Bidding process - attempting to buy our first house

maverick_21

We are currently in a bidding process against one other first time buyer. The house was listed at €335k and this other buyer bid first at €320k (rejected) then €325k (rejected)and finally €335k before we entered the process with a bid of €336k.
They just replied back with another bid of 337k today....
What do people think is the likely outcome here? We are willing to go higher,possibly 340k, but i get the feeling this person will bid whatever they need to get the house.

How long do these bid processes tend to go on?

Michael D Not Higgins

The outcome is that whoever bids the most gets the house, if the other bidder is willing to bid more than 340k then you're not going to win the bid. The process goes on as long as it needs.

There are a lot of strategies people can employ, but if 340 is your max then I'd suggest going back with an offer of 340 and if you're outbid start looking elsewhere.

Butters1979

Sometimes they can be quick. You have the vendor and at least a couple of interested bidders, sometimes there are no bids that mean the vendors valuation and the house sits there for sale for months. (A house we were highest bidder 7 months ago is still on the market). But sometimes you get situations where the vendor is in a hurry and will take the highest bid after a few weeks. It's impossible without knowing all the facts, financials and opinions about the vendor and each interested party to know how long it may take.

By the way, the situation you describe has very specific numbers. don't discount the possibility the person you're bidding against hasn't read this and assumed it's the same house. Better saying things like 15K below asking price etc.

Bigcheeze

Michael D Not Higgins wrote: »

There are a lot of strategies people can employ, but if 340 is your max then I'd suggest going back with an offer of 340 and if you're outbid start looking elsewhere.

I wouldn't do this. If you go up buy 1k you're forcing other bidder to bid up twice.

hytrogen

A good communicating relationship with an estate agent is always an advantage before you go into a bidding war. Otherwise you'll be doing their job of chasing up info about the bidding status.

Tigger

hytrogen wrote: »

A good communicating relationship with an estate agent is always an advantage before you go into a bidding war. Otherwise you'll be doing their job of chasing up info about the bidding status.

+1 talk to the agent

drunkmonkey

Did the estate agent ask you to provide proof you were mortgage approved before entering the bid?

athtrasna

Thread name edited for clarity

Mod

Dellnum

You just have to keep bidding what you can afford and what you think the property is worth to you. The bidding will go on until one party backs out.

laotg

Be careful with estate agents too. The likelihood is that the other bidder doesn't exist. When I was buying my first place the agent had me in a bidding war with a "cash buyer". My final bid was 30k over my initial offer but the agent kept saying the cash buyer offered more. I eventually pulled out. 9 months later the house was still for sale.

The house eventually sold for 5k more than my initial offer.
Do not trust estate agents.

davo10

laotg wrote: »

Be careful with estate agents too. The likelihood is that the other bidder doesn't exist. When I was buying my first place the agent had me in a bidding war with a "cash buyer". My final bid was 30k over my initial offer but the agent kept saying the cash buyer offered more. I eventually pulled out. 9 months later the house was still for sale.

The house eventually sold for 5k more than my initial offer.
Do not trust estate agents.

So, the assumption should be that you are the only one in the country interested in a particular property? Let me give you a heads up, unless a vendor is being forced to sell, they won't until they maximise the price by getting bids from at least two bidders. Therefore it is more rationale to assume that if you like the property, somebody else will as well. Sales fall through all the time for a variety of reasons, there was even someone recommending on another thread that buyers should put deposits on multiple properties when buds are accepted. Go figure.

I Am The Law

maverick_21 wrote: »

We are currently in a bidding process against one other first time buyer. The house was listed at €335k and this other buyer bid first at €320k (rejected) then €325k (rejected)and finally €335k before we entered the process with a bid of €336k.
They just replied back with another bid of 337k today....
What do people think is the likely outcome here? We are willing to go higher,possibly 340k, but i get the feeling this person will bid whatever they need to get the house.

How long do these bid processes tend to go on?

What I find scary about this is the price of the house.

Savings required = €68,000 (20% Deposit) + €3400 (stamp duty) in the bank
Repayments over 30 years = around €1250 per month (12 payments x 30 = €450,000)
The bank will require that the house is insured and that life assurance is in place before you draw down and allow for legal fees……..

An expensive house, I’d like to see it sometime.

Alkers

Pretty standard house if in Dublin!

Alkers

I Am The Law wrote:

Savings required = €68,000 (20% Deposit) + €3400 (stamp duty) in the bank Repayments over 30 years = around €1250 per month (12 payments x 30 = €450,000) The bank will require that the house is insured and that life assurance is in place before you draw down and allow for legal fees……..

Also, deposit is only 10% on the first 230k

riclad

Look at the property price register,and daft.ie ,
what,s the price sold or on offer , of an average similar sized house in the area ,
IF the average price for a similar house ,3bed ,semi d, is 340,
don,t pay over 340.-350.
ie you don,t want to be fooled into Over bidding against another buyer ,
who may not exist.
I understand people may pay 20k plus over the house value to live in a certain area ,
and to close the sale ,
rather than start looking again as there,s a limited amount of houses for sale
in a certain suburb .
i presume its in a posh area,
329k is not standard,
clonsilla area 3bed average price is 200k approx .

the price register is there to give more data to the buyer ,
to stop people overbidding or over borrowing to buy a house in beaumont for example .
As it lists all the sale price,s of homes sold in each road,street ,or estate .
it gives the adress ,and price the home was sold for ,
45 grove avenue, sold 220k, june 2014.
I know a certain estate where a friend lives,
my friend sold a house there for 318k.
I know theres 30 Homes in it,
average price 310k in 2015 .
every 2-3 years a house is put on the market ,
Someone might pay 320-330k to buy a house there ,
if there was one for sale in 2016 .
It,s quite possible the estate agent is being 100 per cent honest with you
re all the bids made on the house .

http://www.daft.ie/dublin/houses-for-sale/clonsilla/

prices have gone up a bit since i last checked them in the area .

maverick_21

I Am The Law wrote: »

What I find scary about this is the price of the house.

Savings required = €68,000 (20% Deposit) + €3400 (stamp duty) in the bank
Repayments over 30 years = around €1250 per month (12 payments x 30 = €450,000)
The bank will require that the house is insured and that life assurance is in place before you draw down and allow for legal fees……..

An expensive house, I’d like to see it sometime.

Scary? Dont worry mate its not your money.....

maverick_21

Update: Lost out on the house! Crazer bidder went well over €350k so we shut down.Oh well! on to the next one I guess.

maverick_21 wrote: »

We are currently in a bidding process against one other first time buyer. The house was listed at €335k and this other buyer bid first at €320k (rejected) then €325k (rejected)and finally €335k before we entered the process with a bid of €336k.
They just replied back with another bid of 337k today....
What do people think is the likely outcome here? We are willing to go higher,possibly 340k, but i get the feeling this person will bid whatever they need to get the house.

How long do these bid processes tend to go on?