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

Jemma01

BarelySentientAI said:

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.

Your argument that "well people already pay over the asking price, so that makes it not too much" is ridiculous. Just because people pay over asking price doesn't mean it isn't too much! People can do whatever they want, doesn't mean it isn't too much.
What determines whether it is too much or too little is the asking price. You want to go above it? Go ahead and do that.
People can still choose to overeat the recommended portion for their size, doesn't mean it isn't already too much 😅

BarelySentientAI

Jemma01 said:

BarelySentientAI said:

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.

Your argument that "well people already pay over the asking price, so that makes it not too much" is ridiculous. Just because people pay over asking price doesn't mean it isn't too much! People can do whatever they want, doesn't mean it isn't too much.
What determines whether it is too much or too little is the asking price. You want to go above it? Go ahead and do that.
People can still choose to overeat the recommended portion for their size, doesn't mean it isn't already too much 😅

Again, nonsense.  And not what I said either.

I'll leave it here though, because there's not much point discussing with someone deliberately choosing to misunderstand what I write.

amboo.13

That was an entertaining read you guys. Appreciate your input anyway. 

@Jemma01whilst I appreciate it’s not great to inflate the price unnecessarily (I’m an avid eBayer and know all about auctions), and that with house buying, the buyer’s position should be considered alongside their offer. But when I like a house it’s not always as straightforward as chancing whether I’m in a better position or not than the other buyer(s). The house is perfect for our needs. We might be against a chain, we might be against a cash buyer. Increasing the price is one way of increasing how attractive we are. Plus, if you believe that offering over asking is “too much” and pushing the price up for others, whilst also arguing that you can get a property by being in a better buying position and offering less, then you are making a contradictory point. 

Will update after the weekend as we have put our best and final in now  

Bigphil1474

When we had our house valued by 3 EA's they were all broadly in line with each other with a £10k range. One of the EA's suggested marketing at the bottom end, and the other 2 at the top end. If we'd gone at the bottom end, the theory was it would drum up interest and a few people might bid and push the selling price up. If we'd done that, we could have sold for more than the asking price, but below the top end of what the house was valued at. In the end we sold mid range after coming down from the top end. House prices are negotiable, not set in stone, and the selling price is a marketing price not a value.

RHemmings

AskAsk said:

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.

I'm not sure that putting the word 'guide' or the words 'offers over' will affect the sale price or what it will sell for. Which is what I interpret your first sentence (in my quote) to be saying. I think it's far more to do with how many people want to buy the property and what they are prepared to pay for it. And the words used to describe the marketing price are irrelevant.  This is based on general impressions of a lot of sales in places relevant to me, not on a proper statistical analysis checking factors such as whether 'offers over' prices are typically lower than 'standard' prices, etc. 

In your second sentence, maybe 'you would have to choice [but to] go above it [or otherwise be a more attractive buyer] if you want to get the property.' is more accurate, given the number of people reporting winning a property when they weren't the highest bid.