Offer Price tactics!

[Sarkmeister]

We were in a similar situation when we bought our place a couple of months ago. They had 8 offers after the first day of viewings. We offered about 2% over asking. They then asked for final offers. We added some and ended up £15k over the asking price.

We were in a very good position (no chain, first time buyers, everything lined up) and it was accepted. We will never know how much the other offers were sadly, but as long as we think it is worth what we paid thats all that matters (the mortgage company also agreed which was a concern for a while).

[Sheepshanks]

Sarkmeister said:

They then asked for final offers. We added some and ended up £15k over the asking price.

In a pretty flat market around here, a family member of ours had a couple of people very keen to buy their house and one went £20K over asking (~£250 house). They then dragged out the process for months with increasingly ridiculous questions. When given an ultimatum they said they'd proceed, but only at £20K less. Swines.

[AmitG]

I agree with the posters that talked about "proceedability" but I'd add - make it clear that if your offer is accepted you aren't going to mess them around. You'll stop house hunting, pay the offer price and exchange/complete as quickly as necessary.

If you have mortgage in place, affordability test, current house already sold etc. then tell them all that.

At the same time, make it clear that there are other houses you are looking at so you would need a firm decision by date X or you will move on. Show them you are serious, but not desperate.

The highest offer in the world is no good to a seller if the buyer then starts messing them around. And in my experience it's common for buyers to over-extend themselves in order to secure their dream house, then realise that the sums don't add up for them, then they get cold feet and start dragging things out or trying to push the price back down once they feel the seller has thrown their lot in with them.

[thecopster]

Thanks for all the advice. Some good stuff here.

I have a mortgage agreement in principle in place and sent to the estate agent covering me for way in excess of the asking price. I'll be going into the estate agents tomorrow to ensure they pass on how committed I am etc.

Then just cross fingers - don't think there is anything else I can do!

[thecopster]

Update time... We'll sort of!

So from discussion with the estate agent they confirmed that there are 5 offers total. We have been asked to provide full and final offers.

Gone in with out max based on what we are happy to pay and accompanied the offer with a letter to advise how committed we were to completing the purchase etc

Nowt else to do but wait....should know by Thursday apparently!

[BigTom85]

All the very best of luck with it

[hornetrider]

Yep good luck!

[thecopster]

Got rejected today. Offer of £21k over asking was outbid by one other offer. Obviously disappointed but I offered what i felt was a fair price and was on the limit of what I felt the property was worth.

Back to continuing with our extension plans in the existing place - build thread coming soon!

Thanks for all the advice

[Equilibrium25]

thecopster said:

Got rejected today. Offer of £21k over asking was outbid by one other offer. Obviously disappointed but I offered what i felt was a fair price and was on the limit of what I felt the property was worth.

Back to continuing with our extension plans in the existing place - build thread coming soon!

Thanks for all the advice

Unlucky, but at least you did your best - a very fair offer.

The Bristol market is crazy right now and has been for a while. We were lucky enough to secure our dream house, but it was still touch and go after offering the asking price having been able to view before the open day.

Good luck with your plans...

[8-P]

thecopster said:

Got rejected today. Offer of £21k over asking was outbid by one other offer. Obviously disappointed but I offered what i felt was a fair price and was on the limit of what I felt the property was worth.

Back to continuing with our extension plans in the existing place - build thread coming soon!

Thanks for all the advice

Hard luck, we got gazumpt by someone and they paid less than our offer, we then upped our offer making it worth 10k to them , still rejected. Estate agent was wheeling a chain of 3 through and was clearly intent on that staying.

Ended up buying a better house, better location, better everything. Things happen for a reason but its hard picking yourself up after the rejecting but you will and itll work out.

[camshafted]

Equilibrium25 said:

Unlucky, but at least you did your best - a very fair offer.

The Bristol market is crazy right now and has been for a while. We were lucky enough to secure our dream house, but it was still touch and go after offering the asking price having been able to view before the open day.

Good luck with your plans...

Can echo the sentiments about the Bristol market. Prices up 14.5% in the past year and 1.5% in last month. Only 4/5 places can beat that. A combination of little student housing and a vibrant economy has pushed things through the roof. A friend recently bid 10% over asking price and still missed out, and that was on a place that seemed overpriced in the first place!

Best of luck.