Bidding war. How should I play this?

[Jaffacakesaremyfave]

I'm a first time buyer and have had some really bad luck so far trying to buy a house. House 1, I paid for home buyers and structural engineer report and it all fell through at the last minute. House 2, my offer was accepted and then a cash buyer bought it two days later.

House 3 I went to see yesterday and I love it. It's under my budget, close to schools and big enough for me and DC's. It's priced between 150k and 160k and I put an offer of 160k in but the estate agent told me someone already offered 155k and the bids will be put forward on Monday and we will have an oppertunity to put in our best and final offer.

I really want this house and there has been alot of interest but I don't want to end up offering more than its value and then not being able to get a mortgage. I was thinking of offering 175k but scared this won't be high enough (or too high and I pay 10k more than I need to).

Has anyone been in this situation before and how should I play this? Did I mention I REALLY want this house?

TIA

[friendlycat]

I’m sorry this is so stressful for you but I really do think the EA is a chancer and has/is lying to you throughout this whole process. I hope it works out for you as you obviously really want the house but it seems as though he is playing you. Your first offer of asking price should have sealed the deal in the first place. Hopefully you will sort it out but having offered 10% over the asking price it really should have been taken off the market! EA are supposed to make the whole process smooth not complicated.

[Jaffacakesaremyfave]

Thankyou 😊. I had a call from the mortgage advisor at the EA to confirm the appointment on Saturday and I made it clear I just want to come and bring my documents for the offer. She told me that I could have done that anytime and didn't need an appointment like the EA told me on Tuesday. I'm so annoyed, house still on the market which he promised would be taken off and they are now saying they won't do that until they have seen my documents although they said they won't accept any offers or viewings.

I could have sorted all of this on Tuesday and he bare faced lied to me. I got an apology but if I didn't want this house so much I would have threatened to withdraw.

Why do they have to add stress to an already stressful situation!! Gah!!

[Troels]

You don't have to speak to their mortgage broker, tell them you already have one and it's family so you won't be changing.
If they say it's to confirm you have the money, tell them that your solicitor has proof of funds, and to contact him. I did and they backed right off. Don't let them talk you into anything.

[ChristmasCroissant]

I hope it runs smoothly from here for you OP, and that you can effectively rebuff the mortgage adviser at the weekend!

As you have such a large deposit, even if you'd paid well over the market value for the house I don't think you'll have trouble getting a mortgage.

I hope you are all soon in your new home

[Jaffacakesaremyfave]

I'm not sure how I haven't taken advice. I asked to see the other offer in writing which they showed me and I had to increase my offer to get the house. I already thought it was underpriced and knew I'd be willing to go up to 180k max.

It's a 5 double bed house with brand new kitchen and bathroom and walking distance to DC school. I'm borrowing less than I'm putting in as a deposit and half of what I planned to borrow when I first started looking at 250k houses. As long as they value it at more than 75k (which I know it's worth more than that) then I should be able to get a mortgage which I didn't realise before (I thought the valuer would have to agree the whole price).

This is the 20th or so house I've been to view since the start of the year and as I said before, it's going to be our forever home.

I know it sounds easy to try and barter over buying a house but I knew I wanted this house the minute I looked around. It's perfect for is and I'm happy with the price I've paid. I just hope nothing else crops up and we can move in soon (theres no upper chain).

Thankyou to those who wished us well.

[FawnDrench]

So you've paid £15k more than your original offer which at the time was the highest offer!
Words fail me and I do hope you haven't been taken for a ride here - but it really sounds like you have...

[friendlycat]

I really hope this works out for you but be prepared for mortgage valuation to not agree with the over pricing. You are paying nearly 10% over the asking price and the surveyor who does the valuation may well bring this up. With Brexit and sluggish house prices that may also fall make sure you are happy with this. I’m sorry to say but I do think the EA has “played you” on this tbh. But if you’re happy with the situation that’s your call.

[PizzaExpressWoking]

Congratulations on the house!!

Hope it all goes smoothly

[Alexalee]

Wow... you literally listened to no ones advice... why bother asking for it if you dont listen. You have been played by the agent and overpaid

[Jaffacakesaremyfave]

Thanks everyone, I got the house 🥳 however I had to increase to 175k as the other bidder was close. I was prepared to go up to 180k so all in all I'm happy.

They have agreed to take it off the market and not allow any further viewings and I have to go in on Saturday to submit documents. They are still saying I have to meet with this mortgage person to ensure I'm 'financially viable' and might as well go through mortgages whilst I'm there 🙄 I'm going to tell them I'm not interested in the day.

I really hope it doesn't all fall though as I'm so paranoid after the last two houses. Sending everyone else who is trying to buy lots of luck and thanks again for keeping me sane over the weekend!!

[sunshinesupermum]

As other pps have said, do not discuss anything with their 'tame' mortgage advisor - tell the estate agency you are more than happy with the one you've got! Best of luck today.

[PizzaExpressWoking]

When we were FTB we also got offered an appointment with the estate agent (or rather with their tame mortgage adviser) to go over our mortgage options.

We went along with it, but I wish we hadn't. In retrospect it was clearly just a way for the estate agent to suss out our income and exactly how much we could afford to pay for a house. They then marketed us more expensive properties and tried every trick to get us to increase our bids (because they knew exactly how much we could go up to).

Not to mention that their "advice" on your mortgage will take ages, won't be impartial and you already have a broker anyway!

There is no reason why you should see their mortgage adviser. They are really trying to do a number on you.

Also there is absolutely no reason for the EA not to tell you what the other bids (if any) are. I would actually tell him that you are sick of getting messed around and treated like this when you are a serious buyer. I would be tempted to tell the seller this directly as well - the estate agent is being unprofessional and it is putting buyers off.

[Alexalee]

I bet the other will be higher... just a hunch.. rolls eyes

[showmethegin]

We're in the same situation as you and that EA is taking the piss, I don't even know where to start. Best and final when you are already the highest bidder is ridiculous. As for asking you to take your documents in and speak to their mortgage broker, tell them you already have a broker you are satisfied with.

I would be inclined to put your offer down in writing, laying out your position and put it through the vendors door

[Belleende]

Tell him you got your mortgage through your brother John, and even if it is a crappier deal you are staying with him for family harmony.

You are a FTB offering asking price in the deadest month of the year for house sales. Most buyers would take your arm off

[Jaffacakesaremyfave]

Thank you pizza 🤞

He said he had spoken to the vendor and they want to go to best and finals tomorrow. He also hinted strongly that when I call tomo, he will know what the other has bid and he will tell me (higher or lower but not actual price) because he 'really wants me to get the house'.

I then asked if accepted could I bring documents in tomorrow afternoon (DS has a medical appointment tomorrow morning 1.5 hours away) and he said he would have to see if 'Karen' would be available to take them and go through my mortgage to see if they can get a better one. Why can't I just come in as long as its before closing and give it to any staff member to scan? I have a mortgage broker who has been fabulous through the other two houses and I don't want another mortgage plus I'm working the rest of the week and I want it to be taken off the market tomorrow.

They know my budget is higher because my mortgage in principle is up to 158k (so my max budget is 258k with deposit). I'm really being dicked about aren't I?

[Stupiddriver1]

What do people think about a letter to the vendor through the letter box if not sure if EA has put the offer forward? Not sure if a good idea or not but I'd be tempted

[Belleende]

Fuck that! You need to get that dodgy bastard to confirm whether or not he has put your original offer to the vendor, and whether they have accepted or rejected it. Get it in writing. Don't create your own bidding war unless you absolutely have to!

[Alexalee]

So the agent said best and final at 1.30 tommorrow but that tou would have chance to bid again
He is clearly a wanker
Best and final deadlines should mean just that, don't know what hes playing at unless you have inadvertently told him you have a higher budget at some point and he is trying to extract every penny he can out of you
Stay firm and you will more than likely get the house for 160k

[PizzaExpressWoking]

Fingers crossed for you Jaffacakes - I really think you're doing the right thing. The estate agent is just trying it on. Somebody thinks he's Mister Super Wheeler Dealer when he's actually just Delboy

[Jaffacakesaremyfave]

I agree too friendlycat. EA called today to say I have until tomorrow at 1.30pm to submit my best and final offer. He confirmed it was just between me and the other bidder and he doesn't know if the other bidder has increased so I can't understand why my offer wasnt accepted as the highest bidder. I asked if that would be the end tomo and he said we would still have a chance to increase so I really don't see the point in all this other than driving up the price well above asking.

Thank you everyone for your really helpful comments. I held my nerve today (and refrained from offering 170k). Another sleepless night ahead of me!!

[Trimbls]

I think the EA is being very cheeky! We're in the process of moving & had 2 offers when we were selling ours - an offer from a buyer with a long chain & an FTB offering £3k less. We accepted the FTB as we'd seen the house we wanted & hoped this would make it easier & quicker to get moving. Selling to an FTB is attractive to a lot of sellers IMO as you dont have as much risk of a chain falling through etc so you should be in a good position.

[sunshinesupermum]

Agree with friendlycat

[friendlycat]

As said further up thread you've already put in asking price and £5k above the other offer. Legally the estate agent has to put your offer forward. The EA sounds a bit of a shark tbh. At asking price and £5k above the other offer your offer should be accepted. Why is he talking about sealed bids? You are in a good position and I would be very happy to accept your asking price offer.

[greenlynx]

And I was in position twice when vendors preferred FTB as they wanted to move quickly because of the new job and twice when vendors didn’t want FTB as they were not ready to move quickly themselves. You just never know.