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Property/DIY

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Original poster

Dear Mumsnet Property/DIY Jury: Should we offer above or below?

19 replies

TheVipperofVipp · 03/03/2015 08:13

Saw dream house this weekend. Lovely house now, lots of potential to be amazing in the future too. Perfect location. Love it.

Trouble is, I am not the only one to think this. About a dozen groups booked in to the open day on Saturday, we were nearly tripping over each other. I know of three or four lots of second viewings taking place this week, we passed one lot coming out as we went back in yesterday afternoon for our second viewing. They will pretty certainly have offers to choose from by the weekend.

Our position is we are waiting for a second viewing couple to make an offer, they sound genuine but not able to move especially quickly. Sounded out the sellers of dream house about whether this would matter yesterday...they have just been gazumped on where they wanted to move to so have to start looking from scratch, so for them it's all about price not speed.

So what should that price be? It's on for £675K. It's impossible to judge against other recently sold houses as nothing has sold on that particular road for years. Zoopla puts the price range of the other houses there at £800K-£1.2million because they have had the potential extensions etc done (think we're possibly seeing why this is so popular, eh?!).

DH says lets offer asking or £660K. I think he's deluded. He says the EA will come back to everyone for Best & Final and there's no point wasting money if we don't have to because what if they don't get other offers ? I think £680K and prepared to go up from there - our budget is low 700s provided ours sells for something sensible. I think offering under could immediately count us out and I would be gutted.

What do you think?

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LabradorMama · 03/03/2015 08:23

If you really want it and can afford full asking price then offer it. I expect etiquette varies between areas but that's how it's done here. Good luck!

Original poster

TheVipperofVipp · 03/03/2015 08:27

Thanks. And it's Surrey.

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MinceSpy · 03/03/2015 08:31

Doesn't matter what you offer your not in a,strong position as your house isn't under offer. In Surrey that's what matters.

Mrsstevejones · 03/03/2015 08:32

If you REALLY want it you will have to go in with your best offer,leaving a little wriggle room. The house sounds very popular and i would imagine it will go quickly esp it has potential to add value on a street with not much movement in a good area. What is it worth to you? Esp if you will be there a long time a few thousand here or there doesnt matter much ( as long as you can afford it!)

Good luck keep us updated

I am looking at a house today. EEkk

Mrsstevejones · 03/03/2015 08:33

Just seen that your house isnt under offer.... oh.

Original poster

TheVipperofVipp · 03/03/2015 08:51

Ah... just to clear up the us under offer thing. We WILL be under offer by the weekend. Our second viewers have said they WILL offer but they are inheriting some money and have to meet the solicitors who are holding those funds to check how much to release. They have already booked that meeting for Friday.So it's not if, it's how much.

Also, the sellers of dream house are adamant speed is not of the essence. They are all knocked sideways by having been gazumped (just found out yesterday) and worried about finding somewhere else so deliberately don't want someone to put them under pressure to move too quickly... Good luck with your viewing Mrsstevejones

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Original poster

TheVipperofVipp · 03/03/2015 09:08

MinceSpy, I do generally agree with you. When we left open day on Saturday I said we have naff all chance here as we have no offer and they need to move quick. But by yesterday, all change - they need to move slowly, we will be officially under offer. So I do think we have a better chance now. If we get the price right.

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PatriciaHolm · 03/03/2015 09:38

If you really really really want it, I'd go asking. Offering over suggests that you know it will go for more and are game playing (though house buying is one big game full stop really).

If they get a few asking/over asking offers the agent will come back to you anyway; no-one accepts a first offer, especially if they aren't in a hurry. Expect the agent to downplay you if you aren't under offer by then though (and regardless of what your viewers have said, you cannot possibly know you will be!)

Anewmeanewname · 03/03/2015 10:29

We were in an almost identical situation a few months ago. There were more than a dozen offers made - including five from cash buyers. Several people offered well above the asking price from the outset.

The house ended up selling for 15% above asking to one of the cash buyers.

Original poster

TheVipperofVipp · 03/03/2015 11:57

And I'm realistic that could happen here Anewmeanewname. And if it does I'll be philosophical and keep on looking. 15% above would be £100K extra and out of my budget. If anything I could cope with that as it could never be. Also if we lose to a cash buyer who offers similar to us I'll shrug my shoulders and crack on. What I don't want to do is lose out just on price just because I didn't think of the right number at the right time. Unlikely anyway I know but I at least want to say the right number to start with... We'll probably go asking as PatriciaHolm and others suggest...

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Mrsstevejones · 03/03/2015 15:25

Houses are like boys and buses .... there is always another one along!

However if you are about to go under offer and speed isnt essential then you have a good chance so very best of luck. I would offer full asking or as close as you can comfortably afford. House buying is a nerve racking process.

I LOVED the house i saw today, its perfect in every way but... they havent found anything (or in the last 8 months - sigh) and ours isnt on the market yet so hopefully the timing will be ok however DH hasnt seen it yet and i am already mentally moving in furniture!

LittleBearPad · 03/03/2015 15:27

Offer the asking price. If it is popular it will go to sealed bids.

wulfenii · 03/03/2015 18:19

The same thing happened to us. We really wanted the house and it was a 'rare' one to come up so lots of very keen folk. We offered asking by going to see the estate agent in person, explained we loved the house and why, and explained clearly that we were 'proceedable ' under offer', length of chain and that financing was already in place. In our case, the house went to sealed bids to those that have offered asking and were proceedable only.

You should know when you offer asking if others have offered and the estate agent 'should' advise if it would go to sealed bids or not.. in which case that is another decision process. Our estate agent was looking at balancing the most secure chain/buyer at the right price, which actually was not the 'cash buyer' as they were uncertain of who they were/may pull out later etc. In our case the sellers also were very emotionally attached to the house, so we also wrote a nice letter along with our offer which got sent to the sellers. It is our forever house and we meant it.

Original poster

TheVipperofVipp · 03/03/2015 19:44

I'm glad you liked the one you saw Mrsstevejones, sounds like you're in for a long haul so good luck! LittleBearPad - I think that's what we'll do. You've all been very helpful. And that is really, really interesting wulfenii. The sellers have lived there 40 years and clearly really love it. In the short times we have seen them, we have got on really well with them. We are very similar to them - both with two DSs (there's now grown up) - I think they look at us and see themselves 30 years ago. I know at least one other buyer who is talking about knocking it down and totally rebuilding due to the size of plot and location - it would absolutely be our forever home. I did think about putting a note together saying that. I think I will. Whatever happens, I'll let you all know how we get on...

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Original poster

TheVipperofVipp · 06/03/2015 12:39

Update: We were going to offer asking then EA got in touch to say 6 other offers on table so far, highest £680K (£5K over asking), a mixture of proceed-able or not and some below AP too. So I will offer £675K (AP) or £680K in writing this afternoon, but I could write either of those really and it make next to no difference as EA has confirmed 100% that all 7 of us will be invited back for sealed bids by a deadline next week whether we have stuff to sell or not and they'll evaluate the offers at the end of that. It's going to go for waaay over asking and I really really bloody hope we are under offer next week as we expect. Now to do a lot of sums and work out what my absolute top end budget is I suppose!

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Mrsstevejones · 06/03/2015 13:20

good luck i hope it all works out for you. Being in a strong position willtake you a long way.

We are having a second viewing on the place we want tomorrow and hopefully hubby will love it as much as i do! Then just need to get ours on the market and sold - in time!

Sending all the luck in the world x

Legwarmersforboys · 14/03/2015 07:21

Did you get it?

ElsieMc · 14/03/2015 09:12

We bought our house by sealed bid. There was loads of interest because the property was priced low eg auction type property, unusual. We paid well over the asking price, but this was the price of a semi whilst this was detached with large gardens but needed work.

Locally, one auction property in a very good area listed at 80,000 went for 180,000 very recently.

Our bid was accepted because we lived in rented, there was no chain involved and we had a large deposit but cash at the original asking price.

People get carried away with sealed bids; we knew of another couple who were telling the agents they were cash buyers but had a house to sell. They were considering a bridging loan - this is going back some years.

It sounds promising for you that your buyers are the beginning of your potential chain as they are inheriting money rather than selling but the agent will want to verify. Agents where we live won't take offers that are not proceedable.

We had an older couple offer for a property we owned stating they were cash buyers. A bit of checking by our agent revealed they required a mortgage but at 65 plus they were doubtful who the lender would be.

I would hang on to see what the offer is on your property because cash buyers are know to make cheeky offers. Good luck.

Thesuperswimmingdolphin · 14/03/2015 10:05

Another one keen to see an update............

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