Bidding help

shelly24

So a house came on the market that suits us to the ground, we offered above the asking price and today found out another couple outdid us by €5000 so it’s now €10k above asking price.
I will email another offer tomorrow but not sure how to play it?
I’m getting conflicting advice, should I go up another €5 or go lower?
It’s not Dublin so prices don’t tend to go as much over as in Dublin
Also how long should I wait between bids?
Thanks

Henry Ford III

Bid again if you wish (assuming you think the property is still value for money and that you can afford it) but time limit it. Keep it short. Ask for "exclusivity".

cameramonkey

bid one thousand more every time you are willing. Stick to that formula see what the other lot do.

davo10

Henry Ford III wrote: »

Bid again if you wish (assuming you think the property is still value for money and that you can afford it) but time limit it. Keep it short. Ask for "exclusivity".

Don't time limit it, if it's already gone €10k above asking the vendor/EA won't give a second thought to a time limit offer, they will leave it on the market until bids max out. Also, when the time limits passes, either you walk away or go back with another bid in which case the EA knows you don't know what you are doing.

What is "exclusivity"? Never heard of this before.

Op, if you have a budget, stick to it, don't get caught up in bidding and loose the run of yourself. The other bidder is in the same boat as you, there are no set rules on bidding, just go with what your gut tells you.

GetWithIt

cameramonkey wrote: »

bid one thousand more every time you are willing. Stick to that formula see what the other lot do.

In my experience that’s a poor strategy. You’re making it so easy for the other party to keep bidding.

Agents will always advise you to put a gap between yourself and other bidders and as bad as it feels that’s what you need to do.

You may always wonder if you could have got it for a few k cheaper but you need to ignore that.

When bidding people always think ahead to the next bid and bidding gets a certain rhythm. A 5k bid means the other bidder is looking at a 10k increase if they were to bid again. 1k and it’s only 2k to stay involved and some really will “stay involved” in a bidding process when it’s “just” another couple of thousand.

Decide on your limit and put a gap between yourself and the other bidder. Know when you’re done and walk away if necessary.

Alkers

Are there still viewings going on? If so, do nothing. If it's just you and another party in a bidding war then you can think tactics. If there are multiple parties just up 1k or whatever each time

cameramonkey

GetWithIt wrote: »

In my experience that’s a poor strategy. You’re making it so easy for the other party to keep bidding.

Agents will always advise you to put a gap between yourself and other bidders and as bad as it feels that’s what you need to do.

You may always wonder if you could have got it for a few k cheaper but you need to ignore that.

When bidding people always think ahead to the next bid and bidding gets a certain rhythm. A 5k bid means the other bidder is looking at a 10k increase if they were to bid again. 1k and it’s only 2k to stay involved and some really will “stay involved” in a bidding process when it’s “just” another couple of thousand.

Decide on your limit and put a gap between yourself and the other bidder. Know when you’re done and walk away if necessary.

I know that people have all sorts of strategies and systems. I just bid on a house using this method, the other party were trowing in big jumps of 10g or 5 but I just kept adding 1 each time. I was the winning bid against one other party.


I don't think I could have got it any cheaper as the other party seemed to want the house, they just ran out of money in the end.



That's the thing with buying houses, if you are willing to bid more than the other party then you will have the house.


People also say pick a price an stick to it, I have ignored that as well, I have never regretted any house that I have bought or the price I have paid but maybe I am just lucky.

cameramonkey

Simona1986 wrote: »

Are there still viewings going on? If so, do nothing. If it's just you and another party in a bidding war then you can think tactics. If there are multiple parties just up 1k or whatever each time

I would concur, don't get into the bidding until they have decided to stop viewing.


Also I have noticed that many houses in the area of Dublin I was looking were going for between 10 and 20% above asking price.

GetWithIt

GetWithIt wrote: »

In my experience that’s a poor strategy. You’re making it so easy for the other party to keep bidding.

Agents will always advise you to put a gap between yourself and other bidders and as bad as it feels that’s what you need to do.

You may always wonder if you could have got it for a few k cheaper but you need to ignore that.

When bidding people always think ahead to the next bid and bidding gets a certain rhythm. A 5k bid means the other bidder is looking at a 10k increase if they were to bid again. 1k and it’s only 2k to stay involved and some really will “stay involved” in a bidding process when it’s “just” another couple of thousand.

Decide on your limit and put a gap between yourself and the other bidder. Know when you’re done and walk away if necessary.

I think the going up 1k strategy works in some situations. If the bidding starts low and you are responding to one other bidder with repeated bids of an extra 1k or 2k it can work very well.

I bought a house with this strategy at below the asking price and at just below what I was willing to pay for it. The other bidder must have gotten sick of me and just bailed after about two weeks of back and forth. Be dogged and keep hitting back instantly and the rival bidder may just decide you are never going to go away.

That was despite the EA who was selling it telling me each time that I would never get the house that way. They don't like it as it is extra work for them dealing with the back and forth, but as I said it can work in some situations.

Henry Ford III

davo10 wrote: »

Don't time limit it, if it's already gone €10k above asking the vendor/EA won't give a second thought to a time limit offer, they will leave it on the market until bids max out. Also, when the time limits passes, either you walk away or go back with another bid in which case the EA knows you don't know what you are doing.

2006 is alive and well I see.

p.s. It's a mistake to assume all bids are genuine. Getting into a bidding war isn't a good idea. Make your bid solid and different.

davo10

Henry Ford III wrote: »

2006 is alive and well I see.

p.s. It's a mistake to assume all bids are genuine. Getting into a bidding war isn't a good idea. Make your bid solid and different.

Due to lack of supply it could possibly get worse than 2006. Solid and time limited is of no benefit if others are bidding more, why would a seller accept a time limited offer unless it was considerably more than what he could get by leaving bidding process open?

What is "exclusivity"?

Sleeper12

You are get conflicting advice because there is no one way that is certain to win. What won me my last house might not win on the next house. You'll get lots of advice from people who have only ever done this one or twice in their life. It's easiest for investors because they are not emotionally attached to the property. They will possibly bidding on several at the same time not really caring what one they win.

Good luck on the house

ekevosu

OP are you a first time buyer or in a chain?
Is the seller looking to sell quickly etc.?
Is the person bidding against you a first time buyer or in a chain etc.?

You should ask the estate agent all these questions. Possibly all you need to do is match the bid of the other bidder if they are in a chain and you are a first time buyer and mortgage approved as you would be the more attractive offer as no delay. But no guarantee that way either. You need to get as much information about the seller and other bidder as you can. Apart from that its just whoever wants it enough and has the higher limit they will go to. Best of luck.

shelly24

ekevosu wrote: »

OP are you a first time buyer or in a chain?
Is the seller looking to sell quickly etc.?
Is the person bidding against you a first time buyer or in a chain etc.?

You should ask the estate agent all these questions. Possibly all you need to do is match the bid of the other bidder if they are in a chain and you are a first time buyer and mortgage approved as you would be the more attractive offer as no delay. But no guarantee that way either. You need to get as much information about the seller and other bidder as you can. Apart from that its just whoever wants it enough and has the higher limit they will go to. Best of luck.

Apparently the other party bidding went sale agreed recently, we are also sale agreed but further into the process- our contracts are signed by the buyers and we will sign them later this week. We have a date to move out in 3 weeks.
We put an offer €10k more then them today and haven’t heard back yet

Henry Ford III

davo10 wrote:

Due to lack of supply it could possibly get worse than 2006. Solid and time limited is of no benefit if others are bidding more, why would a seller accept a time limited offer unless it was considerably more than what he could get by leaving bidding process open?

What happens after a boom again?

davo10

Henry Ford III wrote: »

What happens after a boom again?

Bust! That is why it is important to understand that nobody forces you to buy at the top of the market, you can of course rent.

What's "exclusivity" anyways?

shelly24

It’s been 24 hours since I upped my bid and I haven’t heard anything... I’m going out of my mind

Henry Ford III

davo10 wrote: »

Bust! That is why it is important to understand that nobody forces you to buy at the top of the market, you can of course rent.

What's "exclusivity" anyways?

Exactly.

p.s. Look it up.

davo10

Henry Ford III wrote: »

Exactly.

p.s. Look it up.

I know what the word means, I'm afraid I have never heard of it in the context of bidding on a property. I can only think that it would mean you make a bid but insist that no other bid be considered, but that would be nonsensical, surely that isn't what you mean? Why on earth would a vendor agree to this unless you are making a bid so far in excess of any other potential bidder?

If the op does this, the EA is going to scratch his/her head and wonder what to say to you.

Water John

Hold tough Shelley, don't overpin your hopes on one house. Doesn't help you think it out rationally. Also ignore posters who have hopped in here to have their own discussion on a tangent.
It's just about you trying to buy a house.

Irishcrx

Sit tight but don't let your heart rule your head , plenty of posters on here give bad advice such as continue bidding , just keep going etc etc and that's fine if you have money burning a hole in your pocket but for the majority of people the bidding process right now can loose them an awful lot of money and cause a lot of hassle in the future when the market drops again and you lose equity.

Bid smart , ensure you have looked up the actual sale prices on the property register of local houses to the one you are bidding on and if possible go back and look at what they sold for before the market picked up , cover all your angles...DO set a maximum bid to ensure that you are not stretching yourself financially into something that is becoming unaffordable for you...when you reach that point get out...do not get dragged into a bidding war 15k or more over your budget , reset and another great house will come up...look at several houses at once and find your middle ground.

I know it's difficult , the prices right now really are crazy even outside of Dublin houses are going way over asking price and every new build is adding 10 to 15k extra per phase while removing parts of the finish as well.

I wish you all the best and hope you get it at the right price.

C3PO

Henry Ford III wrote: »

Make your bid solid and different.

What does that mean? :rolleyes: Similar to "Exclusivity"?

power pants

Irishcrx wrote: »

Bid smart , ensure you have looked up the actual sale prices on the property register of local houses to the one you are bidding on and if possible go back and look at what they sold for before the market picked up , cover all your angles....

Not too sure how relevant that part is, it’s a given that prices will be far higher than before the market picked up

The fact is, the person is buying now when the market has picked up. To buy a place you will have to pay over the odds but that’s a decision buyers will have to make

The op has only one real solution, just to bid up until they reach their max amount that they can afford to spend

cameramonkey

power pants wrote: »

The op has only one real solution, just to bid up until they reach their max amount that they can afford to spend

It may sound simple but that is exactly what they have to do.

KilOit

The house we have was bid to 65k over asking, we dropped out at 35k over asking. Estate agent said it went up further with 3 other bidders after we pulled out.
The top bidder eventually pulled out after 2 weeks, other bidders found something else maybe? House was put back up for open viewing with our bid still in place, people went to view a house that was 35k over asking already and were more than likely put off, estate agent after a month said we could have it for 45k over asking, we stood strong and said no and a week later they accepted our 35k over asking.

So op all i can say is set a target and stick to it.

Usjes

davo10 wrote: »

What's "exclusivity" anyways?

Don't worry about it, its only applicable in places where the fashion is for EAs to arrive to negotiations carrying a pig under their arm.

uck51js9zml2yt

Bid on a house outside Dublin and went to asking and then sellers got greedy. Its still on the market 2 months later.
Ended up with a nicer house for 15k under asking and 10k less than asking on the other house