Understanding offers in excess as FTBs

ReadingTim · 9 February 2018 at 1:58PM

ashe wrote: »

I would absolutely ignore the terms used by EAs in listings

Offers Over
Offers In Region Of
Offers in Excess of
Guide Price

etc

Offer what you think the house is worth, its all marketing.

You're certainly free to offer what you think it's worth, but don't necessary ignore those terms: they're often quite useful indicators as to whether the vendor is likely to entertain that offer, or not.

ashe · 9 February 2018 at 2:32PM

ReadingTim wrote: »

You're certainly free to offer what you think it's worth, but don't necessary ignore those terms: they're often quite useful indicators as to whether the vendor is likely to entertain that offer, or not.

if they arent going to entertain the offer they will decline your offer and you can put another one in if you feel the property has that value.

Trawling Rightmove sold price data and comparing it to the listing price for the area we are moving to shows that buyers very often get properties far below what the EA lists at. If you obey the above rules you're just playing into the EA's hands IMO.

Niv · 9 February 2018 at 2:45PM

On my last purchase I refused to play the game. I simply made my offer and said it was my only and final offer. It was accepted but then again it was only 3% below asking.

If I see a house with offers over I disregard it unless it really does look special (also if the first pic is not the front of the house I disregard and do not look at it further)

ashe · 9 February 2018 at 2:48PM

The house we are buying was Offers over and we ignored it and made an offer. Our reasoning was that when we listed ours as Offers Over, people also ignored it, and comments on here suggested that it is just marketing. based on our experience, we agree. Offer what you think it is worth, or just below what you are willing to negotiate up to, not what the EA or vendor tells you its worth as they've probably overpriced to allow for some offers/negotiation.

MissMarble · 9 February 2018 at 3:11PM

Thanks everyone for all your help and advice. I

've been looking at house prices in the area of the house we viewed yesterday and the majority have been sold from 2016/17 as under £200,000 - in fact the house we looked at is the most expensive by far. The last house sold on the same street went in April 2017 for £154,000. The nicer-looking streets going off the road with said house on, vary in the early 200's (at most), so it's been quite enlightening to work out the reality of things. With at least 5 offers already on the table for this house, I'm very curious to know what the highest one is as I think we need to work it all out and see what we think is more realistic.

I think we need to buddy up with several estate agents or apply for Location, Location, Location!

MissMarble · 10 February 2018 at 6:08PM

Hi everyone,

Just a quick update - we offered on another house yesterday and it was best and final offers by COP. The house was on for offers over £200,000 and we were originally going to go in at £215,000 but after looking at the neighbouring street house prices from last year, it seemed a bit too much in comparison and so we went in with our offer of £212,000. I received a call today saying we were outbid and when I asked if they could give a guidance in terms of by how much, the EA said it went for significantly over what they were expecting - so not just by a few hundred pounds. With this in mind, I have a feeling it went for upwards of 215-218 which just seems quite excessive and perhaps the EA should have advised at offers over £210,000 instead? I’m more gutted about the house as it ticked everything on our list, but think we were just a little worried about the location compared to the one we put our first offer in on.

Anyways, just thought I would post an update. It’s been quite a learning curve this week and interesting to see how the market here is reacting to offers over which is actually quite worrisome! I’m looking forward to more houses coming onto the market and hopefully it will also bring the nicer weather too!

Crashy_Time · 11 February 2018 at 2:44PM

ACG wrote: »

As I have said many times before, every link you post about house prices dropping, there is one to say house prices are growing:
https://www.mortgagestrategy.co.uk/house-price-growth-slows-2-2-january-halifax/

GROWTH slows, still increasing jsut not as quickly as in the past. I bought my house in May, house opposite has gone up for £25k more than I bought mine for and in a similar condition. That is on top top of the £70k I made on my last house. In all those years you have been banging on about house price drops, I have made over £80k even if my house drops by 25%, I will still be in profit.

You have to have a buyer, and another place to live though to take any "profit", and with falling volumes in an illiquid asset how easy would that be? Housing bubbles start off as a great thing in many people`s minds but morph into being a bigger problem for society and politicians that offsets any perceived benefits those who see paper gains might feel, and at that point they are ready to pop. or be popped

A story that says house price growth is slowing isn`t very positive for the market I`m afraid, especially against the backdrop of rising rates and falling volumes :mad:

GoldenShadow · 11 February 2018 at 8:32PM

Decide what you think it is worth and make that your ceiling is my advice, its not worth worrying about what others are doing because you risk getting dragged into a bidding war.

I hate this offers over thing. Also be careful of going in too low if its just up for X price. People always expect to get pushed up from their initial offer, but you risk offending people or being seen as not very serious if you go in too low. Also, the bigger the jumps you go up the more people will think you can go up more and more. When we bought our last house, we offered 95% of the asking price which was refused. Even after a couple more offers/a week of negotiation we still only paid 98%, to us it was worth a bit more than that, but we wouldn't have paid the asking price purely because it wasn't worth that to us.

Crashy_Time · 12 February 2018 at 7:15PM

ACG wrote: »

As I have said many times before, every link you post about house prices dropping, there is one to say house prices are growing:
https://www.mortgagestrategy.co.uk/house-price-growth-slows-2-2-january-halifax/

GROWTH slows, still increasing jsut not as quickly as in the past. I bought my house in May, house opposite has gone up for £25k more than I bought mine for and in a similar condition. That is on top top of the £70k I made on my last house. In all those years you have been banging on about house price drops, I have made over £80k even if my house drops by 25%, I will still be in profit.

Here is another one to say they are falling.

https://www.estateagenttoday.co.uk/breaking-news/2018/2/price-falls-spread-from-london-to-two-other-regions-says-lsl?source=newsticker

London falls really affect the stats, so sentiment is affected in a knock on fashion, really bad time to be taking on large debts IMO.

buggy_boy · 12 February 2018 at 9:09PM

Crashy_Time wrote: »

Here is another one to say they are falling.

https://www.estateagenttoday.co.uk/breaking-news/2018/2/price-falls-spread-from-london-to-two-other-regions-says-lsl?source=newsticker

London falls really affect the stats, so sentiment is affected in a knock on fashion, really bad time to be taking on large debts IMO.

And here is one saying they are rising...

https://www.theguardian.com/money/2018/feb/01/uk-house-prices-rise-fastest-rate-10-months

Its all about the stats, what makes me laugh is Crashy time and the HPC mob will say index X is wrong when it says its rising, and then the same index is the only one to trust when it says its falling.. You need to look at all info and take into account it is winter which is always a slow time for property... Crashy has been saying for years house prices are crashing...

Crashy how about you stop with the irrelevant links trying to take over as many threads as possible, go to the dedicated house price discussion to post your rubbish.

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Understanding offers in excess as FTBs

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