Offer advice

[Mover2024]

Looking for some advice please. Our situation is that we have sold to a FTB and we've now found somewhere that we like.

It's up for guide price of £725k. Our absolute max budget is £720k. Having researched, guide price is openly inviting people to negotiate on that figure. Do you think a starting offer of £690k would be acceptable? There is also another very interested party that will offer once they've sold which they apparently think will be soon.

Our first time buying a non new build so would love some advice please!

If I was the Seller, I would be far more interested in offers from you than from someone who hasn't sold yet. Everyone seems to think their property will sell quickly (unless that's just a Mumsnet thing) but in reality, many don't.

I think it's fine to go in with an offer at 690k. However, I do think that the Sellers will interpret that as willing to go up to 700k. If you are happy to pay 700k and think the property is worth it, then it's a good negotiating tactic to start at 690k rather than offer at 700k immediately.

Thanks @Twiglets1 - there were also 7 viewings today, in addition to the lady that wants to offer. Do you think that should influence our offer at all?

We are able to move quickly as our FTB is on a rolling one month contract so is happy to move as fast or as slow as we want to

No I would still offer 690k. If it's too low the EA will tell you but whatever you start with, the price will go up so start lower than you want to end up.

If for example the Sellers have told the EA that they will only accept very close to 725k you can almost immediately go up to 700k but at least try 690k first to see how it is received.

Lots of people viewing at the moment haven't sold their own properties. You have, which puts you in a much better position than them.

Just buying and selling at the mo. Being proceedable and able to move quick puts you at a massive advantage. Our sellers had an offer on the table from non-proceedable buyers. When we matched it they accepted ours.
Hold your nerve!

Thanks @Twiglets1 will report back next week!

@heldinadream thank you, that's really helped. We're definitely going to go in at £690k and see what happens!

Hopefully they would allow us to amend our offer if they also have other offers they are considering

Make sure you make your offer conditional to the house being withdrawn from sale and no other viewings allowed. Sometimes the EA and vendors like to play silly beggars....

They will because the EA is used to negotiations and wants the best price for their client.

Yes definitely! But even if they agree to that, how would I know that they've definitely stopped viewings?

@Twiglets1 - thank you

Get a friend to ring the estate agent and try to book a viewing.

If I was your seller, and I had an opening offer of £690k from you - a proceedable buyer - and lots of other viewings today, I would be very hopeful that I’d likely achieve close to or even asking price. How long has it been on the market?

If it’s only just gone on, just be aware they may try to get you up to asking - if they reject you at £690k, and you really want it, I’d be careful to state that your higher offer is the maximum you can go to, and in order to seal it I’d be tempted to just go straight to £715k but say that’s your best and final. Gives you a small amount of wiggle room if you absolutely have to but sets your stall out that you won’t be going to asking.

@muddyford good idea, thanks

@ibelieveinmirrorballs been on for 10 or so days.

I think the issue is that a lot of people who are viewing are not proceedable though. I asked the EA if they were and she was very vague saying "she believes some are". In this market people are viewing before they've sold or even on the market yet. I think we're in quite a strong position having sold to a FTB so no chain under our buyer.

You are in a strong position - BUT - 10 days is nothing and if I was getting a flurry of activity and high offers this early on, I’d think I could get asking or near asking. I’ve just sold a house in this price bracket at near asking so have recent experience! They’ll definitely put you at the top of the pile because of your position, but I think will be confident they’ve listed at a very attractive price that they can achieve.

@ibelieveinmirrorballs that all makes sense but if it's guide price, are they not expecting negotiation and lower offers?

In my experience that depends completely on how long they've been on the market and what the market's response has been with them listing at that price. Lots of viewings and murmers of offers straight away might make them think they can achieve asking or more. This would be completely different in two months' time if they hadn't had much interest.

When I listed my house at eg. £775k, I had thought I'd be happy with achieving £750k - but when I had a flurry of interest and offers very quickly, I soon shifted my thinking to think I could perhaps achieve asking price. It's not as though you set out thinking one thing and never change that position - if you get lots of interest straight away, you might start to think it's either perfectly priced or even under priced.

@ibelieveinmirrorballs understood. There's been great advice on this thread so we'll follow it and see. Someone may offer more than we do by quite a bit but having sold ours, we know that's not the only thing that influences a decision regarding which buyer to go with.

Well just present ourselves in the best way possible and hopefully we get it!

I think you’re in with a good chance - good luck!

First of all don't believe everything the EA says, they are sales people & they lie ALOT.

Someone may make an offer when they sell, ok may be true, but they need to sell first & by the time they do that they may change their mind about this property, their own sale may fall through etc. Etc

Only go by actual offers, that's who you will be bidding against. I remember the EA telling us all sorts of stories of other people who were interested in the house we bought. In the end we were the only ones bidding, they kept trying to get us to increase our office, which we didn't do.

@ByNewSnake thank you. Going to offer in the morning, hopefully we hear back tomorrow!

Please let us know how you get on. Hoping you get the house at a price you are happy with.

@LindaDawn thank you! ☺️

DH thinks we should do an email offer as well as a phone offer. Is this usual?

@Twiglets1 @ibelieveinmirrorballs @ByNewSnake