DH thinks I’m being ridiculous - AIBU to offer over asking on a house straight away?

[Plantlady6]

We’re in the middle of house hunting, and the area we’re looking in is highly competitive. All houses sell fast with huge amount of interest.

A house has come up that’s perfect for us…ready to move-in to, in the best school catchment, and far better than anything we’ve seen in this price range over the past year. It’s a v rare find.

Sadly, others agree (there were 19 other viewings on the viewing day). We’ve been asked to submit offers by tomorrow, and warned it’ll likely end up going to best and final.

We love the house and are willing to go over asking to get it. DH wants to go in at asking initially and only increase if needed. I think we should go in slightly over (e.g. £980k on a £975k listing) to show we’re very serious and stand out from the other initial offers, then go up to our max if it goes to best and final bids. DH thinks that’s unnecessary and I’m being a bit ridiculous.

Would love to hear what others would do as DH and I cannot come to an agreement!

They might just pick the highest.

We've just sold. We wanted to sell to a family rather than a builder/buy-to-let. If we'd have had a close offer on the table, from the offset we wouldn't have just gone with the highest. Especially with no chain. Offer what you are willing to pay. I used to watch, a place in the sun, and the amount of men who suddenly wouldn't make an offer they could afford, when they were getting exactly what they wanted, so then lost out, was ridiculous.

I would suspect the highest bidder will get it tomorrow? What gives you the impression you'll get another chance to bid higher? Submit a best and final.

I agree - put in your max if you really want it, you'll kick yourself if you play games and someone else just swoops in with a more competitive offer. You clearly know your local market so don't doubt yourself.

I'd put in a slightly strange amount over e.g..7k more not 5k. As a seller I'd want to shortlist the top 3 or so first offers and then go to a second round to see who is serious and to see who is most likely to proceed (e.g motivations, finances etc). I think if you put in the full 15k in the first round you may just bid against yourself and give yourself nowhere to go in second round of offers. Also slight note of caution if it is a v rare type of house for the area and underpriced I would also worry what may be wrong with it?

Yes, put in an odd amount, not multiplies of 5. DD did this and secured her flat.

You should offer what you think is reasonable, up to asking. If multiple offers come in they won’t go to the highest bidder without offering the option to increase your bid.

then you can get into a bidding war and raise the price to your heart’s content…no point in going too high too early because they may not get other bidders

I don’t understand the responses here. Why on earth would they only allow one round of bidding like everyone assumes will happen. The sellers are basically turning down money if they do that. This just sounds like an estate agent trying to get someone to go way over in order to secure it when actually it could go for less

£5k over though is nothing. So that’s not going to take the house off the market if that’s what you’re hoping.

If there’s 19 other viewers plus then it will go to best and final so it doesn’t matter whether you offer your best and final now or then.

I remember house hunting and you’d spend ages trying to come up with the winning formula to get the house but it simply is to submit the highest offer at best and final 99/100 times.

Here you’d expect to pay a minimum of 10% over the valuation if not way more.

19 people viewing doesn't mean 19 offers OP.

I don't know how these bidding wars work. If you put in an offer now and someone puts in a higher offer surely it could just go to them?

This sort of happened to us not even in a bidding war. We put in an offer thinking the estate agents would warn us if they received a higher offer but they didn't and we missed out on the house. Luckily another very close and a bit better went on sale soon after and we got that one.

It was on for "offers over £500k". DH wanted to over £525 so as not to miss out again. I wanted to go in lower offered £460. Estate agent said they'd probably accept £480k so I ummed and ahed then called back saying we'd pay £480 and they accepted it.

Id put in an over arsing price offer with info you are chain free

I'm in Scotland so not quite sure how it works in England but I'd be concerned at going max offer now, then other buyers are given wind of that before best and final so you've nowhere to go and effectively pushed the price up out of your range. Is that something an estate agent would potentially share (even just to hint to people that they'd need to do better)? Unless you've got enough money to make an irresistible offer at this stage, I think I'd maybe hold back a little to see how things play out.

In Scotland, houses in popular areas often go to a closing date (best and final). We made an offer at value after viewing but it was rejected because there was so much interest. We spoke about it and were prepared to go quite a bit over at best and final offers, but ultimately got a call after a while to say our offer was accepted and we never had to go as high as we'd planned. It's all just a mind game isn't it?!

Do the odd number, the letter that’s just the right tone of emphasising your love for the house and your chain free position.

Don’t dick about, £15k on those numbers is tiny and in reality people will go higher. We won once going £11k higher on a £350k house and I’ll never know how close the runner up was but it was absolutely worth it to get the house we wanted.

Put the offer in but add your position, house sold or renting mortgage in place solicitors sorted.

Offer over but an odd amount. We gave our best and final offer for our current home and secured it as the seller appreciated we weren’t going to enter into a bidding war - best of luck!!

I think you should offer what you're ready to pay for it.

Not sure how the market is right now, and it depends on the house and area, but there was a house like this when we were looking 3 years: we offered 10% above asking and didn't get it because there were too many offers above ours!

I wouldn’t think you have a hope at only £15k over on a house at that price level in a hot market, sadly, but I would go straight in at the top you can pay and hope.

You're only offering 1-2 percent above asking. If it's that popular, you're probably not even in the ballpark for actually getting it.

You’re right your dh is wrong. If they’re asking for best and final which means they’ll take the highest offer - usually only from people in a proceedable position.

Last time we were in this position we offered £10k over asking and secured the property.

I agree with this.

If the numbers you’ve given are in the right ballpark to the actual numbers, £15k is not that much over. So I’d offer it, highlight your chain free position, and say you’re not messing around, here’s best and final right now.

If it's likely to be best and final then you should offer the most you're prepared to pay. Why wouldn't you do that for a house that looks like it will be extremely sought after? Our house was really sought after - we saw it on Thursday and bought it on Monday and stretched to get it. We'd been looking for a long time too and it was the ideal house for us.

Underpricing to get interest has become quite a popular strategy in recent years. Personally I hate it and think sellers should just ask what they want for the house. I'd research the market and offer exactly what you think it's worth/can afford. Don't go over that.

To have that much interest immediately, it would seem either undervalued (fair enough if they are desperate for a quick move) or something wrong with it. Would look at it with a wary eye.

We offered over the asking for our house because we knew we were in competition with others. You are being savvy.

Where is this? We are house hunting in London at the moment and it seems to be a buyer’s market. So many properties sitting on the market for months and months.