Please or to access all these features

Add post

Watch this thread

Save thread

Start a new thread

Flip thread

Hide thread

My feed

Active Unanswered threads

Getting started FAQ's

Unanswered threads Acronyms Talk guidelines

Hide shortcut buttons

Talk

Property/DIY

Join our Property forum for renovation, DIY, and house selling advice.

Flip

Original poster

Tactics for making an offer

10 replies

MeMeMeow85 · 20/04/2018 08:50

We’ve finally seen a house that we both like (would be happy there for next 5-10 years). Trying to decide tactics for making an offer. Any advice welcome :)

House has been on the market since end January. They’ve had 30 viewings and only 1 offer (14% below asking price), which was rejected a few weeks ago. Apparently the vendor was quite pleased about getting an offer, but they asked the agent if there was any improvement on the number, which apparently there wasn’t from that buyer.

The house was originally overpriced and I think the rejected offer was a fair one, given the updating needed inside the house.

The asking price was just reduced by 7% a couple of days after we viewed (the amount of reduction is high, as the area is expensive). The buyers have a new build that they already own and will be ready in July, so they are keen to sell to a “proceedable buyer”...

They had 2 second viewings lined up this week, but as far as I know, no other offers yet.

Our maximum offer would be the amount that they previously rejected (so 7% below new asking price). We’re proceedable (in rented with short break clause, so July is good for us) and no issues with mortgage/valuation etc as LTV is relatively low.

So my question is...would you make an offer now? I don’t want to act as a catalyst for the recent viewers to make a counter offer (thinking of the psychology of missing out, which I’ve felt when properties we’ve viewed have gone under offer. Was nearly panicked into offering on a house we quite liked previously)...

Or shall we wait a month and then make our offer when they might be more open to the figure they rejected from someone else previously?

OP posts:

Original poster

MeMeMeow85 · 20/04/2018 08:52

That’s such a long post!! Thanks for reading. Such a jumble of thoughts :)

OP posts:

WhereIsBlueRabbit · 20/04/2018 08:57

I'd make an offer now, get the ball rolling. If they turn you down then they may well come back to you to see if your offer still stands if they don't do any better. Just be honest about the fact that it's your max offer, you feel it's fair, and this is your position/these are your timescales. The sooner you make an offer, the sooner you know where you stand.

Also, the fact that they've only had one offer so far despite being on the market for that long suggests to me that the property is overpriced. If they've reduced it, more people might be interested now, so get your foot in the door!

AwkwardPaws27 · 20/04/2018 09:02

I'd make an offer, being very clear that it's your best offer, you are processable, no chain, keen to complete ASAP.
If someone is going to offer more there's not much you can do; but you might be the more attractive buyer given you are chain-free.

Furano · 20/04/2018 09:04

What @AwkwardPaws27 said

MessySurfaces · 20/04/2018 09:45

I'd offer a little less and then let the EA talk you up to the 7% under.

wowfudge · 20/04/2018 11:11

I wouldn't offer a little less - pointless game playing imo. They're unlikely to accept a lower offer and going lower could even prompt them to engage with whoever made the first offer they rejected again.

AwkwardPaws27 · 20/04/2018 11:31

I wouldn't game-play in this situation.
When we offered on our house, we knew the sellers needed to sell (previous buyers dropped out, seller didn't want to lose the house they were buying).
We offered £10k under the previous buyers offer - I made it clear we had a short chain (our buyer was chain free), were not planning to mess them about or reduce our offer later, but that we could not afford to pay a penny more (which we couldn't - and we knew it needed a new roof ASAP!).
They accepted it, although they asked several times for more money before accepting. I just repeated the same; that we couldn't pay any more, but that we were genuine and ready to proceed.
Someone did offer £5k more than us, but we'd already had our survey done so I pointed out that we weren't asking for a reduction after the survey, whereas the new person may well do. They stuck with us.

namechangedtoday15 · 20/04/2018 11:51

Just offer what you can afford as everyone else has said. Don't make it about "tactics" - your credibility will be undermined if you game-play and 99% sellers would run a mile.

PaintedHorizons · 20/04/2018 12:03

I am a seller in almost the opposite situation. I am about to accept a low offer - although I hate it that I have to.

I rejected a game player as I can't be arsed with it and don't trust that they won't pull a stunt immediately prior to exchange. So agree - offer what you can.

Original poster

MeMeMeow85 · 20/04/2018 13:49

Thanks all. I think we will make a best and final offer in a couple of weeks.

Unfortunately the EA knows that our budget when we started looking was higher...(we were originally thinking that we would use investments we’ve currently got overseas, but now want to keep that where it is). I don’t like this particular EA, so hopefully (fingers crossed) he won’t play games to try to push for higher.

Thanks for the feedback 💐

OP posts:

Flip