Buying Property - cheeky offers

I've just bought a house and experienced the reverse of a cheeky offer. We had just had a house fall through. Cash buyers, good to go, nothing to sell. Find a place we both immediately like and so decide to offer the asking price.
Get a call back from the agent saying that there is another offer on the table, but it is less than ours. Vendor has asked for best and final offers by 2pm.
A massive part of me wanted to tell them to poke it......I'd offered the asking price, the other punter hadn't, so in my head it should have been mine no question.
0A had other ideas.....didn't want to lose it......so we bung £3k onto the offer and get it. I don't even know if the other party upped their bid.
Upshot is that I am now sitting in my new back garden.
But the whole business is a racket. Not least because everyone thinks they are a property tycoon because they've watched Phil and Kirsty.
 
Back in the pre internet days when you had to judge how much property was worth based on the property supplement in the local rag I bought my first home.

Happily I was working for the local hospital and the lass who pulled the PM notes worked in our office so I took an interest if there were no relatives in the same house as knew it'd be coming on the market soon. I ended up buying one that'd been empty for 2 years after the old dear who lived their carked it. It was up for 21K at the time but was in need of a little work, relatives were in Canada and just wanted shot of it so my cheeky offer of 18k was snapped up leaving me with a bit of cash to fit luxury items like an indoor bog, kitchen and so on.


Theres probably laws against that sort of thing now :(

The insider knowledge also gained me free gas for 6 months when I kept returning gas bills to one of the utilities in the name of someone who never lived there. Eventually opened one to see that Mr Whoever was being threatened with court for non-payment (I had been trying to find out who the gas came from in the meantime) contacted the firm and asked them what was going on as Mr Whoever had never lived there, to be told that he'd signed up a year previously so the debt was now mine. Told them to do one as not only could I prove that Mr Whatever had never lived there, the actual owner at that time had been dead for a year so would have found it a tad difficult to sign up for anything. They went away and came back to tell me that a salesman had basically seen the empty property and signed it up with a fake name; he'd been sacked and I didn't have to pay the bill.
 
Just had a really cheeky twat try it on.
Our house is on the market for £425K (agent knows it will go for it's value (£415K). We had a first time buyer round the other week who had told the agents (and us) that he could only get £400K from his Mortgage in principle. The agents told him to find at least another 10-15K. He has now come back with an offer of £395K, conditional on us pulling it off the market as soon as we accept his offer. Funnily enough, the agent knew what our answer was before they told us.
 
Having bought and sold a fair few for profit and gain: 5K off the asking price is not even worth bothering with at the outset.

I usually get a home inspection done as the inspector/surveyor will pick up stuff we have missed. All the faults and shortcomings requiring repair and installation are listed and priced for rectification.

Then you need to assess the per sq ft value of the home. Off the top of my head I cannot remember the name of the company of, though I am pretty sure it was DTZ. Anyway they publish lists of property values for the UK based on area and sq ft. Though it is not difficult in the UK just check all similar properties in the area, work out their sq ft asking price against condition and age and slot the one you are looking at in there to see if it sits about right, or not.

Now that you have the asking price, cost of work required and a realistic assessment of values in the area do some math's and see if the house is worth the asking price. If not then make an offer based on the work required, and do not be bashful about knocking off huge amounts, just present the estate agent with the list of work required and the cost and tell them if the seller want to proceed this is the reality.

[Sidebar]In the US when people buy houses they pick up every little detail which requires fixing and remediation. Then, they either want you to get it fixed before they move in or they want the amount knocking off the price.

When people go looking around houses to buy them they politely wander around and spend all their time looking at the ornaments and furniture - some of you probably try to peek in the ladies knicker draw. But, what people do not do is look at the structure of the house, they rely on the surveyor for that. There is nothing to stop you looking at the bone's of the house you are looking to buy. About 3 houses ago I was crawling around with the home inspector (he was required by the bank) independently doing my own check with my ladder and torch. He finished about an hour before I did and the owner was starting to get antsy, I asked the agent to point out that if they want $500K of my money they will put up with me inspecting the place.

YOu may not know much about plumbing or electrics but, I am sure you know when something looks bodged, or out of place.....so have at it. Consider how long you spend looking for a car and how you go through the potential car purchase like a dose of salts to check it out. Just do the same with any house you are buying and make an offer based on per sq ft value in the area minus the cost of any work, if they will not play that game then tell them that you'll buy it at their top $ asking price when it is in top $ condition after they have paid for all the work to be done. You wouln't pay new price for an MOT failure.
 
Encouraging Gazumping? I thought that was a no-no
A property isn't sold 'till it's exchanged contracts .
Does the law prohibit the purchaser from viewing other properties after agreeing the purchase and changing their minds ?
What if the purchaser cannot get a mortgage ?
What if they are tied in a long chain ?
 
Worked with a guy who would approach developers of new estates, offering 75% of their asking price and reminding them of it every month. Eventually struck gold, even heard him threaten to reduce his offer at one point. Silly offers but paid off in the end.
 

corby

Old-Salt
A property isn't sold 'till it's exchanged contracts .
Does the law prohibit the purchaser from viewing other properties after agreeing the purchase and changing their minds ?
What if the purchaser cannot get a mortgage ?
What if they are tied in a long chain ?
Maybe England and Wales should look at the rules north of the border. Having been on googlefu, I see it's still not illegal to Gazump in Scotland but there's tighter rules to prevent it. As far as I'm concerned once a offer in good faith has been accepted it should stand.
 

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