Reasonable bids

farrerg

Offered 90% of asking price on a house and the estate agent reacted as though I had personally insulted him.
I can understand saying his client won't go for it etc but he has had no offers "yet" after more than a month and numerous viewings so the horrified reaction seems a bit OTT. Is this just another EA tactic?

BabySlam

yeah, i got this too from Lisney, decided to walk away. Actually decided I would never bother with them again.

Irishcrx

I'm afraid that estate agents/owners and landlords have now gone back to exactly where we were pre 2008 with regards to the property market. Friends of mine are looking to buy at the minute and every house they have looked at has gone over the asking price and they have been outbid.

We learned nothing from the property crash...zero...it's sad really.

whippet

I don't know why people get so taken a back by Estate Agents .. these are sales guys .. simple as. In theory their role is to get someone to pay as much as possible for their client's property.

As with any sales person they can be pleasant, ethical, decent or rude, obnoxious and devious .. but you have to remember you are the punter in the relationship. They have an asking price and you have offered less than the asking price .. obviously they will respond with what they think is the best way and this EA obviously thinks to take your offer as an insult is the best way to get you to increase the offer.

You can bang on and on about the ethics, morality or transparency of the matter .. but just take the emotion out of it and treat it as a business transaction.

Irishcrx

whippet wrote: »

I don't know why people get so taken a back by Estate Agents .. these are sales guys .. simple as. In theory their role is to get someone to pay as much as possible for their client's property.

As with any sales person they can be pleasant, ethical, decent or rude, obnoxious and devious .. but you have to remember you are the punter in the relationship. They have an asking price and you have offered less than the asking price .. obviously they will respond with what they think is the best way and this EA obviously thinks to take your offer as an insult is the best way to get you to increase the offer.

You can bang on and on about the ethics, morality or transparency of the matter .. but just take the emotion out of it and treat it as a business transaction.

The man has a point to be fair.

Properties 3 years ago were going for well under the asking , right now they are going over...that's the value of the market so it really comes down to if you want the house you'll need to at least meet the asking price and maybe compete above that.

Or...don't buy until house prices drop off again.

farrerg

I'm not offended, and I'm not under any illusion as to who he works for and what his aim is, I just would have thought that saying the vendor will not accept that without the indignant attitude would get the point across just as well, and might lead to a constructive conversation. But I suppose they all have different sales methods.

The house requires a lot of work, asking price is based on what an already refurbished house achieved so the bid wasn't as cheeky as it may seem.

johnp001

Irishcrx wrote: »

The man has a point to be fair.

Properties 3 years ago were going for well under the asking , right now they are going over...that's the value of the market so it really comes down to if you want the house you'll need to at least meet the asking price and maybe compete above that.

Or...don't buy until house prices drop off again.

Just in relation to the point in bold, this is being discussed on another thread... Property Market 2015

jmayo

I know a situation where house has only been for sale for few weeks for 535k.
Someone made offer of 465K which yes I know is well below asking.
It was rejected and someone else made offer of 502k which is nearly a whole 7% more.
And yes I do know from my national school maths that it is still below asking.
But it is the jump in bids that got me.

I know some around here would say just throw in high bid to blow other bidders out of the water, but surely we are talking maybe a jump of a few % not a whole 7% ?

I know on another thread people have talked about going up in 1 or 2k jumps.
I could understand 5k or even 10k jumps, but holy batman this is a jump of 37k on a half mill property.

draiochtanois

This post has been deleted.

Miaireland

farrerg wrote: »

Offered 90% of asking price on a house and the estate agent reacted as though I had personally insulted him.
I can understand saying his client won't go for it etc but he has had no offers "yet" after more than a month and numerous viewings so the horrified reaction seems a bit OTT. Is this just another EA tactic?

He is probably an actor in his spare time! Seriously it is just another ploy. He is probably hoping that if you make another offer that you will make a significantly higher bid.

farrerg

draiochtanois wrote: »

This post has been deleted.

Got a call from someone in the office to let us know they were doing another viewing on sat morning if we want to go, probably meant to get us anxious another bidder will come along (and maybe they will)

jmayo

draiochtanois wrote: »

This post has been deleted.

I don't know if that type of time limitation works, unless of course the market is on the slide and desperation is creeping in.

What are you meant to do if they haven't come back to you within the 48 hours ?
Put in a lower offer than the one they have already rejected, tell them the same offer is back on the table for another 48 hours or put in a higher offer or just drop it altogether?

farrerg

Miaireland wrote: »

He is probably an actor in his spare time! Seriously it is just another ploy. He is probably hoping that if you make another offer that you will make a significantly higher bid.

He happened to mention a potential bid of 20k over ours when the couple get their approval in place, which would suggest to me that is where he thinks the vendor might sell and is trying to put this figure in our head.

BabySlam

jmayo wrote: »

I don't know if that type of time limitation works, unless of course the market is on the slide and desperation is creeping in.

What are you meant to do if they haven't come back to you within the 48 hours ?
Put in a lower offer than the one they have already rejected, tell them the same offer is back on the table for another 48 hours or put in a higher offer or just drop it altogether?

No, you look for a different property.

gosplan

farrerg wrote: »

He happened to mention a potential bid of 20k over ours when the couple get their approval in place, which would suggest to me that is where he thinks the vendor might sell and is trying to put this figure in our head.

Just leave your bid there tbh.

The market's turning your way. You might not get the first house that meets your requirements but you'll get there eventually.

Look st the market, where it's headed, what needs fixing on the property and come up with what you want to spend. If you're realistic and fair, this will be an OK price. Believe nothing about people 'planning on bidding' or dare I say it, reported bids. EA's are understandably questionable when it comes to this information.

Miamiheat

whippet wrote: »

I don't know why people get so taken a back by Estate Agents .. these are sales guys .. simple as. In theory their role is to get someone to pay as much as possible for their client's property.

As with any sales person they can be pleasant, ethical, decent or rude, obnoxious and devious .. but you have to remember you are the punter in the relationship. They have an asking price and you have offered less than the asking price .. obviously they will respond with what they think is the best way and this EA obviously thinks to take your offer as an insult is the best way to get you to increase the offer.

You can bang on and on about the ethics, morality or transparency of the matter .. but just take the emotion out of it and treat it as a business transaction.

+1
Just have your idea in your head of how much you are willing to pay: start below and put your offer in without hesitation, do not even react to the EA's answer. Just say that is your best offer and they can call you if they change their mind, but tell them you are still looking at properties in the meantime. If they hint they want a better offer (and you would eventually consider it) then write them an email with 30 questions about the property, the conditions of the sale, the situation of the sellers => genuine questions that will give you a lot more info about what you are getting into while you are buying time. It shows you may be willing to bid more "eventually" and you let them open their game a little bit. You may end up realising you prefer another property.

enfant terrible

gosplan wrote: »

Just leave your bid there tbh.

The market's turning your way. You might not get the first house that meets your requirements but you'll get there eventually.

But surely anyone thinking of selling would of done so by now rather than later in the year when prices will be lower.

So there will be less stock and prices will not drop at all?

I'm looking to buy in the Dooradoyle area of Limerick and there is 29 houses for sale in an area with a population of over 16,000 people.

johnp001

enfant terrible wrote: »

But surely anyone thinking of selling would of done so by now rather than later in the year when prices will be lower.

So there will be less stock and prices will not drop at all?

I'm looking to buy in the Dooradoyle area of Limerick and there is 29 houses for sale in an area with a population of over 16,000 people.

PPR Graphs - Limerick
shows prices never picked up in Limerick (as a whole, not sure if Dooradoyle is different) last year.
Stock nationally has increased hugely in the last 6-9 months and if it hasn't hit your area yet then it is very likely to be coming soon.
A hypothetical rational seller would have sold at the start of this "rush to the exits" but as we saw with the previous housing bubble herd mentality is a far greater driver of behaviour than rationality. (i.e. people buying tiny apartments for huge multiples of their income because everyone else was)

I Am The Law

johnp001 wrote: »

PPR Graphs - Limerick
shows prices never picked up in Limerick (as a whole, not sure if Dooradoyle is different) last year.
Stock nationally has increased hugely in the last 6-9 months and if it hasn't hit your area yet then it is very likely to be coming soon.
A hypothetical rational seller would have sold at the start of this "rush to the exits" but as we saw with the previous housing bubble herd mentality is a far greater driver of behaviour than rationality. (i.e. people buying tiny apartments for huge multiples of their income because everyone else was)

Interesting graph for Limerick. I made the point in another thread that the sale agreed houses are not coming through on the PPR, this seems to be particular true in the Dooradoyle area.

enfant terrible

johnp001 wrote: »

PPR Graphs - Limerick
shows prices never picked up in Limerick (as a whole, not sure if Dooradoyle is different) last year.
Stock nationally has increased hugely in the last 6-9 months and if it hasn't hit your area yet then it is very likely to be coming soon.
A hypothetical rational seller would have sold at the start of this "rush to the exits" but as we saw with the previous housing bubble herd mentality is a far greater driver of behaviour than rationality. (i.e. people buying tiny apartments for huge multiples of their income because everyone else was)

Thanks for reply John.

Why would stock start to rise in my area if no new builds are coming on?

What seems to be happening here is a decent house seems to trickle on once the previous one is sold.

Could this be estate agents advising people to hold off listing till other house is sold?

This house current bid is 205k
http://www.daft.ie/sales/26-ashgrove-glencairn-dooradoyle-limerick/1069092/

Seems last year 4 beds in same estate were selling for around 180k.

gaius c

Irishcrx wrote: »

The man has a point to be fair.

Properties 3 years ago were going for well under the asking , right now they are going over...that's the value of the market so it really comes down to if you want the house you'll need to at least meet the asking price and maybe compete above that.

Or...don't buy until house prices drop off again.

No they are not. Last spring they were but not anymore but the vendors are very slow to react to this.

johnp001

enfant terrible wrote: »

Thanks for reply John.

Why would stock start to rise in my area if no new builds are coming on?

What seems to be happening here is a decent house seems to trickle on once the previous one is sold.

Could this be estate agents advising people to hold off listing till other house is sold?

This house current bid is 205k
http://www.daft.ie/sales/26-ashgrove-glencairn-dooradoyle-limerick/1069092/

Seems last year 4 beds in same estate were selling for around 180k.

Residential construction activity is up 20% YoY Indices of Production in Residential Building
This could be very localized though. I know in a lot of areas supply is increasing rapidly. Sounds like this is not the case in your part of Limerick.
NAMA are the biggest culprits for keeping property off the market to increase prices.

gaius c wrote: »

No they are not. Last spring they were but not anymore but the vendors are very slow to react to this.

Yes, and the vendors who are fastest (or less slow) to react are the ones who will lose out by the least.

johnp001

Planning permission also up significantly
http://www.cso.ie/en/releasesandpublications/er/pp/planningpermissionsquarter12015/#.VYPAiPnnvBN

I read a report recently stating that construction in Dublin was about 70% of what was required but that construction in the other cities was above the demand level. Can't seem to find it now, think it was commented on in this forum. If anyone can find it please can you post it here?

Thanks
J

quagmire47

farrerg wrote: »

Offered 90% of asking price on a house and the estate agent reacted as though I had personally insulted him.
I can understand saying his client won't go for it etc but he has had no offers "yet" after more than a month and numerous viewings so the horrified reaction seems a bit OTT. Is this just another EA tactic?

90% is a high percentage but that doesn't necessarily translate to an offer close to asking price. Remember, the EA doesn't work for the bidder, they work for the seller.

It makes me laugh when I read people giving time limits on bids and talking about playing games with the EA. Fine, someone will no doubt point out that it worked somewhere in the past. But generally if the property is desirable then the EA is not going to respond to that.

In my opinion, ultimatums are probably not the best advice to be following.

Everybody wants a good deal, but some people make out that it's like playing a video game.