Fatman

We've put an offer on a house (our first! ) and it appears to have been greater than the current offer on the place. Is it normal practice for all potential buyers to be consulted and given the opportunity to raise their offers?

Buckrogers

No. Sounds like a very dubious estate agent trying to maximise his income. Report them to whichever governing body.


Good luck with your purchase, hope you have a full head of hair, you'll need it!

merlin

Not a good time to be buying a house IMO... see http://www.housepricecrash.co.uk

Luminous

iTrader: (3)

If someone else has made an offer that was provisionally accepted, they are bound to find out that you have made a higher offer. In effect you will have gazumped them. They can then increase their offer of course.

The seller has the moral resonsibility to determine whether they should allow a new bidder to outbid a previous bidder. Unfortunately until you actually exchange any other buyer is allowed to make a higher offer that can be accepted. Its really harsh if this happens, because you are likely to have incurred search fees and other costs that will not be refundable

Buckrogers

If u can afford to buy, do so. Cannot see house prices falling hugely, unless you live in London.

OllyK

Having just been through it all, that's not how I experienced the process. You can put offers in on as many places as you like, and they can all be accepted, but until you are in a position to progress (i.e. sold yours or have a confirmed mortgage) somebody else can come along and get in in front of you. Once you are in a position to progress, the estate agent should not accept any more viewings on the property (they should note the details of anybody interested though in case things fall through). Now unless one or other party pulls out then you should now be safe. The EA shouldn't accept any more offers, so you won't get gazumped, but there is nothing to stop somebody knocking on the sellers door and making an offer face to face.

David Lock

Agree with above but house will probably have Sale Board outside with UNDER OFFER pasted on. If someone phoned EA and asked to view then I guess EA would be duty bound to ask seller if he wants anyone else to view and it is tempting because the deal in hand could still go **** up (as it did with ours )

Tiggs

web site run by ppl pissed that they didnt buy ages ago and now desperate to cause a market where they have a chance at getting back some of their losses from procrastination!

Harry_Boy

The main point to remember is that, until formal exchange of contracts (when the deposit is normally passed between solicitors), there is no binding agreement to buy or sell.

This can be an advantage (or disadvantage) for both parties. As a buyer, you will have incurred some costs but, if there's a better property round the corner, you are still free to go for it. Equally, in a static or falling market, you can use the opportunity to barter the price down.

As a seller, it means that you are free to accept a better offer - either from a buyer willing to pay more, or from someone who can proceed swifter, or with more certainty.

Because of the 'open market' nature of house transactions in England & Wales, you are not bound by your offer until exchange, when a completion date is normally inserted as a term of the contract.

The Scottish system, for example, is different, as each prospective buyer enters a sealed bid, and the seller accepts the highest one. Completion then usually occurs four weeks thereafter.

HTH.....

Fatman

No, the house doesn't have For Sale boards. The EA told us this was because the vendors asked for none to be erected. The EA has told us that the other potential buyers are also 'proceedable', as we are, but that their initial offer had been rejected.

jasey

You could always put a time limit on your offer. Tell the EA they accept by close of business today or you are going to start looking elswhere.

Estate Agents are supposed to act on behalf of the seller - they often act on behalf of themselves - they NEVER act on behalf of the potential buyer .

David Lock

Bit confused now (but that's pretty easy ) If other offer has been turned down then it isn't under offer at all? I take it you are in a position to make a real offer i.e. you have cash or your own pad is under offer? What did agent say about your offer - has this been accepted or turned down?

Fatman

Update: our offer was accepted.

@ David: the EA told us that the other buyers' initial offer was rejected. Their subsequent offer must also have been rejected, since ours was accepted. Yes, we're making a 'real' offer -- we're first time buyers.

jasey

Well done - Now the real problems start

Fatman

(note to self: "welcome to a lifetime of debt")

Huw Jorgan

Estate Agents are duty bound to get the best price, from the best buyer for their client (the seller). Legally, they have to pass on all offers they receive, upto the point of exchange of contracts. Agents do not accept offers, it is down to the seller. If you like the property and don't want to loose it, tell the vendor, via the agent, that if your offer is accepted, a condition of the offer is that the property comes off the market.

Fatman

Good point Huw -- cheers. Yes, the offer's been accepted and I've requested via the Agent that it's taken off the market -- i.e no more viewings etc.

jasey

That's Kids - Mortgages usually **** off after 25 years

David Lock

Good luck