Rejected offer

[MeMeMeow85]

We made an offer on a house yesterday and took the agent’s advice to make it “best and final”, rather than start lower then increase to our max number. The EA said he knows how the vendors think etc.

So we made our best and final offer (5% below asking price), which got rejected within about 3 minutes by the vendor. Apparently they would accept 2% below asking price.

Felt a bit sad, but confident that it wasn’t worth more than we put forward, so we’d keep viewing other places. Yesterday evening the EA’s boss called us to ask about us increasing our offer...he tried a few different ways of making it sound like a good idea to go higher. I didn’t budge though.

I’m not sure what they didn’t understand about it being “best and final”. We have the higher amount available, but I need that in cash to do work inside the house.

I think the issue is that the vendor paid far too much for the house 6 years ago, so isn’t making a profit really. They’ve been on the market since January (they were on the market last year at a much higher price, but pulled it offer and remarketed after Christmas) and had a buyer in March for 2% below asking price, but that buyer pulled out.

We’re chain free, mostly cash (so no potential issue with a low mortgage valuation) and want to complete in 6-8 weeks (they’re moving to their house overseas). Surely that’s worth something to a vendor?

What kind of game is the EA playing? Thinking ahead to our next offer on another house, do you think is it best to make a lower offer and work up?

I’ve never accepted a first offer nor had one accepted. It seems like you weren’t given great advice by the EA. I agree with you - start a little lower and allow yourself room to negotiate in future.

I always thought most people played the whole negotiation game but on my last house I offered 10% under asking with the potential to go up and I was willing to go up. They accepted my first offer

Message back a polite message that that was your final offer, and regretfully you are now looking at other properties. Wait a few days.

They will probably come back to you and accept. If not walk away. It's a buyers market ATM ,especially if you know that they are working towards a deadline of moving abroad since if they don't sell their options are to try to market an empty house or to let it out. They and the EA are being a bit cheeky trying it on especially as you sound as though all your ducks are in a row so you should be a sellers dream.

Tell the agent what you've posted here. Unless the work you want to hold back money for is purely cosmetic then that's a perfectly reasonable strategy. Obviously the EA is working for the vendors so is likely to be acting on their instructions to see if they can get more money from you.

Ring the EA back and tell them you're not prepared to increase your offer because of xyz, but you'll leave it on the table for a week although you will keep looking as it seems the vendor wants more than you are prepared to pay. Reiterate that it's your best and final offer. If accepted, you'll instruct your survey asap and the house is not to be actively marketed anymore.

If you don't know already why the previous buyer pulled out, ask the EA. If it is something a survey showed up then they should tell you.

When we brought ours we did the same as you, not everyone wants to play the negotiation game. We made it clear it was our best and final offer and they accepted it for what it was.

You are in a strong position, they clearly want to sell it but are being greedy with regards to the price, which is fine if that's what they want to do but realistically they probably wont get another offer who are in as strong a position to proceed as you are. I would just reiterate to the agent that best and final is just that and if they are interested great but if not you will be looking at other houses. chances are they will come back to you and reconsider, its 1% and really not worth them losing the sale over.

Perhaps he gets commission on sale prices?

Perhaps it is his friends house?

Perhaps he has seen your mortgage promise and knows what you can really afford

Or maybe he’s just desperate to sell because the sellers are pitas

Either way just say nope I’ve made my final offer

If the house has been on the EA's books for a while it's affecting their sales averages so that's why the manager is keen to have a deal concluded by the end of the month. They are also pushing to see if you have any flexibility.

I reckon the EA is seeing ££ signs because he knows you can afford more. I would be tempted to withdraw the offer, wait a couple of weeks and offer 5% lower, but that would depend how much you like the house.

Surely they'd just think the OP was playing games then? Especially if they think now that she can afford to pay more.

We bought this place with best and final offer and on condition it came off the market.

They clearly thought the seller would bite. And they didn't. Sometimes you can't judge, it may also be the seller asking the agent to get you to increase. It likely is.

If they are under time pressure they may accept it. So just hold tight.

Sounds like fishing. Not the right market to do that in! Decline to offer more. Ask to see other houses listed with the EA so they know you're happy to walk.

But that is exactly what the sellers are doing now wow since they can't really afford to stay put and don't have a host of alternative buyers waiting in the wings. Sometimes a reality check concentrates the mind. Unless the Op loves the house and thinks they are getting a real bargain I can't see what advantage there would be to them in increasing their price just because the seller would like them to. The seller is already losing money and moving overseas and so is unlikely to be a gracious mover who leaves everything as it should be and co-operates with the sale to suit their buyer whatever the price.

To be fair they are obliged to get the best price for their client so it is their job to push you for more, really. Any good EA would still try their luck even after you'd said best and final, I reckon.
I would make it clear that your offer remains on the table, and maybe consider putting a time limit on it. They can always come back to you once they realise a higher offer isn't forthcoming.

The OP doesn't have to play games in order to stand firm. Setting an expiry date on the offer is a way of concentrating the vendors' minds.

An expiry date ought to work in that way but has limited teeth in that the vendor still has the ability to vacillate and keep the buyer dangling right up until completion in hopes of a higher offer. That can be costly if the buyer is paying out rent etc.

Just remind the EA that he advised you to make a best & final and not play games - and that's exactly what you've done!

The time limit doesn't have to be a long one - a week maybe? Definitely no more than two.

Id be very clear to the EA that you aren't about to play games and that you won't be making any further offers. I'd also be telling them that you'll be looking at other properties (including ones with them if you can) so they know you are serious and prepared to move on if necessary.

With the way buying and selling works in the UK both buyer and seller can vacillate right up to exchange. That's the point where things actually become contractually binding. I fail to see how withdrawing then going back with a lower offer will compel a seller to bite. I think an awful lot of sellers would think the person who did that was a piss-taking chancer!

Personally I think if you play the best and final card you have to be prepared to stick to it.

Hold your nerve and keep looking.

I've seen people overstretch on the buy price and spending a long time regretting it. Might be a dream house but if the roof leaks, the kitchen is outdated and the bathroom has seen better days it soon loses its shine when you actually live in it and can't afford to address the issues.

When I've bought houses that need work (6 out of 8) my buy price in my head is cost of purchase, plus renovations.

Living in a property and doing it up piecemeal is possible but it can be both frustrating and more expensive (getting in trades to do as much as possible in one go is often more efficient).