Matching a highest bid. Why?

ddubs

Hi Folks,

So I've been bidding on a property and am the highest bidder. First time buyer, full approval with no chain. The estate agent has advised me that my highest bid has been matched however the other bidder has yet to even put their house on the market.

I'm really struggling with the logic here and smell something fishy? Any thoughts or experience?

Dav010

ddubs wrote: »

Hi Folks,

So I've been bidding on a property and am the highest bidder. First time buyer, full approval with no chain. The estate agent has not advised me that my highest bid has been matched however the other bidder has yet to even put their house on the market.

I'm really struggling with the logic here and smell something fishy? Any thoughts or experience?

Cash buyer? Some cash buyers don’t need to sell their current property to buy another.

ddubs

Dav010 wrote: »

Cash buyer? Some cash buyers don’t need to sell their current property to buy another.

Estate Agent has told me they do need to sell and that he expects the Vendor will not be interested. Could it be a buddy of the vendor pushing us to enter a 'best and final offer' to push us up perhaps? Or could it be a buddy of an underbidder looking to heap pressure?

cameramonkey

ddubs wrote: »

Hi Folks,

So I've been bidding on a property and am the highest bidder. First time buyer, full approval with no chain. The estate agent has not advised me that my highest bid has been matched however the other bidder has yet to even put their house on the market.

I'm really struggling with the logic here and smell something fishy? Any thoughts or experience?

"The estate agent has not advised me that my highest bid has been matched"


What does this mean?

ddubs

cameramonkey wrote: »

"The estate agent has not advised me that my highest bid has been matched"


What does this mean?

Apologies typo:eek:

Dav010

ddubs wrote: »

Apologies typo:eek:

If you wait a while you will have someone tell you it’s a phantom bid and not to trust the EA. Op, he is keeping you informed that there is another bidder, if 2 bids are the same, it’s a beauty contest and as a first time buyer, you’re looking pretty.

cameramonkey

ddubs wrote: »

Apologies typo:eek:

Dont be backward about putting pressure on the EA. Ask him has he put your offer to the owner.


How long has the bidding being going on for? Is it much above the original asking price?

ddubs

cameramonkey wrote: »

Dont be backward about putting pressure on the EA. Ask him has he put your offer to the owner.


How long has the bidding being going on for? Is it much above the original asking price?

A number of weeks, with a number of bidders. The matching bid was that persons first bid. No more viewings will be taking place.

cameramonkey

ddubs wrote: »

A number of weeks, with a number of bidders. The matching bid was that persons first bid. No more viewings will be taking place.

Is it much above the asking price.


I have bid on 4 houses in my life and have never seen a matching bid, any new bid always is my experience has to be higher than the proceeding bid.
I as a bidder would never expect a matching bid to be accepted but I suppose it may happen.

hmmm

I've seen matching bids where the other bidder thinks it's bid high enough that they don't want to compete, but want to register their interest in case the other bid falls through.

ddubs

cameramonkey wrote: »

Is it much above the asking price.


I have bid on 4 houses in my life and have never seen a matching bid, any new bid always is my experience has to be higher than the proceeding bid.
I as a bidder would never expect a matching bid to be accepted but I suppose it may happen.

Marginally above. Yeah my understanding was that EA's couldn't/wouldn't accept a matching bid.
Thanks for your thoughts!

ddubs

hmmm wrote: »

I've seen matching bids where the other bidder thinks it's bid high enough that they don't want to compete, but want to register their interest in case the other bid falls through.

I guess there could be logic there. They know they wont have their place sold in time so match the bid in case I fell through.

Good point, thanks!

cameramonkey

ddubs wrote: »

Marginally above. Yeah my understanding was that EA's couldn't/wouldn't accept a matching bid.
Thanks for your thoughts!

I bid on a house recently, it went about 12% above asking price. I had noticed that in the part of Dublin I was bidding in that most houses were going for between 10 and 20% above asking price maybe the EA is waiting for more bids.


I would say to him that you have offered the asking price and more so you would like him to put your offer to the vendor as you want to get on with buying the house.

Katzi

I am currently bidding on a house which has been on the market for about 3 -4 weeks. There were 3 bidders (including me) until today. The bids had reached about 5% over the asking price and the EA told us that he was hoping to go 'Sale Agreed' this week. But today a new bidder emerged and the bids quickly escalated by another €10k. I then made another bid and later the auctioneer told me that one of the other earlier bidders had submitted an identical bid.

This seems strange to me. Up to now this particular bidder outbid me by just €1k each time. This time, he/she had matched my bid exactly. (Interestingly he/she did not bid against the other bidders, but only bid when I did!)

I cannot go any higher and wonder what I should do. I am reluctant to tell the EA that this is my final bid because I have reached my financial limit. What happens in a situation like this? It seems really strange that an EA would accept two IDENTICAL bids at the end stage of a bidding war.

Any thoughts anyone? Should I tell the EA this is my limit? If neither of us bid again, who wins? I can close the sale quickly, no other property to sell, finance in place etc. Does the vendor decide? Very frustrating. And any help would be most welcome.

Sleepy

No harm in telling the EA you're at your limit when you are tbh. Stress your ability to close quickly and ask him / her to keep you informed.

ted1

hmmm wrote: »

I've seen matching bids where the other bidder thinks it's bid high enough that they don't want to compete, but want to register their interest in case the other bid falls through.

Or that they may be in abetted position to close and hence the vendor will go with them.

If a bid falls through you want to be at a lower price. Than the original bid

voluntary

No two bids are identical, sellers need to calculate the probability of the sale actually happening and the timeframe this can be done with. A seller may chose a lower bid if the offer is from a cash buyer ready to buy quick.

Also note, no bid is binding, buyers bid on multiple properties at a time. Bids may be withdrawn or simply abandoned anytime. The fact that somebody put a bid 1 week ago doesn't mean the bid is still valid today. This person may not be interested in the property any more. The more time it passes from the bid time the higher the chance he's no longer interested.

This is not an auction where bids are legally binding.

Buyers may even withdraw from the SALE AGREED phase (when the initial deposit is paid) if they find a better option in the meantime. Before the contract is signed the deposits are fully refundable. Buyers don't risk much targetting multiple properties at the same time.

It's in the seller/EA's best interest to have as many offers as he can, so when one of them withdraws there are still other offers at the table.

ashes2014

Id love to see transparency in the buying/selling process/