Remote property offer

[Notenoughknowhow]

I'm going to see a house on Monday, it went on the market yesterday and EA has said that I'm the first to view. It's listed at offers in excess of 350,000.
If the viewing goes well then I'd like to purchase but confused by how much to offer.
I didn't actually notice the OIE when I rang yesterday.

I'm a cash buyer, can move quickly, quite happy to offer 350,000 but should I offer more?
There very few other properties in the area and no previous sold prices available for the one I'm viewing so I don't really know what to offer or ask.

If I like it then hand on heart it would be worth 400,000 to me and I do have that.
Feel completely out of my depth, only ever purchased one property before and that was 27 years ago 😂
Feel very nervous about the viewing.

If you like it, I would offer the asking price. You may well find hidden issues when you move in and may need the extra cash to sort that.

We moved to a rural property - everything looked fine on the survey - and we ended up quickly discovering some big problems and ended up spending £40k in repairs.

Make it clear that you are a cash buyer and ready to move quickly and say that the offer requires it being pulled off the market.

You then have some extra cash in your back pocket if someone tries to gazump you.

Good luck OP. I hope you love it!

Thanks @TidyingThePantry
I guess I can't offer 350k and also ask them to take it off the market can I?
I mean it only when on sale yesterday! It's remote but very sought after area and I just don't know how to not get in some bidding war.

I would do as @TidyingThePantry, if they don’t want to take it off the market for £350k ask them what they’d take it off the market for, then try to negotiate that down.

@user593 OK, so if I do that and instead of giving me a figure they reply that they want to see how the other viewings go, what should I say then? Do I ask them to keep me informed or something?

I would offer 350k if you like it and stress that you are a cash buyer and can move quickly.

The trouble is you're viewing it almost too soon. An asking price offer (sort of) so soon after listing will make them feel they can probably get more. So they may not accept it straight away, especially if they have other viewings lined up.

But you may be the one in the best position and you could go higher if you feel you really need to. In any case, a 350k will be enough that the EA should keep you in the loop and let you know if they receive any higher offer to give you the opportunity to increase your offer if there is strong interest.

@Notenoughknowhow You could either offer whatever you feel comfortable with and see if that’s enough to persuade them or ask them to come back to you if they receive another offer as you may want to best it.

Do you have any sense of how much the property is actually worth? Has anything similar sold recently? It may be it really is worth more like circa £400k when looking at comparative properties but it’s hard to know without context what they may be aiming for.

@Twiglets1 yes I thought the same but I didn't want to miss out. I've been looking for an age and this is the first suitable looking property.
I wish I knew how to ask
" if they receive any higher offer to give you the opportunity to increase your offer if there is strong interest " without coming across as complete idiot who will believe anything and bid against myself 😂

Edited cause just saw @user593 re
"ask them to come back to you if they receive another offer as you may want to best it"
Yes that sounds good. I guess I just have to trust them.

Surely if they accept your offer, they take it off the market?

If they accept the offer it would be reasonable for @Notenoughknowhow to say they insist that it gets taken off the market.

The fear is that they don't accept the offer - immediately at least - but say that they want to allow a bit more time to "think about it" or maybe actually to allow more viewings to go ahead.

If there is alot of interest in the house, they may allow all the viewings and then go to final bids. I got involved in one, where there was 5 interested parties, went to BAFO - went to a FTB. The OP is in a good position being a cash buyer.

I am no expert but maybe offer the asking price and make sure the estate agent know that you have the cash in the bank ready. You could also add that you could be flexible with moving dates. Try and plan what you would do if there are other offers. A family member offered the asking price on a property that can back on the market that was perfect for them when there was an open day and other interest, then another person made a 2nd viewing but it was too late for th3. The family member got the property. This was a flat though so probably a very differen5. Hope you get it, please let us know.

If you really love the house I would be tempted to make an offer above asking price - maybe 360,000. That does risk you paying more than you need to , but it makes your offer difficult to turn down, especially as you are a cash buyer with no chain.
I am in Scotland though where you always have to offer over the asking price so maybe I’m not the best to judge the situation elsewhere .

Before I saw it was OIE it seemed quite straightforward! Don't know why this is throwing me off so much.
I guess knowing it's only just gone on and I'm going in right away with 350k, quite sure there will be other offers, I'm OK with going higher but it's believing the EA and not bidding against myself thing that worries me.
Out of curiosity, can I get an independent valuation somehow? As said, nothing comparable in the area and I'm a cash buyer so don't need mortgage valuation.
Edited @Gunz what is " went to BAFO "?

Yes do that. You are the best possible kind of buyer and they’d be rash to refuse. Good luck.

Then raise your offer if they refuse or dither.

Offer asking.

If its popular and they get other offers they will come back and tell you asking you to offer more (bidding war/sealed bids) but an asking price offer to start is perfectly acceptable and might well be accepted.

OIE doesn't really mean anything, it might mean they don't want less but it will not mean you have to guess how much more. Its more like a minimum guide to try and discourage under offers.

If its a standard sale and the accept your offer it comes off market and goes SSTC once the memorandum has sent (usually next day or two) and they won't book any more viewings and will cancel any booked ones.

If its a corporate sale it will stay on market the full time until exchange (which will be contracted as 28 days later usually) and will be updated with 'Receipt of offer' inviting people to make higher bids. Most EA will not book viewings past that point though so it actually almost impossible to gazump.

You cannot ask them to remove the property from market with an offer, the offer needs to be accepted before they will.

BAFO is best and final offer @Notenoughknowhow

You can pay a surveyor to give you an independent valuation but that won’t help you secure the house. It is worth what someone will pay and if there is strong demand for it then people can offer over what it is valued at by the Estate Agent or any other professional. Think of the 350k as more like a guide price because house valuing is not an exact science.

Can someone explain to me how this works please. I'm in Scotland and OIE is used as standard but we also have the home report that gives the property valuation.

Generally, the property is advertised at X below the value of the property, then sells for Y above the value.

How does it differ in England? And what is gazumping, I don't think this happens in Scotland. I've only bought 1 property so I'm not an expert on buying property in Scotland!

Scotland is wildly different to England as you are tied in much earlier on so gazumping is much more unlikely. Gazumping is where someone else offers more money AFTER the house has accepted an offer and then the seller pulls out of the agreed sale. In England it can happen at any point up until exchange without any repercussions.

England house buying is a shitshow.

Are there similar houses in the area that you can use to estimate a price?

So I went to view the property last Monday, doing a second viewing tomorrow.

In the meantime, the EA has told me that they have been inundated and it has been taken offline. I've been asked to email them by next Monday, confirming my buying position and " confirming the level of your interest ".

Does anyone know what " confirming the level of your interest " means? I mean obviously I'm very interested but I'm sure they don't just want me to confirm that.
Any ideas?

No offence to estate agents but a lot of them are idiots. What they mean by “confirming the level of your interest” is put in an offer if you want to (or tell them if you don’t). My suspicion is it may go to best and final offers after that.

If they are pulling it from market the probably already have multiple offers, you are probably likely to end up in a bidding war. You said you can move quick are cash and most importantly can afford £50k more (so might be in with a shot) but I wouldn't pin all your hopes on it. I have been out bid by a 3rd of the asking price before in a similar situation.

I would assume they want to know your best offer @Notenoughknowhow