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Negotiating House Price

(19 Posts)
NegotiationHelpArgh Wed 24-Apr-13 13:31:27

We've been house hunting & have shown some interest in a property that's been available for a couple of months.

As soon as we seemed interested, the EA informs us that the house is very popular and claims that there are other offers on the table etc. There was no hint of this before we viewed.

Without wanting to offend any EAs reading this, I am very aware that the EA works for the vendors not us, and may possibly be exaggerating the other interest (if it indeed exists at all). He is now insisting on knowing if our offer is best & final. Is this usual practice?

Does anyone have any experience or advice to share?

lalalonglegs Wed 24-Apr-13 13:40:50

It's the great unknown of any house purchase - the EA may be lying or may not, but it's risky for him if you then walk away. (We sold a place last year that didn't have any offers for 4 weeks then two at the same level on the same day so it can happen.) Ask yourself how much you want it and what you would offer if no other interest had been expressed then work on making your offer sound a plausible one by emphasising position to proceed etc.

I'd ignore any best and final nonsense, just say that this is what you're offering and that you don't want to get into a bidding war.

NegotiationHelpArgh Wed 24-Apr-13 13:47:47

Thanks lala apparently the potential buyers at all at the same level of proceedability (is that even a word?) which I think does sound a little suspect.

lalalonglegs Wed 24-Apr-13 14:03:07

In that case you can either walk away or you can put in an offer at the level you would have and see what happens. It depends where you are in the country as to how plausible this situation is but don't let yourself be bamboozled into anything - and make it very clear if they reject the offer that you don't want to be taken to any other properties where the owners are considering other offers.

Incidentally, I forgot to say that I offered lower than "the other interested buyer" on a flat last year and ended up getting it. This mysterious woman was never mentioned again (and I lowered my offer again significantly once searches revealed extra information and she still didn't appear to bid against me).

NegotiationHelpArgh Wed 24-Apr-13 20:46:15

Well, we think we're going to walk away. The agent is the most obstructive I've ever met & is refusing to put an offer across until we confirm it as 'best and final'

Shame as we like the house, and I've been told the buyers are keen to move. Oh well.

It is on with another agent too, maybe leave it a while and if it's still available try dealing with them instead. Unless that's illegal or something hmm

xabiuol Wed 24-Apr-13 20:55:21

Cheeky! EA has no right to make demands about the terms on which you make an offer. Maybe you should write to the seller and alert them to the fact that the EA will not pass on your offer!

InkySkink Wed 24-Apr-13 21:02:12

I worked as a trainee estate agent in my misspent youth, and they are (unless the law has been changed) legally required to put forward ANY offer made. Any offer. I was told that this would be the case if you offered a song and a piece if toast. They can't make the decision on behalf of the buyer, and they can't dictate the terms you make the offer with.

NegotiationHelpArgh Wed 24-Apr-13 21:21:08

I think if I offered a song Inky they'd give me the house just to shut me up grin

The conversation has gone pretty much like this:

NHA: This is our offer, please advise client.

EA: Is that your best & final offer?

NHA: Did you pass on our offer?

EA: Is that your best & final offer?

NHA: Has the vendor rejected our offer?

EA: The vendor is ideally looking for [10k more]

NHA: Have you been explicitly instructed not to accept offers less than X?

EA: The vendor is ideally looking for X, offer X and I might be able to get it for you.

I'd ideally like to get it in exchange for a bag of chips and a lend of a space hopper, but that don't mean I expect it to happen.

InkySkink Wed 24-Apr-13 21:41:37

Just say i am making £X offer. Please relay to the vendor and let me know their response.

Here's the legal bit:
"Informing clients about offers

You must give your clients written details of all offers received from potential buyers. This information must be passed on promptly. It can be sent by hand, post or fax.

You should keep a written record of all offers that you receive.

If your client tells you in writing that it isn't necessary to pass on certain offers, you don't have to write in those circumstances. For example, this could happen if the client doesn't want you to write with offers below a specific price level."

www.oft.gov.uk/about-the-oft/legal-powersInforming clients about offers

You must give your clients written details of all offers received from potential buyers. This information must be passed on promptly. It can be sent by hand, post or fax.

You should keep a written record of all offers that you receive.

If your client tells you in writing that it isn't necessary to pass on certain offers, you don't have to write in those circumstances. For example, this could happen if the client doesn't want you to write with offers below a specific price level."

From this site:
www.oft.gov.uk/about-the-oft/legal-powers/legal/estate-agents-act/handling-negotiations#.UXhCK2S9LCQ

InkySkink Wed 24-Apr-13 21:42:15

Ok... My phone's gone nuts...

InkySkink Wed 24-Apr-13 21:45:51

I once knew an agent lie cheat and bend every rule to get an offer up £10,000 AFTER the vendor had accepted, trying to make himself look good.
It backfired though, as the vendor was really annoyed since he was selling the house next door to his own and it nearly lost him the buyer he wanted for a neighbour.

NegotiationHelpArgh Wed 24-Apr-13 21:50:24

Gawd Inky that's terrible shock EAs have a really bad name, and I always wanted to believe it was exaggerated or just a few bad apples, but maybe I was naive.

The legal stuff may help, so thanks for that, but that's what we've been doing all day. I would totally understand if the vendor doesn't want to drop below a certain price, but am struggling to understand why the EA would rather risk losing a buyer than just confirm the flipping info.

lalalonglegs Wed 24-Apr-13 22:24:15

Put the offer in writing rather than speaking to them on the phone. If you don't hear anything back, I'd write to the vendors, assuming that they live at the property.

NegotiationHelpArgh Wed 24-Apr-13 22:52:54

We did email several times, following the lack of action as a result of the phone conversations, but maybe that wasn't official enough.

The vendors do live at the property though, so yes we could do that next.

MoonlightandRoses Thu 25-Apr-13 22:04:30

I'd go to the other estate agents with the offer. This one doesn't sound as though he deserves the commission.

wendybird77 Fri 26-Apr-13 20:22:08

yy, put the offer through the door and go to the other EA and refuse to deal with this one. Who gets what commission and how they sort it out isn't your concern. Git.

NegotiationHelpArgh Fri 26-Apr-13 23:40:39

Well, we've increased our offer to a number we're comfortable with, and will not be increasing it again. Despite the fact that apparently more potential buyers/bids have surfaced hmm

If we don't get it, at this stage I really am past caring. It might be cutting my nose off to spite my face, but I would rather live happy in the next house that we like, than pander to this individual. Tosser angry

MoonlightandRoses Fri 26-Apr-13 23:45:16

Hopefully it works.

wreckitralph Sun 28-Apr-13 05:33:57

Message withdrawn at poster's request.

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