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Original poster

Would this situation make you catious about offering on a house?

32 replies

Mojitosinthesun · 01/01/2020 12:58

Hi,

Have this running in Property too, but just thought I'd get a bit more traffic over in Chat 🤞

Happy New Year, first of all!

Seen a house we really like- within budget... just , but there are a couple of things which are making me question our offer.

Firstly, it's on with another agent and apparently they have an acceptable offer on the table, but they're not proceedble, so it was a bit hypothetical.

We went in 10k under their offer, as weare proceedable. Not heard anything back yet, but the EA said he didn't think it was enough, but that maybe they'd meet in the middle, given we are proceedable.

Anyway, my concern is that we'll have our offer accepted, but then the other people who offered with the other EA sell further down the line, as we're getting ready to exchange and then they take their offer instead, leaving us back to square one.

I know the nature of the beast is it could collapse at any point and often does, but am wondering how likely this is, given that if we did meet in the middle, it would only be 5k less than their offer.

My other concern is that the vendors haven't yet found anywhere and don't sound particularly proactive in their search. Our buyer is a chain free investor, so I suspect they're keen to get the ball rolling asap. They offered over a month ago now.

Also, is it normal to stay on with another EA once SSTC through another. The EA said they think us insisting it came off the market altogether is perfectly reasonable, but I often see houses on RM which are SSTC, but are still marketed with another EA. This seems ridiculous to me.

Thoughts?Smile

OP posts:
DoesntLeftoverTurkeySoupDragOn · 01/01/2020 13:02

As you have a cash buyer, this can be a positive that makes a lower offer more likely to be accepted. Short chains are more appealing.

DoesntLeftoverTurkeySoupDragOn · 01/01/2020 13:02

Did you tell the agent that?

2020BetterBeBetter · 01/01/2020 13:03

I wouldn’t agree to proceed if the house is still advertised elsewhere and I would also want confirmation they sellers won’t be accepting the other people’s offer further down the line.

Original poster
Mojitosinthesun · 01/01/2020 13:04

Did we tell the agent what? @ DoesntLeftoverTurkeySoupDragOn

OP posts:
BlouseAndSkirt · 01/01/2020 13:04

Another offer can always pop up whatever happens, so I wouldn’t worry about the other (alleged) offer.

I have bought 4 times now and always offered on the basis that the house was taken off the market once the offer was accepted.

The vendors may be being practical and realistic and waiting for an offer before they look, so that they know they are ‘proceedable’.

DoesntLeftoverTurkeySoupDragOn · 01/01/2020 13:07

Tell them that you have a cash buyer and this a short chain.

Original poster
Mojitosinthesun · 01/01/2020 13:10

@BlouseAndSkirt, yes "alleged". I did wonder if this was just a cheeky tactic tbh. Yes, the EA did say that they were just being practical and didn't want to really start looking intil they had an acceptable offer.

OP posts:
Geepee71 · 01/01/2020 13:12

Out of interest why are you going £10k under asking price?
Does the house need a lot doing to it?

Vendors would keep it on market with both agents until they accept an offer from someone proceedable, then take off market. Hopefully once sale is agreed and you start process / surveys etc they wouldn't accept from anyone else.

It's not a great system.

Original poster
Mojitosinthesun · 01/01/2020 13:39

It's not a great system. @Geepee71, you can say that again!

We're offering less, because it does need a little bit of work doing, although nothing huge tbf.

OP posts:
Geepee71 · 01/01/2020 13:50

There should be more things in place so people don't pay out for surveys and similar when there's still have a chance of losing money if the vendor pulls out.

Interesting re your offer. We are watching the market with interest at the moment, most houses we like are priced to sell and don't need any work, other than minor cosmetic stuff, so deciding on what to offer £ is hard. Don't want to go in too low and worry someone would offer higher, like your scenario..

BlouseAndSkirt · 01/01/2020 14:51

It’s a buyers market.
The vendors should have plenty to choose from.
If you really want the house, make an offer, tell them to take it off the market, and tell them your offer is based on exchanging by a certain deadline (8 weeks would be reasonable) (the completion date can be longer).

theunknownknown · 01/01/2020 15:30

I can't see that it is a buyer's market Hmm. Brexit is certainly making me hold off from putting my house on the market. There seems to be very little up for sale where I live (north London)

Southmouth · 01/01/2020 15:41

The house being taken off the market and sellers agreeing on your offer doesn’t mean anything until all the paper works gone through and it’s signed over though. We’ve been in this situation twice, offer accepted even met the buyers in person they 100% agreed to our offer and even shook hands on it. Couple days later we get a call to say the estate agents had told them another seller who was previously interested had put a offer in for £3000 more, which they accepted. They were keen on the extra £3000 and the fact the buyers were first time buyers and hoped for a quicker sale, in the mean time we’d found another house and still had buyers for ours and exchanged and moved in 2 months quicker than they had.

BlouseAndSkirt · 01/01/2020 17:13

It can never be watertight until you have exchanged. But asking them to take it off the market at least means they are not actively trying to get another buyer / higher price, and demonstrates commitment.

I take it to be a buyers market because properties that are for sale are taking ages to sell, I many areas, and prices are level or dropping. People aren’t buying in case prices drop. So anyone who is looking to buy has a bargaining advantage if they can find a property for sale that suits them.

Houses round us are selling OK though, and prices level.

BernadetteRostankowskiWolowitz · 01/01/2020 17:15

Why don't you offer and add in the disclaimer that you want to complete within 8 weeks?

ChicCroissant · 01/01/2020 17:29

If the OP's vendors (assuming they accept an offer from the OP, which hasn't happened yet) haven't found a house themselves then coming up with an 8 week deadline may not be attractive to them at all. The work the OP wants to do may not be necessary and the vendors may not want to fund it by dropping the sale price.

I'm in the SW and houses are still selling here. It depends where the OP is.

I hope it works out for you OP. It is such a stressful business! Good luck with the offer, you have a definite advantage being proceedable so use it!

Original poster
Mojitosinthesun · 01/01/2020 18:00

Thanks for all the replies.

We're definitely going to ask them to take it off the market, if they did accept our offer. We just wouldn't be comfortable if they wouldn't agree to that and it's completely fair imo.

The completion date I'm a little unsure about. I want to apply a little bit of pressure, but not so much that it pisses them off and we lose out.

OP posts:
Treacletoots · 01/01/2020 18:07

The answer is simple. Offer them the asking price.

What really annoys me is people offering less because a property needs work. Likely the property was priced with this in consideration.

Check comparable sold prices and see if their asking price is reasonable or, optimistic.

If its not worth what they're asking for it, then by all means an under priced offer isn't unreasonable, but comes with the risk of being gazumped.

If its worth what they're asking, and you can afford it, then just offer the asking price and stop expecting a discount 'just because it's not in immaculate condition'

DelphiniumBlue · 01/01/2020 18:08

They will feel under no obligation to do anything until they have found somewhere to buy themselves.
In this market, either you or they may need to consider selling and then renting until somewhere suitable is found. It might be worth saying they need to exchange within a set time, after which time you will reconsider your position.
Keep you eyes open for other houses where the seller is in a position to go ahead.

Original poster
Mojitosinthesun · 01/01/2020 18:30

@Treacletoots, it's slightly above our budget anyway, but in all honesty, we wouldn't offer full asking price, even if it wasn't. It's been on the market for several months and has only had one unproceedable offer in that time. Other houses on the same round are generally more expensive, but they have been extended, sometimes double extentions and so whereas yes, this houses is cheaper, taking all that into consideration, I still think it's slightly over priced.

OP posts:
Original poster
Mojitosinthesun · 01/01/2020 19:02

@DelphiniumBlue, we are definitely going to keep a close eye on the market. Our buyers have been very patient so far snd have daid they're in no huge hurry, but I guess that will only be the case for so long.

OP posts:
ChicCroissant · 01/01/2020 19:10

Making a low offer and pressuring them on a completion date doesn't sound like a winning formula to me, OP. What's in it for the vendors - you need to think about making it attractive for them to accept your offer, and you do seem to be aware of that.

Original poster
Mojitosinthesun · 01/01/2020 19:18

@ChicCroissant, it's lower than their other offer, yes, but taking everything into account, I think it's fair. We wouldn't put in those conditions unless we started negotiating and raising our offer.

OP posts:
Treacletoots · 01/01/2020 19:41

Right. Well if you're still interested, play by numbers. As an investor, this is how I would go about making a lower than asking price offer..

Work out the price per sqft of the comparable properties. Then calculate what your smaller property would be worth based on its sqft.

Send the offer in writing. Explain how you've come to the figure and what the conditions are on the offer. I. E. Its withdrawn from all agents marketing immediately.

You could try and insist a gazumping fee that they pay any costs if they pull out but realistically that would likely not be enforceable but would tell you whether they had any intent of they had an issue with it.

Good luck with the purchase!

notangelinajolie · 01/01/2020 19:42

I know Kirsty and Phil do this all the time but in reality an offer may not be enough to take the property off the market. I think most agents would recommend that their client keeps the house available for viewings until the prospective purchaser has shown financial committment by arranging for a survey. An offer on its own may not be enough to secure this property.