Help me make an offer on dream home

[Elz58]

Our dream home came on the market last week, and we have a second viewing booked tomorrow.

We love it, it’s well within our budget but the estate agent have priced it competitively with a range (£675-725k) so there’s been a lot of interest.

They had 14 viewings over two days, several booked over the next week and these types of houses are rarely available so I don’t think it’ll stay on the market long. The agent was keen to get an offer out of us on Saturday, but I wasn’t prepared to do that without a second viewing (it’s still a buyers’ market here in the Midlands really).

We’re in a great position, under offer to first time buyers, we have a full mortgage offer (not just a decision in principle as we had a purchase fall through).

How should we play this with the estate agent? I’ve never offered on a house with lots of other interest before. I don’t want to get into a bidding war…

You need to decide what figure you are willing to pay for the house depending on how fairly you feel it has been priced by the agent relative to other recent sales, what else has been and is on the market that might suit you and all your personal circumstances.
Once you have decided, submit your offer in writing including all the positive selling points that you have made above and any others that you have left out too!
You may find it useful to look up MovingHomeWithCharlie on X/ YouTube. He has an offer template which you may find useful and various other bits of advice.

I think it is likely that this house will go to "best and final offers" as it has attracted so much interest. So unfortunately you probably will get into a bidding war, though you are in an excellent position because of being under offer to FTBs and having a mortgage offer. Most of the people viewing this house will not be in such a good position as you are to proceed, which is your ace card.

You say the EA has priced it competitively, so what do you think it is worth compared to others in the local area? I would offer on the high side in the hope that this will encourage the sellers to do a deal with you directly rather than going to best and final offers. I wouldn't offer less than 700k if you think the house is worth that amount and you can afford that amount.

If it's your "dream home" and a bit of a one off, you'd probably rather pay a bit over the odds than lose it to someone else - so consider that when deciding what to offer.

When a house is priced like that, with two figures it nearly always goes to best and final offers. It's like a formal bidding war.

I'd have two offers in mind: what you think it's worth and what you're prepared to go to in order to get it
These are often two very different figures!

Start withbthe first, you might get lucky . But be prepared to pay if you really want it. The EA will keep you informed of what the current highest offer is or how far behind your bid is.
That waybyou can decided whether to continue or not. Sounds like you're in a good position so that might push you to the top of the list

Good luck!

Thanks everyone! We had our second viewing and I loved it even more.

We went in at £695k, and said we’d pay £700k if they break the chain and go into rented. Fingers crossed!

Good Luck @Elz58 please let us know how you get on

Did the estate agent give you any intel on whether other offers are coming in?

Thanks will do. They’ve not got back to me, suspect it’ll be tomorrow now

They said there’s been a lot of interest, but they didn’t say anything about other offers. It’s only been on the market a week and I’m hoping we’re one of the first to have a second viewing done.

it’s got a 200 foot back garden which is my dream and really unusual around here, but that might put others off as it’s a lot of work.

I made it clear it’s a time limited offer and we won’t wait several days for an answer while they have loads of second viewings.

I think you might have to go to £725k or higher if you think its competitively priced.

Would you feel gutted if your offer wasn't accepted and then found out someone bought it for £715k ?

I always think the value is down to what its worth to YOU. If you've been looking for ages & nothing has come close to this then why lose it because you've gone less than mid range.

I'm quite tense for you. Good luck!

I can never understand these price ranges, surely they don't want offers around the lower figure. I'd assume that ths really on the market at £725k.

If it is as desirable as you say, then I imagine it will go for over £725k.
But good luck

Any news on your offer?

The agent rang to say they’ve had multiple higher offers. We increased to £725k (top of the guide price range), but said only if they go chain free, and accept within 48hrs.

It might go above that, but we’ve said it’s best and final, we’re not going any higher.

It’s been very stressful!

Why put the chain free condition on if this is your dream house? It could be the difference between accepting an offer from you or someone else. Is it really worth the risk of losing it just for the sake of a chain?

If I had multiple offers of roughly the same amount, and one was demanding I move into rented to break the chain, I'd go with a different offer. No way I'd be putting myself through the cost and inconvenience of moving twice in a short space of time for the sake of 5k or whatever. I think you will lose this game of hardball.

I don’t mean to be rude but I think you’ve not played this well. If I was the vendor your immediate conditions of breaking the chain and chain free would piss me off and I’d go with someone else out of principle. If it had only been on a week they probably had barely had a chance to think about their onward purchase yet.

Because our buyers have been waiting 9 weeks to complete the chain and we’re going to lose them. Then we’re not going anywhere if we lose our buyers. I met the vendor yesterday for the viewing, and they said they were happy to move into rented

Or could you move into rented? So your sale could progress.

I agree, it's you that should move into rented OP. If the vendor has more than one offer there is no reason why they would have to put themselves out so much.

I guess if they said they are happy to go into rented they might have genuinely meant it ... but it's a gamble making it a stipulation of your offer.

Agree with others that I wouldn't be playing hard ball so much as you have been attempting to if you think it's your dream home. You've been talking tough but can't really back that up seeing as the house is in high demand. You could move into a rental just as much as they could.

Anyway, Good Luck and I hope they accept your offer.

My first thought was you should be the ones going into rented accommodation! They are in the driving seat not you! They have the house you want and people interested.

Word of caution, my sellers agreed to go in to rented for a quick sale, following exchange it suddenly was off the cards. I wanted to pull out really at this point but had nowhere else to go myself.

Fingers crossed for you