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Original poster

Offers 10% above asking price

41 replies

ad3a · 04/07/2023 10:23

Sorry for this but needed to vent... how is normal that on the very first day a house starts viewings, the agency calls us telling that on the first viewing they received an offer 10% above the asking price?

The market here is hot, but, this just sounds crazy to me. Sorry for the rant.

OP posts:

rainingsnoring · 04/07/2023 12:33

Has the seller not accepted the 10% over asking offer? Are the other viewings still going ahead. If you don't want to pay that you could always cancel your viewing if it hasn't been cancelled by the EA or you could see it and consider offering if this first offer isn't accepted.

dancinginthesky · 04/07/2023 13:03

They're being competitive- if 3 people offer asking price but one offers 10% over, it's obviously going to be sold to who offered the best

If someone comes along and offers 15% over, they'll be who it's sold to

It's just how it is - you sell at the best price you are offered

2bazookas · 04/07/2023 13:58

The estate agency works purely for the vendor; their job is to boost the price as high as they can and sell ASAP. Every sales tactic they employ is for the benefit of their client the seller (and the agents commission)

They don't work for the buyers and viewers. You are just the cash cows they have to milk for all its worth.You don't have to swallow their flannel; but any information they let slip can be useful to you.

Now you know it's likely to be a high demand property/fast sale/rising price.

IF you still want to make a move, its time to marshall all your personal advantages that will win a bidding war. Such as cash buyer, no chain,flexible entry date, high bidder able to move fast; solicitor saddled up at the starting gate. Give the agent that desirable info about you but don't name your offer yet.

2bazookas · 04/07/2023 14:28

wutheringkites · 04/07/2023 10:30

What's the point in putting 10% more over the asking price when you're the first viewer of a property which just started viewings today?

I'd assume that they want to buy the house.

The offer may have come from a local buyer who knows the area and property well, and hopes to deter the competition.

There's more than one way to skin a cat.

Aggielera · 04/07/2023 14:32

Lots of possibilities but I’d say two most likely are.

Estate agents are lying to get you to bid more. They totally shouldn’t but they’re generally all scumbags with no morals IME.

People have put in a high offer to ‘get’ the house but may well ask for money off after survey.

Coffeaddict · 04/07/2023 14:40

When I was viewing houses at the tail end of 2021 they would go on right move you had about a day to get in there and get your viewing before they filled the number of slots available. They would allow viewing over about the course of a week then it would be best and final offers in for the following Monday. Offers over 10% were expected.

This was after the stamp duty holiday when everyone said it would be calming down. Around here the standard family homes seem to still only stay up for a very short period so guess there still going fast

MidnightMeltdown · 04/07/2023 14:41

Peony654 · 04/07/2023 10:43

They must really want the house. Seems mad to me, especially at the moment. I’d be proceeding with a bit of caution

Money isn't a primary concern for many of people. A third of houses are sold to cash buyers

2bazookas · 04/07/2023 15:10

wutheringkites · 04/07/2023 10:53

buyer (very theoretically)

What is a very theoretical house buyer?

The kind of fantasist whose hobby is viewing properties they've no intention of buying (and couldn't afford )

and/or

inexperienced wannabee buyers who just don't understand the property market.

Ohmylovejune · 04/07/2023 15:16

In a difficult market where prices maybe falling it makes sense to try and get lots of people interested and a quick sale.

To do that it makes sense to me to price low, generate demand, and hope for many offers - some above.

If they've done that then I can quite understand how a 10 percent higher offer has been received. The offer may still be stress tested a bit if it eeds to go for a mortgage valuation. Depends on buyers position really.

Greentree1 · 04/07/2023 15:21

They may have lost other houses by being too slow and offering too low, so want to clinch this one if possible. They may have their house sold and desperate to get another house bought.

It's definitely a tactic that can work, possibly scare off other potential buyers thinking how high will they go if we try to compete.

XVGN · 04/07/2023 16:53

Perhaps they followed the advice of yours truly and created a market of one by putting the property on at a competitive price.

Gardenhair · 04/07/2023 18:45

It's possibly true. We did this on a house recently, not quite 10% but a fair bit over. The question to ask the EA is why has the offer not been accepted. We really wanted the house we offered on but they used our offer for 2 weeks to push others up and messed us around so even though I agree with pp, proceed with caution and ask direct questions.

XVGN · 05/07/2023 09:14

One thing to look out for - although it won't continue for long - is folks seeing the writing on the wall, downsizing and capturing as much of their equity gains as possible, and then using those as cash purchases of smaller (than their previous home)properties for cash.

For them, offering 10% over on the right smaller home to make sure that they secure it, will be a very small price. It's unusual to see on any kind of scale but you can expect to see more of it for a while.

Jmaho · 05/07/2023 09:23

The agent may not be telling the truth
I would just say to them there's no point viewing the property then

EmmaEmerald · 05/07/2023 09:25

ad3a · 04/07/2023 10:29

What's the point in putting 10% more over the asking price when you're the first viewer of a property which just started viewings today?

Show quote history

To secure the house! And probably conditional on no further viewings.

Saschka · 05/07/2023 10:27

Jmaho · 05/07/2023 09:23

The agent may not be telling the truth
I would just say to them there's no point viewing the property then

This. It happened to us a couple of times pre-Truss budget, and we just didn’t view the property because we knew we had no desire to get into a bidding war.

We have also had sellers (or EAs anyway) tell us they will only accept offers at least 10% over asking price. Which again, stopped us viewing (mostly because it made us think the sellers were a probably going to be a nightmare).

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