Are 1st offers always rejected?(5 Posts)
Are 1st offers always rejected on the assumption that the bidder has more to offer?
An agent leafleted for us and had one response. The vendor has set his own high valuation which is 8% above our absolute budget. The agent and vendor know what our budget is.
We viewed it on Saturday - it's not on the market as yet, it's just us who have been allowed to view it. We love it but cannot go above our budget, especially since it needs a total redecoration and new kitchen and the smallest room is smaller than we wanted.
It's always me that talks to the agents but DH put in the bid this morning. He was supposed to explain our position (about to exchange on own house) and say that the house needs work, isn't quite perfect for us but that we will offer our full budget, stressing that this is a first and final offer since there is no more money in the pot. In reality, what he has done is just make the offer with no preamble and has said to me that if it's a 'no', that he'll ask what the man will except when we had agreed that we must make a point of saying that's all we have and walking away.
My feeling is that most vendors decline the first offer on the assumption that you have more to offer and that it would only be accepted if the vendor believed this was as far as you could go.
If you are clear that it is your first and final offer then if they reject it you just stick to your guns and reiterate, no that is my final offer.
Let them sweat it for a few days.
We have just had our first offer accepted. But then they'd had a cash buyer lined up who changed their mind. We're the beginning of the chain so were probably a 'dead cert' and worth less hassle. If you're house sale is going through, if you speak to them again, clarify that with them.
On another house, our first and second offers were rejected as 'not enough' and they'd only accept £2k less. I told them there was no way as it needed the bathroom re-doing, all new carpets etc, plus, the 'conservatory' hadn't been finished. The agent admitted they'd already heard that and then told me the first house we'd liked (the same size and across the road) was back on the market. We're now in the process of buying it for £20k less (although it needs a new kitchen which the first house wouldn't have needed).
I know we were lucky, but stick to your guns. If you can't pay it, you can't pay it. Work out how much the work will cost you then, tell them it's more than your estimate. If they're willing to accept lower, they will if they know it's all you're going to offer (unless of course there are other people interested).
Good luck and remember, no house is worth the stress of paying more than you can afford!
We accepted the first offer from the eventual buyer of our house. This was for several reasons - it was a pretty good offer in that market and whilst I would have hoped for 4 grand more 6 months earlier, at that point (Feb 08!) I wasn't arguing. Also he was a cash, no chain buyer and the quicker we moved the better for the house we wanted to buy. Our vendors also accepted our first offer - for similar reasons I expect.
Firstly, am a bit 'grrrr' that despite me taking back my responsibility for talking to EA, they always respond by ringing DH. They are either sexist or realise he is the softer touch.
Well, we made our offer on Monday and vendor only came back this afternoon, wanting 3% more than we offered. Obviously EA rang DH to tell us this and DH then rang me to discuss. I got back to EA saying that our offer was a final offer. I also reminded her that we are about to exchange on our house and sign rental agreement so if this is all a game to see if they can squeeze more out of us it will backfire because once the rental agreement is signed our total housebuying fund decreases by £10k. I don't think she was happy about that.
20 mins later, DH rang to say EA had left him a voicemail saying vendor is going back to the builder of his new house to see if they'll reduce their price and he should get back to us on Monday.
So, 3 more days for me to plan the decor of this house (you know how you do) only to be disappointed again!!
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