open viewings- do they work?

Nenen

Against my better judgment, I went to an open viewing today (no appointment necessary, anyone can turn up any time between 2-3 pm type thing). I have only ever been to two of these before and hated the feeling of panic and competition that seemed to fill the air (reminded me of supermarkets on Christmas Eve when people stock for a seige and behave as if there won't be any food for weeks and they will starve to death if they don't push everyone else out of the way in order to stock up NOW)!

I thought EAs usually did open house viewings for houses that have been on the market some time and gone a bit 'stale' in order to drum up interest. However, this house is new on the market (listed 2-3 days ago for the first time). It is not in one of the most desirable villages in the area so I was amazed (especially with the current uncertainty) to find at least 15 different families viewed during the hour it was open.

Obviously the EAs had done a good job by doing this. However, I am left feeling very uncertain of whether it is even worth considering the house. I really liked it but it was a wreck! It needs gutting and starting again... new windows, wiring, heating, kitchen, bathroom, carpets, decorating etc etc etc. There is also building work to do. It is marketed at 270K and I'm sure it would need at least 40K spending on it.

The problem is, what (if anything) do we offer? We couldn't afford to pay more than 240K and would then do the essential work straight away and the rest of the work as and when we could afford it. According to the EA, the vendor is moving out mid-March but, when I asked if she wanted a quick sale (as we have already sold ours and are currently renting, with a largish deposit and a MAIP) the EA told me she was quite happy to wait in order to get a good price and wouldn't be accepting 'silly offers' as there was obviously soooooo much interest being shown.

When I asked if she would show my dh round in the week she replied he'd have to come quickly as she was certain the property would be sold within a couple of days. I'm left wondering if it is worth us offering 235K or thereabouts (assuming dh likes it and it doesn't sell before he gets to see it) or if that would simply get us laughed out of the EA office with hoots of derision (I hate that derogatory way EAs do that :mad:)

If I hadn't seen all the people viewing, I would have taken the EAs words with a hefty pinch of salt and put it down to sales patter... but I'm now wondering if she is correct. Has anyone else had any experience of lots of interest being shown at an open viewing and the kind of offers put forward as a consequence?

Doozergirl

You just have to go for what you feel is right.

I hate open viewings too. It actually puts me off making an offer, but I don't 'do' competition.

If there is that much interest, they will go for best and final very soon. Call them on Tuesday to see if your H can view and see whether they are talking of best and final or if they are happy to do the viewing. It will give you an idea at least.

epz_2

ive only been to one and quite like the ability to wander round at my own pace, all i look for in a house is structural stuff and sizes.

i really didnt pay much attention to other people there except to warn one couple of a dangerous floorboard they were about to step on.

that said i aint exactly easy to manipulate so the crowd mentality was never going to work on me.

kunekune

Don't assume everyone was there to buy. With open viewings, you get a lot of tourists. It's easy to go see the place, so at least 50% will be neighbours, another 25% will be people who are thinking they might buy/sell at some point and want to see what you get for the money and then 25% might be genuinely looking. Treat the decision making the same as any other one. Don't trust the agent - their job is to talk up the price. If you want it - and it sounds like you don't really, you're just spooked by the (presumed) rarity factor - offer what YOU will pay and just sit and wait. You'll either get it or you'll be pushed into a bidding war. And if that happens, the sensible thing is to drop out straight away.

Nenen

Thank you all for putting it into perspective... I know (to my utter embarrassment) that I am an ad-man's dream! I fall for all the BOGOF offers and 'deals' at the supermarket and get 'spooked' into buying much more than I really need on a monthly shop....so I don't want to be quite so gullible for a house purchase!

I hadn't thought about all the neighbours coming for a look but they even had a board in the front garden advertising the open viewing and my son (who came with me) saw a couple walking down the road (must be local) so I'm sure you're all right about that.

EPZ, I do agree re being able to walk around at my own pace and have a good nosey everywhere without risking offending the vendor!

I want my dh to go and have a look and then we might put in a low offer (if the EA is talking out of an even lower orifice re the 'strong interest and likelihood it will be sold at full asking price within a couple of days' )... If my dh agrees then I was thinking about 235K (it's marketed at 270K) so that's about 13% below asking price. We'd then be prepared to go up to 240K. Does that sound about right?

Bf109

I flatly refuse to go to any block bookings (or anything being marketed by Foxtons).

I not going to play that game.

merlinthehappypig

Your plan sounds o.k. to me.

You have to take what the agent says with a pinch of salt, but you can't argue with the tactics of the open viewing. It's certainly had the desired effect as you seem to feel slightly pressured into an offer in a way that you wouldn't have been, I would guess, had you viewed 'normally'.

That certainly isn't a criticism - it's human nature and I would probably react the same way, against my better judgement.

It depends how much you want the house. If you are fairly ambivalent, and it doesn't sound like you are head over heels in love with the place, then I'd wait.

The open viewing tactic is great if it works, but they are going to look pretty stupid in a fortnight or so if they don't get any offers. That, in my mind, is when you will get the best price.

At this stage, whilst the sellers and agents are still optimistic, they are likely to refuse a 13% below offer. They will also see this as evidence that their 'plan' is working (sounds like a villain in the Bond films).

Of course, the risk is that the open day will work and someone will offer ahead of you.

As you know we are still at the same stage. We saw a house yesterday that we actually liked. The sellers made it clear that they had three other offers in and that they had reduced the price by £50000. The temptation is to panic a little and get an offer in quick.

Sleeping on it, logic takes over.

The 'offers' that they have had are from people who are unable to proceed because of incomplete chains and stretch back over 7 months so are not worth giving credence to. We can proceed immediately.

The price reduction isn't a 'bargain'. If it had been on at the right price it would have sold. It still hasn't sold at the new price.

Any sympathy that we had went when they showed us the details of the £900000 house that they are buying, where they had already negotiated the price down to £800000!

dubsey

There was a lovely old house near us that had an open day. The EA sent us details, it didn't go on the open market, just straight to an open day which we couldn't make. A week later it was advertised on right move so we called the EA to have a look around. It needed so much work and wasn't priced accordingly (our opinion), but the EA told us they'd had so many offers that it had now gone to sealed bids at offers IEO the asking price, that's why they had set a date for 2 weeks after the open day for people to get their bids in.

Needless to say we didn't bother and my DH said he was certain everyone had gone mad because they thought they were going to miss out.

By all means put in a bid relevant to what you think it's worth to you, but try to keep your head and think how much you actually want the property, don't be swayed by loads of people viewing. As has been said lots of people will just be there to be nosy. We bought this house knowing it needed masses of work, so when an identical one came up on an open day we jumped at the chance to have a look, but I expect the people looking to buy thought they would be bidding against us.

PINGLEIST

Nenen,

Sounds like you are in a great position so don,t dive in, times are changing and it is definitely a buyers market. There is the possibility of losing it but there will be plenty more to go at.
I would be tempted to call their bluff, wait 3-4 weeks and see if any offers are accepted. That way you will have a better idea of genuine interest from all the viewers and might just pick up a bargain.

Nenen

I think you are all correct... I need to think with my head and have a bit of patience! I keep telling myself that if the vendor really was prepared to wait to get the top price and the EA was so sure the property would be snapped up then they wouldn't have bothered to organise an open viewing in the first place!
Thanks everyone for helping me think things through :beer:

Nenen

merlinthehappypig wrote: »

Your plan sounds o.k. to me.
As you know we are still at the same stage. We saw a house yesterday that we actually liked. The sellers made it clear that they had three other offers in and that they had reduced the price by £50000. The temptation is to panic a little and get an offer in quick.
Sleeping on it, logic takes over.
The 'offers' that they have had are from people who are unable to proceed because of incomplete chains and stretch back over 7 months so are not worth giving credence to. We can proceed immediately.
Any sympathy that we had went when they showed us the details of the £900000 house that they are buying, where they had already negotiated the price down to £800000!

Good luck with that Merlin... out of interest do you really like it a lot (dream house) or is it just that it is suitable for your needs?