(I hate) best and final! Advice please

[NewMeNow]

The area I live in is very sought after. Most properties in the area go for £200k plus which I cant afford. I've finally found a property I love which is affordable because its ex council house. Very few properties come up in my price range in this area.

They're asking for offers over £150k. I phoned the estate agent today to give my offer. The contact wasnt available but shes just emailed to say that it's best and final by midday tomorrow. So now what? How do I know I'm not just bidding against myself? How much over £150k do I go? The only sold house price i can compare it to sold for £148k in February 2020. The house im offering on has been done up to a better standard and is in a slightly better location.

I know there may be a drop in house prices but I dont think it will affect the area I live dramatically because it is so sought after. I also plan to live here long-term. So what should I do? Thank you

We bought some land where the owner/agent did this. It’s sooo difficult to know where to pitch your offer.

First of all, what can you afford? Don’t go above it. For what it’s worth, we paid a further 10% but this land was very important to us. If this area is highly important to you, then you have to bid more, possibly up to 10% more if you can afford it. I wouldn’t go above that. However if the house has potential, is in a decent road and location and will remain sought after, you will have to pay for that. The alternative would be a bidding war of course and that can be brutal on your nerves too!

Pay as much as you are willing to part with for it. Think about how gutted you would be if you missed out but don't pay more than you can realistically afford.

When we did best and final offers, we also wrote an email explaining why we liked the house so much, the couple leaving had 2 daughters, so did we so we mentioned that. We also explained that we were ready to go as we had a mortgage approval and were chain free, this was important as they were emigrating. Just something you might want to think about doing if you feel that you are a good buyer. IIRC we offered about 5 grand more than the asking price but I think it was the other factors that sealed it.

Having cash and no mortgage needed trumps all. Having nothing to sell is also ideal. First time buyer is also a plus as long as not flying kites. Everything else won’t make much difference. Having something to sell - Pointless making an offer. Even being in a chain might wouldn’t be great. Being an immediate buyer with money trumps all.

Thanks all.

I havent got anything to sell so am in a good position but am not a cash buyer.

The sellers are moving into rented so I'm not sure how time pressured they are.

I'd go up to 165K based on the renovations/better location, but obvs go to your maximum budget if that's too much.

As well as the amount offered make sure to include all the things that make you a fabulous buyer

So - mortgage in principle agreed, can be flexible on timescales, willing to use the estate agents solicitor, no chain, - really think what would make them find you more attractive than other buyers

As a seller many tines (and of course buyer) all the things mentioned above (165 plus, reasons why you like the house and very importantly, you have nothing to sell, nothing to stop you proceeding to their time line, mortgage in principle arranged, and do follow up on the solicitor. Great tip as we know poor solicitors can screw thungs up. Write all this is a factual but friendly email and then call the estate agent to reiterate in a friendly manner (and get the solicitor referral, which would likely be a dejection).

Being a nice and easy person to deal with is helpful.

Best of luck.

Know this, if this house doesn’t work out, the estate agent will know your budget (but should already) and will also know what you’re willing to do to secure a house and you may get first dibs in viewings so won’t be a total loss.

Let us know how you get on later today.

Thanks all, much appreciated.

Did you hear back from the Estate Agent?

Not yet. Fingers crossed!

Have been in the same position and it is really nerve wracking. They seem to be taking their time over making a decision. Fingers crossed it's good news 🤞