House offer

[newandconfused5]

We made a 'cheeky' offer on a house that needs a LOT of work.
Think no hearing installed. Not decorated in the last 40 years etc.. will need a full renovation.

The house has been listed since the new year.
Anyway, we made an offer a while ago and was declined (after waiting over a week to hear back). We left it.. the house was reduced in price and we made a second offer. 20% lower than asking price.

We were asked by the buyers if we could leave the offer on the table. That four siblings were selling for elderly parent. We said yes. That was two weeks ago and today I walked past the property and there is a viewing going on.

Am I right to feel like I would like an answer to our offer asap now? Is it not salesman trick number 1 to tell potential buyers there is an offer already on the table?

Am I missing some understanding here or are we being used?

Thanks in advance!

I don't think you're being used. It sounds like they are seeing if they can get a higher offer, and if they can't then they will most likely accept yours or ask if you can increase it.

Thank you for your reply...
I was happy about the offer being left on the table, until today when I thought there could be an alterer motive that I had failed to see!

Suppose it depends how long it's left on the table. The only reason it's there is so they can wait for a higher offer.

If you're comfortable with it being your top offer just tell them the offer stands until the end of the month or something and then you're pulling it.

That's understandable. If you really want the property, it might be worth speaking to the EA again. Another factor to bear in mind is that with 4 siblings selling together, there may be a disagreement on what level of offer they will accept.

In your situation I would tell the agent that you are happy to leave the offer on the table until a defined date - but that you are continuing to look at houses and that you don't start incurring any costs such as searches or legal work until they definitively accept your offer. Unless the sellers are prepared to reimburse you for any costs incurred if they later accept another offer.

This is standard. You make an offer and the EA tries to get a higher one, particularly in the case where yours is so low. They might accept yours in a couple of months if they are desperate to sell and haven't gotten a higher offer since. It's always easier to get another offer when you already have one though. It gives others confidence that someone else thinks it's worth buying in that price range.

Thank you..

So in a sense, I'm in a weak position. But it's not a no.. and yes we are kind of being used but I should feel lucky that they are still considering my offer?..

I guess it isn't great but not terrible either!

Thanks everyone!

@newandconfused5 whether you leave the offer on the table officially or not, the EA will now be able to tell other potential buyers that the sellers have already received an offer but did not accept it as it was too low.

That will make the property seem more desirable to others, but there is nothing you can do about it. They aren't going to accept your offer for a long time probably as it is so low, although they would do in time IF they don't get any better offers from proceedable buyers.

I understand what you say about the house being in an extremely poor condition and I expect the sellers would acknowledge that. However, it was presumably taken into account when the EA did the valuation so the price must be based on other things like location and potential. Not saying it can't be overpriced - it obviously was if it had to be reduced and maybe still is - but 20% under was a very big reduction. If I were them I would try reducing it again by another 5- 10% before accepting such a low offer.

I agree with the above post that you would expect that the condition of the property would be reflected in the asking price but it could be just one of the siblings is putting the price that they think the house is worth. You must know whether you think it’s overpriced considering the condition of it.
I do think it puts you in a weaker position if you tell estate agents you are still looking at other properties to buy whilst waiting to see if your offer is accepted, cos if you still want to buy it after a period of time then this property is obviously what you want at a price you are happy to buy otherwise you wouldn’t still be waiting and would have bought another property.

I mean your offering 20% under an already reduced price, thats more than 'cheeky'.

Of course they want more, if you really want it that bad then up your offer.

As everyone has said obvious thing like no heating and 40 year old decor is ALREADY factored into the pricing when the house is marketed. Money might get knocked off after surveys for hidden things that come to light but a doer-up will have been priced as a doer-up to begin with.

It is overpriced in my option, which is why we have offered what we have. It's a quirky property with good potential for a lovey family home but it needs a serious amount of work. Price has been reduced once already.

20% lower offer is cheeky which I acknowledge. Which brings me back to my question.

Is our offer being used as a selling point to other potential buyers? Or could they still be considering it?

If the offer is too low, then why not decline?

I know that no one knows the answers to these questions. Just asking if others have had a similar experience or know how these things work in the EA world.

Thanks again

Yes your offer will be used as a selling point to potential buyers. The EA will be telling them the house has already received an offer.

I never understand why estate agents always think it's useful to tell viewers that there is another offer, but too low. Just makes me think "someone else also thinks it's overpriced"!

I understand the psychology of it because a property with offers on sounds more attractive than somewhere no one has offered on.

And just because the offer is too low ... EAs are not supposed to reveal the actual amount so they can imply it was just a bit too low whereas in fact it may have been significantly under asking as in this case.

For someone who is interested in a property it could encourage them to make a higher offer than they otherwise would have done because they feel like they already know the seller won't accept much under asking.

Is our offer being used as a selling point to other potential buyers? Or could they still be considering it?

Both. For now it's a selling point but it's also a back up offer if nothing else materialises.

I'm selling my late mum's property, which is also in need of a complete renovation and with old electrics and heating. The property is around 60 years old and the electrics are original. We had three valuations and decided to market at the lower end as the agent was suggesting this might interest several potential buyers and a bidding war might ensue.

We had three offers, one was 15% below the low asking price with a long email setting out what was wrong with the property and their estimate of what they'd need to spend on it, one offer was around 5% below asking and one offer at asking. The EA asked the other parties if they wanted to raise their offers, the first raised theirs to 10% below asking (with another long email explaining why they wouldn't go any higher), the second matched the asking price, the asking price offer then raised theirs above the asking price by a few thousand. We accepted this offer.

However, now that we are part way through the transaction, the buyer has asked for a reduction based on the out of date and potentially unsafe heating and electrics. I have reduced the price back to the asking price, but the buyer now wants inspections done which I'm happy for him to do, but won't be offering any further reductions. The property is a renovation project and that would have been obvious upon viewing.

I do understand that potential buyers think a property in poor condition might mean there are reductions to be had, but the EA would have based their valuation on the location, the type of property, proximity to essential services as well as the current condition. If my mum's property had been in tip top condition, it would never have been advertised at the current asking price. In my mind, my buyers are getting a totally freehold property with outstanding views in a lovely small town with a south facing garden, own drive, garage, close to amenities, including a fast train to London. These are things that are not readily available for a first time buyer in the south east, only 26 miles from London.

I don't know your circumstances, but if it needs a lot of work it will attract cash buyers and builders, if they think there is a bargain to be had. EAs often have contacts with local builders and if they drop a hint about how low your offer is they may come in just above you. Nothing you can do really if you don't want to or can't afford to go higher you'll just have to wait it out. Or as others have said give an expiry date for your offer and emphasis you are still looking and will back out if you find something better.

Agree totally @Frecklespy

You're not being used. You made an offer well below asking, the vendors haven't accepted it, they don't think it's enough, they're seeing if they can get more. If they can't they may come back to you. That's all there is to it. All normal. You haven't got a deal, you've left your offer on the table and you're not bound by that anyway, there is no reason why they should not be allowing other viewings.

Quite apart from the obvious, there could be all sorts of other reasons for what's happening, e.g., it's possible that the vendors may have POA, and they may need to be able to demonstrate that they made reasonable efforts to get a good price before considering accepting a low ball offer.

Not necessarily cheeky.
You will find sellers like this (ie the children) or indeed most people really, will not acknowledge the true cost of what is required to rebuild or update.
Remember there will always be more to fix than what you already know on a property that has not been updated for so long.
Added to which builders and building is costing more now, so you could still after a 20% reduction be overpaying.
Don’t know how much a rush you are on but I would keep looking but leave the offer as it is.Even if the estate agent comes back to you with an acceptance you can still say no now, especially after you have looked into building costs more and realise it might no be worth it.

I don't understand why you think you're being "used". What they're doing is completely normal, ie holding out for a higher offer. They haven't totally rejected your offer because they may accept it in the future.

but 'HOW' do you think you are being 'used'?

They can talk about how they had an offer even if they reject you. The holding out doesn't change anything.

They aren't gazumping you, its not your house you where rejected. Its entirely possible they are saying that they will 'keep your offer on the books' instead of rejecting you just to stop you continuing to waste their time by making silly low ball offers. People who massively low ball then creep up tiny % offer after offer and sellers worst nightmares and indicates hard work buyers you don't want to pick. Basically a great way to get blacklisted.

Agree with everyone else.
You aren't 'being used'.
You offered considerably less than the vendors want, so they are seeing if they can get more.
Saying 'it needs heating' etc doesn't help your case, as it will have been priced to allow for that. One of my dc has just bought a house that needs boiler / heating / electrics / carpets / etc replacing and all redecorating, but the price of the house reflected that, compared with other houses he had looked at in the area. He wouldn't expect the house to be priced £X less than one up the road that was ready to move in to, to then reduce the asking price by £X again, when it was already reflected in the asking price.

However, the owners clearly don't need the house for themselves and presumably will have to agree between them to sell. That might be for less than asking, or it might not. that's the risk you take with putting in such a low offer. There is potential for you to get a bargain, but there is also potential for someone else to come along and get it for 10% less or 5% less or 15% less.
You decide how much you love this house, or if you would be happy enough to lose it as you think you can get a better deal elsewhere.

You aren’t being used, they are wanting the best price for the house. It’s a business transaction so ofcourse they would. Your offer is still on the table and they might say yes . Obviously if they get a better offer they’ll say no but it’s how house buying goes currently.

Well yeah, if you offer under you’re automatically going to be in a weak position.

Also the agents aren’t going to disallow viewings because there’s a (lowball) offer on the table - their aim is to get as much for the property as possible so of course they’re going to want other potential buyers to look around.