When an offer at asking price is not enough...

A house has been on the market about 3 weeks and has had 3 open viewings. The house is at the very top of our price range. We made an offer a week ago, at the asking price. No other offers have been received, but the EA tells us the seller wants a good chunk more than the asking.

Is this common? What’s the point of the asking then?!? We aren’t quite ready to walk away but by this time next week we will be. Don’t suppose there’s anything else we can do other than sit tight?

TIA

sometimes an asking price is set low to generate interest and get people bidding, its not that uncommon

First offer is at asking , they are going to assume it’s underpriced and hold on for more.

You shouldn’t offer asking if yours is the first bid.

20% under asking is usually the norm.

The Estate Agent will try get much more out of you now.

A work colleague put a bid in on a house just before Xmas. The asking was right on their limit so they rang the EA and they said they were welcome to put a bid on at the asking as he had no bids, but he felt the house would go for more. The house went sale agreed at some point so they thought that it was gone - they got a call from the EA two weeks ago asking were they still interested and could they increase their bid. They said they were still interested but couldn’t increase their bid. They’re now in a bit of a quandary because (a) they’re worried that there is something wrong with the house (b) they have saved another few grand and so could increase their bid but don’t want to be played for fools. They’ve decided to sit tight on the basis that if they come back to them they can get a survey done and check out (a), hopefully without having to do (b). So, in essence, I think it’s worth making a bid on the asking no matter how much the EA sneers at you!

It was on the news earlier that property rentals across the country are at an all time high, the most amount of properties being rented since records began. There simply couldn’t be a bigger indicator that most people now would rather rent than buy, which means only one thing: most people see property prices falling significantly in the years ahead and are happy to wait until they find fair value. In such circumstances, no one should be offering 20% below asking when 30 or even 40% below will generate the same level of pushback from vendors.

I’m not sure I buy that inference, though I wish it were true. Is it not the case that house prices are at multiples of incomes that lenders are prevented from lending by CB rules. With most people priced out of the market they are forced to rent, even though the increased demand has pushed rental costs higher than a mortgage would cost. Bottom line: they are not renting out of personal preference.

Agree, I think it’s “forced”* to rent rather than choosing

Rents are ridiculously high, so people would rather buy then be subject to the wild west that is the Irish rental market. Also the Irish obsession with owning (insert famine reference here) has in no way gone away. And has probably been reinforced over the last few years of double digit rises in rents

*** I should get a job writing for the Indo :smiley: **

In Dublin, the obsession is much weakened (sub 60%)

Given Irish rental market, wanting to own is actually pretty rational I’d have thought? Both in terms of prices (at least currently), and security of tenure.

May not have historically been the case, but I’d suggest that it is now.

Do you think they would be in a stronger position if they had the survey done before bidding?

In theory at least it’s a factual representation of the houses quality & it is showing some commitment to purchasing l.