Bidding War

1st_time_buyer_5

We have found the house we want... but somebody else seems to really want it too.

We offered £105k for the house, but the estate agent said that the vendors had hours earlier accepted the same offer from someone else. She said she would put our offer forwards anyway, and we raised it to £107k. Not heard back yet, but my partner is keen to go to asking price if need be (£110k). I feel a bit bad... the other buyers offer WAS accepted, although we do really want this house. I'm worried that we may loose sight of the real value of it though...

would people generally advise avoiding a bidding war - especially with the housing market having slackened off? On the other hand, the fact that someone ELSE is prepared to pay similar for this property means that perhaps it is a bargain, and we don't want to miss out on the right property at a good price....

Also, I am feeling a bit more cautious than my partner about our mortgage situation (Any advice on my other post in the mortgages section 'Mortgage in a probationary period at work' greatfully received - Please!) - should we be throwing around offers like this when we have no absolutely concrete agreement that we can borrow the money as yet...?

Han_naH

You can make offers regardless of mortgage advance agreed or not, but you will have to follow up with a mortgage offer.

Note that your seller is not just considering the amount offered - they are considering your POSITION too.

If, for example the other party does not need to sell their house in order to buy, they have the edge over you if you do need to sell.
Similarly the party with a first time buyer (no chain of their own) has an advantage.

In this slow market, the clever seller should choose rock solid offers (no chain) over amount offered. I did just a few weeks back.

The market is REALLY SLOW and spells DANGER for sellers chasing the highest bid... you could be left with no buyers, a sliding market and big problems shifting your property...

Leejp.

vansboy

My gut reaction is..

If I was selling..... I've accepted an offer & the deal is done (in theory)

If I was buying - do I REALLY want to deal with someone that is prepared to mess an already interested purchaser, about?

& I certainly wouldn't want to get involved in 'sealed final bids' situations.

Bet theres another house, even better, just waiting for you!!!

VB

greedwatchuk

estate agents have a legal duty to put ALL offers forward.Did you get a copy of offer the letter they sent to the seller??if not why not?!

Bossyboots

But if the sellers have already accepted an offer they should not then accept another. (I know they can in England and Wales at least, that does not make it morally right). I would not deal with a seller that instigates a bidding war. The next thing could be you end up in a contract race. You could waste a lot of time, effort and money on this property only to lose out in the end anyway. Let this property go and find something else. When you make an offer, insist that the seller takes the property off the market immediately. That reduces the chances of someone else coming along and trying to bid higher.