I Made An Offer!

[THE SAGE]

Viewed a two bed semi detatched house yesterday evening with large garden

in suburb of Birmingham.

Asking price is 120k and liked the property a lot and would require no work to be

done to it.I decided to make an offer this morning of 115k as the house is in a good location and would need 50k mortgage.

Although house has just gone on the market I expected offer to be accepted by the

young couple who are selling.I am not in a chain.

Offer rejected- vendor wants 118k and when I said to estate agent that 115k

was generous in current market conditions she asked if I had seen reports of house price rises in the press recently.

I said 115k is the offer and left it with them.

Any thoughts?

[Bear Goggles]

Offer rejected- vendor wants 118k and when I said to estate agent that 115k

was generous in current market conditions she asked if I had seen reports of house price rises in the press recently.

<{POST_SNAPBACK}>

You should have said "What, the ones about sellers needing to be realistic? Yes"

[colonel faulkner]

I'm only guessing about the way the vendors'/EA's minds are working. Perhaps they saw your 'no chain' as no particular advantage because it sounds like a typical FTB property and they'd be expecting to sell into no chain anyway.

Where to from here? Guess the EA thinks/wants you to think prices are on the up. In my particular circumstances, I'm looking for a house for the next 25 years, so I'm less concerned about the size of the saving I'll make BUT I will still give the 'new paradigm' a chance to be thoroughly tested before I buy. 6 months perhaps. If I'm genuinely convinced prices are rising through some mechanism that's yet to reveal itself, I'll settle for something less than my ideal place.

Only you can decide what's best for you. But you already know that.

[alexays]

If you really think it is overvalued give it a month and if they come back to you subsequently saying they will, after all, accept the offer say 'Nah market gone down since then' and offer lower.

Still 2 bed 120k seems rather cheap. But then I'm from down South.

[VacantPossession]

If you really think it is overvalued give it a month and if they come back to you subsequently saying they will, after all, accept the offer say 'Nah market gone down since then' and offer lower.

Still 2 bed 120k seems rather cheap. But then I'm from down South.

<{POST_SNAPBACK}>

Stay firm, even phone the agent and say you are happy with your current offer and remind them of it. They'll come back to you soon enough.

VP

[Pakard]

I said 115k is the offer and left it with them.

Any thoughts?

<{POST_SNAPBACK}>

I would offer £110k in 6 weeks time.

[THE SAGE]

I would offer £110k in 6 weeks time. 

<{POST_SNAPBACK}>

That's what I have got in the back of my mind unless some mug

actually offers them the asking price!

[Pakard]

That's what I have got in the back of my mind unless some mug

actually offers them the asking price!

<{POST_SNAPBACK}>

They always come back after 6, 8 to 10 weeks STC

[Warwickshire Lad]

I said 115k is the offer and left it with them.

Any thoughts?

<{POST_SNAPBACK}>

You're right it was being generous. If the house changed hands in the last 5 years perhaps you could look it up on Nethouseprices.com and remind this particular couple of how much it was originally bought for ?

You've done all you can. Don't cave in. Supply will carry on increasing giving you more choice. It's a buyer's market. If you have a word with the EA maybe they will put pressure on the vendors to change their mind, after all it's just 3K we're talking about here.

If the vendor's still decide not to accept, it will have been their loss, not yours.

[Lord Blackadder]

Bit concerned about this thread, Guys.

Before I get hammered for giving "bear biased" advice and told to mind my own business, let me say: I wholeheartedly agree that people should make their own decisions based on their own positions, of which I obviously know little or nothing.

However, with all the bearish sentiment / evidence / media reporting that we get on this site and in the press, I cannot for the life of me understand why:

a) you'd make an offer of less than 5% reduction when the national average selling price is something like 90% of asking price. At least go in hard to assess there position.

you actually seem concerned that someone else will make an offer greater than yours. Multiple threads have already explained that the recent rises are due to Rightmove methodology whereby only new stock is considered - this has even been discounted by Rightmove and the press themselves.

c) You're feeding the vendors denial. Hell its only just come on the market. Even if I saw something I liked I would wait at least a month to assess demand before even talking to the EA. If it goes then wave hello to the Greater Fool who got there first.

If its the pad just right for you, good luck. But otherwise have some faith. Its an arduous job waiting for too many tomorrows. (A lot of people have been waiting a long time, myself included) But not not half as hard as the work you'll do to earn the £30k you would flush down the drain in the current deal.

And in case you're wondering what I really believe: This baby ain't going nowhere but down!

Just today a good friend had his house valued. Early 2004 £350k; today £300k 'is a reasonable price'. The EA even admitted that they are trying to talk current sellers down when he asked about the prices in the road he wants to buy in)

Crash position, Balders!

[treestump]

Viewed a two bed semi detatched house yesterday evening with large garden

in suburb of Birmingham.

Asking price is 120k and liked the property a lot and would require no work to be

done to it.I decided to make an offer this morning of 115k as the house is in a good location and would need 50k mortgage.

Although house has just gone on the market I expected offer to be accepted by the

young couple who are selling.I am not in a chain.

Offer rejected- vendor wants 118k and when I said to estate agent that 115k

was generous in current market conditions she asked if I had seen reports of house price rises in the press recently.

I said 115k is the offer and left it with them.

Any thoughts?

<{POST_SNAPBACK}>

Dont trust the Agent to even make the offer I dont. Knock on the sellers door and be very polite and see if you get asked in for a cuppa. I just had this carp from an agent from a very well known firm. Told me a sob story about the seller had to see 157k and that it was worth it. Two weeks later tells me that the seller realises that its overpriced and that I can have it for 140k. I said yes thanks.

If you really want it offer an extra grand and be their friend.

Or gazunder later. Its a fact that you have to fight fire with fire.

[alexays]

........

Just today a good friend had his house valued. Early 2004 £350k; today £300k 'is a reasonable price'. The EA even admitted that they are trying to talk current sellers down when he asked about the prices in the road he wants to buy in)

Crash position, Balders!

<{POST_SNAPBACK}>

£300 K bit near the Chancellor's £250 K tax threshold for most people. He'll probably have to accept £250 !

A colleague has had a flat on the market for about 10 months now. 2 bed in Clapham. Its sitting at £275 (was higher before). At some stage he is going to have to realise he aint gonna get more than £250 for it!

[The Masked Tulip]

I would offer £110k in 6 weeks time.

Yep, I would do this and every 6 weeks they make you wait go down by 5K. They will soon get the hint.

Secondly, I agree about not trusting an EA to pass on the offer. I would write a note, stick it in an envelope and post it through their door one evening... "Jusy to let you know that today I made an offer for your property with the EA for X.." and date it.

Personally, I think 5K below asking price in the current market is too high. You will effectively be buying at the peak of the biggest housing market in history.

[Crazy88s]

In a way you blew it by offering close to the asking price, this makes the vendors think it is actually worth what they are asking. Far better to have said, well I like the property but I can only afford 85K, 90K tops, say to the EA that if the vendors dont achieve asking price to get in touch, and if the cheeky little minx starts quoting press releases remind her that they are written largly by Fuxxing EA's and other VI's, and quote a few of your own. In fact go in with some of the PDFs from this site and ask her to comment.

[Guest muttley]

Viewed a two bed semi detatched house yesterday evening with large garden

in suburb of Birmingham.

Asking price is 120k and liked the property a lot and would require no work to be

done to it.I decided to make an offer this morning of 115k as the house is in a good location and would need 50k mortgage.

Although house has just gone on the market I expected offer to be accepted by the

young couple who are selling.I am not in a chain.

Offer rejected- vendor wants 118k and when I said to estate agent that 115k

was generous in current market conditions she asked if I had seen reports of house price rises in the press recently.

I said 115k is the offer and left it with them.

Any thoughts?

<{POST_SNAPBACK}>

My first thought is that you should have offered 99k.They may have come back with "Nah,the vendor wants 115k'

Look at it from their point of view.The EA has told them to put it on the market at 120k and they immediately get an offer of 115k.I don't blame them for turning you down.

If you really think this is the right property for you,then go back and offer to meet them half way.If not, and you are prepared to wait then I think you'll probably get a 'phone call in a week or two.

If you haven't already invested some time in sharpening your negotiating skills,then it may be worth your while.

Of course, I haven't seen the house and it may be worth 118k,in which case I'm sorry to have been patronising.

[Lord Blackadder]

Have to agree with the Crazy88's school of negotiation on this one.

I personally reckon its better to go in very low and move up to a deal, thereby giving the vendor a 'positive' experience as you give ground rather than continually grinding them lower over time. If you think the market will sink lower than 30% and won't agree till that point then at the current time its just EA baiting. An honourable pastime in itself I might add.

Alexays.

Without blowing my trumpet I told him it would be valued around £300k but if he wanted to create any interest and a quick sale (if that's currently possible) to get in at £280k and then hammer hard at his prospective seller to get the differential before it all goes Major Tom. Otherwise I agree; any closer to the edge and its £249,950 all the way.

[THE SAGE]

Thanks for all the comments.

I agree that £115k was too close to the asking price but I thought

being as the property has only gone on the market an offer of £105k

was too low.I have been watching the road for a while and it is the first

house that has gone up for sale for a while so it should be interesting

to see what happens.

Re; the suggestions about actually speaking to the vendor- I would not

do this as I don't believe in personalising situations such as these and it

makes things awkward if they do come back and accept my offer and I THEN

LOWER MY OFFER!

[tiff]

Personally if you are not desperate for a house I would wait. You may have the chance to get it at a cheaper price in a few months, otherwise if someone else wants to pay the inflated price then leave them to it. There will be more properties available.

[Spoony]

I echo many others. You should have gone in with a cheeky 95K. And said you feel that this is reasonable offer in a falling market.

[jpjh]

Walk into the estate agents today and declare!!!!

"I'm so glad they didn't accept my offer. I don't know what I was thinking"

Give the estate agent the first time buyer beware document.

"Have you seen this??"

"What a mess I would be in."

Then point them to the rightmove recent report about unrealistic asking prices.

"Obviously I went in way to high."

"I'm still interested but I would only be willing to offer £95k"

Personally I don't think you should buy at all at the moment, but if your certain about the property and you will not be stretching your self then it's your call.

[THE SAGE]

Checked ourproperty.co.uk and property was bought 2 and a bit years ago for

85K.

[Mart]

There is too much going on to contemplate buying at all at the moment. The dollar looks as though its going to go through the floor and an ww economic maliase looks pending.

Sign up to another 6 month rent deal on your place and see what happens.

[bearly holding up]

I agree with the point which most people have made.Offering 115K has soon has the property went up,has probably made the vendors confident they can get more.

I think it depends on how you feel.If this is your ideal property and you would be gutted if it sold to some one else then you have to make the decision has wether to offer more to secure the sale.However if you could take it or leave it ,then you probably are better of waiting.At the end of the day it has to be a decision that you are happy with ,no matter what everyone else advises.It probably makes it a bit harder if this is the only property on the road for sale because the vendors have no one else as competition.

[Guest The dude]

If you really think it is overvalued give it a month and if they come back to you subsequently saying they will, after all, accept the offer say 'Nah market gone down since then' and offer lower.

Still 2 bed 120k seems rather cheap. But then I'm from down South.

<{POST_SNAPBACK}>

I can assure you 120k for two beds is NOT cheap....check on Nethouseprices...my bet is that it was bought for 80k ish..sorry just saw the thread above, it was 85k. Still... DO NOT BUY.....even RightMove are saying vendors need to be realistic...this is RIGHTMOVE forgodsake..not some ardent bear....I repeat DO NOT BUY..you will get a lot more for your money even 6 months down the line.....

[Tester]

I'm astonished!

Offering any where near the inflated asking price in this market is unwise to say the least!

If you are not embarrassed by your first offer you offered too much!

Be patient.