Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • MissMarble
    • By MissMarble 7th Feb 18, 3:37 PM
    • 38Posts
    • 51Thanks
    MissMarble
    Understanding offers in excess as FTBs
    • #1
    • 7th Feb 18, 3:37 PM
    Understanding offers in excess as FTBs 7th Feb 18 at 3:37 PM
    Hi everyone,

    After posting on a previous thread with lots of great input and advice, I thought I'd share our latest dilemma/query with hope of receiving some help!

    We are first time buyers and live in Manchester, hoping to buy in a few small towns which are either on the up or already slightly established. Earlier this week we put our first offer on a house, which for a day was the highest - before we got out-bid by another couple who I believe may have offered £1,000 / £1,500 more than our second offer. The house was on for offers over £220,000 and so it is our understanding it may have gone for £225,000+. We were prepared to go up to that, however there was work to be done to the house hence why I think we may have been overly cautious.

    As we were out-bid, we are now back to the drawing board and before we find somewhere else I wondered if you could help with understanding how much to increase offers by? I read that it's generally good to put two offers down on a property and to start out low before increasing - however, I think we are just confused about how much to increase it by and with the 'offers over' it's difficult to go in low to begin with.

    We've noticed the property market in Manchester is extremely quick moving and houses in good areas are SSTC in a week with multiple offers on the table. I've also seen how properties are generally advertised at 'offers over' which adds more confusion because it sounds like there's never a cut off point - i.e. if we offered on a house on at offers over £200,000, how far up should you go bearing in mind there are several other offers?

    I know each circumstance is different, but if anyone can shed any light in terms of offers in excess that would be really helpful. We were gutted to have missed out on the house we offered on and looking back wish we had gone in at the higher price.

    Thank you in advance.
Page 2
    • PokerPlayer111
    • By PokerPlayer111 9th Feb 18, 11:02 AM
    • 248 Posts
    • 85 Thanks
    PokerPlayer111
    Everytime i ring up i ask if the property is negotiable, if its not then i dont bother with it, unless it was super amazing perfect why bother.
    • ReadingTim
    • By ReadingTim 9th Feb 18, 12:58 PM
    • 2,671 Posts
    • 3,830 Thanks
    ReadingTim
    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.
    Originally posted by ashe
    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
    • By ashe 9th Feb 18, 1:32 PM
    • 530 Posts
    • 367 Thanks
    ashe
    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.
    Originally posted by ReadingTim
    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
    • By Niv 9th Feb 18, 1:45 PM
    • 1,600 Posts
    • 1,377 Thanks
    Niv
    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)
    YNWA

    Target: Mortgage free by 58.
    • ashe
    • By ashe 9th Feb 18, 1:48 PM
    • 530 Posts
    • 367 Thanks
    ashe
    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
    • By MissMarble 9th Feb 18, 2:11 PM
    • 38 Posts
    • 51 Thanks
    MissMarble
    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
    • By MissMarble 10th Feb 18, 5:08 PM
    • 38 Posts
    • 51 Thanks
    MissMarble
    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? Iím 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. Itís 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! Iím looking forward to more houses coming onto the market and hopefully it will also bring the nicer weather too!
    • Crashy Time
    • By Crashy Time 11th Feb 18, 1:44 PM
    • 6,074 Posts
    • 2,351 Thanks
    Crashy Time
    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.
    Originally posted by ACG

    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
    • GoldenShadow
    • By GoldenShadow 11th Feb 18, 7:32 PM
    • 932 Posts
    • 912 Thanks
    GoldenShadow
    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
    • By Crashy Time 12th Feb 18, 6:15 PM
    • 6,074 Posts
    • 2,351 Thanks
    Crashy Time
    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.
    Originally posted by ACG

    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
    • By buggy_boy 12th Feb 18, 8:09 PM
    • 416 Posts
    • 289 Thanks
    buggy_boy
    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.
    Originally posted by Crashy Time

    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.
    • Crashy Time
    • By Crashy Time 13th Feb 18, 1:30 AM
    • 6,074 Posts
    • 2,351 Thanks
    Crashy Time
    https://www.standard.co.uk/london-leads-house-price-plunge-into-the-red-zone-as-market-records-worst-performance-since-a3764586.html


    What a difference a couple of weeks makes to sentiment.....
    • ReadingTim
    • By ReadingTim 13th Feb 18, 10:28 AM
    • 2,671 Posts
    • 3,830 Thanks
    ReadingTim
    What a difference a couple of weeks makes to sentiment.....
    Originally posted by Crashy Time
    No Crashy - sentiment is that you're still the village idiot.

    Even a broken clock's right twice a day...
    • buggy_boy
    • By buggy_boy 13th Feb 18, 11:44 AM
    • 416 Posts
    • 289 Thanks
    buggy_boy
    http://uk.businessinsider.com/house-prices-in-central-london-bounce-back-2018-2


    London prices bouncing back... The problem with Crashy and his HPC fools is they ignore or dismiss any article that says prices are rising and hail any article saying they are falling as the sign of the MASSIVE crash they have been foretelling.

    Crashy stop posting links in this section of the forum its not relevant to the original posts question, if you want to debate house prices go to the debate house prices section and leave this section for useful comments... Nobody takes you seriously...
    • Crashy Time
    • By Crashy Time 13th Feb 18, 11:48 AM
    • 6,074 Posts
    • 2,351 Thanks
    Crashy Time
    http://uk.businessinsider.com/house-prices-in-central-london-bounce-back-2018-2


    London prices bouncing back... The problem with Crashy and his HPC fools is they ignore or dismiss any article that says prices are rising and hail any article saying they are falling as the sign of the MASSIVE crash they have been foretelling.

    Crashy stop posting links in this section of the forum its not relevant to the original posts question, if you want to debate house prices go to the debate house prices section and leave this section for useful comments... Nobody takes you seriously...
    Originally posted by buggy_boy

    "The relatively modest nature of the price fall contrasts sharply with the annual figure of -6.7%"


    Your link has absolutely nothing to do with the OP and FTB`ers though, unless they are bidding for prime London property
    • buggy_boy
    • By buggy_boy 13th Feb 18, 2:40 PM
    • 416 Posts
    • 289 Thanks
    buggy_boy
    "The relatively modest nature of the price fall contrasts sharply with the annual figure of -6.7%"


    Your link has absolutely nothing to do with the OP and FTB`ers though, unless they are bidding for prime London property
    Originally posted by Crashy Time
    Your the one that keeps hijacking posters threads and posting irrelevant links you muppet.

    No my post doesn't thats the whole point, go to the debate house prices section if you want to debate house prices... Everyone is bored of your stupid irrelevant links.
    • Crashy Time
    • By Crashy Time 13th Feb 18, 3:01 PM
    • 6,074 Posts
    • 2,351 Thanks
    Crashy Time
    Calling someone a fool, a muppet, AND a village idiot (a village with very high and very sustainable house prices no doubt ) isn`t being very nice to money savers I`m afraid But let`s face it guys, most sensible people know that falling house prices mean more and more money savers can save even more of their hard earned money
    • 51mm5
    • By 51mm5 13th Feb 18, 5:12 PM
    • 32 Posts
    • 16 Thanks
    51mm5
    Funny thing is, Crashy is yet to post the link of the main index which is the most reliable - ONS Land reg house growth report, which shows an annual increase of 5.1pc in house prices across the UK. I!!!8217;ll give him the pleasure of posting the link.
    • buggy_boy
    • By buggy_boy 13th Feb 18, 6:47 PM
    • 416 Posts
    • 289 Thanks
    buggy_boy
    Calling someone a fool, a muppet, AND a village idiot (a village with very high and very sustainable house prices no doubt ) isn`t being very nice to money savers I`m afraid But let`s face it guys, most sensible people know that falling house prices mean more and more money savers can save even more of their hard earned money
    Originally posted by Crashy Time
    If the shoe fits...

    You need to look at all reports or non-biased reports such as the land registry.. If you take that approach you will see that in the last year house prices have broadly increased by a modest amount.. It is best to look at yearly figures as it gets rid of the peaks (summer) and troughs (winter) that are common in the housing market...

    Time will tell but any speculation one way or another would be a wild guess, my thoughts are in the next 12 months we could see anything from a small rise to a small fall but it is unlikely to see major swings either way unless something dramatic happens as there are not enough forces one way or the other.

    The reason you are called a muppet and village idiot is because just like the HPC lot you have made your mind up a crash is coming and you are looking only for evidence that backs up your conclusion, ignoring all other evidence. That is not the way to arrive at a sensible conclusion.
    • Crashy Time
    • By Crashy Time 14th Feb 18, 12:45 PM
    • 6,074 Posts
    • 2,351 Thanks
    Crashy Time
    Funny thing is, Crashy is yet to post the link of the main index which is the most reliable - ONS Land reg house growth report, which shows an annual increase of 5.1pc in house prices across the UK. I!!!8217;ll give him the pleasure of posting the link.
    Originally posted by 51mm5

    Can you post up the sales volume link first?
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

132Posts Today

1,655Users online

Martin's Twitter
  • It's the start of mini MSE's half term. In order to be the best daddy possible, Im stopping work and going off line? https://t.co/kwjvtd75YU

  • RT @shellsince1982: @MartinSLewis thanx to your email I have just saved myself £222 by taking a SIM only deal for £7.50 a month and keeping?

  • Today's Friday twitter poll: An important question, building on yesterday's important discussions: Which is the best bit of the pizza...

  • Follow Martin