Baffled with offers on property - buying

[Ainsleysbbqbible]

Hi,
I am baffled on what to do with a property we've fell in love with.
The property is listed for offers over £290k, and we've made an offer of £292k. The agent has told us we need to give our best and final offers this weekend, with no indication of whether our offer is above or below others that have been made (I'm not expecting them to tell me actual figures as I know that's not normally allowed!). I'm torn on what to do, increase our offer or stay put on our current offer.

We have quite a large budget, but the property is ideal for the long haul and family life, so wanting to stay put.

Depends how easy it would be to find another house that offers similar/you like as much. If rationally and looking at the market you know you could find other properties that tick all your boxes, then don’t offer over the odds. If it’s a rare find that is an amazing fit for you, then raise offer as high as you are comfortable with.

If there is interest from other parties and you want the property you need to up your offer. If it was me l would go 10-15k over to secure it.

I would go higher if you definitely it.

How well priced is the property relative to current sale prices of similar properties?
How much do you love the house?
How many other properties that meet your requirements are coming to market in your area?
What is the max figure you are prepared to pay?
Lastly, are there actually other offers on this property?

You need to ask the EA for more details like how many other people have made offers on the property (if any). You also need to compare the price to other similar properties on the market to come to your own conclusions re whether the house is "worth" more than 292k or not. If you think it is good value for money then possibly other buyers will be thinking the same thing so you may want to increase your offer to a level at which you would still be happy to buy the house and wouldn't feel like you had overpaid.

It's an almost impossible question!

But you can ask the EA have other people put a bid in? And if so, how many? Also, all of the vendor is going to sell to one of these current bidders, or do they have a price they want to achieve and if that's not met will they continue to market the property?

As you say they are not going to tell you how much the other r bids are, but you need to very some ideas where the goal posts sit. For what is worth, IF the agent is creating a bidding war then 2 grand isn't going to win it imo.

(Btw, you r could call the agent's bluff and saying you're not playing games! Maybe he's imagined the other offers)

Yeah we were thinking of that... Our budget is 390k... Obviously not considering 100k over the listed price, but we have a decent budget.

The area is ideal for our DD school and is ideal for our anxious dog too, so we'd be so gutted if we missed out!

The only thing that's worrying me is the equity side later on, god forbid we have to move and we have paid way over the odds for the house, which we then can't sell as we are in negative equity, iyswim. We aren't planning on moving again for a long long time if we do get it, and hopefully want to extend subject to planning etc, but it's not a deal breaker if we can't.

It's sits average I believe. I did speak to my own agent about it, as they know of the property historically (recent-ish) as well, and they felt the value/listed price was spot on.

It's a unique house, perhaps off putting for some because the layout is a bit back to front.

There are no other properties we have viewed that we liked as much as this one. We've looked at 5 so far. And the churn of properties coming onto the market is slow at the moment. That said, there are a few 3/4 bed properties that are on the market at the moment, in the same area, that are perhaps over priced in my opinion and don't tick all our boxes.

There are two other offers to my knowledge, but the agent will not disclose anything further, apart from "we want your best and final offer by Monday"

It totally depends where you live. In Edinburgh you’d need to add at least 10% to offers over prices. Look at sales prices (not list prices) of everything equivalent in the area and offer what you genuinely think it’s worth compared to anything else you could buy. If you’re in it for the long haul a few more £k is neither here nor there.

I feel like at 290 they’ll be hoping for something starting with a 3 but didn’t want to tip into that for online searches.

It is isn't it... Haha.

The agent won't disclose anything. Even our agent has called them, asking for a bit of information so we can see where the offers are at. They've just repeated the same to them, that to make it fair, they're gathering all the best and final offers around the table on monday.
I have already asked the question about the vendors ideal price, if they have one.. they didn't give an answer.

The last conversation I had with their agent was the above, and my mum said maybe the agent won't say because mine is currently the highest offer, hence trying to get us to increase it further on Monday. I just feel like it is a back handed tactic, I feel like I'm auctioning blind tbh.

Have considered calling their bluff too... But I am worried it'll backfire. Also wondering if the agent is being a bit arsey, as we didn't choose them as our agent after their appraisal of our home.. who knows. It's all a minefield!

Imagine you don't get it. On 6 months time, the sold price pops up on Zoopla.
What number is going to make you think "bugger, should have increased our offer"? and what sort of number is going to make you think "they've overpaid"?
If it's a long term house for you, does overpaying by 5k matter? - assuming you have enough deposit to get the mortgage!

Yeah that's the position we are at, at the moment. We are willing to go 20k over the asking price... And I think that's a fair shot. Anything more than that would be overstepping it we think.

Derbyshire, but not the peaks 😄...

I think 20k over is fair price for the area itself. It's just so annoying if the bids are way less...as we'd be able to keep a few grand back for much needed new furniture and redecorating etc. but we have agreed we could do that as we go along.

My house was on for offers over 465K and went to best and final offers. It sold for 500K. I am not saying whether you should up your offer in absolute terms - that depends if you can afford to, and how much you want the house, which only you can know - but I don't think you are likely to be the highest bidder at your current offer.

Ps. Thanks all for your help so far, needed a sense check!

We sold three years ago and went for B&F which was very enlightening (never done it before).

It was still the mad times and we had B&F offers over the asking price from about ten people (a few other people offered under). Offers ranged from a couple of £k over to multiple £10's k over.
We didn't just go for the highest offer, the top offer we just didn't like the people plus they were in a chain, the second were also in a chain but the third (and the people we decided to go with) were already in a rental and ready to go with no chain.

It isn't just about price, it can also be about how prepared (physically & financially) you are.

Yeah totally understand, could be a cash buyer or someone not in a chain who is ultimately successful, as their circumstances might fit the vendors needs. Ah, it's anyone's guess isn't it.. we'll just give it our best shot. 😅

Any update OP @Ainsleysbbqbible ?