Smartest way to win a bid on a house

theboringfox

[Deleted User] wrote: »

Definitely a buyer's marker in Cork on anything over 400k that requires work.

Loads of properties like this all over the likes of Bishopstown that are going up on Daft at ridiculous prices and then being dropped after a few weeks of no action. I saw one just today that has been reduced by 50k.

I follow the selling prices on the register and the vast majority are not even making revised asking prices.

I bought a similar property for well below asking recently and my bidding was reflective of this.

That's interesting on Cork market. Thinking of doing an extension. Cost is coming in astronomical from QS and gut was telling me to sell up and buy again. Interesting to see there might be bit more of buyers market a you go north of 500k.

On the bidding side I agree 1k increments frustrating. Surprised Agents don't push it more. I think I went up generally in 5k increments. It still shocks me looking back how little 5k all of sudden felt versus what it meant because you only had to put in 10% of it.

Andrew Beef

handlemaster wrote: »

Andrew Beef wrote: »

Say the asking price is €600k.

I would bid €550k, assuming that the asking price is reasonable.

So that would mean your offer would be unreasonable

No it wouldn’t.

It’d be a strange world where an offer of 92% of the asking price is deemed “unreasonable”.

draiochtanois

This post has been deleted.

blue note

The percentage is very relevant. 50k in relation to a house priced at 600 is very different to one priced at 300k. I'd say the percentage means far more than the actual cash figure.

Andrew Beef

draiochtanois wrote: »

This post has been deleted.

Converting it to a percentage to make it seem more reasonable doesn't work.

It's still €50,000 under the asking in a rising market with a lack of supply.[/quote]

For any good or service where there’s an element of bidding/horsetrading, it is ludicrous to suggest that an offer at 92% of the asking price isn’t reasonable.

dudara

FWIW, I’ve just put in a bid at close to 90% of asking. I think my bid is reasonable but let’s see what the market thinks.

Bob24

draiochtanois wrote: »

Converting it to a percentage to make it seem more reasonable doesn't work.

It's still €50,000 under the asking in a rising market with a lack of supply.

blue note wrote: »

The percentage is very relevant. 50k in relation to a house priced at 600 is very different to one priced at 300k. I'd say the percentage means far more than the actual cash figure.

The only thing that’s relevant IMO is where the asking price stands compared to the market value and attractivity of the property.

If the seller is really asking for too much and the property has been standing idle with few viewings and no offer for months, regardless of percentage or cash amount it can be reasonable to significantly undercut the asking price.

Now if it is an attractive property which is priced right, people can make low offers if they want but it will probably be pointless and a bit ridiculous.

theboringfox

theboringfox wrote: »

That's interesting on Cork market. Thinking of doing an extension. Cost is coming in astronomical from QS and gut was telling me to sell up and buy again. Interesting to see there might be bit more of buyers market a you go north of 500k.

On the bidding side I agree 1k increments frustrating. Surprised Agents don't push it more. I think I went up generally in 5k increments. It still shocks me looking back how little 5k all of sudden felt versus what it meant because you only had to put in 10% of it.

I would have said that some of the original asking prices were fantasy stuff. Asking prices are also increasing despite not making the value. It seems like a false inflation by EAs.

The likes of Btown is a very specific market as most of the properties have come on the market and have not been touched in 40 years, meaning they need a lot of work. You might only get 1-2 bidding on a house of over 450k that requires another 200k of work.

It also only suits people who can afford to rent and pay mortgage while the house is being done up or those who can stay with family so the pool is very small. I could tell by the way EA was behaving that he was very keen not to lose us.

We bid 85% of asking first time and went up in increments of 1K before shaking off rival through weeks of doggedness and securing at around 95% of value.

blue note

Bob24 wrote: »

The only thing that’s relevant IMO is where the asking price stands compared to the market value and attractivity of the property.

If the seller is really asking for too much and the property has been standing idle with few viewings and no offer for months, regardless of percentage or cash amount it can be reasonable to significantly undercut the asking price.

Now if it is an attractive property which is priced right, people can make low offers if they want but it will probably be pointless and a bit ridiculous.

Exactly. The asking price is a combination of an informed guess of what the property is worth and a negation tool to of the EA and the seller. Most will set it at the lower end of what it's worth to make sure that it will come up in the searches of anyone who can afford it and that they won't be put off viewing it. Then some sellers will put it too low to generate huge interest and suddenly the bidding is 20% above asking price and other times a seller will set the price higher than it's worth and not get anyone to make an offer. I've seen a fair few properties with the asking price reduced because they set it too high to begin with.

People here are taking the asking prices too seriously!

The J Stands for Jay

realitykeeper wrote: »

Don`t bid or buy. Wait for the next crash in property prices. Buy gold while you are waiting.

Gold is just analogue bitcoin.

The most important thing in bidding, for anything, is to keep your emotions separate from the transaction. Decide on the price it is worth to you at the beginning, and never go above it.