Views on EA reaction to offer.

micheleen

I've been househunting recently and one agent told me one of the properties I was interested in had a full asking price offer in. I said don't bother with details for it then. The property is listed as for sale on Rightmove at £5K less now :rotfl:

lush_walrus

micheleen wrote:

I've been househunting recently and one agent told me one of the properties I was interested in had a full asking price offer in. I said don't bother with details for it then. The property is listed as for sale on Rightmove at £5K less now :rotfl:

It happens sales fall through every day, probably the vendors have opted to drop the price as they are hoping to get the chain back in order so they can move. Not really a laughing matter, as whats funny that the vendors have lost their chain?.

JanCee

I agree with the post by lushwalrus.(post11)

There is no mystery here. You have put in an offer, the EA knows it will be rejected because the vendor has already rejected a higher offer from a cash buyer.

You need to either up your offer or walk away and find something else. Bear in mind that the property may already be competitively priced because of it's condition.

micheleen

It was meant to be chain free though

virgin_moneysaver

cashcans wrote:

Hi,

After viewing a property for the 2nd time yesterday, I today put an offer in and would appreciate others views on EA's reaction.

The property is up for £152,950 - needs cosmetically doing up (new kitchen, bathroom,every room completely decorated,floored,new doors,and some walls plastering etc..) however it is double glazed and has GCH and is basically sound. Done up it would probably sell for approx £162 - 165,000

We are chain free and mortgage is agreed in principal. I explained to the EA because of the work involved,current market and our position we would offer £141,000 - immediately I was told they had had a 'much higher' offer and would I like to go away and rethink. I then said I would go to £143,000, however would not go over that. EA then said that the other offer was still considerably higher - when asked if this other buyer was chain free, EA said it was a cash buyer. It turns out (only as I asked) that this offer has not been accepted(??!). I told EA I could not compete with a cash buyer and a higher offer - and basically our conversation ended.

Why would such a good offer (if it indeed exsists!) not be accepted?

Is the EA obliged to put forward my offer?

Should I chase it up to see if it has been forwarded?

Thanks

I know where your coming from re the cost of doing it up to your spec & the price you could get for it if you then sold it at that point in time - but it's all academic if you don't intend to move again in the near future - historically the value of houses will increase over many years - & you will sell & buy in whatever the current climate in the housing market is at that time - if your house has increased usually the whole housing market has increased, same for a downturn in prices, it affects all houses

if you really want the house, go with your best offer- if it's not enough it's not to be

we were in the same position - loved the house, needed rewiring and it hadn't been improved internally since it was built in the 50's but it had double glazing & GCH, south facing garden over 100ft, large garage etc, large driveway running down the side & beyond - we bought it for about 10K less than others in the same road that had been "done up". We will spend more than that in the long run but this is our last move as this house has everything that we want

on another note - after our offer was accepted & the survey organised, we had the possibility that the survey may throw something up that we could use to negotiate the price - but it didn't - it said that the wiring needed checking before being used but basically the house was sound & had all utilities - which ultimately was reflected in the price

best of luck

Pal

virgin_moneysaver wrote:

historically the value of houses will increase over many years

Eh? How can the value of houses have historically increased in the future?

This is dangerous thinking. The future value of a house that you intend to live in forever is entirely irrelevant. It will be worth what it is worth when you get there. Whether house prices are rising or falling is only of interest when you are planning to sell prior to the mortgage being paid off, or you are buying as an investment.

Much more important is whether you can afford the mortgage now and in the future if/when interest rates rise significantly. So anyone who is buying a house now should try and buy as much house as they can for as little money as they can.

Forget calculating value by offsetting DIY costs. Try to get the house for as low an amount of money as you think the vendor will accept. Usually that involves looking at similarly priced houses in the area and adjusting up and down according to condition, and then taking into account the vendors circumstances and demand for the property.

cashcans

Thanks for all your replies - sorry only just logged on. I was not bothered over being rejected on the actual offer - these things happen, and obviously the vendor wants the best possible price, I can't blame her. It was the attitude of the EA that really wound me up.

I did consider putting a letter through the door, however it is an elderly lady on her own and thought maybe it would not be the right thing to do.

As said previously having the offer rejected is not the problem - however I would like it rejected by the vendor not the EA!

virgin_moneysaver

Pal wrote:

Eh? How can the value of houses have historically increased in the future?

This is dangerous thinking. The future value of a house that you intend to live in forever is entirely irrelevant. It will be worth what it is worth when you get there. Whether house prices are rising or falling is only of interest when you are planning to sell prior to the mortgage being paid off, or you are buying as an investment.

Much more important is whether you can afford the mortgage now and in the future if/when interest rates rise significantly. So anyone who is buying a house now should try and buy as much house as they can for as little money as they can.

Forget calculating value by offsetting DIY costs. Try to get the house for as low an amount of money as you think the vendor will accept. Usually that involves looking at similarly priced houses in the area and adjusting up and down according to condition, and then taking into account the vendors circumstances and demand for the property.

what I was trying to put over was that in time the price will usually increase i.e. our 1st house was bought 18 years ago for £17,750 & it sold 6 months ago for £130,000 - my salary hasn't increased by that equation - I was only trying to put across the point that you can't put a price on DIY &, no, you shouldn't pay more than it's worth, but if you intend to stay there for the forseeable future the cost of your upgrading is neither here or there, it's a home first & foremost

theGrinch

some EAs wont put an offer forward if its not in writing or below an agreed level with the vendor. I was viewing a flat earlier this year where there was a lot of interest and the agent advised he had had such a high level of interest that would only put the best offers forward.