Leaving a rejected first offer on the table over Christmas

ChickenRun93

Hello everyone,

My partner and I just made our first offer on a 3-bed property that has been on the market for just over 2 months marketed at £290,000. The EA's weren't particulary guarded during viewings and when asked, they informed us that there had been no offers on the property and the seller had found somewhere bigger that was vacant but needed an offer to proceed---so were looking to move fairly quickly.

Both our parents have a lot of experience within the construction industry, so we arranged a longer second viewing and treated that as a "soft" survey (looking in the loft, exterior, and general condition). We made our offer a few days later, on the low end at £265, due to work being needed including addressing an odd oily patch coming through on the chimney breast, insufficient insulation in the loft, garage needing a new roof, random bits in the exterior wall not being filled/capped, and generally the finish inside could have been better standard particularly at the marketed price (second-hand kitchen with doors that didn't match as one example). It also had a small downstairs shower-only room at the very back of the house, which we would want to change. 

To back up our offer, we made it clear we are also flexible on move dates (due to renting on a monthly rolling basis) and evidenced a position to move quickly with our AIP, broker details, and £85k deposit. We had also offered to buy the search pack if accepted, knowing that this combined with not necessarily needing to instruct an external Surveyor, would speed the process along.

After 3 days we have just heard that the seller rejected our offer due to it being too low for what they're looking for, but received no counter. We have done our research and found good comps in the area, one with the same large garage and interior layout, for around £270k. I've also found the property was listed last year at £280k, but did not sell.

As we're not in any rush to move or buy, my partner doesn't want to increase our offer due to the "value in our liquidity", and he's pretty firm on leaving it on the table over Christmas. The EA said they think the seller is looking for something in the £270 range, and I think this could seal a fair enough deal, but equally this would open to door to "negotiating with ourselves" as my partner puts it.


I guess I'd just like to get other people's opinions/knowledge where possible. I understand negotiating is meant to be a bit of a test, but I'm not sure it's a good idea for us to be low-balling everything until something sticks!

(My partner is pretty frugal as you'd probably imagine 😆)

lincroft1710

I wouldn't even "leave it on the table over Xmas". Just say "that is my offer and I believe it is fair and reasonable in the circumstances". You've made the first move, if they don't counter are they serious vendors or just delusional?

Herzlos

How much do you want the house? Enough to not want to lose it over £5k?

Realistically, very little is going to happen over Christmas so you've not got much to lose by waiting until January to decide what you want to do.

swingaloo

Depends how much you want the house and also take into consideration how much you will spend on the next few months rent.

ReadingTim

Opening with a low ball offer is fine, but you're usually expected to go up from there, so sticking to your guns on a single low offer is a bit of an odd strategy, which might confuse the vendor or make them think you're a timewaster.  Do it too many times and the EAs might come to a similar conclusion...

Anyway, whilst you haven't had an explicit counter-offer in terms of pounds and pence, the vendor hasn't completely turned you away - they're just inviting you to come back with something better, and their EA has even hinted at a figure, which seems in line with comparables from what your post said.  

So the ball's in your court really - I doubt the vendor will come back to you, and there could well be other buyers out there, so don't think you're the only show in town.  Ultimately it depends on the extent to which you want to move, or hang out for a bargain that may never come. 

The problem with being very frugal is that you know the price of everything and the value of nothing, and sometimes paying a little bit more to let you get on with life in more comfort is money well spent, especially if it's only a couple of percent of the overall price, which this is.  

MeteredOut

I'd argue you do have a counter offer, although informally via the EA rather than a formal counter.

If you feel this is the house for you, and can afford the £5K, I'd wait a few days then go back with £270K, providing the offer is accepted within x days, otherwise your £265K offer will stay on the table over Christmas. Make it clear £270K is the highest you will go (if that is the case).

What you don't want is to offer £270K and for them to then sit on that over the festive break in the hope that someone else comes interested in the new year. But, you also need to be able to walk away. How would you feel if you did not get it?

flaneurs_lobster

MeteredOut said:

I'd argue you do have a counter offer, although informally via the EA rather than a formal counter.

If you feel this is the house for you, and can afford the £5K, I'd wait a few days then go back with £170K, providing the offer is accepted within x days, otherwise your £165K offer will stay on the table over Christmas. Make it clear £170K is the highest you will go (if that is the case).

What you don't want is to offer £170K and for them to then sit on that over the festive break in the hope that someone else comes interested in the new year. But, you also need to be able to walk away. How would you feel if you did not get it?

If they accepted £170K that would be a hell of a Christmas present.

Hoenir

The EA has given an indication of expectations of the vendor. Up to you to engage or move on. By default your existing offer will lapse. 

Maahes

Your offer isn't 'on the table', it's been rejected.

[Deleted User]

MeteredOut said:

I'd argue you do have a counter offer, although informally via the EA rather than a formal counter.

If you feel this is the house for you, and can afford the £5K, I'd wait a few days then go back with £170K, providing the offer is accepted within x days, otherwise your £165K offer will stay on the table over Christmas. Make it clear £170K is the highest you will go (if that is the case).

What you don't want is to offer £170K and for them to then sit on that over the festive break in the hope that someone else comes interested in the new year. But, you also need to be able to walk away. How would you feel if you did not get it?

Well said. I agree it is something of a counter offer. It's far better that this figure was mentioned that not. Putting in a second bid had their been no counter looks desperate. But I would latch onto the 270. Assuming you planned for some negotiation 5k is trivial. It feels like a way to put in your max offer. There's a good chance it meets the vendors expectations. Ask for a decision as you are viewing other properties. Make clear you've upped your bid but won't go higher.  Given that the estate agent somewhat implied 270 would get the job done, then get the estate agent onside. There's no chance you'll bid more with the work needed. It's been on the market for a while.

Bigphil1474

I'd go back and offer £270k and if they don't accept it, look elsewhere. I'd maybe take what the EA says with a pinch of salt, but sounds like they are giving you a decent hint.