I was wondering can you guys help. My Partner and I have made the decision to purchase a house.
We seen a house which we liked. The asking price was 490, though the property was in pretty bad condition. A house had gone for 540 on the road in Nov 08 and in the peak they were around 600. We made a bid of a 380 on the house. The house is an executor sale(solicitor is looking after it,as the lady has died.) These houses come up very rarely(approx 1 every 1.5 years)
The estate agent told me the offer was very low and he was waiting on approval from the solicitor who was selling the property. We left the offer on the table for a month waiting for the solicitor to give approval to our offer. In the mean time the EA rang me asking me would I push my offer up. I told him the offer stands as it is but it won’t be on the table indefinitely.
After the month the EA came back to me and said someone had come to view the property the day before and made a bid of 385. He also told me the solicitor was willing to do business at that price.
I had a chat about it with my partner and we decided to increase the offer by 1k(386). I told the EA we were out if another bid came in. The EA came back the next day saying our offer was excepted as the other buyers couldn’t get any more money.
After thinking about this I feel the EA done us by 6k. Surely if someone increased the bid by 5k for a house, they could have found 2k more somewhere else(387k). Also why was the price increased by 5k, not 1k. I feel 385 was the happy figure for the solicitor selling.
This has been eating me up over the last few weeks. We really want the house but I hate been done. Everyone keeps on saying to me what can you do, you got a good deal and that 6k is small over the life time of the mortgage, but my feeling is 6k is a lot of money.
What I feel like doing and have heard done a couple of times, is before I sign, saying that the price is 380k to the other solicitor and if you don’t like it lump it. Is this totally wrong?
What would you do in this situation? Try to take into account you want the house:)
But at any price? If you feel this pissed off now, how are you gonna feel every day coming home through that front door every day? Something relatively trivial like this can eat away at you, how long before your house becomes a daily reminder of how you got shafted?
A lot depends on the type of person you are. You could always tell the EA no thanks, and see how quickly the price drops back to the original asking. There is a risk element in that, but there is always risk in buying property, and there will always be other houses.
Once every 1.5 years is not rarely imo -if I were you I’d sit it out and wait for another to come up. Your gut instinct tells you that something is wrong - add to that another kick when the next property comes up for sale next year at 10k or more less then what you are paying.
I’m not sure if I can offer any advice however. If you really like the house then 6k isn’t the end of the world but a dealing like that would leave a sour taste in my mouth, just as it sounds like it has in yours.
You could always ring the EA back and tell him that you’ve re-checked your budget and that 380k is the max you can afford, but it’s likely he’ll take this with a pinch of salt. The question then becomes whether the owner will drop to 380 having felt that he has secured 386. My instinct says yes, but I’m not the one buying the house.
Of course, there is the tiny possibility that the 385 is real, and that the other bidder just didn’t want to go above that. But I think that is highly, highly unlikely.
In my view, you would be better off renting and waiting, but it’s your call.
In relation to the 6k, you were not done, as there is no recommended retail price, the salesman just got you to pay a bit over 1% more. If you want the house, and think its value, just get on with it and forget about it.
TBH if upping your original bid by 6 grand sticks in your craw then you have to ask yourself are you really serious about buying this place even at your original offer price.
We’re probably not comparing like with like as the 600k peak price property may have had a better orientation and in better nick but when you do the basic sums you are potentially getting a similar property for 35% less then the peak price. How do you think the peak price buyer now feels or the one who paid 540k last year, only 9% under the peak which seems crazy to me. If 6 grand is concerning you then you should walk away before you start getting surveyors and solicitors involved.
As the UWG says you have been had by the EA but at least you didn’t chace the price up to 400k or beyond. Decisions decisions.
That wouldn’t hurt as much because that’s the risks you take. If it was 100k, I would probably have a change of opinion, though personally I can’t see them come down to 280k, as it’s dropped a serious amount from where we were at. One did sell for 640k which was smaller than the one we have had a bid excepted on.
I’ve been reading this site over the last few months, and I’ve seen you saying 40% 50% down from the peak and even some lady on Matt Cooper yesterday who was a real pessimist was saying the same, so that’s where I came up with my bid.
The real hurt is been done by a EA!
Should I do the price drop before I meet the solicitor and put it to the EA again, or do it at the last minute and give the selling solicitor less choice. I’m holding off signing until the budget either way.
The lady you heard on Matt Cooper yesterday was Jill Kirby who has been consistent in her opinions for years. Good commentator. Far from being a pessimist, I think she is a realist and what is so pessimistic about house prices falling? If the thought of being shafted for 6k is eating away at you then I would walk away. If your heart was really in it the 6k wouldn’t be such a bone of contention. Your instincts are speaking to you, don’t ignore them.
Hurt? Anchor1 - this is business. If there is no other buyer then he has taken advantage of the fact that you really want this property - and more power to him - he’s out for the best for his client. He has you exactly where he wants you - is 6k worth losing your “dream home” over? No - well sign and good luck to you.
If however you have taken this personally then walk away and another dream house will come along.
I understand how you feel Anchorman1. I hate feeling that someone has stiffed me, even for a fiver.
My uncle completed on a commercial property in the UK last year. He had agreed a price, but just before signing he dropped his offer by 10%, citing “market conditions” that had changed since the original verbal agreement which, of course, was true. The vendor went mad, but he still signed. Of course, the value has dropped further anyway.
I would go with Jammy’s suggestion. You will upset people of course, but it depends upon whether that is worth 6k to you.