"Is that your best and final offer?" - how to respond?

[PingusMistress]

We made a cheeky low offer that was rejected, and the estate agent asked us to come back with our best and final offer. There are no other interested parties that we know of. We don't want to pay more than we have to, obviously, but we don't want to shut the door on further negotiations. Tempted to put in another low-ish number and pretend that it is final (although I'm rubbish at lying!). What is the best tactic?

@wowfudge are you concerned with resale of your current house if it took 2 years to sell to you?

FFSJake I think if you pay near the asking price for a house that has been on the market for ages, you just have to accept that if you need to sell again in a hurry, you will probably end up losing money.

No - larger, pricier houses take longer to sell in this area. Plus the house was very eclectically decorated and the kitchen was too small for the house. We’ve extended the kitchen and plan to stay here until old age.

I'd be careful about overpaying in the current climate as i do feel there are going to be a few bursting bubbles soon and housing will be one of them. It is not a biblical prophesy that house prices will continually rise.

Who can predict what is over paying though? If you want to buy a certain house, you can only pay what the vendors are willing to accept. The owners may be downsizing and need as much equity from their house as possible for their retirement. They will possibly find it easier to wait until house prices stabilise than a potential buyer who may more urgently need extra space or a certain school. I would say the best way to protect yourself from a crash is have a large deposit and secure job. But that’s easier said than done! I really don’t see the point in not buying a house just because you want to get a bargain. If you like it make it clear you want to do a deal then get on with living your life

So fwiw op I would go back to the estate agent and say you really like the house, but you are very cautious in this market so will need to think. Ask what sort of price they think would secure a deal. Say nothing about garages or landscaping. The agent will hint at x price. You and Dh can decide whether to go for it or not. Good luck :)

Thanks everyone for your views, it is interesting to see things from many perspectives! We are not desperate to get a bargain regardless of the consequences, but equally we don't think the house is worth the asking price given the current market. We offered 10% below this afternoon in a very nice way as our "best and final" offer. The agent came back and said it was still a bit low, but if we could get a little higher then they think there is a deal to be done. It's what we expected. The "best and final" request just seems to be a way of squeezing buyers to their limits, and then pushing a bit more.

It's just them earning their commission! Realistically I'm sure you're right, that if they decline your offer, there won't be other buyers queueing up. However they may decide to keep waiting. I would say that in my experience if the EA says a little bit higher, it normally means 1-5k. Ask them. If you like the house it could be worth increasing slightly. If you're not that bothered, leave the offer on the table- they may come back to you. Good luck!

Have you surveyed the property? Is there a homebuyers report? Have you had specialists in to give estimates on essential repairs? These are all things that you can use to justify offering lower. If you are just saying this is what you can afford you shouldn't be looking at property that you can't afford and your offer is cheeky.

Soupertrooper - What utter nonsense. So you're saying that low offers should never be made without justification, regardless of how unrealistic an asking price is?

Soupertrooper I agree with you, I don't think people should be allowed to view houses they cannot afford. The EA should ascertain if the buyer is in a position to pay the asking price or more before allowing a viewing. I realise that viewings and sales would doubtless dry up under these circumstances, but it would make it much easier for everyone concerned if all the hassles and pains involved in selling could be avoided from the outset.

I would actually go one step further and say that EAs should ascertain if the buyer is willing to pay the asking price or more before being allowed to view. Or maybe even go one step on from that and say the buyer needs to buy the house at asking price or more before being permitted to view. It would completely remove all the hassle of putting up with unsuccessful viewings.

I would respond by explaining why you are such a good option as a purchaser. Justify your offer, but don’t say ‘yes’ or ‘no’. It’s a negotiation.

Sounds like you are doing ok though.

EA will sometimes initially put houses on the market at an inflated price to appeal to the vendor and get the job. They’ll then recommend it’s reduced to sell.

Sometimes you just have to hold your nerve too.

Also, if the survey shows anything up you can negotiate down to cover any work that needs to be done.

Personally, I think the OP should listen to their DH and hold their nerve. It's a buyer market, and getting more so.

I also think you should hold your nerve. It is indeed a buyers market in most areas and sounds like it here.
The EA is pushing for more for their client but I think they will accept. Hardly worth losing a chain free sale for a minimal amount. Tell them that is your best and final. They did exactly the same to me when I bought my last house. It had been empty 2 years! I said no. That's what I think it's worth and that's what my offer is. They accepted.

My objection to ‘best and final’ is exactly what has happened to you OP: you make the ‘final’ offer as requested and then the vendor tries to encourage you to go upwards. It’s just EA technique to get you to go up more than you otherwise might during a negotiation.

I’ve been there. I asked the EA whether he’d advised his client to accept. He said he was their agent not mine and that was confidential. I told him I understood that perfectly well but I was just trying to work out whether it was him or the vendor who thought I was lying about it being final. I wouldn’t move on the offer and walked away.

The market is not the same everywhere and someone who wants to move will only accept an amount that means they can make their onward purchase.

@FabulousSophie - your posts are contradictory: if it's a buyer's market, why would an EA vet and only allow viewings by potential viewers prepared to pay asking price or more? Talk about shooting themselves and their clients in the feet.

It's like FabulousSophie is 2 people the way they post on this thread and others

FabSophie and soupertrooper - You really are talking complete nonsense, by your logic EVERY house that is brought to market is put on at a sensible and realistic price and definitely worth what ever is being asked for it.

I'm actually being sarcastic. If sellers want it all their own way ie only getting asking price or near asking price offers, and getting no viewings by people who are not going to buy the house at asking price or near asking price they will simply end up excluding all buyers. Serious sellers cannot just make unrealistic demands of buyers and then expect those buyers obediently to do as they are told by the seller.

wowfudge A seller can also negotiate for their onward purchase, and get it for a price they can actually afford. That way everyone is happy and transactions actually take place.

@FabulousSophie - you can't always get what you want though and it isn't always about affordability per se, it can be about the ability to do work or change things without additional borrowing or waiting until you otherwise have the money. That's not the same as being able to afford to buy the house or flat.

wowfudge You always take the side of sellers, as if buyers exist purely to be bled dry by sellers.