Advice when offering on a house that is new to the market

Loopy28 · 26 November 2014 at 11:51AM

We have viewed a house that ticks all the boxes but it has only just come to the market and we were the first viewers.

Thinking from a vendors point of view, if the first people to view make an offer then they might want to hold out for other viewings and see what other offers come in, which is perfectly understandable.

Should we make an offer and leave it on the table and then ask the EA to come back to us if there are other offers?

In the past we have offered on a property when we were the first viewers and offered asking price to secure the property but were told the vendor wanted 5k above asking to take it off the market. We declined and it ended up being on the market for time before selling so not sure if we went about it all the wrong way but the house wasn't worth 5k above asking price to us, which is why we walked away.

Not sure what we should do to try and secure this property? We think offering asking price is a mistake based on previous experiences. It is on for 199950, was thinking of offering 195k for starters....

rosie383 · 26 November 2014 at 12:05PM

I think it's all dependant on what the vendor really wants. When we first went on the market we had an offer of £5k under asking price which we declined partly on the advice of the EA who had been convincing us beforehand that they would be able to get us at least if not above asking price. A couple of months down the line it was the EA who persuaded us to sell for £8k under.
We have now accepted an offer exactly the same as the first offer and have wasted many months in the process.
We went to view one 2 weeks ago and were thinking of offering but found out that it sold under asking price to someone who saw it on the first day, same as us.

dominoman · 26 November 2014 at 12:28PM

I'd offer 5k under and tell them that you are offering high because you need to make a quick decision.

That then leaves some room for a second offer if needed.

I think offering asking price sends a signal that you are too keen, and could also make them think that perhaps they listed it too cheaply.

Don't forget to explain your other good reasons as a buyer (e.g. we can move quickly, we have solicitor in place, we have mortgage AIP etc)

Loopy28 · 26 November 2014 at 2:27PM

Brilliant advice, thanks.

FTBs are purchasing ours and the draft contract has been completed for our sale and is moving forward so we are in a really good position.

Fingers crossed we get a good outcome this time :-)

Hoploz · 26 November 2014 at 5:54PM

I think 5 below is a good offer. You could play it cool and offer a little lower first. Do you think it will be popular?

I just had an offer on a flat I'm selling at 169,950. Viewer says to agent, one time only offer of 168k.

12 hours later another viewer has offered full asking price. Accepted asking price without going back to original person as they indicated they would not go higher.

Who knows whether they are now kicking themselves. I am happy anyway.

Just saying this as if you go in all bolshy with your first offer, you don't always get the chance to up it. We could have asked for best and finals, this would have given everyone a chance, but we didn't bother.

Loopy28 · 26 November 2014 at 11:29PM

Thanks for your input. I am not sure if it will be popular in all honesty, it is a 3 storey townhouse, quite a good size with garage, ensuite and most rooms large apart from the lounge, which is very narrow at about 9ft. The garden is small and tiered so may put off families as would the lounge, kitchen and dining room being on the middle floor potentially due to the stairs.

That said, the house a few doors down is identical and went sale agreed in a month recently although they have knocked down the interior well between the lounge and hall making it a much larger room.

Mickygg · 27 November 2014 at 10:17AM

Yeah I'm looking at new properties to market.
My tactic is, look, see what I think it's worth, offer that and if below asking price I'll ask to leave it on the table for 3 weeks and thereafter it's withdrawn.
I looked at a property yesterday and I was going to do exactly that, however the price was stupidly high having viewed so I won't bother with a low offer as it will be refused.

heytoki · 27 November 2014 at 11:26AM

i think every case is different from the other.

i went to see a property of £195 that just came up to the market. Actually i was the first person to see it.

i said to the EA that i would be interested on the property but i wasnt willing to offer the asking price considering the prices of other sales in the area.

The EA told me that was too early to make an offer for less than the asking price as the vendors were testing the market.

In the other hand, i saw another property that came up to the market on a saturday. I arranged a viewing for the next Wednesday and on Monday morning the EA agent called me to cancel the viewing as they had already 3 offers for the asking price, one of them from a cash buyer.

If you really like the property and as you said, tick all the boxes, it is a good start to offer £5k less but i wouldnt wait as more people could show interest.

Maybe the vendors want to sell quick and are happy with the asking price. You never know..

lee111s · 27 November 2014 at 11:34AM

Every single seller is different. They could have seen their dream house and are willing to drop the price for a quick sale so they can progress on buying their next house. They could simply be testing the water. They could also need a minimum of the asking price to be able to afford their next purchase due to the bank only lending them a certain amount.

The only way to find out if the offer is good is to make the offer. You can discuss scenarios until you're blue in the face but you'll never know until you take the plunge

Loopy28 · 27 November 2014 at 5:55PM

Thanks for your advice and yes every vendor will have different situations and thoughts on what they are looking for. The property currently has tenants so the vendor is not in a chain and wants to sell.

The only thing putting me off a little is because it has been rented, it isn't in the best condition. The carpets are filthy and worn, there is chipped paintwork etc. Would need to factor in whole redecoration and carpets, although I guess you get that with many houses. The one that sold down the road recently was in much better condition and was on for the same price.

The garden will definitely be an issue for many as it is north facing and tiny so I guess I also need to consider resale as well.

chanz4 · 27 November 2014 at 7:04PM

I would rip the carpets up no matter what anyway

Advice when offering on a house that is new to the market

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