Advice on bidding on house with multiple offers already..

Alkers

If there are multiple other bidders, our approach was always to bid +1,000 and then to cal the estate agent every few days for an update. If the bidding went above what we were willing to pay, we would pull out. If other bidders dropped out and there was only us and another party or two, only then would be actually put another bid on. The agent will call everyone who's put in an offer on the house before going sale agreed.

Water John

You are correct. By bidding +1K, you are being very sticky and other bidders come to the conclusion that they cannot shake you off and don't know your limit.

whiskeyman

Water John wrote: »

You are correct. By bidding +1K, you are being very sticky and other bidders come to the conclusion that they cannot shake you off and don't know your limit.

But sometimes I feel that you may draw the other bidders to push themselves as they don't want to lose the house for 1k or so, thus making a tight bidding war that could go on and on.
Psychologically, would it not be best to 'blow them out' by going in high?

At the end of the day, it's going to come down to whoever has the max limit anyway, isn't it? It's just a case of who and when they'll bow out sooner.

GeorgeOrwell

whiskeyman wrote: »

Psychologically, would it not be best to 'blow them out' by going in high?

Go €1k above the next €10k threshold. Eg. if the current bid is €316k and is going up by €1k increments, blow them out the water by offering €321k and telling the agent it is your final offer - your rival bidders might have an absolute max of €320 and it would signal your determination to get the house.

Be careful, however. You can always walk away from a house if the bidding becomes silly.

NEVER get into a bidding war which goes beyond your maximum. There will always be other houses.

whiskeyman

GeorgeOrwell wrote: »

and telling the agent it is your final offer.

Is that ever wise though?
Even if it's genuinely your last offer, what if they push their limit to just go +1k on yours?
Would the EA tell the other bidders 'look, another 1k above that will get it for you' to others?

I guess I'm just sick of trying to understand the best strategy to bid.
Some have said 'go up in +1ks'.
Others say 'bid your max, and leave at that'.

I've been in 3 bidding wars where things 'got silly', but at the end of the day, there's 3 new home owners probably settling in, and I'm still stuck looking... with property prices where I'm looking going up nearly 10% PA.
There may be other houses, but there seems to be too many other bidders!

SarahMollie

whiskeyman wrote: »

Is that ever wise though?
Even if it's genuinely your last offer, what if they push their limit to just go +1k on yours?
Would the EA tell the other bidders 'look, another 1k above that will get it for you' to others?

I guess I'm just sick of trying to understand the best strategy to bid.
Some have said 'go up in +1ks'.
Others say 'bid your max, and leave at that'.

I've been in 3 bidding wars where things 'got silly', but at the end of the day, there's 3 new home owners probably settling in, and I'm still stuck looking... with property prices where I'm looking going up nearly 10% PA.

Exactly - if someone wants it more than you and has more money than you, then you can't avoid a bidding war or ensure that you'll get the property.

Personally having bid on more properties already that I wished to ever bid on in a lifetime, heres my two cents. Tactically, I think going up by €1k is weak and only invites other bidders to keep upping their offers as psychologically its a small amount each time.

Going for the knock out punch may or may not work, but if you really want a property, its worth a try. Pushing up by €5-10k in a single jump is a serious statement of intent. It would likely put off some less seasoned bidders. And if the house is worth that amount to you, then what harm. As Whiskeyman hints at above, theres a cost to waiting around anyway, with prices rising and continuing to pay rent etc.

If you end up losing this way, then you always would have lost, so you're no worse off.

asteroids over berlin

When we were bidding, we were up against 4 people, we increased bids by 10k, first time didn't work, 2nd time it did, whether people were at their limit we do not know, did we pay more that we had to, don't know but we got the house within our budget etc. Waiting around for 1k bids just draws out the process and may add a good month,if not more onto the final outcome. I am all for blowing people out of the water!

Alkers

asteroids over berlin wrote: »

When we were bidding, we were up against 4 people, we increased bids by 10k, first time didn't work, 2nd time it did, whether people were at their limit we do not know, did we pay more that we had to, don't know but we got the house within our budget etc. Waiting around for 1k bids just draws out the process and may add a good month,if not more onto the final outcome. I am all for blowing people out of the water!

But if there are multiple bidders, the effect of a 10k bid are massively diluted. At least with two bidders, the other party will see the massive increase.

Suaimhneach

What happened?

stickman22

Sale agreed on 241, however we have had some luck with the banks, went to one institiution who offered us 3.5 times our salary plus our deposit meant we would have just enough for a house in a new development in our area, we put a booking deposit down, we love the estate & the area & do not want to enter any bidding wars/paying over & above for a house that not necessarily be worth it out of desperation.
We are waiting to get our letter of offer, mortgage approval with underwriters at the moment but the mortgage advisor told us put down the deposit on newbuild & promised us she would get us the max amount, not sure exactly how much power she has but the house won't be ready for another 7 months so we have time to get more cash together. We didn't want to use all our deposit but this home is A3 & all others we looked at were D/E so we figured we would be spending alot on diy anyway so we may as well get the home we want & love & do it our way from the start... Fingers crossed we get the approval now (the deposit is fully refundable)

MHickman

Had a similar experience attempting to buy recently with the OH in South Dublin. We're going to rent for another while as the stress was getting too much. Delighted thinks worked out for you in the end.

ted1

asteroids over berlin wrote: »

When we were bidding, we were up against 4 people, we increased bids by 10k,


Waiting around for 1k bids just draws out the process and may add a good month,if not more onto the final outcome. I am all for blowing people out of the water!

Do you make more than 30k a month?
10k +PRSI+USC+PAYE+mortgage interest , etc
I can never understand the need to blow other people out of the water, especially if it's to your own detriment

Water John

Delighted for you, Stickman. With A3, your heating bill will be very low.

stickman22

Thanks guys, we were deflated & friends had a similar experience with a house 50s E rated house that went finished 35k over the asking price, we just didn't want to have our vision skewed & place more value on a house than it was worth.
We are praying we get the amount required as it is the very max the bank can give us but then we should qualify for this first time buyers grant as it is a new build under 350k so that will give us a bit of extra capital... As I said we decided to take an all or nothing approach but we figured we will be saving so much in utilites etc it will be worth it.
This thread has been a great support.

mickdw

Now all you have to worry about is the developer trying to give your deposit back in 6 months time for some made up reason when the real reason is that he can resell the house for 40k more.

stickman22

Yikes don't say that!! It's going to be a big development & phases are being released slowly, however your are right in what you say technically as the exact same house in the previous phase were all on the market for 20k less & I can imagine the phase following ours will be another 20k more than hours...