Bidding Strategy

Lux23

So, we are thinking of putting a bit in on a house that has been on the market since February at €350k with no offers. It's an unusual house, three-bed with an attic conversion, quite a big kitchen with two smallish front rooms.

The negatives are it's on a main, noisy road - you walk out the door, and the traffic is right there! The back garden is on a slope, so you would have to carry kids down some steep concrete steps to play in it, and your neighbours look right into your garden, so you would have to be friendly with them!

Our landlord who is a builder visited the house with my partner, and he reckons there isn't a huge amount of work to do on it - its just mainly cosmetic. But he still thinks the house is hugely overpriced, and that as there are no current bids we should go in quote low.

He said, €270k but I can't seem them even taking that seriously - what would be the best way to go about this?

drunkmonkey

From what you've described it's not worth bidding on, if there's no bid, bid what you like. Offer 200...if your thinking of ever having kids might be worth walking away you don't want to have a lot of traffic flying by with small kids.

Xterminator

70k below the asking price .. id expect that to be refused on the spot.

i would think 300k is a better starting point. If there are no other offers, in 6-7 months on the market, the seller will probably have an inkling the asking price is too high.

Lux23

We don't have kids, but the family that live there now have four! The main road is a bonus for me as the bus to town is 30 seconds from my door.

Lux23

Xterminator wrote: »

70k below the asking price .. id expect that to be refused on the spot.

i would think 300k is a better starting point. If there are no other offers, in 6-7 months on the market, the seller will probably have an inkling the asking price is too high.

I think they would take €300k, so I don't want to start there.

Tomw86

I think 270k is a fair starting point.

The family that is there may not be in a rush to sell and refuse, or they may be thinking that at this stage something close to 300k is acceptable - you just don't know.

It is probably also important to consider how much and when they bought the property. If they are making a profit even at that price, or will be left with a lump sum over and above what is owed on the property they may well take it or negotiate with you. If they are looking to buy a property and have bids in themselves then moving quickly might be beneficial to them.

PhilipJ

Lux23 wrote: »

I think they would take €300k, so I don't want to start there.

as some one else posted, start with 200k,once you prove you have the funds, why not...its only worth what someone is willing to pay for it. Its a starting point

drunkmonkey

Tomw86 wrote: »

I think 270k is a fair starting point.

Based on what? The asking price? No bids...offer 200 all they can say is no. Offer 210 then next week or cut to the chase and ask what's the lowest they'll take without making any bid.

antix80

Xterminator wrote: »

70k below the asking price .. id expect that to be refused on the spot.

i would think 300k is a better starting point. .

A builder/landlord gave a valuation of €270k. That's a good starting point.

Tomw86

drunkmonkey wrote: »

Based on what? The asking price? No bids...offer 200 all they can say is no. Offer 210 then next week or cut to the chase and ask what's the lowest they'll take without making any bid.

As stated, a builder who has provided an estimate.

If you wanted to be more accurate you could try and get a quantity surveyor and valuation agent independently to have a look too, altho the QS will have to be done if they have a bid accepted anyway.

ChewBerecca

Bid lower than asking, but don't be offensive either.

If the family are not in a rush to move, going too low may jeopardize your chances at a higher bid as they may think you're playing games and would prefer to wait for someone more serious.

Ask the agent for more info, they may know what figure the seller is willing to accept.

antix80

ChewBerecca wrote: »

Bid lower than asking, but don't be offensive either.
...
Ask the agent for more info, they may know what figure the seller is willing to accept.

I wouldn't worry about "offending" the seller as the agent will sanitise discussions and encourage the seller to sell for as low as possible.

Chances are the agent already got offers that were rejected. Also after 7 months the agent may not be actively selling the house any more. They might be reluctant to arrange viewings, particularly if the seller isn't willing to budge on the price.

Advice for the op.. it costs nothing to enquire.
Tell the agent you're looking for a fixer-upper, that you've €250k approval in principle incl your deposit but could hopefully go a bit higher for the right property, quick sale, etc. You're not going to pull the wool over anyone's eyes. They're pretty shrewd. They'll ask you the absolute highest you're willing to go and then ask for more.
Best thing you can do is not get emotionally attached to a property - keep looking for alternatives so you get the best value for your money and that you don't pay too much - and don't get sucked into waiting games, bidding wars or anything else that will make you emotionally involved and willing to pay too much.

mariaalice

You have no idea how much of a pain a back garden like that would be with toddlers and children that alone would have a massive effect on the price.

riclad

I would simply ring the agent and offer 270k,
there,s no need to say ,i,m looking for a fixer upper,
that might be seen as slightly rude, unless the house is being marketed
as old house, need,s renovation .
eg you,ll need to spend 20-30k to fix this house and bring it up to a modern standard.
Prices are not rising at the moment, people are nervous,
re brexit,
it will have a major effect on the economy.
Some industrys like agriculture will be hit hard by it.
You will get a response from the agent in 1 or 2 days,
the agents job is to deal with enquirys and bids for the house,
And to set the selling price at a price that is realistic in terms of the market .
You should be looking at other house,s in the area of a similar size in order to work out what is a reasonable level to place your bid,s at.

Lux23

If we offer €270K, does the agent have to register the bid?

Dav010

Lux23 wrote: »

If we offer €270K, does the agent have to register the bid?

He/she just passes it on to the seller, a property on the market that long without a bid, and still no drop in price suggests the seller is not in a hurry to sell and is willing to wait for the right offer. As others have said, just put in a 270 bid and see what happens.

riclad

I think its a bad idea to tell an agent i have mortgage approval for x amount ,
At least wait until after your bid is accepted .
And its possible you may end up bidding on another house in the future
which may be on sale from the same estate agent .
the agent has to pass your bid onto the seller .

antix80

riclad wrote: »

I think its a bad idea to tell an agent i have mortgage approval for x amount ,
At least wait until after your bid is accepted .
And its possible you may end up bidding on another house in the future
which may be on sale from the same estate agent .
the agent has to pass your bid onto the seller .

yea, I'll walk back that advice. (though it's not like the estate agent would believe you anyway)

riclad

Say you did 270k, you should know within 1 or 2 days if your bid is accepted.
If your bid is accepted you may be asked for a deposit,
and to provide some document or letter from the bank re , you have mortgage approval for x amount.
Say you want to buy a house in cabra or dublin 2,
it,s possible you may end up dealing with the same agent
who is selling the house you are bidding on now.

So you want to be careful what information you give at least
until your bid is accepted and your solicitor informs you
of a successful bid.
In Certain area,s most of the house,s are sold by maybe 3-4 estate agents .

Lux23

The Estate Agent rang us this morning saying the owner is willing to do a deal, but he wouldn't give a figure. I'm inclined to put in a bid of €280K, and see what happens. I just feel like there is something they aren't telling us.

voluntary

Lux23 wrote: »

The Estate Agent rang us this morning saying the owner is willing to do a deal, but he wouldn't give a figure. I'm inclined to put in a bid of €280K, and see what happens. I just feel like there is something they aren't telling us.

They probably aren't telling you they're reading this thread and now will push you for 290 even though were ready to take 270 yesterday

Lux23

Ha, ha I doubt they have time to do that!

voluntary

But now you have doubts and your negotiating position weakened.

Lux23

No.

EstateAgent

voluntary wrote: »

They probably aren't telling you they're reading this thread and now will push you for 290 even though were ready to take 270 yesterday

Ahem...

Can we get back on point please?