Offer in excess of ... HELP!

[TwoBabas]

Trying to buy our forever family home.Our's is sold subject to contract. Moving from a very rural area to a bustling market town, nearby to widowed mother in law and excellent schools (eldest dd due to start reception sept 24).
Totally sure of the location and know exactly what we want.
Already lost out on many houses to bidding wars. The town we want to live in is very sought after and things go on the market and disappear for over the asking price a few days later.
We had one offer accepted only to lose our buyer a week later. Been to hell and back in terms of disappointment, frustration, anxiety you name it.

We went to view a property two miles outside of the town we love yesterday. Three bed semi. Beautiful gardens, gorgeous area, massive potential. It would suit us well and is everything we want. However, it's a do-er upper, just cosmetic, at the top end of our budget. (Our absolute top would be £220,00 but that would leave us with no money in the bank to do any work) It's listed at 'offers in excess' of £190,000. Been on the market a matter of days and already had 5 viewings with more planned I presume.

We don't want to miss this one, but we don't know how far over the asking price to go.

Just for fun, what would you offer in our position.
I appreciate 'how long is a piece of string' and all that but just humour me. We will come to our own decision of course but would be interested to hear what others think.

I was awake since 3am this morning fretting about this. It's torture. I HATE buying a house. Send hugs.

I would arrange a viewing and ask the EA if they have received any offers yet. The answer will give you some idea whether you need to go as high as you can or can afford to start lower.
I would also think about offering around 195k and see what feedback you get.

Is it liveable as is, or will you need to do essential work (like roof, CH system) straightaway?

If the latter then you need to cost the works and ensure that any offer leaves you funds to do the work.

Also need to factor in how much a lender will give you on it (assuming you will have a mortgage).

Otherwise, as PP says, sound out the agent (any second viewings booked?) and see what kind of figure they have in mind - stress that you’re in a position to proceed. I’d be thinking £192 to £195 as a starting point.

The advice I was given in this situation with sealed bids was only offer what would leave you feeling happy every time you pulled up outside the house.

If I really wanted it and it ticked all the boxes, I would offer as much as I could. You say the work needed is only cosmetic so I would rather secure the house and then do the work gradually as and when I could afford it. More important to get the house if you are going to be massively disappointed to not get it.

Can you update us @TwoBabas when you do make your offer and if it gets accepted?

Offer what it is worth to you, no more, no less.

Don't worry about stuff you can't control. It's pointless.

If you really really want it, I would offer as follows

195
198
199
200

Each time narrowing the gap and so
It seems as though:

1. you are serious and respect their 'offers over' request which is why you have gone in at 195 rather than under 190
2. decreasing the increments makes it look like you are getting closer to your 'limit' of 200.

You should get feedback after each offer. You can come back later with a higher offer if 'MIL has offered to lend you a final £3k' to close the deal, for example.

Ideally though, you need to gauge the interest/ other offers if possible, and start higher if you need to.

If you really really want it and work needed is cosmetic, you'd be daft not to go to your full 220.

You need to know your area, no stranger in a forum will know better. The idea of offering low and gradually increase sound terrible, why would anyone play game with professional negotiators is beyond me. I would offer what I think it’s worth as best and final, and see where it goes, if not that one, it ll be another. Finally, quite surprised by the bidding over climate, seems most area are stalling or falling.

To go the sealed you need 3 people interested really. With 2 you can just do best and final and then get them to battle it out

Thank you for all your replies.

So we put an offer in today for £195,750.

We feel that is what the property is worth and we have left some wiggle room incase it goes to best and final.

Fingers crossed for us and I will update you all when we hear back.

Ooh exciting! Good Luck with it.

Fingers crossed for you.

We've found a property we really like, but it's overpriced for the area by about 10%. Vendors won't budge, so we are holding on for a bit longer to see if they'll come back with a negotiated price. Such a tense process.

Thank you.

It is so stressful isn't it? Seems a lot of buyers wanting maximum money (I guess obviously) but it's like they've gone a bit mad with it.

Hope you get some good news and your offer is accepted.

Another update:

Seller has had two offers. Ours isn't the highest but they are leaning our way due to the fact we are a family and they like our backstory and position.
They have another viewing for Saturday (4 days away!) which they are honouring as it was booked before we placed our offer.

We have been told a decision will be made by next Monday.

It it good ish news but also not so good right. Basically we are in limbo and thinking our chance looks high but also doesn't as they could well get another offer and place is all in s bidding war.

It is such a tense and awful position to be in as a buyer. At the moment I feel like half my numbers on the lottery have matched and I have to wait until next week to see if I'm an actual winner.
A glimmer of hope but it could make the fall worse if we are to miss out.

It's a bit cheeky of them in my opinion. Really they shouldn't expect you to wait until Monday to know if your offer is accepted or not. What if the people who view it on Saturday want a few days to think about it?

Still, it's not bad news either since the most likely thing is that Saturdays viewers can't offer more than you or won't want to or aren't in such a good position.

The good thing about it is they didn't say the number wasn't acceptable to them. So it's likely that they will accept your offer early next week.

Is there a reason you don’t just go back to them and offer a few more K to make up their minds and take it off the market immediately?

If this is your forever home and inventory is so scarce why are you not securing it when it clearly wouldn’t take much?

Just my take on the scenario 😀

I would go back and offer a little bit more conditional on it coming off the market immediately and them cancelling the viewing for Saturday. You're proceedable which makes you a very sound prospect.

I’d be wary of offering just a couple grand more on the condition they take it off the market as suggested. It’s not a lot of money, probably putting you level with the other offer, and from what you’ve said they’re clearly partially motivated by emotion (liked your background as a family). Plus if they decline and it goes to best and final your starting point is higher.

We offered last year in an extremely hot market and completed early this year. It took us ages to have an offer accepted and we tried a few times offering slightly more to get properties off the market with no success. One of the nicer agents told us they advise clients not to accept these offers unless they’re a significant amount of money (like £10k+) because they can make more from a competitive best and final. And the sellers who like to think they’re honorable don’t want to cancel on principle.

I definitely wouldn’t add a few grand more at this stage - they haven’t said No to the current offer!

If someone makes a better offer on Saturday the EA will still go back to @TwoBabas to see if they can beat that offer but there’s no point them bidding against themselves this week, imo.

I would make another offer conditional that it is removed from the market and the Saturday viewing doesn't go ahead.

The aren't honouring the viewing to play nicely, they are doing it in the hope of a still higher offer.

I would ask what the other offer on the table is and try and match it if you can, plus reiterate your story and so on.

Much as they like you and your background, if the Saturday viewing likes it, you risk them coming in with a much better offer. Of course you don't know, it's a gamble either way.

This. You are in a strong position because you are proceedable. Just sit tight and see what happens on Monday.

If they come back to you on Monday and accept your offer then great. If they ask for more time, then politely explain that you can’t leave the offer on the table after, say Tuesday 12 noon, as you are looking at other properties and want to be able to offer if you see something else you like.

Say you understand it’s hard for her clients to make a decision , but you feel it’s a good offer in a market that’s slowing down and you are able to proceed asap, that you are happy for your solicitor ( Jane brown at Brown and Co ) to confirm your position to them etc.

Dont do all that begging stuff that people recommend on here. It makes no difference - it’s all about the money and the chances of it completing / timescale etc.

Final update...

We had a phone call from the estate agent yesterday saying the vendors have had a good think, and if we were able to match the other higher offer then they would like to offer us the house and cancel the other viewings.

Slight intake of breath as the estate agent tells us the bid we need to match..... £197,000 ! Not much more than we offered.
I was expecting higher so the absolute answer was an instant yes!

Yes! Yes! Yes!

In this situation sitting tight and waiting a few days paid off and we are just so pleased that we have at least so far, secured the house.

Fingers crossed for us that the process is smooth and we get to sign the dotted line.

Good luck!!

@TwoBabas aww! Absolutely chuffed for you.

Yay! Good result @TwoBabas

Fingers crossed for you that you get to Completion.