Multiple Buyers Making Offers

[jameston 1]

Hello,

I am making an offer on a flat in the London area. There are already 3 other offers and reckon it will rise to 6 or so over the net few days. I have submitted my offer to the agent, I went in quite a bit lighter than I am prepared to buy it for (£10-15k below my max). The agent informed me it will most likely go to best and final. The one benefit I have is that I have no onward chain and I would be paying 100% cash for the property, so I have the ability to move very fast (or slowly, depending on the vendors situation).

Any tips on how to play out this situation to try and secure the property?

I know you should never put emotions into a deal, but it's hard not too and I think there is good scope for value-add and it is priced low. 

[jameston 1]

@EvolutionBlogger I have seen you have very good knowledge on the London area on previous posts. I was wondering if you had any advice for me? I have never brought in the London market before and it seems competitive. 

[haf1963 105]

I am sceptical of 'best and final' as in my limited experience it often goes to a choice by the agent - based on unknown factors - assuming the bids are all reasonably close. 

[Adam Hosker 67]

All you can do is contact the Estate Agent and evidence that you are a cash buyer. (A lot of people claim they are and are not).
This will give the lender confidence that your offer will be less hassle for the vendor.
No guarantee they will take your offer over a higher offer, but it does add weight to your offer.

[EvolutionBlogger 81]

10 hours ago, jameston said:

@EvolutionBlogger I have seen you have very good knowledge on the London area on previous posts. I was wondering if you had any advice for me? I have never brought in the London market before and it seems competitive. 

Many parts of London are very competitive. Canary Wharf, Stratford, Lewisham, Battersea etc. are packed with investors. In your situation, there's not much you can do. If the seller has a better offer, then he'll take it 

I would just do the leg work of visiting properties. When a good property comes up, don't hang about. Hit asking price and take it off the market 

I appreciate that this isn't what you normally hear over the internet. A lot of people talk about buying BMV and finding motivated sellers... but that talk is mostly bull****. They're just trying to sell you a crappy course
 

[jameston 1]

@EvolutionBlogger I made an offer on Wednesday just gone by, the property hit the market Monday. By the time I made the offer there were also another 2 offers and still on going viewings etc. I made an offer just below asking but did say to get back to me if someone were to offer a lot more before selling it to them, as I am paying cash, with no chain etc. 

Anyway, the agent hasnt let me know about the offer I made on Wednesday, they did say yesterday after I contacted them that they would hopefully have an update by yesterday afternoon, as they were discussing what the vendor wanted to do due to the high interest. But I didn't hear anything. Do you think it's worth giving them a call today or following up on Monday? 

[EvolutionBlogger 81]

It sounds like the property has gone

[matt1986 6]

What I’ve learnt in this game in a relatively short period of time, is aslong as the property market is buoyant, you have two choices when it comes to purchasing on the open market.

1, If the property represents a good investment opportunity going forward, and fits your strategy, just buy it.

2, Be prepared to do lots of legwork, look at lots of properties, and have lots of BMV offers knocked back in the pursuit of that one property that has a vendor/vendors with that illusive ‘motivation’.

I recently started a thread about how much worth being a cash buyer brings to a deal, might be worth a read. The general consensus, and what aligns with what I’ve been finding recently, is not an awful lot.

Maybe that will change if the market isn’t so active, but when talking about motivated sellers, in conclusion I’d say I’ve learnt people are almost exclusively motivated by money (when the difference between offers isn’t a matter of just a few quid), and in a healthy sellers market vendors will know they will get what they want, within reason, sooner rather than later.