First Offer

Backstreet Moyes

Hi,

Just wondering if you ever bid the market price when making your first bid?

I had a viewing yesterday and I asked the estate agent to keep me updated and he text me tonight saying he had a bid for the asking price.

I think its very unlikely that he would make up a bid but I am not sure if it is best to match the bid as it makes it likely we could end up going above the asking price.

Would bidding under the asking price be a bad idea or is it best to match the asking price and say you won't go above it.

I told the estate agent I would give him a ring on Monday but I have no idea what to do.

Has anyone any advice?

ted1

Nuts102 wrote: »

Hi,

Just wondering if you ever bid the market price when making your first bid?

I had a viewing yesterday and I asked the estate agent to keep me updated and he text me tonight saying he had a bid for the asking price.

I think its very unlikely that he would make up a bid but I am not sure if it is best to match the bid as it makes it likely we could end up going above the asking price.

Would bidding under the asking price be a bad idea or is it best to match the asking price and say you won't go above it.

I told the estate agent I would give him a ring on Monday but I have no idea what to do.

Has anyone any advice?

Are you a cash buyer or do you need a mortgage.

Cash is king and indeed allows you underbid existing offers

Dav010

If the seller has a bid of asking price, you are going to have to bid above that. A bid equal to, or below what has already been offered will not be considered unless you are a cash buyer.

Sleeper12

I have bid below & above the asking price when making first bid. All properties are different & people bid in different ways

omicron

I bid asking price straight away when viewing 6 months ago, the seller was obviously looking for the first offer of asking from a buyer not in a chain as they immediately (same day) accepted it despite there being other interested parties, so sometimes it might be worth not trying to start low or drag out the process.

Of course on several other houses I viewed I did similar and they subsequently went 30-50k over asking so really just got lucky!

Ace2007

Dav010 wrote: »

If the seller has a bid of asking price, you are going to have to bid above that. A bid equal to, or below what has already been offered will not be considered unless you are a cash buyer.

What the EA's position on it though, does he have to record the bid if under/equal? Anything could happen with the first "bidder" and so having an equal bid on table is option. Also the seller can choose who to sell the house to and why etc.

Some sellers may be sympathetic if your a young family, likewise some may take below asking price if your a cash buyer, or equally if your willing to pay a non refundable deposit - this might make you more appealing then the current highest bidder.

Backstreet Moyes

Not a cash buyer and I can afford to go a little over the asking price, I was just unsure if bidding the asking price as a first offer means I am guaranteeing going above asking price.

It sounds like I should match the asking price and see what happens after that.

I have a few more viewings but this is my first time making an offer so just was really unsure on how it works.

Thanks for the advice!

Dav010

Nuts102 wrote: »

Not a cash buyer and I can afford to go a little over the asking price, I was just unsure if bidding the asking price as a first offer means I am guaranteeing going above asking price.

It sounds like I should match the asking price and see what happens after that.

I have a few more viewings but this is my first time making an offer so just was really unsure on how it works.

Thanks for the advice!

The fact that asking has already been offered pretty much guarantees you are going to have to bid above asking if you are not a cash buyer.

Kurooi

Consider the asking price a guide more than a rule. I see estate agents routinely play strategies some will try to start low - grab maximum interest and number of bidders to get a war going, some go in high - look for that special buyer and make them feel like they got a deal. I've shopped around Dublin anyway and your situation of someone coming in at asking price within a night of viewings is not uncommon.

Don't be afraid to bid under. Or simply hold off your better bids until later - let the interest and bidding cool, chat more with the EA , find out how many bidders there are.

The_Conductor

You're not a cash buyer, by your own admission- and there is already a bit of asking on the property.
It would be helpful if you could determine from the estate agent the position the other party bidding on the property are in- for example, if they are a cash buyer- you would be best advised to walk away.

Being a cash buyer is worth a premium for sellers and estate agents, given the staggering number of sales in chains that are delayed or fall through in their entirety.

I'm really sorry- but you're in difficult position versus other prospective buyers from the get-go, by virtue of the fact that you're in a chain. You need to appreciate that this position has you on the back foot- and it would take an offer significantly in excess of an offer from a cash buyer to make you any way attractive to a seller or an estate agent.

catrionanic

We bid 5k over asking on our first bid on our current house. We were in a rush to buy as had our own house sold and under pressure to move, plus we had a baby due soon. The 5k over brought it up to a round number. There was a bid 10k below asking on the house already. Having been in multiple bidding wars and lost out on three other properties, we just wanted to give them a good offer on the condition they accepted and moved on quickly... which they did.