Confused about House Bid

roofi

Hello,

I need your suggestion/advices as EA is not responding promptly although not many people are interested in the property which I'm interested in:

I made an offer (9k less than asking price currently) to property which came back to market again in March/April which initially was advertised in October 2014.
EA told me it property came back to market due to bidder couldn’t get his mortgage approved at the end.

Just a quick background about my bid if you can please advise how to deal:
I viewed property first time on 1st of May and made offer after 10 days (10k less than asking) which EA checked with Owner and wasn't accepted. EA asked me to bid more so she can talk to Owner again which I said that the only I can bid currently. So she said she is going to arrange another viewing after two weeks of first open view on 1st May and will contact me if she receives bid more than mine. Had friend lives nearby that property who told me only one or two people turned up to viewing.

Checked with EA again indirectly (to ask about another property) after couple of days of 2nd viewing who said she didn't get more than what I offered but Owner is looking for atleast asking price as it was first sale agreed over asking price. So she asked me to increase my bid and she can talk again and I increased 1k from my previous offer which she spoke to Owner & owner again didn't accept it.

Third viewing arranged after a week and again friend told me only two or three couple visited.
I rang her on Tuesday and asked for update & explained if owner shows flexibility in his asking price, I can show a well which she said will get back to me but she hasn't get back yet after two days. I also explained her that prices has been decreased 5 to 8% in that area & Owner should think about.

Now the difference is 9k between asking price and my offer. EA still didn't contact me which she said will so might have forgot or may be its their strategy to keep quite when bidder contact again means I love this property and should be able to pay the asking price atleast or is she lazy/busy and I should contact her to remind. I’m bit confused.

I'm bit tight in finance as it will be the hardest for me if I pay asking price as I won't have much left to buy home stuff as only kitchen appliances are included in price originally.
I know atleast 6 properties have decreased their price since April in similar area but this one hasn’t.

Please suggest how to deal this so deal could be made atleast 5k less than asking as I don't want to make offer straight away with difference 5k as Owner may ask more to reach asking price.

Thanking you in advance.

CaoimheSquee

Unfortunately you can tell a vendor till they are blue in the face about price percentage decreases but they are well within their rights to hang on for more. I've seen vendors hang on for over a year to eventually get there.
The EA should have told you about the further bid certainly, but in fairness it has been viewed by at least 4 people in the last few weeks so a new bid is very possible.
Also, remember people viewed it when it was on previously so their could be people revisiting it.
Best thing is to keep in touch with the EA but at the end of the day you can only bid what you can afford.
Best of luck

roofi

CaoimheSquee wrote: »

Unfortunately you can tell a vendor till they are blue in the face about price percentage decreases but they are well within their rights to hang on for more. I've seen vendors hang on for over a year to eventually get there.
The EA should have told you about the further bid certainly, but in fairness it has been viewed by at least 4 people in the last few weeks so a new bid is very possible.
Also, remember people viewed it when it was on previously so their could be people revisiting it.
Best thing is to keep in touch with the EA but at the end of the day you can only bid what you can afford.
Best of luck

Thanks CaoimheSquee for reply.
It has been on market again since end of March and number of people other than me have already viewed it. Its nearly two months passed, don't you think this property should have received more than one bid if it has worth of asking price especially when people are looking to buy?

Would that mean its still Seller's market even though price has been dropped 5 to 8% especially in Dublin since February?

What should I say to EA to convince her to get this property atleast 5k (currently 9k less than asking price) less than asking which is my budget to buy home stuff ?
In worst case, what is gaurantee that even if asking price is offered that owner will be agreed as he might have still that mind set that his property has been sale agreed over asking price last year?

Would that be worth asking/offering 3k more than last offer on condition if landlord can add all furniture (bed, matresses, sofas etc.) in the price?

Thanks in advance.

Miamiheat

Owner may be in negative equity and nothing but the asking price would be accepted by the bank.
EA is there to sell.
If a house is on market the EA has to keep on showing it but owner wont sell that usually starts frustrating the EA.

I would approach the EA and ask in a very sincere manner what they think would close the deal "other than asking price". Buying the furniture like you mentioned could be one thing. Regardless of the situation you have to get to the point of giving your last offer unless you want to wait forever.

CaoimheSquee

Honestly, I have seen owners leave their property on the market for 18 months with only one bid waiting for the price they want regardless of the advice EA gives them. It can vary from negative equity reasons or just plain stubbornness and belief their house is worth more.
All you can do is place your bid on the property and ask to be kept informed of any further movement, but the vendor may be happy to wait for the price they want and not be in any rush at all. The EA can only advise the vendor, at the end of the day it is their decision.

Idioteque

I wouldn't be surprised if you went to asking price and the owner still didn't accept straight away.
It's a personal decision so no-one can tell you what to do as there's so many factors in place unique to you.

That said, based on the info you've given, especially around your financials, If I were in your position and was keen on the house, I would offer the 5k below asking and be prepared to walk after 2-3 days. It may prompt the vendor to move if they think you'll bolt and if not at least you can leave it a while and see if anyone else bids over next few months.

Always a tough one, best of luck with it.

the_syco

roofi wrote: »

Would that be worth asking/offering 3k more than last offer on condition if landlord can add all furniture (bed, matresses, sofas etc.) in the price?

You offer 9k less.
Seller waits.
You offer 6k less if it comes with furnishing
Seller may just think that if they wait longer, you'll offer more.

roofi wrote: »

EA told me it property came back to market due to bidder couldn’t get his mortgage approved at the end.

Consider having bank say that you are mortgaged approved to whatever sum you are offering. This may convince them that you are ready to roll?

roofi

the_syco wrote: »

You offer 9k less.
Seller waits.
You offer 6k less if it comes with furnishing
Seller may just think that if they wait longer, you'll offer more.


Consider having bank say that you are mortgaged approved to whatever sum you are offering. This may convince them that you are ready to roll?

Hi the_syco,

You are right, I wait for two weeks & EA/Vendor expect me to increase my offer whenever I contact them. I rang EA for update who said there is open view, come again to view and will talk when I view again & she asked my feedback which I said I'm interested but can't reach asking price so increased 2k more (5k less than asking) & she promised she will talk to vendor in two days.
But she didn't contact me so I rang her when she spoke to vendor who said they can include everything what is seen in house in asking price but asked me again increase bit so she will talk again same day as vendor has to talk to his partner (still 5k less than asking).
So I found out every time I talk to EA, she asked me to increase my offer so same day I increased Euro 500 but she came back to me she can sale agreed today if I reach asking price which I said I can't make it as I don't have any money left if I reach asking price so now its 4.5k less than asking price.
So long story short I concluded the discussion that I can't increase every time I talk to her (EA) but Vendor shows no flexibility.
Here is interesting thing that when I spoke to her last time EA said that vendor can come down little bit but eventually that was just her strategy / trick to push me to increase my offer as at the end she said vendor won't accept less than asking and kept annoying me by saying this property was sale agreed over asking price last year when it was advertise first 8 months ago.

So, I'm in limbo that this deal is not going anywhere as every time I talk EA ask me to increase my offer before she can talk to vendor and she never convince vendor to decrease the asking price for me.
I'm so upset and angry that EA / Vendor now realise that I like that house so any technique I should use so at least I can get some money off from asking price as I know there is no bid / offer on this property other than me and couple of more house are on market in the same region. But personally, I like this house but don’t want to meet asking price at the same time.

Please please help / guide so I can close off this deal rather than back and forth.

Should I wait for another while to Vendor / EA would be able to think to be flexible or what else I should do?
I will have no money left if I meet asking price so any grand / thousand I take off from asking price would be my saving to buy appliance/stuff before I move.

Thanks.

Irishcrx

If you cannot afford to meet the asking price then don't do it. There is no point in buying the property and not having a cent left over the spend on the house , moving etc you will need that flexibility.

I would offer 5k under again and tell the EA that is your final offer and if you don't hear back in a week or it's rejected again then your out. Move on and find a similar property at a more affortable price.

By the sounds of it the seller is not going to come down , they probably have it valued over the asking price since they went sale agreed on it before , so in their heads your say 15k under what they originally thought they were getting on it and are likely holding out for at least the asking price and maybe over.

whippet

the only way we can advise you with any certainty that you will get the house is to offer the asking price. Anything else you hear will just be options and speculating.

If I was selling and the same bidder kept coming back to me with slight increases and buckling at each phone call from the EA I would be tempted to hold out and see if they will come any higher and try and squeeze the last few bob out also.

My advise is to not get emotionally involved in the house until you own it and be prepared to walk away.

johnp001

whippet wrote: »

the only way we can advise you with any certainty that you will get the house is to offer the asking price. Anything else you hear will just be options and speculating.

If I was selling and the same bidder kept coming back to me with slight increases and buckling at each phone call from the EA I would be tempted to hold out and see if they will come any higher and try and squeeze the last few bob out also.

My advise is to not get emotionally involved in the house until you own it and be prepared to walk away.

I wouldn't agree that there is any certainty in offering the asking price.

jimmycrackcorm

It can't be the only house in the country that you want to buy so just look around for something that you like and can afford. But let EA know that your best and final offer is what you can afford leaving money for stamp duty and furniture etc. Offer to let the vendors know what you are offering in case the EA is trying to play poker.

the_syco

roofi wrote: »

So I found out every time I talk to EA, she asked me to increase my offer so same day I increased Euro 500 but she came back to me she can sale agreed today if I reach asking price which I said I can't make it as I don't have any money left if I reach asking price so now its 4.5k less than asking price.
So long story short I concluded the discussion that I can't increase every time I talk to her (EA) but Vendor shows no flexibility.

The vendor doesn't need to show flexibility, as you have a history of caving in and offering more.

Do an ultimatum of what you can afford (X amount, offer ends on Y date), and walk away if you don't get it. You may not get the house, but unless you offer what the seller wants, you won't get the house.

johnp001

the_syco wrote: »

The vendor doesn't need to show flexibility, as you have a history of caving in and offering more.

This is true.
In every transaction there is one party who has a greater urgency and need for it to complete. You need to convince the agent that in this case it is them.
Shouldn't be too difficult in this market to do so. Just take things slowly and never change your position during a conversation or phone call. If you need to change your mind there is plenty of time to think about it and call back at a later date.

the_syco wrote: »

Do an ultimatum of what you can afford (X amount, offer ends on Y date), and walk away if you don't get it. You may not get the house, but unless you offer what the seller wants, you won't get the house.

I wouldn't be a big fan of time-limited offers. Once you have made an offer of X then it is a pretty clear indication that for the near-future you would be interested in that property at that price unless you have bought something else.
The seller may be holding out for more now but if they don't get what they want (and who gets everything they want?) you could get a call in the future and this means you will then be in the driving seat in the negotiations.

the_syco

johnp001 wrote: »

I wouldn't be a big fan of time-limited offers. Once you have made an offer of X then it is a pretty clear indication that for the near-future you would be interested in that property at that price unless you have bought something else.

From what the OP has said, I think they're at their max. But without showing that hand, the time-limited offer is also for the OP; should the seller not give them the house, they should go looking elsewhere.