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Considering offering guide price straight away - what would you do?(13 Posts)
In a nutshell - DH and I had an offer accepted on a house earlier in the year (only 2% under the asking price), the seller was aware that our house hadn't sold and that we were putting it on the market. Estate agent told us they would give us two weeks to sell our home and were therefore stopping viewings and offers for two weeks. Unfortunately this turned out to be a lie as just over a week later it emerged that viewings had still be going ahead, we'd been gazumped by a cash buyer and the agents didn't even have the courtesy to tell us. (I found out from a mutual friend who knew the vendor). Suffice to say DH and I were really upset by this experience and decided not to continue marketing our house as we didn't want to sell and then feel pressured to find somewhere.
Fast forward to now; Covid has happened and we've had our house on the market for 2 weeks, had 7 viewings but no offers so far (I think first time buyers struggling to get mortgages due to the pandemic really hasn't helped our situation as our neighbours' identical new build houses both sold very quickly this time last year).
We've found a house that literally ticks all of our boxes, it's a lovely location that we know, and if on viewing it's as good as it looks on paper then we are really keen on this house. We've got the first viewing slot on it this weekend so will be the first to view. We're aware that the full guide price stretches our budget (but is just about doable). It's new to market, there are 13 other people booked in to view after us, and although it's a quirky house I suspect others may well love the quirks as much as we do. Therefore we kind of feel that although it's not ideal from our position, if we like it on viewing the only shot we'd realistically have at securing it would be to go straight in at asking price on the condition that it came off the market immediately. I was wondering if anyone else has done this or something similar and how they negotiated it? WE've never done it before and always offered under and then negotiated up. Part of me thinks offering the guide price is our "best" route, another part of me wonders if the agents would then just use our offer as a springboard to try and generate higher offers from other viewers. Also, when is the best time to submit an offer in this case - not immediately after the viewing I'm sure for the reason above... but near to end of business on that day? I hate negotiating house purchases!
The issue may be your position if you’ve not sold. I have been in property for a long time and can’t imagine in my agency days advising a vendor to take a property off the market for a non-proceedable buyer
I’m afraid I think you’re being unrealistic to expect someone to take their house off the market for an offer from someone who hasn’t yet sold their own property
They're fair points. I should have said- and forgot - that the vendors are downsizing to a new build house that's still being built. They are aware that our house is also new to the market and were happy for us to view, so I assume they'd consider an offer from us?
As pp said, I doubt they'll take it off the market.
In their position, I'd be happy for you to view, you help drum up interest in the property and give them a nice offer benchmark to measure other offers against. Then if no-one has offered higher by the time you sell, then i'd accept your offer and take it off the market. If you offer straight after viewing, your just giving the agent an opportunity to tell other viewers there is an offer on the table tbh.
I think I would leave it with a statement that you are very serious and will be making an offer once your house sells. Put a note through the door outlining this too if you don't trust the agent. But it will be a difficult house to secure if it is as popular as you suspect. Good luck though!
I doubt they'll accept your offer or cancel 13 other viewings as it's so new to market. I don't think you have a shot tbh as all you're doing by asking the guide price which is setting a bar for which the price will rise and you're not in a position to negotiate hard.
Agents around us wouldn't let us put an offer in if we hadn't already had an offer on our place. One wouldn't even let us view until we were under offer (although I think that was an anomaly).
I can see why, as it can take months to sell, and who wants to wait around for that if they have an offer from someone else who can get moving straight away - and with 13 people viewing they would almost certainly have another offer, quite possibly for the guide price too, so it's not in their interest to wait for you.
I would concentrate on getting your place sold first before looking.
I know, I think part of my anger has been with my DH as I wanted our house on the market months ago but he was confident that we'd sell very quickly. We're not in England and bar one viewing agents have been happy to let us view and offer on houses without being sold (or even on the market) since we started considering moving a year ago.
We've got two more viewings on our house tomorrow, so although unlikely there is a chance that we may have an offer to consider before viewing this new house on Saturday.
Just to add from a sellers point of view - we have ours on the market currently and received an offer but have not accepted it due to the buyers not having sold their property yet. Estate agents have been advising us not to accept due to this.
I don't think there is any harm in offering but just be aware you will be at a disadvantage against other buyers who have sold / cash buyers / FTB.
Good luck with your sale, hope it all works out!!
We made an offer at home report value on the day our new house went to market. It was rejected and we left it on the table. A few days later the sellers came back and accepted it after a weekend full of viewings - obviously none of the viewers had offered or had offered lower than we did. We hadn't sold our home at that time although we had estate agents lined up to go. Our sellers had done the same - had an offer accepted on a new house before selling.
We hadn't expected the offer to be accepted since we hadn't sold but our sellers were aware so it didn't put them off. All that said, it put us under pressure to sell our home once the offer was accepted on the new house. We had a tight deadline to work to as completion date was set at the point when the offer was accepted so I'm not sure I'd have accepted an offer from anyone that wasn't in a position to proceed asap.
You never know how things will pan out, you can only try but maybe manage your expectations so you're not disappointed if it doesn't go your way. Just thought I'd share our story since it worked out, despite the order of things not being as most would expect.
If you got the first viewing slot and 13 other viewings are booked after yours, then your offer will set the bottom line, nothing more. The vendors would be mad to agree to the first offer and not to go ahead with the other viewings.
The vendors might also think that their property is underpriced, if the first viewers put a guide price offer in.
As soon as an offer is on the table, other ppl might be more inclined to jump in and put an offer in too.
That situation easily can end in a bidding frenzy.
I would express my interest and hold off putting an offer in for now, until the viewings have taken place.
If there aren’t other offers forthcoming, you might have a chance with your first offer.
If other ppl are keen on the house too, then it’s a question of budget and circumstances.
Some really good points here, thanks. We definitely wouldn't offer straight after viewing for all of the reasons above. I've actually found out I'm pregnant with our second child this afternoon so houses have suddenly taken a bit of a step back on my thinking priority list! 🤣
We did this years ago and the vendors agreed to remove it and give us ten days to sell our house. Though our house was ‘show home ready’ and sold within five days. I know it’s almost unheard of now, but they can only say no 🤷🏻♀️ Could you pay over the asking to secure it if you really are smitten, as we have done that too with no regrets.