E A Asking About My Reasons For Making The Offer I Made

[Will!]

Hi all

This week I viewed a nice but unremarkable three-bedroom linked detached house in Hertfordshire. Asking price of £300k and on the market for three weeks. Three very similar houses are also for sale on that street: one started at £307k and went to £290k before going SSTC after four months in total; one at £320k for three weeks and one at £285k for two months.

Sold prices for very similar houses on that street in the last seven years are as follows:

15th Feb 2011 £267,500

12th Nov 2010 £245,000

18th Jun 2010 £249,000

9th Apr 2010 £245,000

29th Jan 2010 £240,000

2nd Jul 2007 £250,000

5th Jan 2007 £236,000

29th Nov 2006 £275,000

All sold prices before 2006 below £250k.

I strip out the highest and lowest numbers as outliers and decide to offer £250k. The vendor rejects it, as is his right, and I think nothing more of it. Then I get the following e-mail from the EA:

Hello Will

As you can see below ----- has filled me in on your offer.

I do have a couple of questions for you if you don’t mind. The idea is that these questions will help me in the search for your house in the future.

Is your top budget £250,000 or is that just the value you put on this house?

You mentioned that you are basing it on what houses in the road have sold for in the past…….

On doing research myself, the last houses to be sold in the same postcode for under £250,000 were in 2010, prices have moved on considerably since. Even in the last 6 months the prices have risen by approximately £20,000. Based on the fact the last house sold was in February 2011 for £267,500 and general price increases in the 22 month gap between February 2011 and January 2013, it shows the price is about right. Where did you get your figures from?

I look forward to your response.

I understand why he wants my top budget but I don't understand why he cares about the rest of it. Any thoughts?

Cheers

Will

[plummet expert]

Hi all

This week I viewed a nice but unremarkable three-bedroom linked detached house in Hertfordshire. Asking price of £300k and on the market for three weeks. Three very similar houses are also for sale on that street: one started at £307k and went to £290k before going SSTC after four months in total; one at £320k for three weeks and one at £285k for two months.

Sold prices for very similar houses on that street in the last seven years are as follows:

15th Feb 2011 £267,500

12th Nov 2010 £245,000

18th Jun 2010 £249,000

9th Apr 2010 £245,000

29th Jan 2010 £240,000

2nd Jul 2007 £250,000

5th Jan 2007 £236,000

29th Nov 2006 £275,000

All sold prices before 2006 below £250k.

I strip out the highest and lowest numbers as outliers and decide to offer £250k. The vendor rejects it, as is his right, and I think nothing more of it. Then I get the following e-mail from the EA:

I understand why he wants my top budget but I don't understand why he cares about the rest of it. Any thoughts?

Cheers

Will

Because no one else has made a better offer? You cannot believe EA's. They may or may not be telling the truth about any price or offer.

Edited September 6, 2013 by plummet expert

[roger196]

In April 2010, the Nationwide monthly seasonally adjusted index was 334.1, whilst for July 2013 the index was 332.7. This would suggest there had been no movement in house prices. Might be worth checking my figs against the Nationwide website.

Knowing your budget gives the ea leverage in upping your offer. Are you buying up to the max you can afford or by the value to you of a particular house.

Hope this helps.

[Will!]

In April 2010, the Nationwide monthly seasonally adjusted index was 334.1, whilst for July 2013 the index was 332.7. This would suggest there had been no movement in house prices. Might be worth checking my figs against the Nationwide website.

Land Registry House Price Index does confirm this.

Knowing your budget gives the ea leverage in upping your offer. Are you buying up to the max you can afford or by the value to you of a particular house.

I'm offering based on the value to me of the particular house.

[Bear Necessities]

perhaps the vendor has asked the estate agent why people keep putting "low" offers in, and the estate agent wants to come back to them with something more than "because I'm a greedy ******* so I overvalued your house on the estimate so that I could get your business"?

Edited September 6, 2013 by Bear Necessities

[white110]

I would reply with

The offer I have made, is what I willing to pay, it is well with within my capacity to pay.

Has the property had a valuation done for mortgage purposes.

If so, would you care to share that information, any difference in valuation would indicate the amount of security the financial institute places on the asset.

I have not asked you to justify your valuation, if that is what you are willing to pay, then you buy it, if you have or can raise the money.

Perhaps not the last sentence.

[cybernoid]

I would go with

"That is what it is worth to me, take it or leave it. You're an estate agent, what do you know about the value of property? You're a chimp in a suit."

Typical of how they think, he is an idiot. What a seller can get is what it is worth, once a sale is made you can spot a trend but you cannot extend a past trend to today and decide that is todays value. Tail wagging the dog. Ask him why he thinks he is an economist despite having no training or qualifications. W4nker.

[Bemusedmover]

Everyone seems to have missed the obvious reply.....

tell him he can have it................

..........if he PAYS IN FULL for it

simples

[Habeas Domus]

The key thing here isn't any of the facts/fiction the agent says but just the fact he is still talking to you - he is trying to negotiate something.

You may not be prepared to negotiate at all, or you may want to meet him in the middle somewhere.

This is why you should always go in with a first offer lower than your true valuation - that way you still have some wiggle room to increase your offer slightly so that the vendors don't feel like they are getting a raw deal.

[Dorkins]

I would reply with

The offer I have made, is what I willing to pay, it is well with within my capacity to pay.

Why say this? If it's true, you're giving the EA information for free.

[white110]

Why say this? If it's true, you're giving the EA information for free.

I could pay more, but I am not going to...........is what I was trying to say.

It was directed at the OP's comment about the agent trying to find a budget limit.

I understand why he wants my top budget but I don't understand why he cares about the rest of it. Any thoughts?

Cheers

Will

[Will!]

Thanks for all the replies. In the end I went with:

Dear ---

Thanks for your e-mail. In answer to your questions:

1) £250,000 is the value of this house to me.

2) The Land Registry House Price Index for Hertfordshire is largely unchanged since 2010. More locally, houses of similar size and

condition in ---------- Lane and -------- Road (for example) have sold for £250,000 in the past twelve months.

Yours sincerely

His reply (within 20 minutes, after 5.30PM)

Hello Will,

Thank you for your reply. I will update my files.

I do have a mid terrace house in -------- Road coming to the market shortly for £229,995. I will send out detaisl as and when they are ready hint eh next few days. For this property we are holding an open day on Saturday 21st September with 15 minute time slots between 11-2pm. If you are interested let me know and I will book you in.

I'm not holding my breath.

[mrtickle]

Good stuff. I'd push back on his original "prices have moved on considerably since", and insist that he admits that was a lie, given that you've proved with the land registry facts that prices have NOT moved at all since.

[Will!]

I suspect the EA will lose interest in me now he knows I'm not susceptible to his patter. If the house is still on the market in a month's time then I'll remind him that my offer is open.

[porca misèria]

I suspect the EA will lose interest in me now he knows I'm not susceptible to his patter. If the house is still on the market in a month's time then I'll remind him that my offer is open.

Don't be too cynical. What the agent wants is a sale, and if you're a credible buyer, you'll do. He'll be simultaneously trying hard to haggle you up and the vendor down.