Vendor wont take less than asking price - should I outbid myself ?

CandyButcher · 30-11-2018 12:06PM #1

I am currently the only bidder on a property in a popular area that is on the market 2 weeks. I really like and want this one so I put in an offer 15k under asking price as it does need a new kitchen and some light repairs.

I was expecting a bidding war of the usual 2k upwards.. however a week later the EA tells me the seller wont accept less than asking price. So this could be totally genuine or the EA could be just trying to get me up!

If I knew the seller would accept and go sale agreed immediately on asking price I would happily offer it. I would not like to offer it then be left sitting waiting for higher bidders an im after launching the current only bid up 15k extra.

Would it be wise for me to ask the EA "is the seller willing to go sale agreed if offered asking price today" ? if he says yes happy days if he says no hes gonna hold out then why should I increase my bid

LLewellen Farquarson · 30-11-2018 12:10PM

Or offer asking price and say it us valid for x days, after which it us withdrawn (and be prepared to follow through)

Also stress that this is only one of the properties you are bidding on

wersal gummage · 30-11-2018 12:16PM

I wouldn't offer and let it stand for a period of time.

I'd ring the estate agent and say you'll offer the asking price if they agree to take it off the market. If estate agent confirms, you can then offer the asking and sale agreed

c.p.w.g.w · 30-11-2018 12:17PM

LLewellen Farquarson wrote: »

Or offer asking price and say it us valid for x days, after which it us withdrawn (and be prepared to follow through)

Also stress that this is only one of the properties you are bidding on

Might also be an idea to show interest in others properties from other estate agency's. Many EA know each other

stargazer 68 · 30-11-2018 12:30PM

wersal gummage wrote: »

I wouldn't offer and let it stand for a period of time.

I'd ring the estate agent and say you'll offer the asking price if they agree to take it off the market. If estate agent confirms, you can then offer the asking and sale agreed

This is exactly what we did last December. Only bidders and we offered the asking price if it came off the market. Got the keys valentines day

Best move we ever made considering the house we got compared to some of the ones we were outbid on!

JimmyMW · 30-11-2018 12:41PM

wersal gummage wrote: »

I wouldn't offer and let it stand for a period of time.

I'd ring the estate agent and say you'll offer the asking price if they agree to take it off the market. If estate agent confirms, you can then offer the asking and sale agreed

Go with this advise

LLewellen Farquarson wrote: »

Or offer asking price and say it us valid for x days, after which it us withdrawn (and be prepared to follow through)

Also stress that this is only one of the properties you are bidding on

Do not go with this, your bid will only be used as bait for others coming in, even if technically your bid is withdrawn, you'll be quoted as the highest bidder to interested parties. In the current market those whom are interested will be interested in the property at asking price and a certain amount above.

Blazedup · 30-11-2018 12:59PM

Can you approach the owner?
Put that to him
Get their name on land registry or ask the neighbors for contact details?

Edgware · 30-11-2018 01:40PM

Offer what you are willing to pay and if not accepted walk away. Dont tolerate any estate agent bolixology about new bids etc.

Toots · 30-11-2018 01:45PM

If you really want the place, then you could offer the asking price on the condition that the property be withdrawn from the market immediately.

I was in a similar situation, only it had gone on about 4 weeks, and we were the only bidders in at 10k below the asking price and the vendors wouldn't budge on it. We were getting phone calls from the EA every couple of days asking would we like to increase our bid and it was wrecking our heads, and all the while we were waiting, other properties in the area were increasing in price. We decided that if we offered the asking price, we didn't want to be hanging around for another 4 weeks and potentially have another bidder enter and price us out and we'd be back to square one, but that if they didn't accept the asking price offer, then we'd walk away and find something else.

I rang the estate agent that morning and said that we were prepared to offer the asking price, but that we wanted a response by close of business that day, and if the offer was accepted, the property was to be taken off the market, including all internet ads etc. They rang me back less than an hour later to say the vendor accepted the offer, and when I checked the internet that evening, it was gone from daft and myhome etc.

It turned out, in our case, that the vendors were getting divorced, and needed to achieve that particular asking price because they needed to clear the mortgage and joint debts so they could go their separate ways. It could be that your estate agent is just getting you to try and increase your offer because they've told the seller that they'll be able to sell the property for them at that price, or it could be that the seller genuinely won't accept less than the asking price - they may need to get that figure or higher to be able to buy another property, or to clear the mortgage outstanding on the property.

CandyButcher · 30-11-2018 01:46PM

wersal gummage wrote: »

I wouldn't offer and let it stand for a period of time.

I'd ring the estate agent and say you'll offer the asking price if they agree to take it off the market. If estate agent confirms, you can then offer the asking and sale agreed

Thanks all for the quick replies.. I am thinking of going with this advice

Does anyone see a reason why I should not ?

should I also wait a number of days to put this to the EA so I don't seem to egar

spaceHopper · 30-11-2018 01:50PM

We bought in 2012 when the market was still falling, we'd offered 312K they wanted in the 320's the asling was 329, we offered 320 bidding against ourselves. But we got it. Only offer what you think its worth don't go more without a very strong reason. What do you know about the seller, is it a probate sale or are they trading up or down. Is there a mortgage where they have to get at least x or the bank won't agree to the sale.

If I were you I'd up my offer to the asking if you think it is work it or i'd come up 7500 and meet them in the middle stress this compromise and why you think it is fair, the house needs some work...

Make the offer conditional on it coming off the market and use a friend as a secret shopper to verify that.

By the end of December we'll now if it's a deal or no deal brexit. Will this affect the market? Ask the EA if they can close before brexit or do they want to hang around?

CandyButcher · 30-11-2018 02:00PM

spaceHopper wrote: »

We bought in 2012 when the market was still falling, we'd offered 312K they wanted in the 320's the asling was 329, we offered 320 bidding against ourselves. But we got it. Only offer what you think its worth don't go more without a very strong reason. What do you know about the seller, is it a probate sale or are they trading up or down. Is there a mortgage where they have to get at least x or the bank won't agree to the sale.

If I were you I'd up my offer to the asking if you think it is work it or i'd come up 7500 and meet them in the middle stress this compromise and why you think it is fair, the house needs some work...

Make the offer conditional on it coming off the market and use a friend as a secret shopper to verify that.

By the end of December we'll now if it's a deal or no deal brexit. Will this affect the market? Ask the EA if they can close before brexit or do they want to hang around?

All I know about the seller is they he/she is currently renting the property out so may not be in a rush to sell for less than asking price. You make a valid point, the EA is either legit or just trying to get my bid up.

If I let my bid sit on the gamble that he is bluffing, then I run risk of other bidders coming in oppose to offering asking on the basis it comes off the market.

Offering an extra 7.5k.. the EA clearly said the will not accept less than asking so I dont know if this would be a waste of time

pc7 · 30-11-2018 02:05PM

CandyButcher wrote: »

All I know about the seller is they he/she is currently renting the property out so may not be in a rush to sell for less than asking price. You make a valid point, the EA is either legit or just trying to get my bid up.

If you are buying with a mortgage ensure you are guaranteed vacant possession as most banks won't let you draw down with a sitting tenant. If you are a cash buyer, has the tenant been given the correct notice, you don't want to be stuck in a waiting game for months.

CandyButcher · 30-11-2018 03:10PM

pc7 wrote: »

If you are buying with a mortgage ensure you are guaranteed vacant possession as most banks won't let you draw down with a sitting tenant. If you are a cash buyer, has the tenant been given the correct notice, you don't want to be stuck in a waiting game for months.

I am buying with a mortgage.. I actually never thought about vacant possession

pc7 · 30-11-2018 03:18PM

CandyButcher wrote: »

I am buying with a mortgage.. I actually never thought about vacant possession

Get legal advise from your Solicitor and talk to bank/broker, but I don't think you should buy with tenants in situ.

limnam · 30-11-2018 03:22PM

You're not really outbidding yourself

You're been clearly told the price the house will sell for.

If they're genuine just make the offer and rock on

Wabbit Ears · 30-11-2018 03:27PM

My parents sold their house in a very sought after neighborhood. They have a viewing a couple hours after they informed the estate agent. Those people put in a bid and my parents just said if they match the asking price now its theirs, quick sale, no fuss. Buyer offered asking and the deal was closed before the house even got close to being listed.

Some people are honest and put an asking piece which they expect to get. they aren't looking for more so if you offer asking and request a quick closure if you do then sometimes that it, as far as the seller is concerned the deal is made. Unfortunately this isn't always the case.

In this case the sitting tenants are the biggest concern.

CandyButcher · 30-11-2018 08:55PM

Wabbit Ears wrote: »

In this case the sitting tenants are the biggest concern.

I just spoke to an experienced landlord and he said its is all part of the solicitors work and in the contract that the property is vacated before money gets transferred. There are plenty of properties on viewing with tenants in them

KFed · 30-11-2018 09:52PM

Yeah it'll be a condition that you get the place with vacant possession.

As regards outbidding yourself and agents trying to up the price, I don't think agents bother trying to force up the price. Their fees are normally a fixed perectnage, e.g. 1% so if the bid goes up 5k they stand to gain 50e. It's not worth their time and they won't waste time on it.

Unless, the vendor has clearly articulated a floor price. This may be the asking. The vendor may feel, it's worth at least this and I'm nor selling below that value. Or they may need to achieve at least that price in order to move to a new Home they themselves are targeting.

I have refused to bid against myself before, being highest bidder but not enough for vendor, and vendor offered if I met asking he'd sale agree. I figured the bidding must have been out of steam and if I held out id likely get it. Wrong, the bids duly emerged and it went over asking and out of my budget too!

If you can afford the asking, if you think that is fair value to you, I'd agree with meeting the ask in condition it goes sale agreed immediately and taken off the market also.

That being said, are there other houses at that price you can target? Not sure the difference from bid to asking, but if your budget is the asking, do other houses look more attractive in comparison? If it needs minor work it's not like you need to throw a fortune more at it so you'd know your Costs now fairly well to close and be done with it?

Fol20 · 01-12-2018 10:03AM

c.p.w.g.w wrote: »

Might also be an idea to show interest in others properties from other estate agency's. Many EA know each other

All ea know each other and call each other for valuations and other stuff about properties. They don’t keep tabs on people bidding though.

Graniteville · 01-12-2018 10:14AM

You can play agents at their own game especially if you think you have offered market price. Remember, if this is in Dublin, the market is stagnant.

Check property price register for sale prices of similar properties.

So on to playing the agent.
Get two couples you know well to show interest in the property, view it and in different ways get them to suggest to the agent that they think its overpriced and for both to suggests that they would be interested at a price about 10k or 15k under what you have offered.

4ensic15 · 01-12-2018 10:40AM

Blazedup wrote: »

Can you approach the owner?
Put that to him
Get their name on land registry or ask the neighbors for contact details?

The o/p has been introduced to the property by the EA on condition that all negotiations are conducted through the EA. Approaching the owner directly can mean that the o/p will be out of the picture altogether if the owner won't deal and reports the attempted deal to the EA.

The_Conductor · 01-12-2018 10:54AM

CandyButcher wrote: »

I just spoke to an experienced landlord and he said its is all part of the solicitors work and in the contract that the property is vacated before money gets transferred. There are plenty of properties on viewing with tenants in them

The flipside of the coin- is the tenant may decide to play the system. If you include the numerous appeals and all the processes and mechanisms- it can take up to 2 years to finally exhaust all mechanisms at the tenant's disposal. It is a bad idea to even look at properties that the tenant is still in- as you have no idea whatsoever- when the property will actually be available.

GingerLily · 01-12-2018 12:27PM

Graniteville wrote: »

So on to playing the agent.
Get two couples you know well to show interest in the property, view it and in different ways get them to suggest to the agent that they think its overpriced and for both to suggests that they would be interested at a price about 10k or 15k under what you have offered.

Do people actually do this? That's disgusting to be honest.

Fol20 · 01-12-2018 12:43PM

GingerLily wrote: »

Do people actually do this? That's disgusting to be honest.

Why is it disgusting. It’s a tactic that some people no doubt play. Doubtful it will work but at the end of the day the owner decides on final price they will accept

Seth Brundle · 01-12-2018 12:54PM

GingerLily wrote: »

Do people actually do this? That's disgusting to be honest.

It's a tactic commonly used (and to some extent encouraged by some housing charities)

KevinCavan · 01-12-2018 12:56PM

In other countries you can get properties for below the asking price. Here is is considered rude to offer the asking price.

appledrop · 01-12-2018 01:23PM

We are selling at moment + will only sell if asking price is reached simple as that. Now the house is realisticially price. In fact some have sold for €5,000 more. So just be prepared that if it is a realistic asking peice vendors can just hang onto it.

CandyButcher · 01-12-2018 03:50PM

I think my question has been answered about what how to approach the bidding but a big concern is the current tenants, it’s frightening that I could be sold the home then have tenants I cant get to leave!

I will need to ring a solicitor and find out what happens in these situations

Seth Brundle · 01-12-2018 04:39PM

CandyButcher wrote: »

I think my question has been answered about what how to approach the bidding but a big concern is the current tenants, it’s frightening that I could be sold the home then have tenants I cant get to leave!

I will need to ring a solicitor and find out what happens in these situations

The bank will insist on vacant possession.
You won't be given the mortgage money until the bank know the tenant is gone.

Fol20 · 01-12-2018 06:24PM

CandyButcher wrote: »

I think my question has been answered about what how to approach the bidding but a big concern is the current tenants, it’s frightening that I could be sold the home then have tenants I cant get to leave!

I will need to ring a solicitor and find out what happens in these situations

In your contract you would stipulate lending tenants leaving. Banks won’t lend to you unless it’s btl with tenants in situ

Vendor wont take less than asking price - should I outbid myself ?

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