Making an offer.

RustyNut

How long roughly should it take to hear back from an agent after making an offer on a property? Thanks

Easyliving

RustyNut wrote: »

How long roughly should it take to hear back from an agent after making an offer on a property? Thanks

In my experience, it can take a week or so. If the offer is far off asking they may not entertain it or wait a good while to see if someone is much closer.

RustyNut

Thanks

MarkAnthony

Put deadlines on your offers.

davo10

MarkAnthony wrote: »

Put deadlines on your offers.

Do not follow this advice, you will look like a chump if someone else bids higher and you want to put in another higher bid. When you put a time limit on it, EAs think you are a messer and will ignore it. The only time this works is when you have reached your absolute limit and are prepared to walk away, and even then, in a rising market vendors will often wait to see if a better offer comes along. Buying is a game of patience, unless the seller needs an immediate sale, why hurry?

MarkAnthony

davo10 wrote: »

Do not follow this advice, you will look like a chump if someone else bids higher and you want to put in another higher bid. When you put a time limit on it, EAs think you are a messer and will ignore it. The only time this works is when you have reached your absolute limit and are prepared to walk away, and even then, in a rising market vendors will often wait to see if a better offer comes along. Buying is a game of patience, unless the seller needs an immediate sale, why hurry?

Do not follow this advice. A time limit does not stop you placing another bid. You don't have to be aggressive about it. The market is shifting but many vendors still think they're home is the only one out there.

Place a bid, pop a time limit on it, look at other houses. If you don't you'll look like a chump who is just going to hand around while the vendor gets better bids (genuine or not). The only time you'd do this is when you're very limited on the available properties and you know it's going to go into a bidding war.

davo10

MarkAnthony wrote: »

Do not follow this advice. A time limit does not stop you placing another bid. You don't have to be aggressive about it. The market is shifting but many vendors still think they're home is the only one out there.

Place a bid, pop a time limit on it, look at other houses. If you don't you'll look like a chump who is just going to hand around while the vendor gets better bids (genuine or not). .

Ah, what's the point of putting a time limit on it if you intend to place a higher bid later? Sorta defeats the purpose of it doesn't it? The whole point of putting a time limit on it is to signal your intention of withdrawing after that time has elapsed, go back with another bid and the seller thinks your a bit of a fool. If you had experience of property purchase you would know that it is not a quick process, there is lots of "hanging around" until a bid is accepted. There is nothing to stop you looking at other properties while a bid is being considered.

The only time to use a time limit is when you reach the limit of what you can afford to bid and as a last throw of the dice, even then it probably won't work unless the seller needs a quick sale, there probably won't be a huge difference between it and the underbidder so why would a seller jump just because you put a time limit on it?

Remember all seller needs is more than one person who want the same property and if you want, why wouldn't someone else? An increase in bids is the inevitable consequence of two parties want to buy an item which doesn't have a fixed price.

Idioteque

RustyNut wrote: »

How long roughly should it take to hear back from an agent after making an offer on a property? Thanks

I'm afraid this is a case of 'how long is a piece of string?'.
Some things that will affect your timeline...

- What's the EA like? (Some are more flakey than others)
- How long has the house been on the market?
- Has there been any other bids? What is the highest current bid?
- How far off the asking or previously highest bid are you?

I could go on but you get the idea. Depending on the above and other elements you could argue both of the previous posters are correct around putting your own deadlines...personally I only put a deadline when I'm at my max and/or have other properties I'm interested/bidding on.

Archaeoliz

Ah, what's the point of putting a time limit on it if you intend to place a higher bid later? Sorta defeats the purpose of it doesn't it? The whole point of putting a time limit on it is to signal your intention of withdrawing after that time has elapsed, go back with another bid and the seller thinks your a bit of a fool. If you had experience of property purchase you would know that it is not a quick process, there is lots of "hanging around" until a bid is accepted. There is nothing to stop you looking at other properties while a bid is being considered.

Point of a time limit, from my experience as a buyer, is to make sure I get an answer within that time frame. It gives me some psychological certainty of when I move on to look for a different deal.

If the vendor doesn't want to engage within that time limit then that's their perogative. If the seller wants to wait around for a better offer then that's up to them. I'm making an offer of what I think it is worth (not a stupid offer), negotiate with me within the timeframe I give you or I walk away. Simple. Business transaction. Leaving buyers hanging on to wait for a better offer is both rude and greedy and IMHO exactly the problem with the market.

Under/overbidder doesn't matter. The place is worth what I'm prepared to pay combined with what the seller is willing to accept. If they don't match then we don't have a deal. If someone else wants to pay more then they have a deal. No hard feelings.

Withdrawing after the time has elapsed is exactly what I am saying I will be doing. That's the whole point. After that point I will be looking elsewhere. I'd argue leaving it entirely open ended so your bid becomes the vendor's fallback position is far more foolish.

alastair

Archaeoliz wrote: »

Point of a time limit, from my experience as a buyer, is to make sure I get an answer within that time frame. It gives me some psychological certainty of when I move on to look for a different deal.

If the vendor doesn't want to engage within that time limit then that's their perogative. If the seller wants to wait around for a better offer then that's up to them. I'm making an offer of what I think it is worth (not a stupid offer), negotiate with me within the timeframe I give you or I walk away. Simple. Business transaction. Leaving buyers hanging on to wait for a better offer is both rude and greedy and IMHO exactly the problem with the market.

Under/overbidder doesn't matter. The place is worth what I'm prepared to pay combined with what the seller is willing to accept. If they don't match then we don't have a deal. If someone else wants to pay more then they have a deal. No hard feelings.

Withdrawing after the time has elapsed is exactly what I am saying I will be doing. That's the whole point. After that point I will be looking elsewhere. I'd argue leaving it entirely open ended so your bid becomes the vendor's fallback position is far more foolish.

So... A time limited bid really does stop you placing another bid. Unless you're happy enough to lose all credibility in your stipulations. Seems you're both in agreement then. Time limited bids only have value where the buyer will actually walk if it's not accepted. Anyone prepared to go higher is at risk of looking like Henny Penny.

MarkAnthony

I wrote a long post and closed the bloody window. The gist of it though is how you play the game in a rising market and how you play the game in a falling market (at least in regard to asking prices) are completely different.

Granted anyone who purports to have all the answers falls squarely into either a fool or a liar but there is no issue putting time limits on bids if you do it right. It far from rules you out of the running or labels you as a messer - quite the opposite. Again granted you need a situation where you have at least two options. That said if you've only one option a time limited high bid is a viable option and how I secured my place.

alastair

There's probably more utility in playing the 'interest in / offer on a second property' card, than a time limit. It potentially spurs on a decision, without any obligation on you to press the nuclear button if the vendor isn't interested in a quick sale. You, of course, need to be convincing enough to sell this line to the EA, who's probably able to spot many's a bluffer, being in that game themselves.

Archaeoliz

So... A time limited bid really does stop you placing another bid. Unless you're happy enough to lose all credibility in your stipulations. Seems you're both in agreement then. Time limited bids only have value where the buyer will actually walk if it's not accepted. Anyone prepared to go higher is at risk of looking like Henny Penny.

Nothing to stop you making another bid if you really want to. I'm not really bothered how an EA sees me. I don't have the highest opinions of them, although there are good and bad everywhere. Most EAs seem to be quite forthcoming over how much they want you to pitch your offers at and I don't do 'final offer' unless it really is and I make sure I put my offer in writing (email/letter). I do my best to manage my own expectations.

I can only play the game the way I feel comfortable doing it. Not necessarily the same way as everyone else. Time limits work for me, but I won't make empty threats or promises.