Other Offers On Property

[itsdave]

I'm interested in putting in an offer for a house (second viewing later in the week).

It's been on the market for several months, and I've found out that it's a probate sale, being dealt with by a Solicitor on behalf of the beneficiaries (i.e. the Solicitor is the Client of the Estate Agent).

There have been two previous offers on the property, both of which were rejected. I've set my budget and won't go above it, but I'd love to know what the previous offers have been - even a ballpark figure.

Is there any way of finding out, or tripping the Estate Agent up into letting slip / giving me a hint, what the previously rejected offers were?

[blackgoose]

Whatever means you try to get information, be aware that the EA is probably lying in order to push you into making a high offer to create a sale. You need to take whatever they are saying with more than a touch of salt.

[itsdave]

Whatever means you try to get information, be aware that the EA is probably lying in order to push you into making a high offer to create a sale. You need to take whatever they are saying with more than a touch of salt.

You're absolutely right, blackgoose, their only interest is getting a sale and so I'm prepared to see through most of what comes out of her mouth and treat it purely as a sales pitch designed to get me to make the highest possible offer.

Just wondered if there was any way to trip her up into mistakenly giving away any hints .

The highest I'm prepared to go is about 7% below asking, so am thinking of starting at 12% below (though they've just dropped the price by about 4.5%, so might be reluctant to go much lower just now).

Edited March 1, 2011 by itsdave

[Pent Up]

You could try getting someone else to phone the agent and ask saying they may be interested but how flexible are they on price. The agent may say that an offer was rejected at £x or they want at least £x. Although there is no gaurantee that thus would be the truth.

The only other thing is to start low, reluctantly go up to your max if need be than walk away if it's still rejected. Setting a budget beforehand is a good plan.

[itsdave]

You could try getting someone else to phone the agent and ask saying they may be interested but how flexible are they on price. The agent may say that an offer was rejected at £x or they want at least £x. Although there is no gaurantee that thus would be the truth.

The only other thing is to start low, reluctantly go up to your max if need be than walk away if it's still rejected. Setting a budget beforehand is a good plan.

Thanks, Pent Up! Unfortunately the EA wouldn't give very much away (got a mate to ring up!).

I put an offer in 10% below current asking price (14% below original asking), which was rejected though with an indication that something around 7% under current asking may secure a deal (11% under original asking). I'm going back to the EA with a final offer at 7% under (not going to mess about with smaller increments) - that's my ceiling price so will see how it goes.

Thanks for the advice!

Edited March 8, 2011 by itsdave

[Swansea Estate Agent]

If you want the property and believe you will get it at a certain price, then put the offer in. If accepted you can always try to get extra's like have the vendor pay the legal expenses or have the furniture thrown in. They can only say no and it would not lose you the deal, but they may say yes just to get the deal done which will save you some cash or give you plenty of items to sell and profit

If you are looking to get it at the best price, then negotiate hard and don't be afraid to walk away.

It all depends on what you want the most.

I know a lot of people say that you can never lose money on a property and there are many example out there to prove that saying very wrong and there will be 1000's more examples later this year, but the saying is true if you use common sense.

Buy it and keep it for at least 10 years. Don't borrow any more money on the property even if the house price trippled.

[itsdave]

If you want the property and believe you will get it at a certain price, then put the offer in. If accepted you can always try to get extra's like have the vendor pay the legal expenses or have the furniture thrown in. They can only say no and it would not lose you the deal, but they may say yes just to get the deal done which will save you some cash or give you plenty of items to sell and profit

If you are looking to get it at the best price, then negotiate hard and don't be afraid to walk away.

It all depends on what you want the most.

I know a lot of people say that you can never lose money on a property and there are many example out there to prove that saying very wrong and there will be 1000's more examples later this year, but the saying is true if you use common sense.

Buy it and keep it for at least 10 years. Don't borrow any more money on the property even if the house price trippled.

Good advice, SwanseaPropertyAgents!

The offer has been accepted - I think it's a good price in the current market. I also expect it may lose 15% or so of it's value over the next couple of years, but I want to buy a home so am prepared to take the hit if need be.

Now just the hurdle of getting the mortgage!

[Swansea Estate Agent]

Like I mentioned though, you will not have to take a hit unless you decide to sell when the value drops.

Circumstances change and in 2 or 3 years you may come to a point where you need to move for one reason or another. If the value is lower than what you paid, then you still don't need to take a hit.

You can become a landlord until the market changes whether you want to or not. Many people do this because it suits their requirements during a time that property is not selling or not at the price they need to clear their mortgage.