted an offer at the first open day viewing as it was for the full asking price but nowadays I tend to like to leave the property on the market for two weeks to get all the offers in before I decide to accept one of them as I feel the property needs to be given a chance for everyone to see it so that I can have as many offers as possible to choose from.  Waiting 2 weeks isn't a long time when the property first go to market. 

We recently put a property on the market at the guide price, so that invites offers, so I wanted to wait for two weeks to get all the offers in.

Our preferred estate agent doesn't even talk to us for two weeks as they get all the offers in during the first two weeks and work all the offers to the best price before they contact us to give us a summary and we can then make a decision.

RelievedSheff

Jemma01 said:

Offering over the asking price is already too much. You're pushing the price up for yourself and for other people. 

There is already an other asking price offer on the table. 

The OP wants this property. How else do you suggest they secure it?

Jemma01

RelievedSheff said:

Jemma01 said:

Offering over the asking price is already too much. You're pushing the price up for yourself and for other people. 

There is already an other asking price offer on the table. 

The OP wants this property. How else do you suggest they secure it?

Bidding over the asking price (or the other offer) isn't necessary going to secure it. If that was a fact, cash buyers wouldn't be running away with the houses even for less offers than other bidders.
I made an offer 5K less than the asking price, they had an offer higher than mine (I'd imagine they got the asking price), and they still took my offer. They based this on my DIP mortgage, that I had no chain, and the available funds I had that I can readily prove access to. They assessed the other buyer and determined it wasn't viable. So having a higher offer isn't necessarily the way to secure a property (it does in places and doesn't in others). A reasonable seller will look at the proposal as a whole (the offer + the buyer's situation). Both seller and EA need the confidence that a buyer is ready and willing and their application will not fail due to external parties.

BarelySentientAI

Jemma01 said:

RelievedSheff said:

Jemma01 said:

Offering over the asking price is already too much. You're pushing the price up for yourself and for other people. 

There is already an other asking price offer on the table. 

The OP wants this property. How else do you suggest they secure it?

Bidding over the asking price (or the other offer) isn't necessary going to secure it. If that was a fact, cash buyers wouldn't be running away with the houses even for less offers than other bidders.
I made an offer 5K less than the asking price, they had an offer higher than mine (I'd imagine they got the asking price), and they still took my offer. They based this on my DIP mortgage, that I had no chain, and the available funds I had that I can readily prove access to. They assessed the other buyer and determined it wasn't viable. So having a higher offer isn't necessarily the way to secure a property (it does in places and doesn't in others). A reasonable seller will look at the proposal as a whole (the offer + the buyer's situation). Both seller and EA need the confidence that a buyer is ready and willing and their application will not fail due to external parties.

You 'won' with a lower bid against someone who wasn't proceedable.

That is in no way evidence that "offering over the asking price is too much".

Jemma01

BarelySentientAI said:

Jemma01 said:

RelievedSheff said:

Jemma01 said:

Offering over the asking price is already too much. You're pushing the price up for yourself and for other people. 

There is already an other asking price offer on the table. 

The OP wants this property. How else do you suggest they secure it?

Bidding over the asking price (or the other offer) isn't necessary going to secure it. If that was a fact, cash buyers wouldn't be running away with the houses even for less offers than other bidders.
I made an offer 5K less than the asking price, they had an offer higher than mine (I'd imagine they got the asking price), and they still took my offer. They based this on my DIP mortgage, that I had no chain, and the available funds I had that I can readily prove access to. They assessed the other buyer and determined it wasn't viable. So having a higher offer isn't necessarily the way to secure a property (it does in places and doesn't in others). A reasonable seller will look at the proposal as a whole (the offer + the buyer's situation). Both seller and EA need the confidence that a buyer is ready and willing and their application will not fail due to external parties.

You 'won' with a lower bid against someone who wasn't proceedable.

That is in no way evidence that "offering over the asking price is too much".

This calls for you to assume that the OP is less valuable than the other buyer, which no one can vouch for because no one knows who's who. How do you know the other buyer in the OP's case isn't the same as the one I faced?
When I put my offer in, I had no idea what the offers were, I had to put in my best offer and hope for the best. I only learnt about the other offer (there were 4 in total) after they decided to accept my offer over someone else's.
My point still stands that, the offering price is not the only determining factor.

BarelySentientAI

Jemma01 said:

BarelySentientAI said:

Jemma01 said:

RelievedSheff said:

Jemma01 said:

Offering over the asking price is already too much. You're pushing the price up for yourself and for other people. 

There is already an other asking price offer on the table. 

The OP wants this property. How else do you suggest they secure it?

Bidding over the asking price (or the other offer) isn't necessary going to secure it. If that was a fact, cash buyers wouldn't be running away with the houses even for less offers than other bidders.
I made an offer 5K less than the asking price, they had an offer higher than mine (I'd imagine they got the asking price), and they still took my offer. They based this on my DIP mortgage, that I had no chain, and the available funds I had that I can readily prove access to. They assessed the other buyer and determined it wasn't viable. So having a higher offer isn't necessarily the way to secure a property (it does in places and doesn't in others). A reasonable seller will look at the proposal as a whole (the offer + the buyer's situation). Both seller and EA need the confidence that a buyer is ready and willing and their application will not fail due to external parties.

You 'won' with a lower bid against someone who wasn't proceedable.

That is in no way evidence that "offering over the asking price is too much".

This calls for you to assume that the OP is less valuable than the other buyer, which no one can vouch for because no one knows who's who. How do you know the other buyer in the OP's case isn't the same as the one I faced?

No it doesn't.  Please re-read my post.  I have made no distinction whether the OP's offer is correct, valuable or otherwise.  I commented solely on your situation, as you explained it in your post.

Jemma01 said:

BarelySentientAI said:

Jemma01 said:

RelievedSheff said:

Jemma01 said:

Offering over the asking price is already too much. You're pushing the price up for yourself and for other people. 

There is already an other asking price offer on the table. 

The OP wants this property. How else do you suggest they secure it?

Bidding over the asking price (or the other offer) isn't necessary going to secure it. If that was a fact, cash buyers wouldn't be running away with the houses even for less offers than other bidders.
I made an offer 5K less than the asking price, they had an offer higher than mine (I'd imagine they got the asking price), and they still took my offer. They based this on my DIP mortgage, that I had no chain, and the available funds I had that I can readily prove access to. They assessed the other buyer and determined it wasn't viable. So having a higher offer isn't necessarily the way to secure a property (it does in places and doesn't in others). A reasonable seller will look at the proposal as a whole (the offer + the buyer's situation). Both seller and EA need the confidence that a buyer is ready and willing and their application will not fail due to external parties.

You 'won' with a lower bid against someone who wasn't proceedable.

That is in no way evidence that "offering over the asking price is too much".

My point still stands that, the offering price is not the only determining factor.

That, whilst true, wasn't the point that you chose to make when disagreeing earlier.

Please see your actual post:

"Offering over the asking price is already too much. You're pushing the price up for yourself and for other people."

You were making a clear assertion that none of your later comments have backed up. 

Whilst you might have won with an offer lower than the asking price, that is not evidence that in the OPs situation, any particular offer is "already too much". 

Jemma01

BarelySentientAI said:

Jemma01 said:

BarelySentientAI said:

Jemma01 said:

RelievedSheff said:

Jemma01 said:

Offering over the asking price is already too much. You're pushing the price up for yourself and for other people. 

There is already an other asking price offer on the table. 

The OP wants this property. How else do you suggest they secure it?

Bidding over the asking price (or the other offer) isn't necessary going to secure it. If that was a fact, cash buyers wouldn't be running away with the houses even for less offers than other bidders.
I made an offer 5K less than the asking price, they had an offer higher than mine (I'd imagine they got the asking price), and they still took my offer. They based this on my DIP mortgage, that I had no chain, and the available funds I had that I can readily prove access to. They assessed the other buyer and determined it wasn't viable. So having a higher offer isn't necessarily the way to secure a property (it does in places and doesn't in others). A reasonable seller will look at the proposal as a whole (the offer + the buyer's situation). Both seller and EA need the confidence that a buyer is ready and willing and their application will not fail due to external parties.

You 'won' with a lower bid against someone who wasn't proceedable.

That is in no way evidence that "offering over the asking price is too much".

This calls for you to assume that the OP is less valuable than the other buyer, which no one can vouch for because no one knows who's who. How do you know the other buyer in the OP's case isn't the same as the one I faced?

No it doesn't.  Please re-read my post.  I have made no distinction whether the OP's offer is correct, valuable or otherwise.  I commented solely on your situation, as you explained it in your post.

Jemma01 said:

BarelySentientAI said:

Jemma01 said:

RelievedSheff said:

Jemma01 said:

Offering over the asking price is already too much. You're pushing the price up for yourself and for other people. 

There is already an other asking price offer on the table. 

The OP wants this property. How else do you suggest they secure it?

Bidding over the asking price (or the other offer) isn't necessary going to secure it. If that was a fact, cash buyers wouldn't be running away with the houses even for less offers than other bidders.
I made an offer 5K less than the asking price, they had an offer higher than mine (I'd imagine they got the asking price), and they still took my offer. They based this on my DIP mortgage, that I had no chain, and the available funds I had that I can readily prove access to. They assessed the other buyer and determined it wasn't viable. So having a higher offer isn't necessarily the way to secure a property (it does in places and doesn't in others). A reasonable seller will look at the proposal as a whole (the offer + the buyer's situation). Both seller and EA need the confidence that a buyer is ready and willing and their application will not fail due to external parties.

You 'won' with a lower bid against someone who wasn't proceedable.

That is in no way evidence that "offering over the asking price is too much".

My point still stands that, the offering price is not the only determining factor.

That, whilst true, wasn't the point that you chose to make when disagreeing earlier.

Please see your actual post:

"Offering over the asking price is already too much. You're pushing the price up for yourself and for other people."

You were making a clear assertion that none of your later comments have backed up. 

Whilst you might have won with an offer lower than the asking price, that is not evidence that in the OPs situation, any particular offer is "already too much". 

you've decided to quote my response to someone else who explicitly asked me what can the other guy do.
Yes offering over the asking price is already too much, because that's not the asking price. They know the value of their house and that's what they're asking for. He can still offer the same asking price and present his case why he's a good buyer and why they should choose him over the other!
You really haven't proven anything. 

BarelySentientAI

Jemma01 said:

BarelySentientAI said:

Jemma01 said:

BarelySentientAI said:

Jemma01 said:

RelievedSheff said:

Jemma01 said:

Offering over the asking price is already too much. You're pushing the price up for yourself and for other people. 

There is already an other asking price offer on the table. 

The OP wants this property. How else do you suggest they secure it?

Bidding over the asking price (or the other offer) isn't necessary going to secure it. If that was a fact, cash buyers wouldn't be running away with the houses even for less offers than other bidders.
I made an offer 5K less than the asking price, they had an offer higher than mine (I'd imagine they got the asking price), and they still took my offer. They based this on my DIP mortgage, that I had no chain, and the available funds I had that I can readily prove access to. They assessed the other buyer and determined it wasn't viable. So having a higher offer isn't necessarily the way to secure a property (it does in places and doesn't in others). A reasonable seller will look at the proposal as a whole (the offer + the buyer's situation). Both seller and EA need the confidence that a buyer is ready and willing and their application will not fail due to external parties.

You 'won' with a lower bid against someone who wasn't proceedable.

That is in no way evidence that "offering over the asking price is too much".

This calls for you to assume that the OP is less valuable than the other buyer, which no one can vouch for because no one knows who's who. How do you know the other buyer in the OP's case isn't the same as the one I faced?

No it doesn't.  Please re-read my post.  I have made no distinction whether the OP's offer is correct, valuable or otherwise.  I commented solely on your situation, as you explained it in your post.

Jemma01 said:

BarelySentientAI said:

Jemma01 said:

RelievedSheff said:

Jemma01 said:

Offering over the asking price is already too much. You're pushing the price up for yourself and for other people. 

There is already an other asking price offer on the table. 

The OP wants this property. How else do you suggest they secure it?

Bidding over the asking price (or the other offer) isn't necessary going to secure it. If that was a fact, cash buyers wouldn't be running away with the houses even for less offers than other bidders.
I made an offer 5K less than the asking price, they had an offer higher than mine (I'd imagine they got the asking price), and they still took my offer. They based this on my DIP mortgage, that I had no chain, and the available funds I had that I can readily prove access to. They assessed the other buyer and determined it wasn't viable. So having a higher offer isn't necessarily the way to secure a property (it does in places and doesn't in others). A reasonable seller will look at the proposal as a whole (the offer + the buyer's situation). Both seller and EA need the confidence that a buyer is ready and willing and their application will not fail due to external parties.

You 'won' with a lower bid against someone who wasn't proceedable.

That is in no way evidence that "offering over the asking price is too much".

My point still stands that, the offering price is not the only determining factor.

That, whilst true, wasn't the point that you chose to make when disagreeing earlier.

Please see your actual post:

"Offering over the asking price is already too much. You're pushing the price up for yourself and for other people."

You were making a clear assertion that none of your later comments have backed up. 

Whilst you might have won with an offer lower than the asking price, that is not evidence that in the OPs situation, any particular offer is "already too much". 

you've decided to quote my response to someone else who explicitly asked me what can the other guy do.
Yes asking over the offering price is already too much, because that's not the asking price. They know the value of their house and that's what they're asking for. He can still offer the same asking price and present his case why he's a good buyer and why they should choose him over the other!
You really haven't proven anything. 

I don't have to prove anything.  I'm not making an assertion.

Offering the asking price again might work.  It might not.
Offering over the asking price might work.  It might not.
Spinning around anticlockwise and whistling the national anthem might work.  It might not.

You made a direct, complete, 100% assertion that offering over is already too much.  That's nonsense.  It might be, it might not be.  Houses sell above and below the asking price all the time.  If your statement was true, no houses would ever sell above asking.

You have good points, most of which are true, but making a bullish statement of 100% certainty is wrong, and can make people who take your advice do the wrong thing.  It's not responsible to make statements like that.

edit:  and I quoted your response right from the first comment - your assertion - to make it clear that I wasn't responding only to the later points.