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!

You are right here and your DP is wrong.

I have been in bidding situations and also both homes I've sold went to offers from several people after first viewings.

It's stressful I agree - I would go to the limit of what you can afford

otherwise someone else might do that and then you lose out despite knowing you could have gone higher

I paid above asking for both homes I bought - and over the years that few grand makes no difference

if the place is popular you will need to bid - and tbh 15 grand over isn't much if you are up near the million mark.

being chain free is an advantage so make sure they know that.

Theres no harm in doing that but what about your other strengths as a buyer? Make sure you say clearly if you not in a chain/cash buyer. Or you’ve got a great solicitor lined up ready for a quick sake. Say you love the interior design choices of the current owners (suck up to them) and that your child would be so happy to live near his best friend/ grandma etc…

I agree with you, we once offered the asking price on a barn conversion project in a popular area and didn't even get a look in, I don't think the vendors cared at all that we were chain free etc

@Plantlady6 if you are going to buy a house at circa £1m then surely you have the money to send kids to private school?? you dont even need to look at catchment areas!!!

If you’ve been looking for a while then you probably know the value of the house. Trust your knowledge

I think most people do care if their buyers are chain free, but a) the higher offers may also have been chain free, and b) being chain free only counts for so much, it may give you the edge over a slightly higher offer, but less likely if the other offer is significantly higher.

Thinking about selling a house as I will be soon, and using your example: If I has listed at £975k and person A put £975k, and person B put £980k, I don't think I'd go back to person A and see if they want to raise the steaks unless they had already given me a very big hint that they would go up to £985k or something.

If it is sealed bids then you won’t get it unless you offer as much as you are willing to pay.

Sealed bids is a one step negotiation. Highest offer will get it. So offer £15k over and make the most of your chain free status. Then cross your fingers

Offer as much as you are willing to pay. If you get it, you’re not going to care that you might have been able to get your million pound house for a few grand less.

Just go your highest price or maybe 12k and say you are chain free. Worth paying for it if you really want it

Then go 15k over.

If you’re willing to pay £15k over and you don’t offer that on your first offer with this amount of interest you’ll always regret it if you don’t get it. Yes if you do get it you’ll think could we have saved £10k but at least you’ll have it.

We lost two dream homes because we didn’t bid high enough, even though we could have gone higher- DH was being super cautious didn’t want to get into a ridiculous bidding situation, etc, etc. We’re now in our compromise house which we got by another ‘safe bid’ because not as much interest in the property from others. I have to pass one of the ones we lost every day…I still sigh. So if it’s perfect and you won’t get into difficulty bidding the highest you can, just go for it OP!

If I could afford it I would offer. I wouldn’t want to miss out my dream home for 10/15k or so. I would regret it.

Your husband wants to go in at asking and increase if necessary? You won’t get the chance if someone else starts higher.
I’d go in as high as you can.

🤣🤣
'Over arsing price'
That sums up the property buying and selling process brilliantly!
People being greedy, people willing to stretch themselves into almost penury to get a 'perfect' place (which never is).

Whereabouts are you, @Plantlady6 ?

I sold my first property in Scotland nearly 10 years ago, where 'offers over' is a very popular selling device. It went within 6 days for 35% over asking price. There were 6 bids in the end as I recall, and all other things being equal, I obviously went with the highest bidder. There were no max or final bids. It was a one-time thing.

It's a different market now, but you said there is a lot of interest in this property. I would bid for the maximum you are willing to part with. Don't count on getting a second crack of the whip.

@allthemiddlechildrenoftheworld not true - this is a fairly standard 3 bed home price in some pretty ordinary parts of London for example - many people had accumulated money through property but absolutely do not have the income on salaries for private schools.

If it's best and final, sealed bids just forget the asking price and offer what it's worth to you.
If you both want it, offer over. If it's not worth that to DH, don't buy it.
There's no second chances with popular properties these days. We had to go way over asking for our house after months of being outbid.

Good luck Op, I really hope you get the house. I know if I was in your shoes, my DH would do whatever it takes to get it, you won’t regret it. really hope it all works out for you.

Recently sold a home that had 3 offers which were all taken to best and final. Didn't go with highest though it was quite significantly the highest due to various reasons that made the overall sale less likely - one was also discounted as financials weren't confirmed. A relative lost a house with highest bid as next one down had a more likely move profile.
The EA should be aware of potential buyers availability/likelihood to complete - so make them fully aware of your circumstances alongside the bid. As far as I've seen all offers get a chance at best and final but it's not guaranteed so I'd maybe go slightly above.
I've seen randomised offers on the one I sold eg/ with an added £106 to a rounded sum - I just thought it odd, so did the EA, but I think I've seen it on e-bay years ago or similar (can't quite recall) so perhaps it's becoming a thing in higher value areas where house buying is super competitive.
If you do miss out then it wasn't meant to be - but good luck.