Just had first offer rejected, could do with input please

gordonstights

I know this is yet another "what should we offer thread?" but I just could do with opinions on a strategy as my partner disagrees with what I think is the best way to go!!

The house we like is on for £144,950 and the seller has dropped in price (apparently from 160K) for a quick sale as they have a deposit on a new build which they can't secure properly until they have accepted an offer on this house.

The house does seem to be a good price for the area & other properties like it, but needs some repairs inside. So we made an offer this morning of 135K, with 140K being our maximium if negotiations get that far.

The 135K has been declined which we expected. OH thinks we should go up in 1K increments, but I think it's better to go up with fewer offers like, 137K, then 139K and then tell them our final offer is 140K.

Am I being stupid to do this? Is my OH right to go up in such small increments? I really don't want the sellers to think we are being ridiculously cheeky by doing this! What are other sellers/buyers opinions on this?

Any suggestions would be really appreciated

narced

If you don't mind giving away £1000 for free, go with the larger increments. Better still, just wait a week and see if they crumble.

wearside_2

I would personally go up by £2000 increments. I assume that you have sold yours? If not, you are really wasting your time, as the vendor will obviously prefer someone who has sold their own property.

We have recently moved and having sold our own house, stressed this to the vendor after our first offer was refused. We increased it by £2000, which was accepted and we moved in after 3 weeks:j

boinging_2

Can we create somekind of sticky on this subject???

Anyway answer the following questions:

How much do you think it's worth?
How disappointed would you be if you didn't buy this house?
Are you in a rush to move?

I would hold tight and wait. Worse case scenario is someone offers more than £135K, in which case no doubt the greedy EA will ask for your best offer. You could then go to answer to first question above.

Murray

You can check on www.propertysnake.co.uk to see how long it has been on the market for and how much the owner has dropped the price by.

Waiting is good advice though becuase now you have made an offer, the EA is obliged to tell you if any other (higher) offers are made...at least that's what I've been told! It means that no-one else can come along and buy it without you being given a chance to up your offer.

gordonstights

wearside wrote: »

I would personally go up by £2000 increments. I assume that you have sold yours? If not, you are really wasting your time, as the vendor will obviously prefer someone who has sold their own property.

We have recently moved and having sold our own house, stressed this to the vendor after our first offer was refused. We increased it by £2000, which was accepted and we moved in after 3 weeks:j

We don't have property to sell, we are renting. Thanks for that

gordonstights

Murray wrote: »

You can check on www.propertysnake.co.uk to see how long it has been on the market for and how much the owner has dropped the price by.

Waiting is good advice though becuase now you have made an offer, the EA is obliged to tell you if any other (higher) offers are made...at least that's what I've been told! It means that no-one else can come along and buy it without you being given a chance to up your offer.

I can't find it on propertysnake They are also selling through 2 agencies which means the one I'm dealing with will tell me of higher offers, but the other agents obviously won't. But thanks for your input

boinging_2

Hold tight then.

It amazing how many people want to rush negotiations (because they don't like them usually). Silence and time are very powerful tools for you.

They vendors now have 135 thousand reasons to think about your offer. Everyday their house is on the market and their new house is not getting any closer, they will be talking and considering your offer a little bit more.

Most vendors will reject an opening offer in the hope that you will do exactly what you are planning on doing, giving them more money!

wearside_2

If you are renting even better, as really you are classed as a First Time Buyer. Stress this to the vendor's agent and hopefully sense will prevail. Good Luck:beer:

gordonstights

boinging wrote: »

Hold tight then.

It amazing how many people want to rush negotiations (because they don't like them usually). Silence and time are very powerful tools for you.

Wow thank you! I feel better now, as I guess I was just going to ring them straight back and increase as I really do hate negotiations. I hate all the messing around as I've been there, done that before, had an offer accepted then was gazumped a week later This only happened around 6 weeks ago, so I'm a bit worried things may end up the same way.

Thanks though for your post

Doc_N

In broad terms, they want £145k, you've offered £135k, but you're prepared to go to £140k.

Psychologically, the seller will probably have in mind the possibility of a compromise at £140k - half way between the selling price and your offer. You might well be able to get it for that. But you might get it for a bit less.

£1000 offers may well annoy the seller - always a bad move. £2000 offers are less likely to, so why not offer £137k? They could counter-offer £141k, leaving you to make a final offer somewhere between £137k and £141k - say £139k. That might well do it.