Offer dilemma

pegtop2

Husband and I (elderly) live in a two bed first floor modern flat very good condition, new fitted kitchen last year, garage and walking distance of seafront. Until a few weeks ago we had not thought of moving. however we viewed a bungalow that we liked very much. Price "in excess of" (I hate this idea). We offered the asking price (plus). This was accepted but the bungalow was still going to be marketed (the vendor has four agents trying to sell the property) and it was a case of first come first served, so our offer doesn't really count for much.

We put our flat on the market immediately and have had some interest. However I am now begining to wonder whether we were a little premature in making the offer. Looking on "propertysnake" I see that prices are coming down in the area. The bungalow has been on the market for about a year and needs quite a bit of work on it but has potential. The price has not been reduced at all and I believe now that it is overpriced.

So what do we do? Leave things as they are and allow the vendor to think that there is someone "in the wings" prepared to pay the asking price but then negotiate on the price when we are in a better position, or do we tell the vendor now that we are not prepared to pay the asking price and withdraw our offer and risk losing the bungalow. (this would be very, very disappointing)

Any advice will be much appreciated. :j
Pegtop2

merlinthehappypig

You are not in a position to negotiate until your flat is sold. At that point you can decide whether or not to proceed with the purchase of the bungalow. You will have a clearer picture of the state of the property market and that will help inform your offer at the time.

It's unlikely that the owner of the bungalow is taking your offer seriously anyway until you are in a position to proceed so telling him that you have changed your mind won't make any difference.

Your premature, and in your own mind clearly excessive offer, has not helped your cause. We have found sellers whose homes have been on the market for the longest time the most reluctant to reduce the price. His bungalow is obviously overpriced or it would have sold. He wouldn't be using four agents if he had any interest.

Your offer of over the asking price is simply re-inforcing his view of what the house is worth, so he will be even more reluctant to reduce the price if and when you are in a position to proceed.

Personally, I'd withdraw the offer 'due to the state of the market' and say that you will consider another offer when you are in a position to go ahead. You may lose the bungalow, but you can't do anything about that anyway until you sell so you position hasn't changed.

Chances are he won't reduce the price even if you can go ahead, by the sound of it.

I would never make an offer on any house until I could definitely go ahead, in order to avoid the exact problems that you are experiencing.

SouthCoast

There will always be a strong demand for bungalows.

Where I live there is a vast supply of overpriced empty two bed flats.

pegtop2

Once again thank you for your advice Happy Pig and I am pleased to say that we have now acted upon it by withdrawing our offer and feel a lot better for it:T

The property in question has been on the market for about 18 months and would seem to be very much over priced. The vendor has now got 6 agents
trying to sell it. It doesn't seem to occur to her that she should lower the price. I think she will have to reduce the price by about £20K before someone takes on all the work that needs to be done.

Unfortunately I fell for the lovely lanscaped garden and allowed my heart to rule my head.:cool:

now looking for something with a more realistic price tag.

Cheers

Pegtop2

Kez100

Well done for weighing the situation up sensibly and letting them know.