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Original poster

Help me with putting in an offer

17 replies

HarrietsHouse · 01/06/2016 09:57

House is on for £550k

Estate agents said he is taken offers today (there was a waiting period - something to do with owner selling another property, too complicated to explain!) but he thinks it will go to best and final offers. According to him (not sure I believe a word he says) he thinks there will be three other people offering.
He reckons it will go over the asking price. Any idea on what offer to put in? Also, why is he taking offers today if it will go to best and final offers?
Anyone have experience of this? Don't want to pay a crazy price but also don't want to lose the house because of a few thousand pounds.

OP posts:

blindsider · 01/06/2016 10:00

May well be Estate agent hype as their business practises stink. But if you want it, work out what you are prepared to pay and offer that. If you get it you have it at a price you were prepared to pay, if you don't you either can't afford it or in your eyes isn't worth what someone else is prepared to pay.

Original poster

HarrietsHouse · 01/06/2016 10:05

We know what we will put in for best/final offers but should we put that in at the beginning when it is just normal offers?

OP posts:

Awesomeb · 01/06/2016 10:53

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Original poster

HarrietsHouse · 01/06/2016 11:02

Thanks Awesomeb. Can you explain what is going on with him getting offers in today if he is going to best and final offers? So confusing!

OP posts:

JT05 · 01/06/2016 12:11

The offer that is accepted may not be based solely on money, it could depend on the ability to proceed quickly with a short chain.

NoPlanYet · 01/06/2016 12:30

I find this situation so frustrating and I don't find answers such as 'offer what you're happy to pay' useful!

If I could afford 615 and definitely want this house 2hat should I offer then? I've been in this situation with similar prices and how on earth do you decide what to bid? You're totally constrained by what the EA pit it on for and there's no real way of knowing what it 'is worth' except every house going at a 3 month long auction!

Just wanted to rant.

OP in your situation I'd offer 540 or poss 550. That shows you are serious and can go higher for best and final. It means you won't be excluded for trying to get it for 520.

But TBH who knows?!? You need to know what the other people will offer and that's not possible

I bloody hate buying houses

Original poster

HarrietsHouse · 01/06/2016 12:44

Thanks NoPlanYet, that's exactly how I feel! It's just the most ridiculous situation where we are 'gambling' with tens of thousands of our hard earned money

OP posts:

whattodoforthebest2 · 01/06/2016 12:49

Do some research into the local area - what houses are on the market now, what's under offer, what's sold recently - Rightmove and Zoopla have this sort of information. How long has it been on the market? Then use your own judgement to decide if you think 3 other buyers are likely to be there. (I too wouldn't be believing the EA). You'll never know for sure what is going on behind the scenes, but if you want it, play it carefully, don't give the impression you'll improve your offer but make sure your situation is as good as possible re chain, mortgage offer, flexibility etc.

I'd be at around £525 or 530, depending on what's happening locally. Confirm your situation in writing to the EA and stay in close contact so you're kept in the loop. Stressful times...

Good luck.

Awesomeb · 01/06/2016 13:19

Rather than having 3 buyers and 1 vendor and calling the vendor after each offer the estate agent is trying to get the best offer for the owner.
Rather than 3 buyers competing like an auction upping each other bids until there is 1 buyer left.
The owner wants 3 sealed offers - that they will look at and consider on the merit of the price and position of the buyer.

What to offer price is the difficulty here BUT your position as a buyer is also VERY important.

When you put your offer forward support that by explaining to the estate agent the EXACT position you are in e.g. you need to be in the house by x date or you have no Chain etc. This is just as important as the offer price. If the estate agent has confidence that you will see the sale through to the end then immediately he will fight your corner as he will only get paid after it completed.

remember this an estate agent has to pass on ALL offers to the vendor regardless of when they come in. If you fail at the 'Best and final offers' offer again - but very quickly. The owner will see your commitment and may withdraw from the other offer.

it sounds like the property will go for full market value: check Rightmove for sold house prices in the area - check mousprice.com too.

Original poster

HarrietsHouse · 01/06/2016 15:16

Thanks everyone!
Awesome - but EA is asking for normal offers first but at the same time, saying that he thinks it will go to best and final offers. What I don't understand is why if he has so many interested parties he isn't just saying it's going to be best and final offers? (Put your psychic hat on!)

Whattodo/awesome - there is a reasonable amount of property on in the area but it isn't shifting at the moment. This property is unique because you could do a lot with it, development-wise (all other properties are already 'done' or just need redecorating). I think that is why it is attracting the level of interest. So yes, you are probably right about it going for asking price or over. I guess we must decide just how much we can afford and still do the extension etc which it needs. I think the problem is being paralysed by the fear of vastly over-paying
We have made our commitment and our position (short chain/committed buyers) very clear to the EA, and the fact that we won't need a mortgage to buy it. EA said all other people who would be offering are under offer themselves but don't know any more detail.

OP posts:

whattodoforthebest2 · 01/06/2016 15:30

I suppose from the EA's point of view, people saying they'll put in offers is very different to actually having the offers in his hand. He'd look silly if he went to best offers and only one came in, so maybe he's encouraging you to offer and then he can get the ball rolling if anyone else is interested.

It sounds as if you're in a good position tho'. I think people tend to play up their position if they think they're in competition, so the other parties' chains may not turn out to be as favourable as yours.

StepAwayFromTheThesaurus · 01/06/2016 19:00

If you lose at best and final offers don't immediately put in a higher offer. The EA will put it to the seller but they may not be at all impressed.

This happened to us. Our house went to best and final offers, we chose the second highest offer. The highest offer then increased her offer. The EA was not impressed and neither were we. It basically shows contempt for the whole process. If £276k was actually her best and final offer, she should have put that forward not £273,500. It actually confirmed to us that she wasn't the buyer for us, and we'd just have expected her to decide that other rules didn't apply to her too (and she'd probably gazunder at the last minute).

Original poster

HarrietsHouse · 02/06/2016 05:25

Stepaway - thanks for that. It is a tricky one. It has now gone to best and final offers. We will be submitting ours today and the figure we have submitted is what we are willing to pay. It is a horrible thought though, to think we could lose out on the house for the sake of £200 etc!

You are right though, it does smack of unethical behaviour to immediately up it if someone else 'wins' and I can't see us being comfortable doing that. Of course the real problem is that the system of best and final offers is just so ridiculous and leaves any potential buyer wide open to gazumping. What you are told about it is at the whim of the estate agent and leaves you at the mercy of 'a good guess' as to what other people might offer - it seems a ridiculous way to make the biggest financial transaction you will ever make!

OP posts:

StepAwayFromTheThesaurus · 02/06/2016 10:08

I don't know. I think in a situation where multiple people want to buy a house best and final offers is probably the least awful way. It's certainly fairer than the EA going between everyone and bidding each other up. At least this way you get to say, 'this is what I'm willing to pay' and see what happens.

You could lose out over £200 anyway, in which case it wasn't meant to be. And it really isn't all about the money. The buyer's situation and even the seller's impression of them can matter. Also a bid that's totally over the odds that will definitely need to be reduced after the survey down values it, may be turned down for a more sensible lower offer where there should be no problem with valuation.

StepAwayFromTheThesaurus · 02/06/2016 10:09

Of course, for all that, it is a hideous process. So nerve wracking.

I hope they pick you.

Original poster

HarrietsHouse · 02/06/2016 10:54

Thanks Stepaway! Me too

OP posts:

whois · 02/06/2016 12:56

Good luck!!! Fingers crossed for you. So stressful.

I took best and final offers and picked the 2nd highest not the highest as they were chain free.

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