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mylipsaresealed

There's Another Offer

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Hiya guys

Hoping you can help me - i've found a 4 bed property that is ideal for us we've held back for years and have a 10% deposit. It's on the market for 240k and we initially offered 220K they said they 'had another offer on the table' but it wasn't the asking price and they were involved in a chain. We're First Time Buyers and so are in a much better position, so we upped our offer to 225k they turned it down saying the vendor wanted nearer to 230k to wrap things up we offered 230k but the EAs cam back saying that the vendor is thinking about it - this must mean we've beaten the other offer otherwise why would he think about it?! But i can't understand why he's not biting my hand off for that kind of offer in this climate.

The conditions of our offer was that he has to take the property off the market and that we're walking away if the other people counyter offer etc...

What do you think we should do if they come back and a) decline the offer saying he wants more money to take it off the market B) accept the offer but won't take it off the market

Any help would be great... we're waiting anxiously to hear if the offer has been accepted.

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Hiya guys

Hoping you can help me - i've found a 4 bed property that is ideal for us we've held back for years and have a 10% deposit. It's on the market for 240k and we initially offered 220K they said they 'had another offer on the table' but it wasn't the asking price and they were involved in a chain. We're First Time Buyers and so are in a much better position, so we upped our offer to 225k they turned it down saying the vendor wanted nearer to 230k to wrap things up we offered 230k but the EAs cam back saying that the vendor is thinking about it - this must mean we've beaten the other offer otherwise why would he think about it?! But i can't understand why he's not biting my hand off for that kind of offer in this climate.

The conditions of our offer was that he has to take the property off the market and that we're walking away if the other people counyter offer etc...

What do you think we should do if they come back and a) decline the offer saying he wants more money to take it off the market B) accept the offer but won't take it off the market

Any help would be great... we're waiting anxiously to hear if the offer has been accepted.

In a normal property market your first offer should be 10% off the asking price. In the context of the worst sellers market for a generation, worst recession since the 1930s, massive credit crunch, galloping unemployment, etc., etc, your first offer should be 20% to 30% (sometimes more, particularly if the property has been on the market for 12 months or longer) off the asking price. Your initial offer should have been somewhere between £180k to £190k.

Your current offer would be a very good offer (for the vendor) in a normal, stable or steadily rising market.

Estate Agents nearly always say that there is another offer on the table ...... you shouldn't let this influence you ... tell them what your offer is and for them to make their minds up about it. If you lose this particular house you will probably end up getting a better, bigger house for less money later on.

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in my experience estate agents always say there's "another offer on the table". Nothing makes potential buyers eager to close a deal than the thought that other buyers want the house too. It's usually a lie.

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in my experience estate agents always say there's "another offer on the table". Nothing makes potential buyers eager to close a deal than the thought that other buyers want the house too. It's usually a lie.

+1

Got friends who have put in offers of 25% off peak on half a dozen properties all turned down with "we have had higher offers" all properties still on market months later.

Read:

Why Sellers Need to Reduce Their Prices

Stay Away From Property It has Much Further to Fall

There is a LOT of ramping going on currently but the money just isn't there to support property values rising, indeed Nationwide / Halifax / Right Move / Home Track have all admitted that property is still falling at least another 10% this year, so hold your horses or is it houses .........you have NOTHING to lose by waiting, even though it takes nerve when those around you are losing theirs.

And then consider waiting until November 2009 by which time the UK will be out of the DENIAL stage.

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As one way of keeping tabs on the market I have, every now and then, put offers in to see what I could potentially negotiate off asking prices in the areas I am potentially interested in buying in. For the sake of context I am looking at 4 bed detached in very good condition, in good locations.

Last Spring/Summer I was able to negotiate 20% off asking prices. More recently I have been able to get a -22% off current asking price (asking price significantly lower than peak selling price) accepted. I will probably test the waters again during the summer. You need to be firm in your negotiations and don't take any cr*p from Estate Agents - there is a good reason why 99% of the public don't trust Estate Agents (as reported by a national survey reported in the national press about 6 to 8 weeks ago).

Edited by Alfie Moon

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You need to make the seller fearful that they might lose out: Put a time limit on your offer being accepted, before it is withdrawn.

2 hours is a good limit.

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Stuff them, the market is in a bull trap, withdraw the current offer and change it to £200k time limited, if there really is another offer they will be the ones who spend more than they can afford if not the vendors may well come back with a counter thereby showing thier hand. You'll manage to have a lucky escape and find another place at a better 'discount'.

With chains collapsing all over the country if this is real it is very likely to collapse also so why offer more than you need to, they need to sell you don't need to buy.

Edited by zebbedee

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hi i'm similar boat negotiating with agents

the simplest thing is to be honest and look at more than one property and play THEM off against each other

i bid for one and say i need a response by a certain day as i will then offer on the other place

use propertybee (install firefox and install this) and find properties that have fallen in price or sales that have cancelled and mention that to them

but the simplest thing is for you to show that you have other options ... lie to them if necessary. fight fire with fire

good luck

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lets hope one of you is earning around 60K to pay for the mortgage you are gonna need.

Oh, and the lenders valuer agrees to your new or hiked valuations as 90% LTV is hard to come by these days.

Edited by Bloo Loo

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Hiya guys

Hoping you can help me - i've found a 4 bed property that is ideal for us we've held back for years and have a 10% deposit. It's on the market for 240k and we initially offered 220K they said they 'had another offer on the table' but it wasn't the asking price and they were involved in a chain. We're First Time Buyers and so are in a much better position, so we upped our offer to 225k they turned it down saying the vendor wanted nearer to 230k to wrap things up we offered 230k but the EAs cam back saying that the vendor is thinking about it - this must mean we've beaten the other offer otherwise why would he think about it?! But i can't understand why he's not biting my hand off for that kind of offer in this climate.

The conditions of our offer was that he has to take the property off the market and that we're walking away if the other people counyter offer etc...

What do you think we should do if they come back and a) decline the offer saying he wants more money to take it off the market B) accept the offer but won't take it off the market

Any help would be great... we're waiting anxiously to hear if the offer has been accepted.

Sorry, I don't believe a word of this.

If you've been wise and "held off for years". Why the rush to to buy now?

If you're FTBs; again why the rush?

What do you think we should do if they come back and a) decline the offer saying he wants more money to take it off the market B) accept the offer but won't take it off the market

No offence intended......

But that's a dull question......

Tell them to stick the house; you'll wait 12mths till it's £180k and if some mug wants to pay their prices then let them.

Oh, btw if you are for real and desperate to buy, tell the EA you've found another 'pwoperdee' and you're considering putting in an offer.

BF

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Estate agents are basically failed car sales people.

Like car sales people they will use every trick in the book to sell you some piece of worthless crap just so they can make 150 quid commision.

They will make you feel stupid, bad, poor, time wasting etc etc etc.

here's what I would do now knowing this, tell him you've decided to retract your original offer because a) there are plenty other houses to buy B) you dont like being played c) You think the markets still collapsing d) If someone else wnats to pay over the odds just for somewhere to live then they are welcome to it. e) You are unlikely to buy through them again due to being messed about.

Grab the bull by the horns and stop being played by salesmen. It's a sH*t load of money you are spending, so spend it wisely.

Dont believe a word anyone who is making monet off your back tells you. It's a simple rule but an effective one.

P.S. they've already squeeze £5K out of you so they clearly know what they are doing...and you dont. Stick to your guns, they are a lying bunch of leeches ( mostly ).

Edited by TheCountOfNowhere

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in my experience estate agents always say there's "another offer on the table". Nothing makes potential buyers eager to close a deal than the thought that other buyers want the house too. It's usually a lie.

A few years ago I put in an offer on a flat which had been on the market for over a year and, surprise surprise, a higher offer was made the following day. They asked me for my maximum bid and I said they already had it. Mysteriously, they accepted my (apparently lower) offer after all.

Every other property I've ever offered on (bar one) has suddenly had another offer on the table. That includes an ex-council which had been on for nearly two years back in the day, and even a lock-up garage. It's the oldest trick in the book...

Smith

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highly frustrating when this happens and you do start to wonder whether the agent is simply playing you against yourself to up your bid.

have a figure in mind you think the property is worth and stick to it - it's very easy to get sucked in.

based on increased transactions this year, if the property has been on the market for longer than 3 months then it's either over-priced or in a not so good location. if it's recently been put up for sale, you know the property market for the area, then my experience is you'll need to be pretty close to the asking price (just comes down to how badly you want the house).

girlfriend and i have looked at a fair few houses over the past year - but what we're finding is houses are coming into our range that we wouldn't have dreamed of 2 years ago.

patience grasshopper :)

misterc.

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As one way of keeping tabs on the market I have, every now and then, put offers in to see what I could potentially negotiate off asking prices in the areas I am potentially interested in buying in. For the sake of context I am looking at 4 bed detached in very good condition, in good locations.

Last Spring/Summer I was able to negotiate 20% off asking prices. More recently I have been able to get a -22% off current asking price (asking price significantly lower than peak selling price) accepted. I will probably test the waters again during the summer. You need to be firm in your negotiations and don't take any cr*p from Estate Agents - there is a good reason why 99% of the public don't trust Estate Agents (as reported by a national survey reported in the national press about 6 to 8 weeks ago).

Just out of interest. What do you do once you have successfully negotiated? Just say 'Nah changed me mind?'

Although I have money to spend I still worry about alienating EAs by making offers I wouldn't proceed with. I have only made offers (pressed by wife) on houses I would've bought. Fortunately no takers despite of offering (against my my better judgement) 90 - 95%!

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One other thought....say to them that you think it's a good idea they seller goes with the higher offer. If it falls through you will be prepared to offer again, but it's likely to be in the region of 200K, so you hope the other buyers are as proceedable as you are.

Play the game to win.

£25K is better in your pocket that someone tryin g to rip you off for a place to live.

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Just out of interest. What do you do once you have successfully negotiated? Just say 'Nah changed me mind?'

Although I have money to spend I still worry about alienating EAs by making offers I wouldn't proceed with. I have only made offers (pressed by wife) on houses I would've bought. Fortunately no takers despite of offering (against my my better judgement) 90 - 95%!

Alienating EA's? - The only time that this almost became a problem for me was back in the 1990s. The EA didn't want to play ball, was very obstructive, rude, etc. so I contacted the vendor directly and the EA was pulled back into line.

What do I do after negotiating successfully when just 'testing the waters' - there are all kinds of reasons you can give for pulling out. This happens all the time. Indeed chains are breaking down all over the place - last summer it was well over 50% of chains that were breaking down - I'm not sure what the current stats are but I imagine it is still very high, possibly higher.

I pull out before either side has spent money on surveys etc.

When I have put properties on the market I have fully expected that there will be viewers that are doing nothing more than 'window shopping' and that any offers given and accepted by me may be someone who is just 'testing the waters' - which is fine, all part of the process of selling really.

If you are worried about alienating EA's in your locality (and I agree that this could certainly be a significant issue in villages and very small towns) then test the waters as close by, with property with a similar profile to the type you actually want to end up buying, as possible.

The way that the UK property market is set up and operates, and particularly in the context of EA's that constantly tell lies, are incompetent, etc., and the lies and spin churned out by the VI's (including EA's) about the state of the market make it become a sensible strategy to 'test the waters' to check out what the reality is in regards the market.

I test the waters to check out the reality of the market. If I was new to buying property I would also want to 'test the waters' to check out the reality of the market but also to help develop my skills of negotiation.

Edited by Alfie Moon

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In a normal property market your first offer should be 10% off the asking price. In the context of the worst sellers market for a generation, worst recession since the 1930s, massive credit crunch, galloping unemployment, etc., etc, your first offer should be 20% to 30% (sometimes more, particularly if the property has been on the market for 12 months or longer) off the asking price. Your initial offer should have been somewhere between £180k to £190k.

Your current offer would be a very good offer (for the vendor) in a normal, stable or steadily rising market.

Estate Agents nearly always say that there is another offer on the table ...... you shouldn't let this influence you ... tell them what your offer is and for them to make their minds up about it. If you lose this particular house you will probably end up getting a better, bigger house for less money later on.

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