Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie

Appropriate opening bid

Options
  • 28-03-2009 10:24pm
    #1
    sbudnikblues
    Closed Accounts Posts: 9 ✭


    Hi,

    Just saw a house that I really like. It's really, really old and every inch of the house will have to be renovated. What percentage of the asking price is appropriate for underbidding?

    Is it outrageous to bid 25% less than the asking price?

    Need advice...


«1

Comments

  • Options
    #2
    jetski
    Registered Users Posts: 820 ✭✭✭jetski


    Try,

    leave about 3 weeks in between bids and see what happens


  • Options
    #3
    ntlbell
    Registered Users Posts: 16,288 ✭✭✭✭ntlbell


    there was some good advice i seen on the pin recently.

    work out how much the house is worth to you.

    give the figure to the EA and tell them not to contact you unless it's to accept the offer and leave it stew.

    prevents all the phantom bidder nonsense and saves you, the EA and the owner wasting any time


  • Options
    #4
    mdebets
    Registered Users Posts: 1,747 ✭✭✭mdebets


    ntlbell wrote: »
    there was some good advice i seen on the pin recently.

    work out how much the house is worth to you.

    give the figure to the EA and tell them not to contact you unless it's to accept the offer and leave it stew.

    prevents all the phantom bidder nonsense and saves you, the EA and the owner wasting any time

    good advice, I would however say don't give the EA the price you are willing to pay, as this leaves you no room to negotiate. Give at least 10% less or even more, especially if the house is on the market long enough.


  • Options
    #5
    Agent J
    Registered Users Posts: 1,909 ✭✭✭Agent J


    Prices are still over valued in a lot of cases.

    Go 40%. Worst they can say is no and then ask them for a counter offer.

    You as the buyer have all the cards. Use them.


  • Options
    #6
    Senna
    Registered Users Posts: 8,800 ✭✭✭Senna


    ntlbell wrote: »
    tell them not to contact you unless it's to accept the offer and leave it stew.

    From previous experience, try telling the missus that they wont be phoning to tell you even if they don't accept, i'd have to tie her down to stop her phoning them.:D

    But it is excellent advice, anything that lets the EA know your serious and not willing to listen to their BS, plus its too easy to increase an offer by 5-10k when your talking 000's of thousands. Pick a price and stick with it, no negotiations needed.


  • Advertisement
  • Options
    #7
    leeroybrown
    Closed Accounts Posts: 7,563 ✭✭✭leeroybrown


    sbudnikblues wrote: »
    Is it outrageous to bid 25% less than the asking price?
    Not at all. At the moment it's normal if not a little generous in some cases.


  • Options
    #8
    Duckjob
    Registered Users Posts: 2,859 ✭✭✭Duckjob


    leeroybrown wrote: »
    Not at all. At the moment it's normal if not a little generous in some cases.

    +1

    I'd also say feel free to go a lot higher 25% off if the asking price looks inflated in comparison with similar properties in the area.

    Some jokers are factoring 10-20% into their asking price now to try to engineer getting the price they want. Just say no...


  • Options
    #9
    ntlbell
    Registered Users Posts: 16,288 ✭✭✭✭ntlbell


    mdebets wrote: »
    good advice, I would however say don't give the EA the price you are willing to pay, as this leaves you no room to negotiate. Give at least 10% less or even more, especially if the house is on the market long enough.

    It's designed so there is no room to negotiate part of the beauty no? :D


  • Options
    #10
    Kipperhell
    Closed Accounts Posts: 1,477 ✭✭✭Kipperhell


    Agent J wrote: »
    Prices are still over valued in a lot of cases.

    Go 40%. Worst they can say is no and then ask them for a counter offer.

    You as the buyer have all the cards. Use them.

    The worst they can do is say get lost and refuse to talk to you. This does happen even in bad time. I think if you really think the value is that much over priced by all means go ahead.

    Work out the price you think it is worth based on rental prices in the area other properties on the market etc... You should be able to actually find out prices that actually were sold at. Research is the key as opposed to random percentage values.

    There is house on my road that is way over priced when compared to the immediate area and will have to come down 40% at least to sell but there is another around the corner that is a better house and probably only has to come down 20%. Your best plan is to observe the market in a specific area and get a house that has been on the market a while. They are more likely to come down quicker on the price if they don't you know why it has been on the market so long.


  • Options
    #11
    sbudnikblues
    Closed Accounts Posts: 9 ✭sbudnikblues


    Thanks for all the advice lads. Will put in a bid tomorrow and see what happens. Cheers.


  • Advertisement
  • Options
    #12
    ntlbell
    Registered Users Posts: 16,288 ✭✭✭✭ntlbell


    Senna wrote: »
    From previous experience, try telling the missus that they wont be phoning to tell you even if they don't accept, i'd have to tie her down to stop her phoning them.:D

    ye can't legislate for an over anxious missus :D


  • Options
    #13
    jetski
    Registered Users Posts: 820 ✭✭✭jetski


    Let us know how you get on. realisitcally you might manage 7-10 percent.


  • Options
    #14
    ntlbell
    Registered Users Posts: 16,288 ✭✭✭✭ntlbell


    jetski wrote: »
    Let us know how you get on. realisitcally you might manage 7-10 percent.

    based on?


  • Options
    #15
    jetski
    Registered Users Posts: 820 ✭✭✭jetski


    common sence


  • Options
    #16
    leeroybrown
    Closed Accounts Posts: 7,563 ✭✭✭leeroybrown


    jetski wrote: »
    Let us know how you get on. realisitcally you might manage 7-10 percent.
    jetski wrote: »
    common sence
    A reduction of 7-10% might make common sense against a common sense asking price. Now all we need to do is find some common sense asking prices out there. It's a buyers market...


  • Options
    #17
    ntlbell
    Registered Users Posts: 16,288 ✭✭✭✭ntlbell


    jetski wrote: »
    common sence

    Oh, no actual facts just phrases.

    When did common sense dictate anything to do with property

    surely it's the complete lack of it that has us in the situation we're in now?


  • Options
    #18
    Duckjob
    Registered Users Posts: 2,859 ✭✭✭Duckjob


    jetski wrote: »
    Let us know how you get on. realisitcally you might manage 7-10 percent.

    Jetski, you're completely contradicting yourself.

    In your other posts (post purchase :D) you've been advising people that there's great value to be had in the current market. Your point I believe was that as its a buyers market, there are big discounts to be had off asking prices at the moment.

    Yet here, you're telling the OP that he "might" get 7-10%. Whoopyfúckindoo. Where's the "value in that?



    OP, start very low with your bid. Expect the EA to look appalled. If he doesn't you've offered way too much.

    Remember that buyers are like golddust at the moment, so even if your bid is too low for them, to them you're a potential buyer with an expression of interest and more than likely they will come back to you to try to negotiate.

    Once you've started low, how much you're willing to move depends on how much you want to buy right now, and where you think the market is headed.

    I know where I think the market is headed, and personally I believe bids seen as "cheeky" today will be the seen as normal in 9-12 mths time.


  • Options
    #19
    jetski
    Registered Users Posts: 820 ✭✭✭jetski


    your assuming prices will keep going down andyes thats 10% on top of the maybe 30% thats already come off... so your not far off a half price house over peak prices.... and try gets your facts right, i said their is good value if you look long and hard.


  • Options
    #20
    Duckjob
    Registered Users Posts: 2,859 ✭✭✭Duckjob


    jetski wrote: »
    your assuming prices will keep going down andyes thats 10% on top of the maybe 30% thats already come off... so your not far off a half price house over peak prices.... and try gets your facts right, i said their is good value if you look long and hard.

    Funny you should mention facts, since you didn't ask for any from the OP about the property before trying to set his expectation at < 10% off asking :D


  • Options
    #21
    kippy
    Registered Users Posts: 18,583 ✭✭✭✭kippy


    Just as a matter of interest how many people who have already offered advise here have:
    a: Bought a house ever
    b: Bought a house in the past 18 months


  • Advertisement
  • Options
    #22
    ntlbell
    Registered Users Posts: 16,288 ✭✭✭✭ntlbell


    kippy wrote: »
    Just as a matter of interest how many people who have already offered advise here have:
    a: Bought a house ever
    b: Bought a house in the past 18 months

    Why is it relevant?


  • Options
    #23
    kippy
    Registered Users Posts: 18,583 ✭✭✭✭kippy


    ntlbell wrote: »
    Why is it relevant?

    Sometimes it good to take advice from someone who has been in a similiar position recently to see how they got on.
    Its also useful to have an idea in general or buying a house when giving this type of advice (showing you know the factors that need to be taken into account)

    Just things I feel the OP should be aware of.
    Kippy


  • Options
    #24
    ntlbell
    Registered Users Posts: 16,288 ✭✭✭✭ntlbell


    kippy wrote: »
    Sometimes it good to take advice from someone who has been in a similiar position recently to see how they got on.
    Its also useful to have an idea in general or buying a house when giving this type of advice (showing you know the factors that need to be taken into account)

    Just things I feel the OP should be aware of.
    Kippy

    Why does one have to buy a house to know the facts tho?

    Do you only learn the facts AFTER you buy the house? that's a bit backwards no?

    Do you ask people to declare there exp in other fora?

    like computers and technology?

    Personal issues?

    etc?


  • Options
    #25
    kippy
    Registered Users Posts: 18,583 ✭✭✭✭kippy


    ntlbell wrote: »
    Why does one have to buy a house to know the facts tho?

    Do you only learn the facts AFTER you buy the house? that's a bit backwards no?

    Do you ask people to declare there exp in other fora?

    like computers and technology?

    Personal issues?

    etc?
    It helps to have SOME practical experience in the field before you go advising someone.
    + No one here really knows enough (and hasnt asked) about either the house or the OP's situation to advise him properly on what he should be doing.
    People talk about offering this and that and the theory behind it, which a lot of the time is a long way away from the practicalities.

    Id ask someone to declare their experience if I thought the opinions offered were a bit off the mark of that the OP may be getting information which may not help him as much as he is led to believe.
    This time however I am interested to see how many people here have actually been in both situations which I asked for information on.


  • Options
    #26
    ntlbell
    Registered Users Posts: 16,288 ✭✭✭✭ntlbell


    kippy wrote: »
    It helps to have SOME practical experience in the field before you go advising someone.
    + No one here really knows enough (and hasnt asked) about either the house or the OP's situation to advise him properly on what he should be doing.
    People talk about offering this and that and the theory behind it, which a lot of the time is a long way away from the practicalities.

    Id ask someone to declare their experience if I thought the opinions offered were a bit off the mark of that the OP may be getting information which may not help him as much as he is led to believe.

    Can you point out some opinions that were off the mark and maybe people can clear them up for you?


  • Options
    #27
    kippy
    Registered Users Posts: 18,583 ✭✭✭✭kippy


    ntlbell wrote: »
    Can you point out some opinions that were off the mark and maybe people can clear them up for you?
    Sorry, I edited the post just after that......
    Nothing too off the mark, great theory being posted.
    Kippy


  • Options
    #28
    ntlbell
    Registered Users Posts: 16,288 ✭✭✭✭ntlbell


    As I have stated on many threads like this

    there's no real point asking us what a house is worth or what to bid

    we don't know anything about not only the house but the siutation of the owners, are they working? when did they buy? where they left the house 3 years ago by a diying relative? did they buy it 30 years ago?

    there is so many things that can completely change the situation

    so if people want to ask a random question that has no real answer then surely they just expecting opinion right? based on what they put before us?

    that's what they're getting.

    I'm a house owner didn't buy in the last 18 months am I allowed to continue to post?


  • Options
    #29
    cls
    Closed Accounts Posts: 92 ✭✭cls


    ntlbell wrote: »
    As I have stated on many threads like this

    there's no real point asking us what a house is worth or what to bid

    we don't know anything about not only the house but the siutation of the owners, are they working? when did they buy? where they left the house 3 years ago by a diying relative? did they buy it 30 years ago?

    there is so many things that can completely change the situation

    so if people want to ask a random question that has no real answer then surely they just expecting opinion right? based on what they put before us?

    that's what they're getting.

    I'm a house owner didn't buy in the last 18 months am I allowed to continue to post?
    I thought anyone who buys now is an idiot or words to that effect? Period.


  • Options
    #30
    ntlbell
    Registered Users Posts: 16,288 ✭✭✭✭ntlbell


    cls wrote: »
    I thought anyone who buys now is an idiot or words to that effect? Period.

    I don't recall saying that, can you quote me?

    And if I did, how does my above post go against that?


  • Advertisement
  • Options
    #31
    kippy
    Registered Users Posts: 18,583 ✭✭✭✭kippy


    ntlbell wrote: »
    As I have stated on many threads like this

    there's no real point asking us what a house is worth or what to bid

    we don't know anything about not only the house but the siutation of the owners, are they working? when did they buy? where they left the house 3 years ago by a diying relative? did they buy it 30 years ago?

    there is so many things that can completely change the situation

    so if people want to ask a random question that has no real answer then surely they just expecting opinion right? based on what they put before us?

    that's what they're getting.

    I'm a house owner didn't buy in the last 18 months am I allowed to continue to post?
    First of all, I didnt say anywhere that people who didnt have houses couldnt post advice. Apologies if it came across that way.
    It is POINTLESS giving advice or for that matter asking for it, without the most relevant facts being given or asked for.
    Its akin to going onto the computers and tech forum and asking "My Internet Is Gone, any idea how I can fix it".
    First of all, you need someone to come along who knows what they are doing to reply to that question, the first thing they would say is that they had NOWHERE near enough information to give some advice. Then you could have someone come along who doesnt really know that much about IT, but has read in a magazine that the best thing to do when your internet is down is to call your Broadband provider.
    Obviously not a direct comparison but, someone posting a single question on a forum is not exempt from being asked for more information in order for another person to make a better qualified piece of advice, whether they are experts in that field or not.

    It really was just out of interest I was asking those two questions, nothing more sinister.

    Kippy


Advertisement