Vendor won’t make a counter offer

[Firsttimebuyer91]

We saw a house we love on the market for £775,000. The house was initially on the market in January for £800,000 then came off the market and was put back up last week at £775k. The agent told us that the property had sold for £800k but had fallen through due to a change in the buyer’s circumstances.

It seems odd to put it back on the market for less than it had previously sold given it’s a much better market now (May rather than Jan) unless they’re in a rush to sell.

We made an offer of £745,000 yesterday which we thought was reasonable as a starting point for negotiations (3.5% below asking price). We agreed between us that we are willing to go up £765k but of course would like to pay less if we can!

This afternoon the agent came back and said the offer was far too low and so we went up to £755k. The agent came back again saying it was too low. I asked if the vendor had made a counter offer and she said no, they are willing to negotiate but won’t negotiate on £20k below asking price.

AIBU to now not want to go back with a higher offer? I think £755k on a £775k house is worthy of at least a counter offer to begin the negotiation process.

Any advice on what to do next?

The viewing is on Thursday. It’s with another EA and their latest weekday viewing is 4:30pm so even if they could squeeze us in we wouldn’t be able to get there because of work. I don’t really understand why they would accept a lower offer later in the week - seems like he’s just piling the pressure on because it doesn’t make sense to me that they’d be less likely to accept a lower offer after tomorrow. Am I missing something?

I would assume they're worried you'll offer on the other house if it's the same/better/they're open to further negotiation.

Personally I'd view it unless I preferred the first house for any reason. They'll still accept your offer in a few days.

Just wait until you've viewed the other house and then decide whether to offer £765k on this one, or offer on the other house instead. But if you do prefer the other house, I'd suggest starting at £750k and going up in £5k increments - unless there are other offers, in which case you'll have to match or beat them.

Seems they don't have that many offers and would like to secure yours.

There is no guarantee what would happen if you went back with 765k, but it won't go better for you than when they said this number first.

Technically, you can make an offer, still go to the other viewing on Tuesday and take it back if the other would be significantly better. It isn't nice, but it is legal.

If they’re keen on the house they want to offer on tomorrow, they need to be able to say they’re proceedable. So I assume the idea is that they’ll accept an offer from you now at 765 for the sake of that. But if they lose that house and have less incentive to get themselves a buyer right now, they’ll hang on for a higher offer.

You aren't missing anything at all. The agent is talking rubbish. I'm not surprised they have contacted you when you didn't go straight back to them at the weekend. They don't have other viewings booked, let alone offers.

They are clearly feeling under pressure to get a deal done and the sellers are under lots of pressure too (they obviously intend to move very soon whatever happens so would face paying two mortgages/ rent and mortgage). They are therefore just putting lots of pressure on you.
Don't fall for their sale tactics. Go and see the other house(s) and make them wait, unless you are convinced that this one is far better. Do not allow them to pressurise you into offering immediately. It's only a few days for them to wait for your answer.
I suspect you would have a very good chance of getting the house for 755k without any need to increase your offer. However, it sounds as if you would still be over paying at that figure, given what you have said about the huge rise in prices in your area, the comparable houses and the fact that they have no other interest following a price reduction.
As I said before, and particularly with you being a FTB, you need to really do your sums carefully, take your time and think this through properly.

The ball is now in your court. If you really like the house, be careful about losing it for the sake of 1% of the price. However, if you think the other house looks better, wait for the viewing.

How would you feel if you were told tomorrow that they’d accepted another offer? Relieved, disappointed or indifferent?

I would take a while to think about it....long enough that you can view the other house before deciding which one you want.

If the one you want is this one, I would agree to 765k to get the deal done.

The EA is definitely trying to pressure you into not viewing the other house but don't pay too much attention ... the sellers of this house have taken all the time they wanted before coming back to you so you can do the same. Just don't take long to view the other one!

Well on the call just then the EA told me that this house has a South facing gardens and the other side of the road is North - apparently he knows the street well and this is the best side of the road and one of the best houses on the street but he would say that! There are pros and cons to both - the house opposite is a bigger in terms of square footage with a bigger kitchen/living room and garden, this one has a smaller garden but it’s nicely landscaped. The one opposite has knocked through the living room & kitchen so there is just one big room downstairs & not sure how I feel about that. It’s hard to really get a feel just from pictures though!

Op hasn’t made a silly low ball offer, it was perfectly normal non offensive offer. Doesn’t everybody on mumsnet offer 20% under asking anyway? You would have thought so reading half the threads 🙄

If it actually does have a sf garden, you can check this on Google maps, he'd be right saying it's the best side of the street.

You probably do need to view the other house to be sure. You'll possibly be living opposite it and you'll always wonder otherwise.

I wouldn’t want a totally open plan kitchen/lounge. However you might be able to reinstate the wall at an expense though.

You need to ignore this EA’s views on a house he makes no money from selling. This is your money and your decision, and I would hold firm on viewing the other house. If you still prefer this one and they reject your offer then maybe it’s fate.

It's their house and they can negotiate how they like.

Either you want it or you don't.

You say you love it so maybe they got that message and or holding firm.

Offer what it is worth to you to secure it.

South facing gardens are seen as desirable by most people @Firsttimebuyer91 so the EA makes a valid point.
When are you viewing the other house?

Just tell the agent you'll think about it and wait until you've viewed the other house. It really doesn't need to be this complicated.

We’re viewing it on Thursday. I just don’t know whether he’s saying they won’t accept that offer later in the week because he’s trying to pressure us to make an offer before we’re seeing the other house, or if there’s actually truth to it!

They might have another property they want to offer on, sealed bids, other off in the pipeline they want to match / beat and they cannot offer unless they’ve sold their property.

offers are not legally binding. You can always say yes to their counter offer and then withdraw if you prefer the other property.

Can't you view it earlier than that? Explain to the other EA that you are being pressured to make a decision on another house

This is how I read the situation too. Good luck OP in your tricky decision. (It wouldn't be tricky for me, I'd have called the agent straight back to agree on £765k, as that was the price I'd been prepared to pay in the first place. I'd consider it fate.)

I’ve sold quite a few houses. I won’t even bother negotiating with someone who comes in with an offer as low as yours because in my experience they are just wasting my time in the long run. I sold a house last month that was “open to negotiations” as I wanted it to go quickly but that meant 10k-ish max below asking price, not 30k!

'We’re viewing it on Thursday. I just don’t know whether he’s saying they won’t accept that offer later in the week because he’s trying to pressure us to make an offer before we’re seeing the other house, or if there’s actually truth to it!'

My money's on the pressurising sales tactics, particularly given the fact that you are FTBs. It doesn't make sense, particularly as the agent has said they will move out my August (are they going into rented if they can't buy?).
There may be another house or not. Let's assume there is and they really wish to put in an offer. A couple of days are unlikely to make any the difference in the huge majority of areas. You need to make the correct decision for you which means considering all options and taking a bit of time if you are unsure. I would suggest that you are firm with the agent and stick with your plan.

We can’t because of work - the other EA doesn’t do viewings after 4:30pm. I think we’ll do as other posters have suggested and agree to £765k but view the other house anyway. If there isn’t much in it we’ll stick with this one, if the other one is a lot better then we’ll back out.

I’m just worried about over-paying - the EA was on the phone 15mins extolling the virtues of the house, I couldn’t get a word in! He sounded so desperate to get the sale it made me worry!

Thanks! Yes, he said they’re moving into temporary accommodation in August so I assume rented, which means they’ll presumably be paying rent and mortgage so I would have thought they’d be keen to sell it quickly either way.

'He sounded so desperate to get the sale it made me worry!'
I think your instincts are correct here @Firsttimebuyer91. Listen to them. As I said, I think you could get this house for 755K if you really want it but I would view the other first rather than messing around. Perhaps send an email rather than have him waste your time with gushing sales tactics.