Buying a home and don't know how anything works

[cybershot]

They will contact you if you've been outbid, don't worry. Or contact them if say it gets to 3pm Monday and you've heard nothing, it's just estate agent corporate bollox chat. End of the day they want the best price for the seller, especially if they get a percentage, so it's in their interest to get the best price possible.

They are required to put all firm offers in writing to the seller.

 

[kebabking]

cybershot I'm confused now (as usual). Isn't "best and final offer" final?

There is no chain.

Nothing is set in stone until the keys get handed over - they can say 'best and final' offer all they like, but they are entitled to pull out, or accept another offer until Exchange of Contracts (10 weeks from now as a rough guess) without having to pay a penalty or even your costs. They can even pull out between Exchange of Contracts and Completion (handing over the cash and getting the keys), with an agreed penalty.

'best and final' simply means they want it over with - they will (probably) accept the best offer, which may not be the most money, and go forward with that, but anyone else can make an offer at any stage, and if there seller wishes to, they can accept it, and you get left swinging in the wind.

It's a fraught business I'm afraid, there are simply no guarantees right up until the point where you walk into the empty flat with the keys in your hand - and I'd put a 3 month time scale on that, but don't be surprised I'd that slips.

 

[two sheds]

no, house buying is unique it's only final when you exchange the signed contracts. There's no verbal contracts with house buying.

 

[miss direct]

So even if someone offers more than me on Monday, I'd still have the opportunity to offer more? Just been to walk dogs with my friend and she was talking about sealed bids, which has confused me further..argh. Time for dinner and disappointing wine.

 

[Cid]

So even if someone offers more than me on Monday, I'd still have the opportunity to offer more? Just been to walk dogs with my friend and she was talking about sealed bids, which has confused me further..argh. Time for dinner and disappointing wine.

If you buy a flat up here you're going to have to start calling it 'tea'.

 

[weltweit]

Definately avoid leasehold if you can. My mum stopped a purchase at the last moment when she discovered the ground rent doubled every 10 years.

I fully agree, freehold only, don't even consider a place if it is leasehold.

 

[Boudicca]

If someone offers more than you, it's up to the buyer to decide if he/she wants to accept it or to send the estate agent back to you to see if you want to offer even more.

If somone has offered the asking price, then many sellers will stop there, but greed can take over, of course.

 

[miss direct]

Flats are all leasehold, are they not?

 

[two sheds]

if they say final bids on Monday and you lose and put a higher bid on Tuesday that's really like gazumping. If they accept it then it won't reflect well on them and they could well accept another higher offer afterwards

 

[scifisam]

Flats are all leasehold, are they not?

Some are share of freehold.

I've been reading your thread but not posting because I have no advice - probably will never buy a place, because the place I might inherit half of won't give me enough to buy somewhere I want to live (it would in Sheffield, but I prefer where I live now and have a HA place so have the luxury of not moving). But we can all dream!

 

[Boudicca]

Flats are all leasehold, are they not?

Yes.

I don't know why people are saying you shouldn't buy leasehold, leases are a fact of life for flats. Some leases are better than others, some have 'share of freehold' but then that relies on you agreeing maintenance tasks with others in the building, which isn't always easy. What you need to watch out for is a managing agent who uses a lease to make money by charging for things whch don't need doing. So check the service charges and what is included.

 

[miss direct]

I haven't got any worries about the leasehold side of things.

 

[moonsi til]

The vendors have asked for final bids so once in they make a decision on what to accept, The assumption is they want to sell so want sale to progress , remember it’s costing them money to sell & move but even if your offer is accepted anything can happen until you exchange such as them pulling out due to many factors but could simply be changed their mind. This is why buying a house can be nerve wracking. The vendors also need somewhere to go to again I’m making assumption they are buying a new place.

The vendors will be as nervous as you & won’t want buyer pulling out & they will know this can happen so will be keen to proceed ASAP.


When I sold my first house last year I was very aware the buyer could have found another/better place but I had to keep the faith that my house was now the house they wanted. I suspect the buyer also fretted as much as me but about someone making a better offer.

But in summary they want to sell as much as you want to buy.

 

[komodo]

The vendors sound quite on the ball. They have marketed the property in such a way that they have two cash buyers. They are in competition and the price may go up this is what happens in a rising housing market, which we seem to have at the moment. Fingers crossed for Miss Direct!

 

[miss direct]

Dads house sold for more than we expected.

I've decided I'm going to put in a higher offer, but am just unsure as to how much to go up by.

Spent the morning cleaning the kitchen in my shared place. I am so over sharing. Its so dirty. My place will be spotless.

 

[miss direct]

I've investigated the prices of similar flats on zoopla, but that hasn't helped much, because nothing very similar has sold for a while. Plus others don't have outside space..

 

[moonsi til]

How much below asking price have you gone? I know you said estate agents said go middle. If you are just a few grand off asking price maybe consider offering asking price?

 

[Cid]

Dads house sold for more than we expected.

I've decided I'm going to put in a higher offer, but am just unsure as to how much to go up by.

Spent the morning cleaning the kitchen in my shared place. I am so over sharing. Its so dirty. My place will be spotless.

Probably remind us of the state of play... one other cash buyer who’s offer was lower but according to agent thinking of raising?

 

[miss direct]

It doesn't have an asking price but a guide price with a range of 10k.

Estate agent said at viewing they were looking for the middle as a minimum so that's what I offered. 5k more would be the top of the guide price.

One other offer same as mine but mortgage. One cash buyer who offered 2k less than me who are considering increasing, apparently. Two more offers that I dont know about but EA did say mine was best at moment.

 

[Cid]

Hmm... it’s tricky. I hate this kind of thing. But really there is only 1 serious competitor (other cash). And they were under, and in practice haven’t increased their bid yet. So it may be the agent trying to invent a bidding war. I wouldn’t shoot for the top of the guide... but you could increase by an amount you’re comfortable with. I believe it helps to choose a slightly odd number... e.g go £126k rather than £125k.

 

[miss direct]

Maybe 3500? That's a big leap for the people who offered 2k under. Big leap for me too but

 

[moonsi til]

I’m going with add an extra grand on top of current offer.

 

[moonsi til]

Extra grand is 3k over what was offered.

 

[baldrick]

I'd wait and see what the other people do first. They might decide that your offer is more than they want to pay and don't try and beat it.

 

[miss direct]

But I thought the whole point was that I can't wait and see what they do - there's a timed deadline and it's best and final offers. Or have I misunderstood (?)

 

[two sheds]

Yes if it's sealed bids you can't find out.

Again I'd tend to go an odd number like £250 because people will often offer round numbers of thousands.

 

[moonsi til]

My understanding is you won’t know other offers , it’s final offers in then vendors decide.

 

[baldrick]

But I thought the whole point was that I can't wait and see what they do - there's a timed deadline and it's best and final offers. Or have I misunderstood (?)

Oh I missed that bit, sorry! Fuck it, offer another 3k.

 

[miss direct]

The thing is, the people who offered 2 grand under might have just been trying their luck, but can plenty afford to go higher. It's a pretty cheap place, relatively speaking. And I'm assuming they know my offer, so they're either: not going to offer anything more and give up (great), offer a little bit more in the hope that I won't offer any more (but estate agent has probably told them I'm keen!) or offer loads more. 1k over the bid I gave doesn't seem a lot more to me (although it's 3 grand more for them). Argh!!! £3500 is so much money. I can afford it, but just thinking about the months it takes me to earn that sort of money is depressing!

 

[platinumsage]

Maybe 3500? That's a big leap for the people who offered 2k under. Big leap for me too but

If it helps, which it won't, the last time I put in a best and final offer, bidding had already reached 7% above the asking price. We then put a bid for 14% percent above the asking price, and the winning bid was 19% above. Conversely when selling my great aunt's bungalow, all five best and final offers were identical to the offers already put forward, the highest being the asking price.