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Offer on house 30k over asking

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  • 09-05-2019 9:49am
    #1
    SheepCarmello
    Registered Users Posts: 1 ✭


    I am currently looking to move house and purchase a 2nd hand home, a house I am very interested in was on view last week (first viewing) and the EA has advised that someone has immediately offered 30k over the asking price (no other bids in at this point). I am just somewhat bemused that someone would jump in after a first viewing with such a large over offer amount, has anyone any thoughts on why this might be?


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    #2
    Gumbo
    Moderators, Society & Culture Moderators Posts: 39,332 Mod ✭✭✭✭Gumbo


    SheepCarmello wrote: »
    I am currently looking to move house and purchase a 2nd hand home, a house I am very interested in was on view last week (first viewing) and the EA has advised that someone has immediately offered 30k over the asking price (no other bids in at this point). I am just somewhat bemused that someone would jump in after a first viewing with such a large over offer amount, has anyone any thoughts on why this might be?

    Probably just want the house and are prepared to pay now and make an offer to blow all the time wasters or people below budget away straight away.


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    #3
    theteal
    Registered Users Posts: 7,593 ✭✭✭theteal


    Yeah some people could be sick or previous messing around they've experienced and want to nip it in the bud early - although by most accounts, aren't prices kinda frozen/dropping?

    Then again, it could be the EA pushing the price. I suppose you could ask about particulars of the bid e.g. cash buyer? in a chain? etc. So if you matched the bid, what advantage/disadvantage would be on your side?


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    #4
    Ray Palmer
    Registered Users Posts: 8,394 ✭✭✭Ray Palmer


    Most likely an estate agent tactic. Put it on the market and a price under what the client actually expects/wants. When a person goes to the estate agent they say the owners want to keep it on the market and will not accept the asking price yet. Buyer asks what will take it off the market and it is 30k more and the agree.

    Nothing particularly unusual but it is still frustrating for buyers unaware this is a thing that gets done


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    #5
    Ray Palmer
    Registered Users Posts: 8,394 ✭✭✭Ray Palmer


    Most likely an estate agent tactic. Put it on the market and a price under what the client actually expects/wants. When a person goes to the estate agent they say the owners want to keep it on the market and will not accept the asking price yet. Buyer asks what will take it off the market and it is 30k more and the agree.

    Nothing particularly unusual but it is still frustrating for buyers unaware this is a thing that gets done


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    #6
    vinnie_cork
    Registered Users Posts: 71 ✭✭vinnie_cork


    kceire wrote: »
    Probably just want the house and are prepared to pay now and make an offer to blow all the time wasters or people below budget away straight away.


    Yup, if you see a record of what other houses are going for and are happy with that amount then no messing, I would assume they also said 24hrs or weekend to consider for owners or else the offer is pulled. I would if i were them, if the owners delay then they are not serious about selling price.


    I just closed a sale on my home (keys exchanged last week). Looking at house sales in my estate I had a price in mind, it was realist and I wasn't under any illusion that my home was €50k more than any of my neighbours despite how nice it was painted and furnished, despite I had done a lot of work to bring it up to a B3 from D3 and added a nice extension. I calculated it was maybe €30,000 more than neighbour due to all the works and improvements carried out (cost of works was over the €30k). Agent gave a value that I was in agreement with, it was put on market for that value less €25,000. My accept sum was the value I had agreed realistic. first few offers were €40,000 under the asking which I didnt even consider. Then in January (was told new year mortage approval budgets) there was movement and house wnet to €2,500 under my figure. I was happy with the position of the purchaser and therefore accepted. So in theory it looked like house sold for €22,500 over asking. It was bought by the 1st bidder whom had offered the €40,000 under sum.


    The 1st bidder obviously liked the house, I had a set value, if they had offered the €22k over in October they could have been in for November last year saving themselves 6 months rent.


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    #7
    [Deleted User]
    Posts: 18,749 ✭✭✭✭ [Deleted User]


    Why not just price the house for the amount you wanted?
    Why put it on for so much less?


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    #8
    vinnie_cork
    Registered Users Posts: 71 ✭✭vinnie_cork


    bubblypop wrote: »
    Why not just price the house for the amount you wanted?
    Why put it on for so much less?
    Agent advised to get people to look at it to go with a lower value. Looking at other houses in my estate the asking price and selling price often varies by 20-30k.



    I had looked at houses for sale and a few when I contacted agents to inquire about I was told vendor was looking for X as their let go price and it was often €30-50 over the asking.



    Its been a long process for me with looking and being outbid a number of times or even been told sellers wanted Cash buyers on properties at the €400k+ mark! and I was hit by that on 3 properties that sold to Cash buyers.


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    #9
    Pawwed Rig
    Moderators, Category Moderators, Home & Garden Moderators, Recreation & Hobbies Moderators Posts: 22,377 CMod ✭✭✭✭Pawwed Rig


    I was recently talking to an agent that reckoned the better way to sell the property is to advertise it lower than you want as this generates interest and hopefully (from the sellers perspective) a bidding war. Makes sense really.

    A house down the road from me has been on sale for months as the asking price was 10% above the market at that point. They have since reduced the price but its still not shifting.


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    #10
    vinnie_cork
    Registered Users Posts: 71 ✭✭vinnie_cork


    Now the problem is people can see the date is went online 1st and how long its been for sale and that there has been a price reduction, which would lead someone to think they will accept less now to shift it.
    I am glad the price register system is now there as at least you know the sold price for similar. I think over the sale process of mine there were 10 bids from the 1st 40 under to the 20 over.


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    #11
    blackbox
    Registered Users Posts: 4,317 ✭✭✭blackbox


    bubblypop wrote: »
    Why not just price the house for the amount you wanted?
    Why put it on for so much less?

    The system is totally crazy. Seller should have to accept first qualified bidder that meets asking price. That's the way everything else is sold.

    If they don't want to do this they should put the house up for auction.


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    #12
    Wabbit Ears
    Registered Users Posts: 3,043 ✭✭✭Wabbit Ears


    blackbox wrote: »
    The system is totally crazy. Seller should have to accept first qualified bidder that meets asking price. That's the way everything else is sold.

    If they don't want to do this they should put the house up for auction.

    All house sales seem to be auctions without the structure!


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    #13
    vinnie_cork
    Registered Users Posts: 71 ✭✭vinnie_cork


    blackbox wrote: »
    Seller should have to accept first qualified bidder that meets asking price.


    until contract is signed even if booking deposit paid sale can fall for any reason, no agent should accept that seller decided they want more €€€ after the agreement, but circumstances can change outside this, change of mind to change of circumstances. Equally the purchaser can change their mind or loose their job or whatever.


    People will only sell for what they want to let go of their homes for and buyers will pay whatever they can to get home they prefer, and if its a desirable home in right area, nice finishes then more people will want it and to stop the competition sometimes you just have to put in your best and final offer, however, I would state if doing this then state it is only valid for a certain period and after that you walk away.

    I did this with two I was bidding on. One was a fixer upper and needed a lot of work maybe €150 plus, I offered the full asking price in December and told them I wanted an outcome within the week or I would pull the offer. They did not accept. I got a call from the agent in March asking if I still was interested which I said I was not. It is still for sale.



    Be prepared to walk away, know your max and be comfortable with the repayments. Dont loose the run and go beyond your means, there will always be something else, it might come on the market next week.


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    #14
    Pawwed Rig
    Moderators, Category Moderators, Home & Garden Moderators, Recreation & Hobbies Moderators Posts: 22,377 CMod ✭✭✭✭Pawwed Rig


    blackbox wrote: »
    The system is totally crazy. Seller should have to accept first qualified bidder that meets asking price. That's the way everything else is sold.

    If they don't want to do this they should put the house up for auction.

    Every house sale is an auction. You cannot have rules in place forcing people to sell to the first to bid asking when the purchaser can walk away at any point.


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    #15
    blackbox
    Registered Users Posts: 4,317 ✭✭✭blackbox


    Pawwed Rig wrote: »
    Every house sale is an auction. You cannot have rules in place forcing people to sell to the first to bid asking when the purchaser can walk away at any point.

    It doesn't have to be that way.


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    #16
    JeffKenna
    Registered Users Posts: 4,564 ✭✭✭JeffKenna


    blackbox wrote: »
    It doesn't have to be that way.

    All people would do in your scenario is put an asking price on their house way above its value.


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    #17
    happyfriday74
    Registered Users Posts: 194 ✭✭happyfriday74


    Not unusual to be honest.

    The buyer could be just looking to get the house off the market with messing around.

    I did similar by going in straight on the guide price while I normally would have gone in slightly below and worked up. My mortgage approval was up in a few months and I just wanted to cut through the crap get things moving.


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    #18
    JeffKenna
    Registered Users Posts: 4,564 ✭✭✭JeffKenna


    It's hard to know sometimes. I was involved in a bidding process that brought an apartment from €180k up to €280k.

    In hindsight if I had placed a bid of €60k above the asking on day 1, I might have got it for €240k....€40k below what it eventually went for.

    Like anything in life though, it's impossible to tell.


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    #19
    Tomw86
    Registered Users Posts: 933 ✭✭✭Tomw86


    I know someone who did this OP.

    They were moving house and had spent probably 5-6 weekends looking at houses, getting in to bidding wars and for one reason or another not getting them. One of them they actually bid higher than the bid that was accepted - the reason was that the seller wanted a First Time Buyer as it would be quicker - this person was sale agreed on their house already which really made this reason stupid.

    Anyway, they saw a couple of weekends that they really really liked in an estate that they knew and wanted. They went to a private viewing and were only the 2nd people to see the house, 1st hadn't made a bid.
    He went to the EA at the viewing and said ''The house is on at X, we'll go X+25k on the condition that there is no more viewings and the offer is accepted by Tuesday morning. If not the offer is off the table.'' The EA took the offer to their client who had to be talked in to the reasons behind it, but in the end accepted.

    For them, this meant they had their new home, no more stressing over bids and counter bids, no more wasted weekends, and more importantly a move in date could be agreed as they had a move out date for their own place.

    Hope this helps you understand the reasoning and I would imagine that bid was based on the same principal - accept within 48/72 hours and no more viewings, or bye bye!


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