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Original poster

Two investors have also put an offer in on flat - how to play this?

17 replies

Sssloou · 19/04/2021 11:04

Do I step away from a potential bidding war?

The EA has just said they have offered this morning - not said how much - can I ask?

Are there any EA / investor traps I need to be aware of.

It’s a one bed ground floor maisonette in London needing renovation. It’s a probate sale and the beneficiaries are abroad.

OP posts:

Dontstepinthecowpat · 19/04/2021 11:06

Of course you can ask what the bids are if it’s your property? Unless I’ve misread and your a potential buyer in which case they won’t advise. Investors are likely to bid lower. Will it go to a closing date?

Hotcuppatea · 19/04/2021 11:08

Are you buying? If so, think carefully about what the flat is worth to you and the highest price you're prepared to pay and then be prepared to walk away if you need to. A bidding war is fine if you win it

OneRingToRuleThemAll · 19/04/2021 11:11

It's a common tactic by estate agents to subtly pressure you into offering more than you otherwise would have.

Original poster

Sssloou · 19/04/2021 11:11

Thanks that’s where we are at.

It’s a young relative that I am supporting buying their first home.

Just concerned that EA and local developers could play games?

OP posts:

Original poster

Sssloou · 19/04/2021 11:13

@OneRingToRuleThemAll

It's a common tactic by estate agents to subtly pressure you into offering more than you otherwise would have.

How do you know if there are other offers?

OP posts:

tiredmum2468 · 19/04/2021 11:16

A probate sale and beneficiaries being abroad would be enough to put me off

I suspect the EA agents are game playing to get more money that would be my gut instinct.

Is there anything else suitable to buy?

GoWalkabout · 19/04/2021 11:25

You'll just have to stay in the bidding, state your situation honestly and be prepared to offer more if outbid, up to your max. We are selling a place currently, original two bidders are of course not happy that they have been outbid, but it is not game playing. It will go to best and final offers soon which is fairest to everyone.

Changingwiththetimes · 19/04/2021 11:26

I'm an investor, we don't play games. In fact, I would think you are in a better position than an investor as they need to maximise profit, so there's a cap on how much they would pay, whereas you (or you relative) are presumably buying to live in it, and can do the work over time without thinking of the bottom line immediately.
It's the EA's job to get the most for the property as possible, and that can lead to them stretching the truth a bit, though I've never had one (as far as I know) out and out lie. As for it being probate, ask if the probate has already been granted and the sellers are actually able to complete the sale. Then I'd ignore any talk of other offers, whether from investors or not, and just go with the maximum you are willing to pay, either via offer or sealed bids. Either you are successful or not. There doesn't seem to be as much competition for flats as houses at the moment.

eurochick · 19/04/2021 11:28

An investor might have deep pockets but their decision should be purely head not heart - no emotional attachment driving up the price beyond what it is worth.

AndWhat · 19/04/2021 11:29

Probate with sellers abroad probably will go for the highest figure offered. Make the highest offer you’re willing to make and be prepared to step away.

lastqueenofscotland · 19/04/2021 13:00

It depends what the vendor is looking for.
Investors are 99 times out of 100, MUCH easier buyers than FTBs, a lot of people have horror stories selling to FTBs showing round their 829482 family members, wanting tens of thousands off cause their dads dogs best friends cousins uncles sisters boyfriend had a look at their survey and said it looked like a nightmare waiting to happen.
So you may need to bid a bit above what they offer to offset that

Original poster

Sssloou · 19/04/2021 13:18

@Changingwiththetimes

I'm an investor, we don't play games. In fact, I would think you are in a better position than an investor as they need to maximise profit, so there's a cap on how much they would pay, whereas you (or you relative) are presumably buying to live in it, and can do the work over time without thinking of the bottom line immediately. It's the EA's job to get the most for the property as possible, and that can lead to them stretching the truth a bit, though I've never had one (as far as I know) out and out lie. As for it being probate, ask if the probate has already been granted and the sellers are actually able to complete the sale. Then I'd ignore any talk of other offers, whether from investors or not, and just go with the maximum you are willing to pay, either via offer or sealed bids. Either you are successful or not. There doesn't seem to be as much competition for flats as houses at the moment.

That’s really helpful - thanks. Will just take it steady.

OP posts:

Original poster

Sssloou · 19/04/2021 13:18

@lastqueenofscotland

It depends what the vendor is looking for. Investors are 99 times out of 100, MUCH easier buyers than FTBs, a lot of people have horror stories selling to FTBs showing round their 829482 family members, wanting tens of thousands off cause their dads dogs best friends cousins uncles sisters boyfriend had a look at their survey and said it looked like a nightmare waiting to happen. So you may need to bid a bit above what they offer to offset that

That’s a really good insight too - thank you !

OP posts:

emmathedilemma · 19/04/2021 13:22

Put your best and final offer on the table on the basis that if it's accepted the property comes off the market immediately and if they don't accept that you walk away.

CeibaTree · 20/04/2021 01:18

Our last house went to best and final offers and we were bidding against two investors. We later found out ours wasn't the highest bid, but the sellers decided to go with us as we're were a 'nice young family' who actually wanted to live in the house. So just put in your maximum bid and hope for the best :)

Onandoff · 20/04/2021 06:27

@Changingwiththetimes

I'm an investor, we don't play games. In fact, I would think you are in a better position than an investor as they need to maximise profit, so there's a cap on how much they would pay, whereas you (or you relative) are presumably buying to live in it, and can do the work over time without thinking of the bottom line immediately. It's the EA's job to get the most for the property as possible, and that can lead to them stretching the truth a bit, though I've never had one (as far as I know) out and out lie. As for it being probate, ask if the probate has already been granted and the sellers are actually able to complete the sale. Then I'd ignore any talk of other offers, whether from investors or not, and just go with the maximum you are willing to pay, either via offer or sealed bids. Either you are successful or not. There doesn't seem to be as much competition for flats as houses at the moment.

What she said. Investors / developers often buy for under market value. As to whether a FTB or developer is a ‘better’ buyer that’s variable. Often probate sales just want the highest offer.

GETTINGLIKEMYMOTHER · 20/04/2021 09:24

I would suspect that the EA’s playing games to get you to increase your offer. It’s hardly unknown.
It’s a risk, but if you’ve got the nerve, tell the EA that you can’t go any higher, sorry, your offer will remain until X o’clock on X-day.
It’s also not at all unknown for the other offers to magically melt away.

However I’d also take into account the likely return for any investor at the moment, given that the flat also needs money spent on it. Around here at least, current prices of any flat means that rental income will be a pretty pitiful return on capital, if they’re paying cash, and if they’re not, tax relief on mortgage interest and other landlord tax allowances, have been been drastically reduced. Plus there’s the extra stamp duty. So if that’s also the case where you are, that would make me extra suspicious.

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