How long to wait after submitting an offer?

L1011

The advice of time limiting offers went around a lot when there were virtually no other buyers - 2010-13. It's unlikely to work now

duffman13

L1011 wrote: »

The advice of time limiting offers went around a lot when there were virtually no other buyers - 2010-13. It's unlikely to work now

It really depends where in the country and even now where in Dublin. There is no right or wrong way off doing it but timing offers is useful in certain situations. More interest on a property the less likely it is to work IMO

drunkmonkey

Dav010 wrote: »

Surely when it is advertised as “for sale”, then it is for sale? All bids are there to be trumped, the EA nor the vendor set a property’s true value, that is the highest price a bidder is willing to pay for it.

It's not for sale unless someone is willing to sell it to you, anything else is just gathering interest. I wouldn't place a random bid unless it was agreed with the EA it would be considered as a bid to buy as opposed to a bid to jack up the price. An EA will have something agreed with a seller maybe have 5 viewings, show it X amount of times, advertise for 2mts etc then sell. I'm saying hold off on bidding until it's ready to be sold.
The main thing is establish when it can be sold from the EA.

VonLuck

In a similar situation myself. Submitted an initial offer via email which was rejected. Second offer was acknowledge as I received an email response saying so, but didn't say that it was accepted or rejected. It's been a few days since that email, although it was a bank holiday weekend...

If I ask if my offer was accepted it they may see this as me being very keen on the property and would hold out for more money. On the other hand if I don't email they could be trying to get more viewings in to get someone else bidding on the property and hopefully a bidding war.

I might email them tomorrow and ask for an update on the offer as I have been viewing other properties and would like to know where I stand, which is pretty much true.

Dav010

drunkmonkey wrote: »

It's not for sale unless someone is willing to sell it to you, anything else is just gathering interest. I wouldn't place a random bid unless it was agreed with the EA it would be considered as a bid to buy as opposed to a bid to jack up the price. An EA will have something agreed with a seller maybe have 5 viewings, show it X amount of times, advertise for 2mts etc then sell. I'm saying hold off on bidding until it's ready to be sold.
The main thing is establish when it can be sold from the EA.

How does an EA agree that your bid is a bid to buy, without the vendors consent? And until the highest bid is accepted, all bids are there to jack up the price, how many people bid lower than an existing bid. Vendors generally want the highest price achievable rather than the highest price after the fifth viewing.

I’m still struggling with your only bid once and put a time limit, imagine losing out on a house for the sake of €500 if that is your strategy and someone makes that bid. Now you are saying hold off until it is ready to be sold, after all others have bid and driven the price upward for you, again, one more bid of €500 and you are gone.

Hollybeg

Dav010 wrote: »

Hollybeg wrote: »

Good god ...

OP, as I’ve said, bid the price you’re comfortable with and put a clear time limit on it (From my experience, 24 hours is plenty). Only idiots get into bidding wars with faceless people.

Only someone who is clueless expects to stand face to face with other bidders. Are you advocating that the op make only one bid on every property and if it isn’t accepted, move onto the next one? Only an idiot would think they are going to find a property no one else wants. There isn’t a home buyer in the country who wouldn’t want all other buyers to bid like you, just add €500 onto your bid, hey presto the novice is gone because of a time limit and determination not to get into a “bidding war with faceless people”.

24 hrs is more than an enough time to be ignored.

*ROLLEYES*

You know nothing about my business or strategy. The properties I purchase have been well researched and the estate agents I deal with know I'm not f**king about. I'm ready to close quickly. So when I put in a bid, it's my final one; sh1t or get off the pot. In the OP's case, 3 weeks is taking the p1ss. Either the property is for sale or not.

Dav010

Hollybeg wrote: »

*ROLLEYES*

You know nothing about my business or strategy. The properties I purchase have been well researched and the estate agents I deal with know I'm not f**king about. I'm ready to close quickly. So when I put in a bid, it's my final one; sh1t or get off the pot. In the OP's case, 3 weeks is taking the p1ss. Either the property is for sale or not.

You understand the difference between a property speculator and a home buyer? You are talking about two completely different strategies and bidding processes, to apply the business of property speculation to home buying is just naive. A property researched based on rental yield, development potential and resale usually involves no level of emotional attachment and most people who buy multiple properties, particularly in the same time period can make one off cash offers and if not accepted, move on to the next. Most home buyers where spouses, children, schools, proximity to family and work do not have the luxury of being so detached, applying your logic to that makes buying a lot more complicated.

You are like a character from Glengarry Glenross, always be closing, here’s the cash, 24 hrs or I walk. As a property speculator your lack of understanding on bidding and the rigid determination that only one bid should be made no doubt means you miss out on a lot of valuable properties, a slightly higher bid than your one and only bid is enough to make you walk away making you the most perfect underbidder any bidder could hope for.

Property is for sale, vendor just hasn’t accepted the bid I would suspect, would that be a fair assumption?

awec

Hollybeg wrote: »

Good god ...

OP, as I’ve said, bid the price you’re comfortable with and put a clear time limit on it (From my experience, 24 hours is plenty). Only idiots get into bidding wars with faceless people.

I would think that it's far more likely that the vendor in your case was absolutely delighted with the bid you placed relative to all others they had received, and that is why they accepted it so quickly.

And less to do with your grandiose time limit, that struck fear into the heart of the EA to the point they got their client to instantly accept and wait for no better offers.

In other words, you probably bid a lot higher than anyone else had at that point, and they knew there was no chance anyone would pay more than what you wanted to pay.

Hollybeg

Dav010 wrote: »

Hollybeg wrote: »

*ROLLEYES*

You know nothing about my business or strategy. The properties I purchase have been well researched and the estate agents I deal with know I'm not f**king about. I'm ready to close quickly. So when I put in a bid, it's my final one; sh1t or get off the pot. In the OP's case, 3 weeks is taking the p1ss. Either the property is for sale or not.

You understand the difference between a property speculator and a home buyer? You are talking about two completely different strategies and bidding processes, to apply the business of property speculation to home buying is just idiotic. A property researched based on rental yield, development potential and resale usually involves no level of emotional attachment and most people who buy multiple properties, particularly in the same time period can make one off cash offers and if not accepted, move on to the next. Most home buyers where spouses, children, schools, proximity to family and work do not have the luxury of being so detached, applying your logic to that makes buying a lot more complicated.

You are like a character from Glengarry Glenross, always be closing, here’s the cash, 24 hrs or I walk. As a property speculator your lack of understanding on bidding and the rigid determination that only one bid should be made no doubt means you miss out on a lot of valuable properties, a slightly higher bid than your one and only bid is enough to make you walk away making you the most perfect underbidder any bidder could hope for. Silly stuff.

Property is for sale, vendor just hasn’t accepted the bid I would suspect, would that be a fair assumption?

As I've said, only idiots get into bidding wars and you sound like one of those.

VonLuck

Hollybeg wrote: »

As I've said, only idiots get into bidding wars and you sound like one of those.

This has to be a troll, right?

Hollybeg

VonLuck wrote: »

Hollybeg wrote: »

As I've said, only idiots get into bidding wars and you sound like one of those.

This has to be a troll, right?

I gave some the OP advice, the chap 2 posts up practically calls me an idiot and I'm now a troll?

OK.

Graham

Mod Note

Hollybeg, please keep it civil if you wish to continue posting here.

As you are new I suggest you read the forum charter.

ellieh1

Just an update....phoned EA this afternoon for an update and got no answer and no return call. Hopefully will hear more tomorrow. It is a week since I last spoke to EA who said we would get a response from the vendor as soon as possible.

drunkmonkey

ellieh1 wrote: »

Just an update....phoned EA this afternoon for an update and got no answer and no return call. Hopefully will hear more tomorrow. It is a week since I last spoke to EA who said we would get a response from the vendor as soon as possible.

When they come back to you if it's not accepted ask how much they want for it today.

Dav010

drunkmonkey wrote: »

When they come back to you if it's not accepted ask how much they want for it today.

What answer do you expect to this question?

I suspect most vendors would choose to let the bidding process play out, or add a sizeable premium to a bid accepted today in order to offset potential loss by not letting bids continue.

drunkmonkey

Dav010 wrote: »

What answer do you expect to this question?

I suspect most vendors would choose to let the bidding process play out, or add a sizeable premium to a bid accepted today in order to offset potential loss by not letting bids continue.

Well as a buyer you then know what the today price is after asking, your choice then do you pay a premium or take your chances in a bidding war.
Either way it's a figure worth finding out.

Dav010

drunkmonkey wrote: »

Well as a buyer you then know what the today price is after asking, your choice then do you pay a premium or take your chances in a bidding war.
Either way it's a figure worth finding out.

And one which is likely to change if there are further bids, also, if you bid the higher price today, nothing to stop the EA from going back to underbidders to see if they will better your bid today. Either way the vendor is on a winner, you may have paid well above what anyone else would have bid, or you will have given the bids a big bump and someone else tops that.

drunkmonkey

Dav010 wrote: »

And one which is likely to change if there are further bids, also, if you bid the higher price today, nothing to stop the EA from going back to underbidders to see if they will better your bid today. Either way the vendor is on a winner, you may have paid well above what anyone else would have bid, or you will have given the bids a big bump and someone else tops that.

If there's other bidders your in the bidding process you didn't strike quick enough. I think a lot of people buying their first home are way too slow to act having a few viewings and generally dily dalling than trying to buy it straight away if it ticks all the boxes. You don't seem to think it's any use to find out how much it's for sale for. I don't get that logic. Find out then you can chose to pay today's price or lay down a bid for someone else to take a shot at.

Star Lord

All that is assuming that the sellers want to make a quick sale. Lots would be happy to take your bid, then sit on it for a while to see if they get any higher offers.

You seem to think that some kind of spit-and-handshake "sell it to me now" deal is appealing to vendors, where largely, they just want the best offer that they can get, and expect the sale to take a few weeks at a minimum, if not a couple of months.

Dav010

drunkmonkey wrote: »

If there's other bidders your in the bidding process you didn't strike quick enough. I think a lot of people buying their first home are way too slow to act having a few viewings and generally dily dalling than trying to buy it straight away if it ticks all the boxes. You don't seem to think it's any use to find out how much it's for sale for. I don't get that logic. Find out then you can chose to pay today's price or lay down a bid for someone else to take a shot at.

I think you are making a lot of poor assumptions.

Firstly, early in the process vendors often don’t know the max price the property is worth in the market, and unless a quick sale is necessary, why would the vendor agree to take one offer early in the process unless it is above their expectation?

Secondly, to entice the vendor to sell early rather than wait to see if higher bids come in, you may end up paying far more than you would if you are bidding. This hardly seems a sensible way of buying, an extra €10k over a mortgage lifetime costs a lot.

Thirdly, laying down a bid with a premium for others to beat, is a EA/vendor’s dream, they will thank you for it. They now get to tell all other bidders the new bid price is much higher.

Fourthly, rather than the market setting the price, you are asking the vendor to do that, probably with a premium if you want them to exclude other bidders. That’s some canny business talk.

awec

It's all about the money really.

If you want a quick sale, with no bidding, then you bid big and blow all other bidders out of the water. You run the risk of paying significantly more than what you would pay if you were happy to bid incrementally, but you can probably close the sale quickly. It won't be your time limit that closes it quickly, it'll be the fact you've paid them enough to be happy to move on.

The idea that you make an incremental bid, but do so with some time limit and using a confident voice to secure a property quickly is nonsense.

"The current bid is 400k? My bid is 420, and you have until tomorrow, and I assure you I know what I am doing". The EA will laugh at you. The vendor will laugh at you. You'll sound like a tit.

drunkmonkey

Dav010 wrote: »

I think you are making a lot of poor assumptions.

Firstly, early in the process vendors often don’t know the max price the property is worth in the market, and unless a quick sale is necessary, why would the vendor agree to take one offer early in the process unless it is above their expectation?

Secondly, to entice the vendor to sell early rather than wait to see if higher bids come in, you may end up paying far more than you would if you are bidding. This hardly seems a sensible way of buying, an extra €10k over a mortgage lifetime costs a lot.

Thirdly, laying down a bid with a premium for others to beat, is a EA/vendor’s dream, they will thank you for it. They now get to tell all other bidders the new bid price is much higher.

Fourthly, rather than the market setting the price, you are asking the vendor to do that, probably with a premium if you want them to exclude other bidders. That’s some canny business talk.

Your making a lot of assumptions..
#you assume the EA doesn't know the market and doesn't appreciate one in the hand versus two in the bush.
#you assume going into a bidding war versus agreeing a price with the
seller will work out way worse.
#have you listened to anything I've said, DO NOT lay down a bid for others to beat if it's early in the process especially if you've no idea what conditions are required to go sale agreed.
#your spot on, go in strong quick and get it off the market asap. It's a
sales transaction nothing more.

You want to establish from the start how much the house is, I don't get why you think this isn't worth finding out. It's free to ask. You can always make a lower bid than the today price.

Dav010

drunkmonkey wrote: »

Your making a lot of assumptions..
#you assume the EA doesn't know the market and doesn't appreciate one in the hand versus two in the bush.
#you assume going into a bidding war versus agreeing a price with the
seller will work out way worse.
#have you listened to anything I've said, DO NOT lay down a bid for others to beat if it's early in the process especially if you've no idea what conditions are required to go sale agreed.
#your spot on, go in strong quick and get it off the market asap. It's a
sales transaction nothing more.

You want to establish from the start how much the house is, I don't get why you think this isn't worth finding out. It's free to ask. You can always make a lower bid than the today price.

If I start with the last paragraph, everything above that becomes immaterial.

At the start, neither the EA, vendor nor bidder knows “how much the house is”. Advertised prices are only a guide, the market sets the price, hence why properties often go for well above guide, or even expected price.

Make a lower bid then today’s price? Why wouldn’t the vendor/EA just wait until tomorrow? They told you today’s price, now you are saying you wouldn’t meet that, what incentive is there to exclude other bidders who may be willing to pay more?

If you are going to incentivise the Vendor to take the property off the market and accept your offer to the exclusion of all others, you have to make an offer that they can’t refuse, offering below what they will accept just is not in any way appealing unless you have the cash to buy without the need for finance, and even at that, it only works if the seller is in a hurry.