Seem to be in a bidding war and DH is on a course

[penguinsnpandas]

Saw a property we all love. Been on market for around a year, a month ago they dropped price 5 percent. Put in an offer today at 10 percent under asking price and they had another offer arrive same time at 5 peecent under both nothing to sell. 5 percent under was max limit DH said. But what should I do. Headwise I think we are now at fair value, heart wise I love it. We have cash to increase. DH will forgive me but argh. I am leaving it to see if others raise their offer but my guess is they will. Any advice. Not too many alternatives.

[PigletJohn]

don't get carried away. The bidding war is a technique to get buyers to overstretch themselves.

A few days thought and reflection will do no harm.

Lots of offers never come to anything.

[penguinsnpandas]

Thanks. I think its genuine but very odd appeared exactly same time as ours and apparently made over email. We were aiming do deal 5k lower than I have currently offered but 5k was our margin. I suspect we are entering over market value territory above this. I may increase in 1k but if other bidder really wants that isn't going to work. I will see how much other bidder comes back with. I had one once who only made first offer but I suspect this will go to full asking quickly. Told DH to view an alternative as they are by his work but its not as perfect as this one.

[userbored]

I'm assuming your buying in England.....

How do you know if there is even another offer.......could be a ploy?!

[penguinsnpandas]

Not sure if its a ploy, yes in England. Apparently seller will only take off market at full asking price but is considering offers but wants viewings scheduled this week to go ahead. No news on other people increasing offer. 2 viewings though not too concerned.

[penguinsnpandas]

Hmmm house they told me was in a bidding war the other week is still on the market and its the same company. Wonder if it is a scam.

[viques]

The house has been on the market for a year so I'm surprised the vendors are not snapping at the decent offers. If they are still allowing viewings then they are not seriously considering either offer, so hold back, they sound as though they will be nightmares to deal with. I wouldn't be surprised if the other interested party dropped out .

Anyway, head should rule heart!

How many viewings have you had? Maybe go back for another and be mega critical (inside your head, not out loud) look at every little detail, location, condition, decor, traffic, schools, noise etc , maybe it is not the house for you after all, or maybe you still like it but your offer was fair.

[penguinsnpandas]

The house is perfect, as its old may get issues but that's fine as long as we are not paying over the odds. The owner is in a care home so its her son I think, it should be straightforward sale as empty but yes surprised they haven't accepted our offer or other one and say only take off at full asking price. She didn't mention other one so may have walked, never existed, holding like us or can't get in touch but odd not mentioned. I can understand them still showing people until we get proof of savings and mortgage to them but the full asking price or nothing seems ridiculous after a year. I told them i think its over what its worth at full price. Will just leave it now but I am not playing games indefinitely.

[userbored]

I'm massively cynical about "other offers" or even if they really exist!
It's a game.
Do what you feel best x what's for you want go past you and all that! Good luck

[penguinsnpandas]

Thanks very much - the lady sounded so nice this morning I thought she couldn't possibly be making it up later. But I wonder. I suspect we may get a the other one has upped their offer to full asking price call oh and a day later they pulled out. Hmmm. I will just leave it now. They can take it or leave it. But we will keep looking at other houses. Argh but I want this one.

[wowfudge]

I think I'd tell the EA you're not prepared to get into a bidding war, but if the sale doesn't proceed to come back to you. In the meantime you'll keep looking. They'll be kicking themselves if it was a ploy.

[penguinsnpandas]

Thanks - I almost thought to book a viewing for another property via them as I suspect this is a game but its a bit childish Plus if its not a game we then look silly. I am going to ignore them, EA hate being ignored.

[AornisHades]

Seems a coincidence that there's so much interest after a year.
Stick to your original offer. No harm in asking EA to show you another house if they have something else that meets your requirements.

[penguinsnpandas]

It looks as if it was on the market for 4 months last year and the higher price and either didn't sell (most likely) or sale fell through - EA claims they don't know. Then it reappeared early April at a 5% lower price the viewings maybe possible but the more I think about it the counter offer is fake. No mention of it later, when I matched the counter offer they seemed quite thrown as they expected me to go higher. Who offers by e-mail when the office is open. But I would guess they want to do a deal so my moneys on the vendor being very stubborn on price. Of course the viewings could be fake too but not too concerned about those as its been on so long. I asked DH to see a different house but he doesn't want to. Trouble is DH is a nightmare we spent a year looking at houses before getting this one as he's so fussy. I need things done quickly for schools. There's the same house but communal garden in another village cheaper, I prefer this one but DH won't even look at other one as he says he doesn't like that village but they are more or less identical villages.

[another20]

I am not sure that booking to view another house with same agent is a sensible tactic - they will just be delighted that they have two houses and two sets of buyers in the running for a sale.

I suspect that the sellers are difficult. Taking a year to reduce price by 5% is stubborn - and insisting on full asking price is unrealistic.

Where are you in the UK? Prices are falling in SE - and don’t look to be bottoming out / - so i would be very careful what you pay right now. Also sounds like there could be a lot of work to do if elderly person has had it. Building materials and trades are very expensive so don’t “guesstimate” these costs.

[penguinsnpandas]

Thanks - I suspect its stubborn sellers too and that's why we've got a fake counter offer but the seller is still being stubborn. The house is in excellent condition, I think the son has been doing it up, looks more like a couples house than an old ladies one. Though I am slightly wary if issues come up on survey there's no leeway but we are pretty good at knowing issues but survey may not support higher valuation than what we are at. I've had two properties before which were complete renovation jobs. It's not in SE, I realise market could turn but on the other hand its cash in the bank devaluing in real terms, at least we get something we love.

I also wonder if he doesn't want to sell for some reason, maybe as its his Mum's home. It's all a bit odd.

[another20]

How does the asking price compare with other comparable SOLD prices in the area?

I would just sit tight - even if more viewings happen at the weekend - they may not offer.

I did this recently - gave my final offer - they continued to show it for 3 more weeks and then came back to me and accepted my offer.

[penguinsnpandas]

It's not your standard property but the one next to it but half the size sold for 67% of current asking price in 2010. The one next to that sold for 86% of current asking price in 2015 but again is smaller 2 rooms smaller size of double bedrooms but has a garage. Both these properties are similar type. Other similar ones are on at more (quite a lot more in some cases but don't think they are selling at least not quickly) so don't think that's much reassurance. Zoopla reckons its worth 170,000 more than its been on for for a year - indexing the price the owners paid 20 years ago does get to that but they overpaid.

[SickofPeterRabbit]

Sounds like you really do love this house?

[SickofPeterRabbit]

Take charge! But in a firm and final offer. They can take it or leave it

[SickofPeterRabbit]

*Put

[MismatchedPJs]

I really hate this thing that the estate agents can just say there's another offer, and you just have to believe them or not. It does seem a hell of a co-incidence and it sounds like it isn't exactly priced to sell.

I would strongly advise stepping away from the % of asking price calculations. The asking prices are more or less made up values, they could be anything and might bear no relation to the ratio between this house's asking price and its actual value.

[pigpoglet]

Just pay asking price if you can afford and love it . Get it nailed .

[Mildura]

Why would an estate agent risk losing a genuine buyer by inventing a fictitious second buyer to inflate the price by a relatively small amount?

estate agent fees are typically 1 - 1.5% of the property sale price. Taking the middle of that range to illustrate, that means if an offer of £10,000 higher come in, that means £125 to the firm of estate agents, and likely only 10% of that to the individual. It makes no logical sense to risk losing the genuine buyer by inventing a fictitious buyer to make another £10/£20.

I will also try and illustrate why it is not so terribly suspicious that two offers come in for the same house that has been on the market a while. Buyer A views the house X, and quite likes it, but is not 100% certain and wants to look around at other houses. A few weeks goes by, perhaps a couple of months, and Buyer A still hasn't found anything they fall in love with, and still thinks about house X. One day Buyer B comes along and decides house X could be the one for them and puts forward an offer. The estate agent calls buyer A to say someone else has offered on that house you looked at, have you made your mind up yet? Buyer A decides that they do want to offer after all, which is how you end up with two offers coming in at similar times for the same house.

There are some unscrupulous estate agents out there, but not everything is a ploy when it comes to buying and selling houses, despite what some posters appear to believe.

[Mildura]

Also, always puzzled as to why it is called a 'bidding war?'

It's called negotiating. buyer wants to pay as little as possible, seller wants to sell for as much as possible. Hardly a war.

[another20]

I agree that % of offer vs asking price is a nonsense. As are Zoopla estimates. It’s value is made up of how it compares to other SOLD prices and then what someone wants to pay for it.

You need to compare like with like. So the same size house in a comparable area.

Can’t compare a house that is 50% smaller and necessarily expect it to be 50% cheaper.