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Offer Of 40% Under

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Early this month we offered 40% under asking price on a house which has been on the market for over 12 months.

The owners are both deceased and died intestate leaving a Trust Corporation to manage the sale. This house is in a sorry state with no GCH, a 1960's plastic kitchen, floral wallpaper EVERYWHERE, overgrown garden - in short its on its way to dereliction.

Following the offer, the EA dashed out several feelers to glean our financial situation (what do you do, how much do you earn, etc) which were given short shrift. The EA then went completely dead. Contacted the Trust Corporation directly and last Thursday sent it the offer made, thinking perhaps the EA had not passed it on.

Today, I get an email from the EA, saying as follows:

"We have now received a higher offer on the property, therefore your offer has not been accepted by the vendors, if you wish to place a higher offer, please let me know as soon as possible."

The Trust Corporation did not mention any other offer on Thursday so I'm thinking that the devious EA has invented phantom competition to drive up our offer.

My partner wants to increase our offer but my thoughts are that this is merely a candid EA tactic which will be withdrawn in a couple of weeks should we fail to enter the fray.

Your thoughts/advice are most welcome!

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maybe they discovered you have a dog for an avatar and dont think you'd make an appropriate member of the local community.

i actually had a dream where i brought (bought buyed) a dog last night. It was a nigtmare because deep down i knew there was no way i wanted to walk it each day or pick up its shiit.

i make 40% BMV offers (below asking) which i feel are a bit cheeky but not totally obscene. However, im also aware that alot of those place would possibley fetch more at auction. I think any EA would say, dont accept that, you'd get much more at auction, as some properties can fetch more than their asking price at auction. I viewed a place that cost £180k or so, went to auction with a reserve of £80k or so and fetched £190k at auction!!!! I dont know but i thought we were in a housing crash??? Some crash eh? I thought auctions meant cheap property..... There were so many people viewing that cold January morninng that we could have had a party or a rave..... So much for HPC.

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The owners are both deceased and died intestate leaving a Trust Corporation to manage the sale. This house is in a sorry state with no GCH, a 1960's plastic kitchen, floral wallpaper EVERYWHERE, overgrown garden -

"We have now received a higher offer on the property

More probably, with such a property, the EA is buying it himself or is taking an envelope to pass it on.

Probate properties are goldmines, in any market conditions.

The problems you mention are superficial, not structural.

£3,500 for a Combi and six rads and installation.

£2,500 (or whatever you want to pay) for a new kitchen.

£350 per room for full re-decoration.

£1,000 for landscaping.

Peanuts.

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Happened to me so I contacted the vendors directly. They say there is a higher offer so go away, fair enough. If their better offer falls through, they can now contact me directly and avoid the EA.

In my village, everthing is going SSTC or under offer, some actually complete (!)

VMR.

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Early this month we offered 40% under asking price on a house which has been on the market for over 12 months.

The owners are both deceased and died intestate leaving a Trust Corporation to manage the sale. This house is in a sorry state with no GCH, a 1960's plastic kitchen, floral wallpaper EVERYWHERE, overgrown garden - in short its on its way to dereliction.

Following the offer, the EA dashed out several feelers to glean our financial situation (what do you do, how much do you earn, etc) which were given short shrift. The EA then went completely dead. Contacted the Trust Corporation directly and last Thursday sent it the offer made, thinking perhaps the EA had not passed it on.

Today, I get an email from the EA, saying as follows:

"We have now received a higher offer on the property, therefore your offer has not been accepted by the vendors, if you wish to place a higher offer, please let me know as soon as possible."

The Trust Corporation did not mention any other offer on Thursday so I'm thinking that the devious EA has invented phantom competition to drive up our offer.

My partner wants to increase our offer but my thoughts are that this is merely a candid EA tactic which will be withdrawn in a couple of weeks should we fail to enter the fray.

Your thoughts/advice are most welcome!

All I can say is that I have friends , cash buyers, put in offers of 25% below peak on 6 properties, told ALL had HIGHER offers, none have sold.

I think people are waiting until the end of the summer, can't blame them, just in case they get an offer close to peak.

Autumn will see a very different situation.

If RM and others were saying in January 2009 that sellers needed to reduce 25 - 30% and even then they said that people were still having problems rising mortgage finance , I can't see that by Jan 2010 we are not going to have sellers needing to reduce at least 30 - 35% if not 35- 40% to get a sale.

Yes, currently the small % of sales that are happening are close to peak (cash rich), because sellers will not reduce and they are pushing up the figures, but everyone knows they are a blip, the property I track just sits there, nothing is shifting.

I would tough it out and know that there will be plenty of other properties if the EA isn't lying. When you say you offered 40% below the asking, how far below selling prices for the area was the original asking price? Given that the property needs total updating I assume the 40% is off the asking price of a property that is up together is that correct? I have seem some AWFUL properties on RM in the Dorset area for full peak price that needed EVERYTHING doing to them! EA's live in a parallel universe.

If you do not hear anything then chances are you could get a phone call in September! My frieds still expect to hear back on the ones they put offers in on, but they are not sure now they are happy with just 25% off peak.

This is why sellers are being shortsighted really, after August they will not be lucky enough to get anything like just 25% off peak.

Edited by Sybil13

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Drop your offer by another 3% because of "worsening market conditions... notably the large jump in unemployment and government plans to make large number of public sector workers rudundant after the next election".

Advise you will review you offer weekly with a view to dropping it further is there is any more negative economic news.

Make sure you send details of the offer to the trust.

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Drop your offer by another 3% because of "worsening market conditions... notably the large jump in unemployment and government plans to make large number of public sector workers rudundant after the next election".

Advise you will review you offer weekly with a view to dropping it further is there is any more negative economic news.

Make sure you send details of the offer to the trust.

Just phoned the Trust Corp again. They don't know of any other offer, other than the one we made!

They are looking into what is going on and will get back...

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Early this month we offered 40% under asking price on a house which has been on the market for over 12 months.

The owners are both deceased and died intestate leaving a Trust Corporation to manage the sale. This house is in a sorry state with no GCH, a 1960's plastic kitchen, floral wallpaper EVERYWHERE, overgrown garden - in short its on its way to dereliction.

Following the offer, the EA dashed out several feelers to glean our financial situation (what do you do, how much do you earn, etc) which were given short shrift. The EA then went completely dead. Contacted the Trust Corporation directly and last Thursday sent it the offer made, thinking perhaps the EA had not passed it on.

Today, I get an email from the EA, saying as follows:

"We have now received a higher offer on the property, therefore your offer has not been accepted by the vendors, if you wish to place a higher offer, please let me know as soon as possible."

The Trust Corporation did not mention any other offer on Thursday so I'm thinking that the devious EA has invented phantom competition to drive up our offer.

My partner wants to increase our offer but my thoughts are that this is merely a candid EA tactic which will be withdrawn in a couple of weeks should we fail to enter the fray.

Your thoughts/advice are most welcome!

How much do you want the house? Thing is, if the EA has made up this offer and you raise your own, he'll probably only raise the fake one, too.

I swear this happened to me a few yrs ago ('...email from another buyer on holiday in Fiji at the moment...') only how can you ever prove it? Looking back, I'm sure the Fiji bit was supposed to make me think they'd got plenty of cash. I did want the property, but once I'd reached my limit, funnily enough Ms Fiji pulled out.

I think I'd be inclined to test the water by saying you'll think about it - and see what they come back with. Calling their bluff risks losing the property, but then fortune favours the brave. ;) And even if it turns out that the other offer is genuine, who's to say they won't pull out later? Many a slip between Under Offer and Sold.

One thing in your favour is that so many buyers are put off properties that need a complete makeover.

Good luck.

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Just phoned the Trust Corp again. They don't know of any other offer, other than the one we made!

They are looking into what is going on and will get back...

good man.

name and shame the crooked EA.

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good man.

name and shame the crooked EA.

What's the problem? If I had someone selling stuff for me I want them extracting the highest price from potential buyers. I see nothing immoral here.

It's a business deal, expect hardball and play the same way.

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This 'higher offer' thing has happened to us on all three of our property purchases over the years and each time we said we would not be increasing our offer and every time the phantom buyer vanished.

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Drop your offer by another 3% because of "worsening market conditions... notably the large jump in unemployment and government plans to make large number of public sector workers rudundant after the next election".

Advise you will review you offer weekly with a view to dropping it further is there is any more negative economic news.

Make sure you send details of the offer to the trust.

This is the best strategy to employ.

Estate Agents know that their income equals a portion of transactions x selling price.

If they are trying to crank up the selling price, and it becomes obvious to them that you are not taken in, then they will cave in to make sure that the transaction happens, lest they get no income at all.

And if someone really has made a higher offer, let them have the property, and good luck to them.

You have to be prepared to walk away in order to win at this game. Prove to them that you are prepared to walk away, and you will find that things move your way.

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What's the problem? If I had someone selling stuff for me I want them extracting the highest price from potential buyers. I see nothing immoral here.

It's a business deal, expect hardball and play the same way.

And is completely immoral. The EA is supposed to be representing the best interests of BOTH buyer and seller. Here he is serving his own best interest.

I've never understood why EA's receive a fixed % of a sale price. Why not cap it at £2000 per property. Then we will see increase in volume AND a potential reduction in house prices (because there will be no price-hiking agenda).

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What's the problem? If I had someone selling stuff for me I want them extracting the highest price from potential buyers. I see nothing immoral here.

It's a business deal, expect hardball and play the same way.

http://www.oft.gov.uk/advice_and_resources...ng-negotiations

Under the Estate Agents Act 1979...

<snip>

It is illegal to mislead buyers or sellers in any way. Specifically, you must not give misleading information about:

* offers for a particular property, or invent bids

* the existence or status of any potential buyer.

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£3,500 for a Combi and six rads and installation.

£2,500 (or whatever you want to pay) for a new kitchen.

£350 per room for full re-decoration.

£1,000 for landscaping.

Sounds Lovely.

Edited by brocken spectre

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And is completely immoral. The EA is supposed to be representing the best interests of BOTH buyer and seller. Here he is serving his own best interest.

I've never understood why EA's receive a fixed % of a sale price. Why not cap it at £2000 per property. Then we will see increase in volume AND a potential reduction in house prices (because there will be no price-hiking agenda).

No he's not. He is supposed to get the best possible price for the seller, and that's what he's doing. He gets a % of the sale price to motivate him to get the best price possible.

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No he's not. He is supposed to get the best possible price for the seller, and that's what he's doing. He gets a % of the sale price to motivate him to get the best price possible.

Nope. He is not. He is effectively brokering a deal, and misleading both Buyer and Seller.

It's this sort of crap that has got us into this mess in the first place!

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How did you find out who the solicitors were?

Coincidentally we viewed a wreck earlier today; half an hour after viewing made an offer 12% below offer; were told that someone else has already offered (considerably more) and the solicitors have accepted, funnily enough the guy who took us around knew a great deal about the property but never mentioned another offer. Strange that.

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No he's not. He is supposed to get the best possible price for the seller, and that's what he's doing. He gets a % of the sale price to motivate him to get the best price possible.

Pay attention jonb (is there a sneering Paxman smiley available)

Under the Estate Agents Act 1979...

<snip>

It is illegal to mislead buyers or sellers in any way. Specifically, you must not give misleading information about:

* offers for a particular property, or invent bids

* the existence or status of any potential buyer.

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And is completely immoral. The EA is supposed to be representing the best interests of BOTH buyer and seller. Here he is serving his own best interest.

I've never understood why EA's receive a fixed % of a sale price. Why not cap it at £2000 per property. Then we will see increase in volume AND a potential reduction in house prices (because there will be no price-hiking agenda).

I don't care about the rules, I just think that in a business transaction you should expect to have to look after yourself.

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