First Time Buyer - Dublin

Bertie01

Hi All,

I am a first-time buyer with AIP. Have been following the market for months but have only recently bid on a house for the first time only a few days after it was posted. It is already 5+% above asking with 6+ parties having bids so far. So I have a few questions.

Is this level of interest normal, obviously Covid is playing its part?

Do we expect there to be a greater release of houses in the coming months, will this be enough to have any effect on the levels of demand out there?

I wonder have any of you any advice on bidding techniques? what increments to use, time to allow pass between bids etc?

How does one trust the real estate agent? They could be making up bids for all I know

How long would the bidding be expected to go on for, the owners need to sell to buy?

We do really like the house, as others do as well obviously but we are conscious that there haven't been many houses in the area released recently which has probably led to this level of interest and don't want to end up paying too much. All thoughts welcome, thanks

Interested Observer

Bertie01 wrote: »

Hi All,

I am a first-time buyer with AIP. Have been following the market for months but have only recently bid on a house for the first time only a few days after it was posted. It is already 5+% above asking with 6+ parties having bids so far. So I have a few questions.

Is this level of interest normal, obviously Covid is playing its part?

Yes, for desirable houses/locations. Perfectly normal.

Do we expect there to be a greater release of houses in the coming months, will this be enough to have any effect on the levels of demand out there?

Impossible to say, don't believe anyone looking into the future imo.

I wonder have any of you any advice on bidding techniques? what increments to use, time to allow pass between bids etc?

People massively overthink this. If you like the house, like the location, and can afford to bid then just bid. A technique is not going to get you a house that you otherwise wouldn't get.

How does one trust the real estate agent? They could be making up bids for all I know

They aren't, and if they were you'd never know so there's no point in tying yourself in knots over it. But they aren't.

How long would the bidding be expected to go on for, the owners need to sell to buy?

This is a 'how long is a piece of string' question, the bidding goes on until either everyone decides they're not going to go up anymore or the seller accepts a bid. You don't have any control over it, I've seen houses up on the market for 3 weeks and I've seen houses up on the market for a year+. I bid on a house in 2018 that the sellers refused, and ended up selling it in 2020 for less than we bid.

fliball123

Bertie01 wrote: »

Hi All,

I am a first-time buyer with AIP. Have been following the market for months but have only recently bid on a house for the first time only a few days after it was posted. It is already 5+% above asking with 6+ parties having bids so far. So I have a few questions.

Is this level of interest normal, obviously Covid is playing its part?

Do we expect there to be a greater release of houses in the coming months, will this be enough to have any effect on the levels of demand out there?

I wonder have any of you any advice on bidding techniques? what increments to use, time to allow pass between bids etc?

How does one trust the real estate agent? They could be making up bids for all I know

How long would the bidding be expected to go on for, the owners need to sell to buy?

We do really like the house, as others do as well obviously but we are conscious that there haven't been many houses in the area released recently which has probably led to this level of interest and don't want to end up paying too much. All thoughts welcome, thanks

First of best of luck with your search and be careful with the responses you will get here as some people think they are Nostradamus when it comes to Irish property prices.

Currently we have a huge supply issue, on myhome currently there are less then half the amount of properties for sale then there was this time last year. We have also seen new build commencements drop by 20% in 2020 and the start of 2021 have further hindered building with lockdown so effectively we are further behind where we were with regards to having more property coming on stream.


Now the current situation we find ourselves in is IMO mainly because we have had experts since 2017 like David McWilliams shouting that we are back in a bubble yet a bubble needs easy access to finance and you will find banks are not just handing it out like confetti as they used to. So some people put off buying. In the time since 2017 property prices have dropped a small bit, gone back up, dropped again and gone back up (hardly what a market supposedly in a bubble should be doing)

Since then people have further been put off buying due to Brexit this was a big unknown people thought we might see some kind of crash. Then just to muddy the waters a bit more Corona kicked in last year and further hindered and panicked people into not buying. Everyone thought we were going to see Armageddon. It didnt happen prices have actually risen in the last 6/9 months.

Now we have an absolute title-wave of people who have just gone through 3 lockdowns coming to the market and if you are living with mam and dad or house sharing or renting there is nothing like been stuck in that space to make you want your own place or a bigger place.

So currently the market is gone a little crazy. The problem I see for you is they need to build houses and quick, Emigration inward has not been as high as it was in 2020 as it was in the previous 5 years due to corona, now if that goes back to the levels it was pre-corona all of these people will need somewhere to live.

i guess you have to ask yourself the question of why you want the house and can you afford it if either you or your partner lose a job. Are you saving by getting a mortgage instead of renting. Are you going to be able to afford 3-5% interest rates rising. You will have your own unique circumstances as in kids, schools, access to work and other facilities, employment and your own finances which will sway you more than what is going on.

Not sure what way would be best to advise you. I guess if you are hell bent on buying find your budget and stick to it.

I just wish you good luck in what you choose to do.

aaaaaaaahhhhhh

Bertie01 wrote: »

Hi All,
How long would the bidding be expected to go on for, the owners need to sell to buy?

I was in this exact same position today. Bearing in mind house's where I live sell for roughly 175k. This is how it went:

Me - 160k
Others - 165k
Me - 168k
Others - 170k
Me - 175k
Others - 177k
Me - 180k
Others - 185k
Me - 190k
Others - 192k
Me - 195k
Others - 200k

Thats where I finished. Houses havent gone for more than 180k since 2008 in my area, so has me really P!$$3d off

Alkers

"tactics" only work when it's just you and one other party, when there are multiple parties bidding - you're as well to just put one bid in and wait until everyone except one other pulls out or it goes beyond what you can afford.