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!

I definitely think he also thinks we can pay more because of our MIP. We've obviously offered c. 30k less than we can borrow

Be careful. If they get a higher offer they might accept it instantly. Think carefully about what you could offer before that happens.
Is this 'your' house? Are you going to be really gutted if you lose it for want of however much more you'd be prepared to offer?

I doubt it will be because of your AIP @Mover2024 - it'll be because a) it was your opening offer and they'll know you can go higher, b) because they've only been on the market 10 days and had lots of interest already so why accept under the asking price quite yet and c) because you offered after only one viewing which shows you're super keen not to miss out on it.

Nobody ever really accepts an opening offer unless it's the asking price or higher, OR if it's made explicit that this is your best and final offer from the get go.

Completely appreciate that but what if our highest offer is still unacceptable to them? It may be best for both the seller and us to gauge other interest and then increase because we will not be going to £725k.

Not only because of our affordability but because from our research, it isn't worth that. Properties in the area are going on and dropping within a couple of months and then dropping again.

Also, a lot of the interest is from non proceedable people. I don't want to go really high when we have been told we will be updated if there's another offer so we can revise ours then

Thanks for this.

We offered after only one viewing because it's 2 hours from our house so with any property we offered on that would have been the case as we do not have the annual leave to go up and down in the week. The only reason we can go again in the week is because we are trying it in with a wedding that's an hour or so away.

We're thinking to wait for our second viewing and then offer our best and final at that point. The EA said they will keep us updated regarding other offers too so if another one goes in we will have an opportunity to increase our offer

When’s your 2nd viewing?

They should have already got offers from the weekend by now.

Well done for staying strong, on the 2nd viewing you could ask how many offers the house has had. And that your offer is still on the table…

Next Wednesday.

I will do, I think the EA is trying to make us feel pressured into offering higher which I understand is their job but equally, I don't want to pay over the odds and we have to consider the monthly repayments as the interest rate is in the high 5s.

Just because we love the house doesn't mean we should pay more than what our research has shown it's worth. It's also not the kind of market where we need to be doing that

Just received this email from the EA:

"Further to my email below. I have confirmed the viewing for next week.

I expect we are also to receive an offer following a second viewing in the next couple of days. Should it look as though we are going to agree anything I will make sure we come back to you to give you the chance to offer also.

Many thanks, I trust this is okay."

I think for now we just hold our nerve. Any thoughts/advice always welcome!

Yes I would leave it there for now and wait to hear back from the EA. If they do get another offer I guess they will ask people to give their best & final offers. At which point you can offer the maximum you feel the property is worth to you. But make sure first that the people you are competing against are proceedable.

I emailed to check whether they are proceedable and the EA said they are in a position to proceed.

If they do offer, do you think we can ask what we would need to beat? As they EA said they would never reveal other offer figures

The EA shouldn’t answer a question about what you would need to beat because that’s basically just the same as telling you what their offer is.

It sounds like the EAs are being ethical and will do things by the book which is simply just to invite you both to give your best & final offers based on what the house is worth to you. Then the sellers will decide which offer to choose.

Thank you. We will just wait and see what happens next.

Thanks everyone for all your advice and help

Update: we viewed again and upped our offer to £700k.

The sellers came back and said that rather than going back and forth, the minimum they will accept is £710k. DH and I discussed and are happy to pay that but also asked for the oven to be left and the vendors agreed.

So there we are!

Congratulations @Mover2024 looks like you're buying a house

Congratulations! If you love the house, I think you've done the right thing!

Thank you! Excited but so nervous too 🙊

Thank you! So do we! It feels crazy taking on a bigger mortgage at the minute but I do think it will all be fine! And we love the house so it's right for us