Final offers for house purchase. Any experience / advice

Posted 7th Dec 2021
Hey all, so I’d like to know anyone’s experience with buying a house. I get the whole final offer bid etc. What I want to know is do estate agents try and get the maximum amount of money for a property? I have been at my maximum offer price and wasn’t keen to go any higher as I didn’t think the property was worth more than that but the property actually sold. I’ve viewed another property yesterday and have placed an offer. I have a max offer price. Is it worth going over 3-5K just to secure the property? I don’t want to but feel like it’s now or never lol to end the house hunt, many tia
Community Updates
Ask
New Comment
Top comments
Avatar
MKS1407/12/2021 21:25

Ah I thought the in house broker was a good idea and would have probably …Ah I thought the in house broker was a good idea and would have probably gone for it assuming everything is dealt with by them


never use the estate agent mortgage broker or solicitor. the estate agent get kick back from them, so you are paying for this commission.
Avatar
MKS1407/12/2021 21:25

Ah I thought the in house broker was a good idea and would have probably …Ah I thought the in house broker was a good idea and would have probably gone for it assuming everything is dealt with by them


I wouldn't be surprised If the mortgage advisor gives the estate agent a heads up as to how much you can actually afford, thus giving the estate agent an advantage.
Avatar
Onlj offer what you want to offer, don't feel pressurised to offer more by the estate agent.

At the end of the day the estate agent wants as high offer as possible, as not only does it look good, but they get a percentage of the sale.
28 Comments
  1. Avatar
    Onlj offer what you want to offer, don't feel pressurised to offer more by the estate agent.

    At the end of the day the estate agent wants as high offer as possible, as not only does it look good, but they get a percentage of the sale.
  2. Avatar
    the estate agent will try to get the highest price for the seller but they have their own interest at heart so they may sell a property for a cheaper price if it means they can pocket the commission quicker. that is, they get a quick sale.

    at the end of the day, it is the seller that has the last say but the estate agent can be very persuasive in getting the seller to sell for a lower price or get the buyer to buy for a higher price if the seller won't accept a lower offer.

    it is not easy but if you can value the property yourself it helps a lot as then you can tell if the property is advertised at an unexpected price to test the market and catch the novice or whether it is realistic priced to sell quickly, and won't drop any further.

    if you put in a bid and it comes back as a rejection then you have the chance to increase it then if you want the property.
  3. Avatar
    Estate agents tend to work on % of final sold price, so yeah.
  4. Avatar
    As with above, only offer what you think its worth and are happy to offer for the property.

    If your max offer is accepted, be happy and you wont have to look back.
    If it goes for more, you wont have paid a price you were unhappy with and wont always be thinking about it!
  5. Avatar
    Just low ball it & get the agent to come back with a price & then low ball that.

    If that doesn't work then pay the sum asked for previously.

    Obviously, it all depends if the house is worth the price for you.
  6. Avatar
    Author
    Thankyou everyone for your comments I am ever so grateful for your time and advice. Personally I don’t want to pay more than a property than what I think it’s worth but hey I’m no expert on valuations hehe.
  7. Avatar
    people dont realise the game has changed since last year, estate agents now expect offers after holding a open day for viewings, then they go to 'final and best offers' expecting a bidding war and expect people to pay way over asking price

    the latest tactic ive seen is forcing people to use their in-house mortgage broker to be able to view the house earlier or be able to 'strengthen' their offer, of-course they also get commission from selling the mortgage, some very pushy tactics

    awful time to buy a house
    Edited by: "professorEX" 7th Dec
  8. Avatar
    Author
    professorEX07/12/2021 21:23

    people dont realise the game has changed since last year, estate agents …people dont realise the game has changed since last year, estate agents now expect offer after holding a open day for viewings, then they will go to 'final and best offers' expecting a bidding war and expecting people to pay way over asking pricethe latest tactic ive seen is forcing people to use their in-house mortgage broker to be able to view the house earlier or be able to 'strengthen' their offer, of-course they also get commission from selling the mortgageawful time to buy a house


    Ah I thought the in house broker was a good idea and would have probably gone for it assuming everything is dealt with by them
  9. Avatar
    MKS1407/12/2021 21:25

    Ah I thought the in house broker was a good idea and would have probably …Ah I thought the in house broker was a good idea and would have probably gone for it assuming everything is dealt with by them


    they charge a ridiculous amount usually for a service that should be free, plenty of free mortgage brokers available (l&c) etc

    brokers make their money via commission which is fine but the in-house brokers charge a fee, take commission and dont even have access to compare all the mortgages in the market
  10. Avatar
    At the end of the day the bank will decide the price when they only offer to give you so much for a mortgage. If you are buying in cash that will be irrelevant but still only offer what you can afford.
    Edited by: "optrex10" 7th Dec
  11. Avatar
    MKS1407/12/2021 21:25

    Ah I thought the in house broker was a good idea and would have probably …Ah I thought the in house broker was a good idea and would have probably gone for it assuming everything is dealt with by them


    never use the estate agent mortgage broker or solicitor. the estate agent get kick back from them, so you are paying for this commission.
  12. Avatar
    MKS1407/12/2021 21:25

    Ah I thought the in house broker was a good idea and would have probably …Ah I thought the in house broker was a good idea and would have probably gone for it assuming everything is dealt with by them


    I wouldn't be surprised If the mortgage advisor gives the estate agent a heads up as to how much you can actually afford, thus giving the estate agent an advantage.
  13. Avatar
    We sold our house and moved out in March and have been in rented since as we couldn’t find another to buy. We have offered on a couple of houses but lost out, we’re cash buyers too. Another house has come on the market that we’re interested in so if we offer we will have to try and get it without paying over the odds, which isn’t so easy these days. We have time to wait though, our original plan was to hang on until the new year.
  14. Avatar
    MKS1407/12/2021 21:23

    Thankyou everyone for your comments I am ever so grateful for your …Thankyou everyone for your comments I am ever so grateful for your time and advice. Personally I don’t want to pay more than a property than what I think it’s worth but hey I’m no expert on valuations hehe.


    Even if you pay £5k or even £10k it will be worth about £30k by next your so your not going to lose any money , if you want the house you need to go high . For me £5k extra to get the property you want is a minor .
  15. Avatar
    House value is arbitrary. You cannot even reliably compare to others in the same street as they vary in garden size, interior condition, furnishings, one may have renovations, new boiler, electrics, driveway etc etc. 5k will get you a new patio for instance..
    5k over a 25 year mortgage is very little per month and it makes you wonder why you ever the house price limit that you originally chose..
    Don't pay over for a house you don't really want though, find the one that ticks your boxes.
  16. Avatar
    Estate agents will kill your granny if they think it will get them more comission. Don't trust or believe them. When we were buying our cottage we were told that another buyer had put a higher offer in than us, and did we want to increase our offer! We said no, we still got our offer accepted. Bunch of crooks.
  17. Avatar
    As above never use in house service.
    My estate agents wanted me to use their legal team when selling my house, gave me a quote then plagued me with calls.
    Telling me it’s quicker and easier to use them.
    I got quotes form 2 other legal teams in town who were no more than 100 meters away.
    Both were all most half the price and no sale no fee.
    I asked if I’m house would match the offers and they said no, but at least they stopped calling me.
  18. Avatar
    galareho08/12/2021 05:18

    We sold our house and moved out in March and have been in rented since as …We sold our house and moved out in March and have been in rented since as we couldn’t find another to buy. We have offered on a couple of houses but lost out, we’re cash buyers too. Another house has come on the market that we’re interested in so if we offer we will have to try and get it without paying over the odds, which isn’t so easy these days. We have time to wait though, our original plan was to hang on until the new year.


    property has gone very strange as instead of collapsing as a result of the pandemic, it has actually gone up quite a lot. i did not expect this at all, especially with brexit at the same, you would expect this would drag the market down.

    we were selling a flat in london when the pandemic broke out and property price did go down significantly but they have now recovered and gone back up. they are climbing at the moment as far as i am aware and with rising inflation, it may be best that you get a new place soon as it doesn't look like it is letting up.
  19. Avatar
    mutley108/12/2021 10:14

    property has gone very strange as instead of collapsing as a result of the …property has gone very strange as instead of collapsing as a result of the pandemic, it has actually gone up quite a lot. i did not expect this at all, especially with brexit at the same, you would expect this would drag the market down.we were selling a flat in london when the pandemic broke out and property price did go down significantly but they have now recovered and gone back up. they are climbing at the moment as far as i am aware and with rising inflation, it may be best that you get a new place soon as it doesn't look like it is letting up.


    Where we are we have noticed its slowing down a bit, there are properties not selling and having to be reduced or sales falling through. Prices seem stable but still higher than they should be. We can hang on for the right house but like you say, prices may not come down so we’ll have to be cautious. Were fine in our rented house for the next 6 months or so. We’re already starting to find negative points about the one thats come on the market so i doubt we will offer on it.
  20. Avatar
    galareho08/12/2021 12:15

    Where we are we have noticed its slowing down a bit, there are properties …Where we are we have noticed its slowing down a bit, there are properties not selling and having to be reduced or sales falling through. Prices seem stable but still higher than they should be. We can hang on for the right house but like you say, prices may not come down so we’ll have to be cautious. Were fine in our rented house for the next 6 months or so. We’re already starting to find negative points about the one thats come on the market so i doubt we will offer on it.


    where we are, properties seem to be going very quickly and sales are strong. i am helping a friend at the moment with buying a flat and i have noticed prices keep increasing every time i get an alert. i am looking to sell a property in london next year and i have noticed prices in london are also creeping up and sales are busier as they were quiet last year during the lockdown.

    the indication seems to be upward as i saw an article on the bbc news recently where property had gone up 10% in last month's halifax house data.

    if house prices are stable in your area then you don't have to worry too much but i have a funny feeling property price is not going to be going down next year.
  21. Avatar
    mutley108/12/2021 12:32

    where we are, properties seem to be going very quickly and sales are …where we are, properties seem to be going very quickly and sales are strong. i am helping a friend at the moment with buying a flat and i have noticed prices keep increasing every time i get an alert. i am looking to sell a property in london next year and i have noticed prices in london are also creeping up and sales are busier as they were quiet last year during the lockdown.the indication seems to be upward as i saw an article on the bbc news recently where property had gone up 10% in last month's halifax house data.if house prices are stable in your area then you don't have to worry too much but i have a funny feeling property price is not going to be going down next year.


    No, i don’t think they will either unfortunately.
  22. Avatar
    Author
    Thank you everyone for your helpful comments much appreciated for sure
  23. Avatar
    Depends on the agent, where I am some are fixed fee, so no difference if they get 10k more or not. What does make a difference, to the agent, is how good a position you are in. This means they can tie the deal up with more certainty and less hassle.

    I completed on Friday last week, it was an 18 month process, just to secure I ended up going 15k over asking. Turns out we *and* another couple did the same, we just happened to be in a better position.

    Some areas are just mental like that.
  24. Avatar
    I would agree with the comments that work out the price you are comfortable with and stick to that. If someone else pays more then whilst it's frustrating so be it. There will always be other houses even if the one you are looking at seems like your dream home.
    IF prices do drop and you have paid over the odds how would you feel then. My own personal view is that 2022 could see a correction or at least a stabilizing of prices as interest rates will rise imo. However I have no greater insight than anyone else and you need to back your own feelings.

    I think some people lose touch with reality when making house price offers saying it's only another £5k or £10k on top of a very large sum of money. If I asked you to count out £10k in notes and put it on the kitchen table would it seem more real ? Plus if you are borrowing that the total repayment over the mortgage term will be approx double that figure
  25. Avatar
    taxboy10/12/2021 12:57

    as interest rates will rise


    Been reading that for months & years.

    The economy still hasn't recovered properly from 11 years ago, prices are getting higher from uncontrollable sources external from the UK , forthcoming doubling of household energy costs, failing economic targets & an underlying global recession.

    Raising interest rates will not solve any of the above. If interest rates go up (and after events in the last two months the Bank of England would be insane to do so) they won't effect the housing markets at all because rises would be limited to maybe 1% over 18 months or 2 years. Anything more than that would be economic suicide.

    Even the BOE are sending out signs of backtracking.
    Edited by: "Willy_Wonka" 19 h, 8 m ago
  26. Avatar
    professorEX07/12/2021 21:23

    people dont realise the game has changed since last year, estate agents …people dont realise the game has changed since last year, estate agents now expect offers after holding a open day for viewings, then they go to 'final and best offers' expecting a bidding war and expect people to pay way over asking pricethe latest tactic ive seen is forcing people to use their in-house mortgage broker to be able to view the house earlier or be able to 'strengthen' their offer, of-course they also get commission from selling the mortgage, some very pushy tacticsawful time to buy a house


    Similar happened to us 4 years ago. However, we refused to use their in-house broker as it was unlikely we’d get an offer with our situation and it would have left a mark on our credit report/lower score unnecessarily especially when we already had a reliable offer that only did a soft search.

    They had a deadline and we had to put in our best offers. I suppose the seller wanted a quick sale. Our first offer wasn’t acknowledged but after we attended the open house we saw how interested people were of the house I had set my heart on. So we put down £9k more than we originally offered (still under asking price) before the open house viewing, we also had no chain and a mortgage offer ready from Bank so we were “attractive buyers” and did get the house.

    I personally don’t regret it now as I did then. Only because it is what I really needed/wanted and I haven’t seen any other house in the last 4 years on sale that I wanted as much as this one.

    Offer only what you want and can afford
  27. Avatar
    ashmac08/12/2021 06:35

    Even if you pay £5k or even £10k it will be worth about £30k by next your s …Even if you pay £5k or even £10k it will be worth about £30k by next your so your not going to lose any money , if you want the house you need to go high . For me £5k extra to get the property you want is a minor .


    Haha, can I borrow your crystal ball please. All the indicators are we are at the edge of a cliff about to go over but hey ho you and your crystal ball know better.
    Edited by: "rik111" 10 m ago
  28. Avatar
    we have come across final closed offers a couple of times. the first time we put in an offer and the estate agent came back to say that they are having a closed final offer bid. my husband says that the estate agent is playing games as he doesn't believe there were other people bidding for the house so we should play along but only to a small extent by increasing our offer by £3k, which was a very small increase, but still an increase so that the estate agent could see that we were playing along and not being a spoils sport altogether.

    we got the house so i believe my husband was right and that there were no one else bidding for the house!

    the second time was about 3 years ago where the property was sold by relations to the owner, who needed a quick sale as the owner had gone into care and so their relations needed the money to pay for care, hence it had to go. the estate agent told us the highest offer they already had and told us that we would need to put an offer quickly that weekend, but that they would tell us if someone else put in a higher offer. of course you have to take this with a pinch of salt but we didn't bid for the property as i didn't like it.
Post a comment
Avatar
Top Merchants