Making an offer

Thespoofer

I've come across a site ( with derelict house ) in a great location which I have known about for some time but the asking price was crazy money.
The site is small ( tiny in fact ) but comes with planning for a straight forward build which I would like to take on over time.
I spoke to the EA last week and asked him straight out how much would buy it, the asking price is 130k and he softly mentioned ' ah, about 80 - 90k ', ( the property is on the market a couple of years I believe ).

I went and had a look over the weekend alone and love the spot, granted its a very small site but the location and privacy makes up for it.

I'm going to ring tomorrow with an offer but do I go in with his low estimate ( 80k ) or do I go in with a lower offer of 75k say ? To be honest I don't want to play games with them and am looking for the correct terminology when making an offer as not to come across to keen. I don't think I'd go much higher than the 80k if I'm honest.

Thanks

pacman1989

Go in at 65. If the estate agent mentioned to you that 80 would secure you can be sure that they would take less . Just put in your offer and tell him that it stands for a week as you have another site you are interested in and want to move fast . If you are a cash buyer also mention this as it makes it more attractive to the sellers.

dtipp

I would never bid my maximum as a first offer, so if you are not prepared to go above 80k I wouldn't bid 80k straight away.

Of course, it's important to remember it doesn't matter what they want for it, it only matters what it's worth to you.

If you think 75k is a bargain, bid that. But do not let on you are prepared to go higher - the EA is on the seller's side (remember that!). Do not bid any higher for at least a fortnight. It's on the market for years, there's no rush at all.

And, for me (and I have some experience in this) your second offer should be your final offer. So, if it's 80k, make sure you emphasize that. No going back, no hints about going higher. Also, don't give a time limit straight away, but the next time the EA rings you after the second offer (to say the bid is far too low), say that's fine, it stands for a week, and then it's off the table.

And let the EA ring you. Not the other way around.
EA's smell fear and desperation from 100 miles. (or 5 minutes walk as they call it!)

Best of luck.

Thespoofer

65k, its a bit low alright. If I tell him it stands for a week and they don't come back to me then I'm kinda on the back foot then no ?
I'm all for haggling but EA's are a funny bunch to deal with.

I'll ring tomorrow and see what happens.

pacman1989

Thespoofer wrote: »

65k, its a bit low alright. If I tell him it stands for a week and they don't come back to me then I'm kinda on the back foot then no ?
I'm all for haggling but EA's are a funny bunch to deal with.

I'll ring tomorrow and see what happens.

It's on the market years you having nothing to lose going in low . It's still a buyer's market despite estate agents imagination

newbie2013

I have a lovely house on the market a few years, selling it cheap and the asking price is what I'm looking. Not everyone will sell for lower than asking. Just thought I'd throw that out there

zac8

newbie2013 wrote: »

I have a lovely house on the market a few years, selling it cheap and the asking price is what I'm looking. Not everyone will sell for lower than asking. Just thought I'd throw that out there

Absolutely, the seller of the site the OP is looking at could be deluded too.

whatnext

zac8 wrote: »

Absolutely, the seller of the site the OP is looking at could be deluded too.

Not every seller needs to sell, and without knowing circumstances behind each instance your post could be read as rude at best or perhaps even deluded.

Market value has 2 aspects. A price the seller is willing to sell at and the price the
Buyer is willing to pay. Because the don't match doesn't mean either party is deluded, it merely means they place a different value on it.

zac8

whatnext wrote: »

Not every seller needs to sell, and without knowing circumstances behind each instance your post could be read as rude at best or perhaps even deluded.

Market value has 2 aspects. A price the seller is willing to sell at and the price the
Buyer is willing to pay. Because the don't match doesn't mean either party is deluded, it merely means they place a different value on it.

If you have your property on the market for years and think the asking price is cheap then you're deluded.

newbie2013

zac8 wrote: »

If you have your property on the market for years and think the asking price is cheap then you're deluded.

It all depends on where it is and what the situation is like concerning it. I have seen properties sit for few years then all of a sudden a few people all want it because their circumstances changed

whatnext

zac8 wrote: »

If you have your property on the market for years and think the asking price is cheap then you're deluded.

I'll give an example.............

1
Where I grew up it is not unusual for properties to be on the market for a couple of years, no matter what the price. Demand was typically based on someone returning to the area, there was or is no Google, Intel or Facebook bringing jobs and people to the area. (a decent mobile phone signal would be a start, and dont even mention broadband). Simple reality is that in some parts of the country valuations are based on cost of alternative as opposed to set by demand. The only way you would get a quick sale on a house is if there were 60 + acres with it!!

This was the case 80's 90's, through the boom and today also.


EG 2
If I own a rental property no mortgage on it.
The rent generates an income 7k a year. the value of that property to me is far grater than the prices being achieved in the market.
For me to give up that 7 k per year I want in the region of 150,000. (taking CGT into account).
So 150k is the asking price. Or I could put it on cheap for 135k (15k of a valuation on the agro of managing the place).
I don't need to sell, But if the offer is right I'll take it.
The fact that the one next door is up for sale for 120k doesn't change the value of the property to me. Its not a deluded valuation.
Its just that in all transactions there is a tipping point that if you go over or under the deal just doesn't stack up commercially.

Thespoofer

Rang EA today about 11 o clock and asked the secretary can I speak to ***** about the site in *****, we spoke last week.
She said he's not here at the moment and will be later, so I left my number and asked her to tell **** to give me call please.
5 o clock this evening and still no call back so I ring again and ask for so and so and she says he's with some one at the moment. I said I rang earlier for him to ring me back and she says ' oh yeah right I'll let him know.

So still no ring back another hour later...Is he playing games or what ? Its beginning to annoy me now this kind of carry on...

whatnext

Thespoofer wrote: »

Rang EA today about 11 o clock and asked the secretary can I speak to ***** about the site in *****, we spoke last week.
She said he's not here at the moment and will be later, so I left my number and asked her to tell **** to give me call please.
5 o clock this evening and still no call back so I ring again and ask for so and so and she says he's with some one at the moment. I said I rang earlier for him to ring me back and she says ' oh yeah right I'll let him know.

So still no ring back another hour later...Is he playing games or what ? Its beginning to annoy me now this kind of carry on...

My personal advice is if you can call in and see them face to face.
If you want to make an offer do it in their office. Despite what they say on the phone they will know the tipping point for their client, (thats not to say that their client wont change their mind as quickly as the weather changes).

IF they wont meet you call their bluff, you know the site and most likely the owner. Give them the option of dealing with you or suggest that you will call the owner directly. If you happen to know the sellers name and number, dont be shy about letting them know that. A simple call to the gate keeper in the EA's office saying that if they don't want to talk to you that you are happy to got to Tom / Dick / Harry directly, but would prefer not to.

Thespoofer

The EA rang back on Tuesday afternoon.
I asked a few questions on the site and put in a bid, he took my details and said he'd get back to me. He also said ' you know there is planning contributions of so much etc ' which I was ok with.
How long should I expect a reply from him and when is a standard time to ring back and enquire without sounding overly keen ?

smokeyjoe123

I am also having issues with making offers an a house. Made an offer a reasonable amount below the asking price a few weeks ago. EA gets back to me a couple of hours later basically asking me for the full price of the house. Went up a little bit with my offer, gets back two days later asking for just below the asking price. Told him I will stick at my bid and havent heard since.

This particular EA has a bit of a reputation in the area apparently. I heard that he was not passing on offers to owners from bidders and holding out, not bothered about leaving the house on the market for months/years. Anyone that has used him to buy or sell a house has said that he is a right p***k altogether!

I am convinced that's what's happening with my offers. The property is currently being rented as the owners have moved. I could get the owners details and give them a call. Is this a reasonable option for me as I don't want to play this EAs games. Would you be pi**ed off as a seller if someone contacted you directly. My offer is definitely not a joke and not a huge amount below the asking price. I really dont want to walk away from this house as I think its the one.

Santa Cruz

If the property is on the market for a few years then the seller has not got an offer close to what he thinks it is worth. Of course what he thinks and the market thinks could be miles apart. If you reckon it's worth 80,000 stick in 72,000 and see what reaction you get. But be prepared to walk away when the bidding goes to 80,000 and your bid is not accepted