Made asking price offer on house now agent asking for more?!

[SweetSuz]

Hi all, we put in the guide price offer on a house we've fallen in love with at weekend, now called us to say another couple also have done the same, sellers dont want a "Dutch auction" bidding war so have asked for final and best offer, by 10am tomorrow.
We could stretch £25k more....and I love the house.

We have a 2nd favourite house nearby which is going for less and they indicated they would accept asking price. Not as in love with it but practically could suit us better (more storage/even better school), but I think my heart would sink if we loose our on house no1 as know how happy we would be there.

What would you do?? Go to absolute max i.e the £25k more? mid way between? Nothing?? Our buyers are chain free so we in good position.
Help!!

[monkeyfacegrace]

Pay what you like for it.

If I loved a house, I'd give it my best shot not to lose it.

Personally I'd feel worse about losing it over a few grand than overpaying by a few grand.

And anyway, final bids aren't legally binding. If you go lower, there is nothing to stop you putting in a bigger offer.

[Embolio]

I'd be tempted to go for the other house, with my practical head on. I think the first house would be tarnished for me if I knew I'd paid over the odds for it.

I think I'd leave my offer at asking price and think of the extra 25k I'd have to potentially make the other house perfect.

I know it's not that simple when you really love somewhere though!

[Embolio]

I think as well it depends on where you are and what the property market is like. Is it your forever home? Would you make the 25k back if you needed to sell? Does the house need work doing to it etc

[TPel]

Is there really another potential purchaser or are the agents trying to get more money out of you?

[HopeandSoap]

I would go 10.5k as its pence on a mortgage. If you are outbid go the whole 25k (they'll find it hard to refuse even though they said no bidding)

[PurpleTreeFrog]

It's called "gazumping"! Google it, you might find some other advice.

[WickedWax]

Do you think you'd be happy living there knowing that you've paid 25k more? Can you picture yourself sitting in your new home thinking "yes, it was worth it"?

In the grand scheme of things, depending on the asking price in the first place, an extra 25k on your mortgage is not a huge increase in your monthly repayments.

[JustWantMyMoneyBack]

We put an offer on a house that was 8k above the "offers above" price. We love the house and wanted to be sure of getting it. Even if it turns out we paid too much, it isn't a huge amount and I think it's worth it. We'll see what the survey says.

[SweetSuz]

Thanks all, great advice. Area is insane in turns of house price increases each year, 1 of the top in UK, we also have serious potential to extend into attic to add more value. Think its our mid-forever home i.e. 10 years. Just so confused.
My mum thinks agent is lying and to stand firm on our current offer but would be gutted to loose it.
Other house is really lovely too, just not as much of an impact when you enter it currently, but as you saidd use money we save to turn it into the exact home we'd want new kitchen/floor etc.

Thanks again- really grateful.

[wowfudge]

I think I'd be tempted to say the offer is on the table, here's our position and take it from there. But you will know more about the market locally and whether you would risk that.

You do have to weight up the extra cost on the mortgage and having funds available if you need to do anything.

[wowfudge]

I have never heard of a mid-forever home! I'd go for the other place as you could add more value there, based on your latest post.

[Afishcalledchips]

I'd be inclined to go higher, but how much more would depend on the actual price. As in, if it were a £100K house then another £25K would likely be silly. But for a house worth £500K or more it's not going to make any difference if you're there long term.

[Salmiak]

I'd increase my offer by around 10k and say it's your best and final offer, but also add into the offer what a fantastic position you're in (chain free buyers, can move as quickly as sellers would like, give estate agents your proof of funds/mortgage approval evidence and really sell yourselves as the best buyers)

[namechangedtoday15]

Similar happened with our current house, but we didn't have a Plan B house in the wings so slightly different.

Loved the house, perfect in every way (well we knew it would be when we'd refurbed it). Agent said exactly the same thing, another couple had matched our bid and seller wanted final bids.

We went up by £5,560, not sure where we pulled that figure from, but went with an odd figure and it made little difference to mortgage repayments.

I too doubted the agent - I still to this day don't know whether another couple were in the winds as he said. That's the whole issue with agents - its all so murky. But I felt it was an increase - he could go back to seller with the "I'm so fantastic, I got more money out of them", we'd shown willing in going slightly higher but at a nominal level that didn't really make that much difference.

Got the house . Been in it 6 years and it was best decision we made. Its gone up by about £100k + in that time - without us having really done much to it, so the extra £5.5k is a dim and distant memory!

Good luck.

[Sidge]

Only you can decide if it's worth paying an extra £25K for, but bear in mind if it's overpriced and you'll need a mortgage the lenders may not loan extra if they think it's overvalued.

[SquinkiesRule]

I'd go back and re look at house number 2, and see where you could spend the money to make it perfect for you, especially has it has better schools.

[LizzieMacQueen]

What are the chances that the 'other couple' will also be interested in your house no.2?

In your position I would add £10,999 to your original offer and keep your fingers crossed.

[BackforGood]

Does depend how much the original offer is for.
If you are already committed to paying £70,000 for the house, then adding £25K would be ridiculous.
If you are committed to paying £2.5million for the house, then adding £25K is indeed peanuts.
I suspect it will be somewhere inbetween! - but you take my point.

It would hurt me to pay that much more than I needed to, when there was another house that you say is more practical for you close by. Might be different if it were a road where hoses never came up for sale.

[daisydalrymple]

We once put in an offer of £2k below asking price. Agents said buyer turned it down as he had an asking price offer, so we looked elsewhere. Thankfully too naive at the time to realise that they were actually trying to make us pay over the odds. We only realised when we returned to the village a few months later, house was still on the market and a friend told us the vendor was struggling to sell as he'd only had one offer (ours), which he'd turned down.

Could you call their bluff and say you're sticking with your asking price offer, as you're in strong position, no chain etc, and that you've a very close contender house 2, which is cheaper. And see what happens? If the thought of what will be will be makes you sad if you lose house 1, then an increased offer is probably the answer, subject to survey and mortgage lenders being happy to pay above value.

[Borninthe60s]

House number 2, more storage, better school. That would be a priority to me not a bidding war.

[Goingtobeawesome]

Sleep on it.

Wait for them to come back to you.

Don't offer £25k as a first offer!!

[elvislives2012]

This happened to us. Offered asking price the day we viewed then they had an above offer a few days later and we were asked for our best price. We stuck with original offer but emphasised our strong position, how we wanted to integrate into the community and were a young family. They went with us! When the surgery came thru we then renegotiated 3k cheaper!! It's all about what you're happy to pay and what the house is worth

[wickedwaterwitch]

Similar happened to us.

We offered below asking, turned down. Went up by £10k, turned down. Up by £15k, turned down.

Agent told vendor there was nothing more they could do for him if he wasn't going to accept our offer. So the house came off the market, for sale sign came down and everything.

I REALLY wanted the house though. So 2 weeks later I upped our offer by £25k and the agent said "they always said they accept £X (the exact amount we'd offered) and nothing less."

This was the FIRST we'd heard of the magical X figure, v annoying. Still, we have been here a while now and love the house.

But we didn't have another possibility, you have so I'd go £10.2k over and see what happens. Good luck!

Remember the thing though about how estate agents get more for their own houses? Will link!

[wickedwaterwitch]

www.home-truths.co.uk/the-freakonomics-of-commission/

[SweetSuz]

Hi all as you all gave such amazing advice just wanted to update.
DH & I discussed into the night and went for house no2. as more practical (separate study and bigger utility room).
Made asking price offer & to keep options open, also submitted bid for house no1, £15k above original offer (thanks for all advice on this) .

Didn't hear back house no. 2 all day...then heard we got house no1!

But by then we were decided on house no2.
So.... today hear from estate agents- House2 would accept offer. BUT house they looking at not turned out to be suitable. So they're starting from scratch. Even he said- there's nothing out there suitable for their (very specific, 3 generational family needs). I'm pregnant- due DC2 in 3 months and ideally like to be in or near in- our next house.

To me- seems complicated and risky. They have been looking for houses for around 5 months and had other offers fall through in that time as buyers couldn't wait. Id be delighted to go for house no1 (tbh after making offer on house no2...I felt flat. Not excited..kept thinking about house no1).

It has external unused garage towards back of house we could in future convert into garden room as study. It also has attic space for bedroom no4. The downstairs is stunning/open plan and fully perfect so no work needed.

Or do you think having made decision we should sit and wait (could be 3-6 months for house no2?) Thanks!!