Considering making offer on property. Question on offers, and data I can expect

certifiable365

Considering bidding on a property - agent informed me when booking a viewing that "we'll arrange a viewing, by the way, there is an offer for the property from a 3rd party"

I said I'd see the agent at viewing.

I'm completely ignorant on the bidding process, and what can reasonably expect from estate agent.

1) Agent informing interested parties of other offer and amounts:Am I entitled to ask and/or should the agent have informed me off current offer amount if I inform them of that I am interested and am considering offer?

2. If answer to 1 is yes - can I/should I i ask them to submit in writing (email) to me details on offer (amount, date offer was place, type of offer (FTB, cash buyer, non-chain)

3) Time-limiting offerswith any prospective offer that is submitted - particularly 1st/early offer(s)how common is setting a time-limit, or should a person wait for the agent to perhaps inform them they'll get in contact in X number of days.

If anyone who works in the area, or is very familiar, could break down what is the norm in above situation, I'd really appreciate it.

Regards

TwoShedsJackson

1) The agent will almost always tell you if there is already an offer in. This offer may or may not exist and you have no way to find out if they are being truthful.

2) They will not entertain any notion of submitting details of someone elses offer to you.

3) You're fully entitled to put a time limit on an offer, and the agent/vendor will be entitled to ignore it.

certifiable365

TwoShedsJackson wrote: »

1) The agent will almost always tell you if there is already an offer in. This offer may or may not exist and you have no way to find out if they are being truthful...

Q. 1 was more more related to the offer and it's amount, not them simplysaying there is an offer.

2) They will not entertain any notion of submitting details of someone elses offer to you.

3) You're fully entitled to put a time limit on an offer, and the agent/vendor will be entitled to ignore it.

So agents generally never tell an interested party what a current offer is, even if that person says that this info will dictate if they make an offer?

I'm hearing completely different things - some advice I've got is of course ask and they'll likely let you know what other offer is.- and anecodotal evidence from friends that "the other bidder has upped by x amount" -how would they know this if it's highly unusual/never that agents inform other of amount of a bid of a initial bid?

result - I'm completely confused with no definitive answer as to the norm with being told offer amount currently on a house?

Gumbo

If you like the house, ask the estate agent what price buys it.
Make an offer and if it's out of your budget me on to the next one.

MouseTail

The norm is you will be told the offer amount. You should have just asked the EA what the offer was.
You wont get it in writing.
Time limits are not that common.

I Am The Law

MouseTail wrote: »

The norm is you will be told the offer amount. You should have just asked the EA what the offer was.
You wont get it in writing.
Time limits are not that common.

Might be a good idea to make your offer in writing, an email would do.

davo10

Op, first calculate/discuss with a bank how much of a mortgage you can get, then consider the monthly payments on that amount and ask how much it would be if interest rate went up say by 1-2%, rates are currently at fairly low levels and are likely to rise in the future.

When you know how much money you can spend on the house, then like going shopping for clothes, you can only spend what you have. View the property (and as many others as you can), you will get a "sense" when you view the one you want, check the price on the house and then make an offer. If there is already an offer on it, the EA will inform you and it will be up to you to make a higher offer if you want the property. Do not put time limits on it until you reach the limit of what you can spend, it is a last (and my experience a completely futile) throw if the dice, to use it in the beginning will mark you out as not really knowing what you are doing. Be patient, it's a painfully slow process.

spaceHopper

Unless you have mortgage approval in place or a cash buyer forget about it you can't bid, how would you feel if you were buying a house and somebody with no ability to buy was bidding and upping the price.

Tell the EA you are not in chain or lease you can't leave now. Tell them you have mortgage approval, show them with the amount blanked out.

Find out about bout the seller, why are they selling, do they need to sell this house to buy something else. Very important to ask are they in negative equity as they will need bank approval to sell and really the bank sets the minimum price. Is it a receiver sale.

Find out about the other offer and bidders, how long ago was the offer made, was it rejected. Are they in a chain, FTY's or cash.... were there other bidders too.
Find out about the house and are, what has sold in the area check the property price register, check them on google street view. What else is for sale in the area now. Google the address and estates near by for news reports...

You need to know your max price and max you think this house is worth. Also what work will you need to do and what would it cost.

Offer by email or over the phone is fine and there is very little difference between the two. Don't make you offer time limited, tell the EA you would like to know as soon as possible, look at other houses and you can offer on more than one, which creates a time pressure on both both sellers/EA's.

Friday afternoon is a good time to make an offer. Puts the EA in good mood for weekend and you are hopefully the only offer till Monday so the seller has time to think. It also give the other bidder a buzz kill for the weekend and might make them look else where!

There are all kinds of games, going 10K above current offer, going 1k above current offer, offering an unusual amount.... the EA's have seen them all before, you need to come across as you know what you are doing and that the offer you've made is the best they will get out of you. Even make and offer then if the is more than two other bidders let them fight it out for a while before you comeback with a better offer.

Let the EA know the type of house you want and you are open to looking at house about to come to the market too.

gaius c

Generally an EA will give you some broad details about competing bids such as "FTB's" or "cash offer" or "investors" but nothing else.

P.S. Assume every word they tell you is an outright lie.