FTB – seller in chain + offer 9% under “min” price – risk to Feb deadline?

Alfrescodave

Exodi said:

Satako04 said:

Exodi said:

Satako04 said:

Hi all,

We’re first-time buyers, offered ~£20k (9%) below the “minimum” price the agent quoted. Sellers are 2nd in a chain and their purchase isn’t yet secure.

Our lease ends early next year, baby due, so we must complete by 1st week of Feb. Concerned delays or collapse could leave us stuck.

Anyone been in this situation? Tips to speed things up or protect ourselves?

Thanks!

Sorry, I don't understand the logic in asking the estate agent what the minimum price the seller might accept is, then making an offer nearly 10% under that...

So you potentially have a house marketed for £240k, the estate agent telling you that the minimum the vendor would consider is £220k, to which you've responded by offering £200k?

I know people are very cynical about estate agents and believe they spend their time tricking buyers into paying over the odds but in reality their primary motivation is getting the house sold, the relatively small difference in commission selling it for more isn't worth jeopardising the sale. It wouldn't make sense if they were aware the seller would accept £200k to pretend to you that the seller would accept a minimum of £220k.

I have a feeling you're only waiting because the estate agent is obliged to put offers to the seller and get their response.

I could be totally wrong, just my 2c.

Regardless, given your circumstances, you definitely need to come up with a plan for when the lease expires. My last house purchase took 6 months (and that was chain-free!), I can't imagine the stress (and how sick of me the solicitors would have been) if I had been pulling my hair out because I 'had to complete' in 5 and a half months. You don't even have an offer accepted, nor does the seller - you need to plan around where you might need to go for a weeks/months. Plan for the worst and hope for the best, being a first time buyer is stressful enough, adding to it a baby and setting a relatively short deadline is a recipe for disaster.

It’s mainly when we make the initial offer to the agent - they respond that it’s too low and insist the seller definitely won’t accept, because the seller needs at least £220k (as in the example above) in order for their own offer on the house they want to buy to be accepted. So, we raise our offer significantly, but it still ends up being about 9% below the “minimum” they’ve set.

Thanks for the advice - it looks like we’ll need to start considering both a Plan A and a Plan B.

So to get an idea - They've listed a house for £240k, you've offered £180k and the Estate Agent responded saying the seller definitely won't accept that as the seller needs at least £220k to buy the house they want... to which you raise your initial offer to £200k?

(I don't know the exact figure the house was listed for or your first offer - though you mention raising it significantly, but as you say the minimum suggested was £220k and the figures above indicate your revised offer was £200k).

Putting it politely, with what you've said, I wouldn't be holding my breath...

Op I think you need to review your buying stratergy for this and other future properties.
The standard practice of offering below the asking price is not necessarily the best one and depends upon each individual purchase. When you've offered and failed to agree a purchase several times, you'll understand. Completion by early Feb is an optimistic target based on your current actions

HelpfulLittleHelper

Not a very strong position to be in when you have a rental deadline but offer so far below that me personally as a seller wouldn't even consider it. But I'm sure you'll find that out the closer you get to your deadline and things become more and more impossible.

Murphybear

Congratulations 

👶👶👶

ReadySteadyPop

Satako04 said:

dharm999 said:

Has your offer been accepted yet?

Not yet – the offer hasn’t been accepted.

We’re now second guessing whether, if they come back with a higher counteroffer, we should go for it. We can afford the asking price, but we personally feel it’s a bit high compared to other similar properties in the area (nothing especially renovated or unique).

Given our February deadline, we’re wondering whether it’s worth paying more, or whether we should stand firm and risk walking away.

Thanks for the advice in advance!

Why not buy a similar cheaper property? You will still need a plan B though as other posters have mentioned.

ReadySteadyPop

user1977 said:

Be aware that the "lease end date" isn't the hard deadline many people assume, it just means that, at worst, the landlord can start a court action for eviction.

Most landlords would probably be happy to take the extra rent while your sale goes through, better than a potentially expensive void period?

ReadySteadyPop

Satako04 said:

Exodi said:

Satako04 said:

Hi all,

We’re first-time buyers, offered ~£20k (9%) below the “minimum” price the agent quoted. Sellers are 2nd in a chain and their purchase isn’t yet secure.

Our lease ends early next year, baby due, so we must complete by 1st week of Feb. Concerned delays or collapse could leave us stuck.

Anyone been in this situation? Tips to speed things up or protect ourselves?

Thanks!

Sorry, I don't understand the logic in asking the estate agent what the minimum price the seller might accept is, then making an offer nearly 10% under that...

So you potentially have a house marketed for £240k, the estate agent telling you that the minimum the vendor would consider is £220k, to which you've responded by offering £200k?

I know people are very cynical about estate agents and believe they spend their time tricking buyers into paying over the odds but in reality their primary motivation is getting the house sold, the relatively small difference in commission selling it for more isn't worth jeopardising the sale. It wouldn't make sense if they were aware the seller would accept £200k to pretend to you that the seller would accept a minimum of £220k.

I have a feeling you're only waiting because the estate agent is obliged to put offers to the seller and get their response.

I could be totally wrong, just my 2c.

Regardless, given your circumstances, you definitely need to come up with a plan for when the lease expires. My last house purchase took 6 months (and that was chain-free!), I can't imagine the stress (and how sick of me the solicitors would have been) if I had been pulling my hair out because I 'had to complete' in 5 and a half months. You don't even have an offer accepted, nor does the seller - you need to plan around where you might need to go for a weeks/months. Plan for the worst and hope for the best, being a first time buyer is stressful enough, adding to it a baby and setting a relatively short deadline is a recipe for disaster.

It’s mainly when we make the initial offer to the agent - they respond that it’s too low and insist the seller definitely won’t accept, because the seller needs at least £220k (as in the example above) in order for their own offer on the house they want to buy to be accepted. So, we raise our offer significantly, but it still ends up being about 9% below the “minimum” they’ve set.

Thanks for the advice - it looks like we’ll need to start considering both a Plan A and a Plan B.

The seller could lower their offer on the next house, people do it all the time, I think the EA might be stringing you along a bit perhaps?