Hi All. When making an offer on a house it is necessary to do so in writing. If you are considering making an offer is there any way you can get tangible proof that another party has put an offer in? There must be something that prevents estate agents stating fantom bids to make their target sales price
Sales targets are met once a houses are actually sold.
It’s easy for an agent to make up an offer to get you to increase your bid. It’s their job to walk you up to the highest number you can bid and get the highest number overall for the owner- In theory
When the estate agent says there is x on a property is there any way you can get proof?
Of course not. How else are they going to bid you up to more money than you intended to part with? The whole process is a racket. The only way to avoid it is to use any tools available to establish a notional “fair value” and then never bid into a rising market. But then you have to be prepared to lose out most of the time. Since most people won’t apply this logic we end up with housing at the limits of affordability all the time.
They are supposed to record bids in log that can be inspected by their professional body, you can’t ask to see it. There were phantom bids but noway near as much as people say.
Here is how we approached it, however we bought during the last crash.
You must have finance in place, aka written mortgage approval, a chat with the bank isn’t good enough. Have a letter from the bank to say you are approved, give no amount.
Find out if there is an offer on the house, have an idea of what it is worth from other houses for same and the property price register for past sales. Know the condition of the house. Will it need insulation, heating upgrade rewiring…
Why is it for sale, is it a trader upper, (are they in a chain) a separation, or probate, bank sale… what are the sellers needs. No point low balling if you know they can’t accept it.
Make your offer, stress your positive circumstance, proof of funds not in a chain. If there are other offers ask the EA about them have they checked they have the funds, if they say no, ask the EA how does he know they aren’t dreamers, are they in a chain. If there is only a few 1000 between you and the other bidder but you are not in a chain, you could either go up or match their offer and stress you are not in a chain.
If a bidding war breaks out offer what you can afford and what you think its worth taking into account any work you need to do - if it’s not enough walk away. The EA will remember you as being straight forward but firm, you may come across then again on another house.