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Original poster

Psychology of making offers

16 replies

Joeytribbianiz · 14/10/2020 08:35

Just factoring in all parties, what do you think the best maneuver is to secure a house you want?

Obviously it depends on how the house is priced to begin with. We've always been successful at offering slightly less than our "real" price, so that the agent can then bump us up a little and the vendors feel like they've got something out of us too. Good for the agent because they can feel like they've added value, and good for the vendor because they feel they've negotiated well in their own favour! It's just a little game really. If we went straight in at our "real" price we feel like we'd end up getting bumped beyond our budget.

Any useful hints or tricks to share?

OP posts:

midgebabe · 14/10/2020 08:43

But aren't the houses priced under the assumption the buyer will want a "deal" ?
Bit of a stupid process but it seems to be the rules of the game

JoJoSM2 · 14/10/2020 08:49

Not everyone wants to play the game. I’ve always offered my best offer for the vendor to take or leave.

In my area, OIEO are also common. The price is set at a very reasonable level to attract a lot of interest and create a bidding war.

NewHouseNewMe · 14/10/2020 08:58

A few people tried that with me recently but lost out because while they put in the -10% bids etc., a few people came straight in at asking price. They were then upset they had lost out and offered the same but it.was too late as I has already confirmed to the successful bidder.

As a strategy, haggling on price works if you're in a great position and/or the property has been on sale a long time. But don't overplay the cash buyer card. The person who bid -15% on day 1 of viewings as a cash buyer just got rejected outright and left us with a negative Impression.

Loofah01 · 14/10/2020 09:14

There is no psychology, you put in the offer you want to and see what the vendor says. Only pay what you're happy paying, even if it's over the odds for a house you REALLY like / want.

Allthebubbles · 14/10/2020 11:20

The only thing we did having been the first to view our house and knowing there were more viewings to come was to say that we were definitely going to make an offer but we needed a few days to confirm our highest offer. We didn't want the agents to be able to bump up the price by getting people to offer more based on our offer .That said we were chain free and in a strong position to move quickly.

IvySpivey · 14/10/2020 11:35

I've gone in with my best and final offer each time. Bought three houses worked each time. I HATE faff! Take it or leave is my motto.

MrsTWH · 14/10/2020 12:45

I agree, I don’t like to play games. If I like a house, I make my best and final offer upfront. I offer what the house is worth to me considering the local market and the condition of the house.

PointyMcguire · 14/10/2020 13:30

I think it depends on the house, the area and what you’re looking for. We’re in the process of making a fairly life changing move to a relatively niche property.

Having watched the market for the last 2 years we knew when they most commonly come on the market and that demand is often high for those that are reasonably priced.

When our house appeared we jumped at it and knew on the way there we’d be making a full asking price offer if it was how it appeared in the pictures and wasted no time in making that offer. Sure we probably could have played the game and got it for less, but it was reasonably priced and we would have been devastated if knocking a couple of thousand off had resulted in us missing out so we didn’t risk it.

Salome61 · 14/10/2020 14:05

I offered £210 on a £212 property recently, I viewed it and acted impulsively without any research. When I got back home and had time I discovered two similar properties on the same estate had gone this year for £160/£170 - and they had the bonus of a conservatory. I felt very silly and apologising profusely to the EA, withdrew. Was also too far for me to walk into town.

Worth spending the time researching comparable properties before viewing :)

GrumpyHoonMain · 14/10/2020 14:49

It depends on the area and the house. If it’s an undesireable area where houses don’t move fast or the house has serious problems then you can offer low and negotiate up. But in a popular area with a lovely house that strategy can leave you rejected in favour of someone who can offer at least asking - in fact in my area you have to offer 5% above asking at the moment as there are so many prospective buyers

LividLaughLovely · 14/10/2020 15:39

I’ve just “won” our forever house (fingers crossed) which had five asking price offers and went to best and final.

Offered £11k over asking and apparently only squeaked the win because of our short chain and the emotive letter I wrote about how much we loved the house. This is in the NW.

If I’d tried to offer under, I wouldn’t have had a chance. But I scoped that it was desirable. Other houses I viewed that had different circumstances it would’ve been appropriate to offer under.

msgloria · 14/10/2020 16:26

I think if you really want a house, you have to make an opening offer that won't really annoy the sellers, especially if it hasn't been on the market long. You have to weigh up the risk of overpaying against the risk that the sellers don't want to deal with you.

Murmurur · 14/10/2020 16:33

You could argue that if you've always been successful, you have been paying a little more than you needed to.

I do agree though, as a vendor my instinct is not to accept someone's first offer if it's under asking price. Therefore as a buyer, I wouldn't bid best and final first off unless we're offering full asking price or there is obvious direct competition.

WombatChocolate · 14/10/2020 16:59

I don't think there's a right answer.

Sometimes you can only afford to make a very low offer.....you know it probably won't be accepted, but by trying you have a chance....and lots of people seem to get lucky this way.

It's right to try to guage the market and the seller's situation, but it's hard to know what it is and get it right.

People can be too find of getting a deal or a bargain and lose out. When property costs hundreds of thousands, it's not worth losing out for a couple of £K or £5k in my view. Some people are so determined they just will never pay asking price, when they could afford it, that they lose out through stubbornness really. I think you need to be quite pragmatic and also able to think fairly quickly, but also not be pressured into decision making you'll later regret.

When I've bought, I've paid asking orice or close to it. And in every case I have been satisfied with the price agreed and thought it fair. Yes, of course I'd like to have saved a few £K but I wouldn't have wanted to lose the property. I think it's a bit more tricky when you really are stretching yourself....it's tempting to offer more than you really X an comfortably afford or at the other end of the spectrum to make ridiculous offers and then be surprised they aren't accepted. Having a good sense of the local market over the last couple of years does help and so does gathering as much info as you can about the vendor - type of person/situation and what/where they are moving onto if at all possible.

And whatever price you offer, making yourself in the best possible situation you can be always helps....things like having your mortgage in principle, obviously having lower LTV is good, already having a very proceedable buyer yourself, being able to say you know who your solicitor will be and that you can move fast....it all helps you be more credible when there are lots of time wasters out there, and sometimes people will take a few £k less for a buyer who looks like they really want it and will move fast.

mumsy27 · 15/10/2020 01:20

basically, the market dictate the way you approach the negotiations.
seller's market, seller gets several offers usually over asking price, may not go for the highest bidder, it's all based on your position or other reason!
how you define seller's market, do your homework watch and save properties for a good while, learn the pattern the properties get sold and how much, soon you realise when you see a great property with great, in this case you can't afford to haggle a lot, you will get disappointed for sure and you will learn that once you are offered and got rejected.
there's an exception if the chain collapsed for some reason seller will try to get a buyer asap then you can go for the jugular.
buyer's market, you can haggle and squeeze the seller.
always stick with your final offer.
you only need to get lucky once.

positivelynegative · 15/10/2020 09:08

It also matter which part of the market, the condition of the house, how keen you are.

We knew that a doer upper in our price bracket wasn’t going to be popular. We got it for 88% of asking. If it had been half the price, but actually worse value, it wouldn’t have been the same.

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