Thoughts on best way to bid for a house I really want?

C3PO

After 7 months of travelling the country viewing houses and two abandoned "agreed" purchases (boundary issues and poor survey) I have a found a nice little house that I would really love to buy! The asking price is reasonable but I would be fairly sure that it will go for more. I can afford (and would be willing) to pay about 10% more than that. Should I just bid the asking price and then increase my bids as required until I either get the house or it goes over my budget or is there any benefit in bidding more than asking or even bidding my maximum from the start? I know there is no science in this but I would be interested in peoples opinions. I have the small advantage of being a cash buyer.

El Gato De Negocios

Are there any existing bids that you are aware of? I'd suggest go in with 10% less than list price if there are no current bids. Having a 20% swing available in your back pocket could be advantageous. If you go to your ceiling straightaway that could tempt the seller into thinking its more desirable than it may actually be.

C3PO

https://www.boards.ie/discussion/comment/120666512#Comment_120666512

Thanks for the reply. House only appeared on the market over the last couple of days so no bids as far as I know. I had a good chat with the EA and I very much got the sense that the vendor will not entertain bids under asking and expects to achieve a bit more than that.

herbalplants

Offer asking price. Increase your bid only if there is another offer.

arctictree

https://www.boards.ie/discussion/comment/120666582#Comment_120666582

There is always another offer .... until ... the EA rings you and says that the other bidder has decided that they dont want the property and its yours at your last bid.

o1s1n

https://www.boards.ie/discussion/comment/120666694#Comment_120666694

You have any proof of this or is it just paranoid codswallop?

OP - if you know they won't go under asking from what you've been told and it's a new enough listing (is it in a desirable area?) I'd probably just go in at asking tbh.

They might come back with a counter a bit over asking.

denismc

I would emphasize that you are a cash buyer, that might sway things in your favour if there is another bidder that doesn't have all their finances in order.

arctictree

https://www.boards.ie/discussion/comment/120666728#Comment_120666728

Of course I have no proof but it happened to me 3 times, on the only 3 properties I ever bid on.

newmember2

https://www.boards.ie/discussion/comment/120666582#Comment_120666582

Why would you offer asking price...with no other offers on the table??

OP let the property go through its first viewing and see if there any offers and take it from there. If there are no offers then asking is too high, so offer less, regardless of what the vendor thought originally. If there is interest in and offers made on the property, then see what you're willing to pay and see if you can purchase within that limit.

Dav010

https://www.boards.ie/discussion/comment/120666694#Comment_120666694

You missed the bit in the opening post where the op has abandoned agreed purchases, didn’t you?

It happens.

arctictree

https://www.boards.ie/discussion/comment/120667039#Comment_120667039

No I didnt miss it. In my case the EAs came back a couple of days later. Hardly enough time for surveys and boundary issues to be raised. But then maybe I am paranoid and all EAs are telling the truth all the time.

robbiezero

https://www.boards.ie/discussion/comment/120666694#Comment_120666694

I know the EA often gets blamed in this sort of scenario, but lets say the vendor has a mate with AIP in the last say 3 years, is there anything to stop vendor arranging with the mate to make a few phony bids?

1percent

If the indications are the vendor won't accept bids under asking go in at 5% below rather than 10%, let them reject the offer. It is all well and good saying they won't accept low offers but a very diferant story when they have to turn down money on the table. If other bids come in counter bid as the need arises. If no bids come in then go to the agent and ask what price the vendor will accept , when you get this number if it is agreeable offer it on condition it is taken off the market there and then.

nachouser

https://www.boards.ie/discussion/2058298780/thoughts-on-best-way-to-bid-for-a-house-i-really-want

I was in similar situation buying my house. I could afford to pay about 10% over asking. I bid the asking price and then the incremental offer increases started coming in from the agent. After a few days of this, I rang the agent and said here's my max bid, I can't afford to go any higher. It was accepted the next day.

If you really want the house, there's no harm in trying to secure it by offering your max and walking away if it's not accepted. Is it possible I overpaid a bit, sure, but it was years ago so it's pretty irrelevant at this stage - to me, anyway.

Good luck with it, glad I'll never have to buy another house again:-)

pantelas2002

Hi people, I was going to open a new thread, but feel my question could also fit in here.

We're currently at the end of a bidding war for a house we really want, price already almost 10% higher than asking price, and it's been back and forth for almost 3 weeks now.

The auctioneer just let us know that as this has been dragging for too long, they are looking to set a deadline for 11 am tomorrow. We're currently the highest bidders.

My question: Is that an expectation that we put our best foot forward by 11 and that there will be no opportunity to outbid after 11 if we're not the highest bidders? Any ideas?

pantelas2002

Hi people, I was going to open a new thread, but feel my question could also fit in here.

We're currently at the end of a bidding war for a house we really want, price already almost 10% higher than asking price, and it's been back and forth for almost 3 weeks now.

The auctioneer just let us know that as this has been dragging for too long, they are looking to set a deadline for 11 am tomorrow. We're currently the highest bidders.

My question: Is that an expectation that we put our best foot forward by 11 and that there will be no opportunity to outbid after 11 if we're not the highest bidders? Any ideas?

herbalplants

https://www.boards.ie/discussion/comment/120667022#Comment_120667022

I so agree with you! But the poster said" had a good chat with the EA and I very much got the sense that the vendor will not entertain bids under asking and expects"

Sorry didn't copy the whole phrase.

herbalplants

https://www.boards.ie/discussion/comment/120667093#Comment_120667093

No chance in hell, EAs tell the truth and they are honest. Yes on every house, they seem to have an offer already 🤣

herbalplants

https://www.boards.ie/discussion/comment/120667308#Comment_120667308

First congrats for lasting 3 weeks of bidding, that is not for the faint heart. Second, you are the high bidder, I would not put a higher bid if I was you by 11 am tomorrow. To me it sounds like he may want to squeeze more money out of you.

C3PO

Thanks for all the helpful replies.

To the “anti EA” brigade I would say that in the last 8-9 months, between selling a house and trying to buy, I have dealt with at least 10-15 estate agents. Some were fantastic, some not so much, but I never had any sense that any of them were inventing bids or trying anything underhand.

Furze99

It's dog eat dog out there in the property world - a most unpleasant experience.

Del2005

https://www.boards.ie/discussion/comment/120667554#Comment_120667554

The EA makes very little from a property going 10% or 20% overestimated value. The owner makes a lot of money and as @robbiezero said it's easy for a vendor to get someone to bid, getting AIP is easy and nothing is final till contacts are exchanged.

o1s1n

https://www.boards.ie/discussion/comment/120666964#Comment_120666964

Three times is low enough for it to genuinely have been a situation where the bidders decided to go with other houses instead.

I've bid on a lot more than three properties and there have been multiple times I've dropped out of bidding on one place to pursue another. It's more common than you think without it being nefarious actions from estate agents.

DownByTheGarden

If you were sitting in the house next year and you had paid 20% over asking would it bother you?

We were like you with a lot of failed bids and then we decided to up our bid by what we thought the property would be worth in a couple of years. It drove all the other bidders away and made the vendor bite and take the property off the market.

Here we are now, very happy with what we paid for it.

The only thing that would make you feel bad is if there was a huge crash. But even then you are still in your house that you wanted. You are not in the renting nightmare. And no bank is ever going to get a repossession in this country off anyone even attempting to pay the mortgage.

3DataModem

https://www.boards.ie/discussion/2058298780/thoughts-on-best-way-to-bid-for-a-house-i-really-want

In my opinion and experience, there is value in going in with a strong bid, but you need to basically say "I'm looking at other places, so I've bid strong to take the place off the market. I am a cash buyer and can show availability of funds, and therefore sign contracts and close quickly if needed. Please get back to me soonest with a response from vendors."

I've seen that approach work a few times.

herbalplants

I am glad there are posters who believe in the honesty of EAs. At the end of the day, they have to earn a bread, having hardly any skills.

Dav010

https://www.boards.ie/discussion/comment/120670263#Comment_120670263

Selling is a skill in commerce, it just isn’t always appreciated by those who don’t see it.

Tomw86

Go in at asking - which would be a strong opening bid - and as advised tell them you're a cash buyer but you are also considering a bid on another property which would be 2nd choice.

In addition set the EA a deadline with which to accept the offer or you'll go elsewhere (whether you do or not is up to you).

Dav010

https://www.boards.ie/discussion/comment/120688164#Comment_120688164

You kinda have to go elsewhere if you time limit a bid, that’s the whole point of the limit, it’s a one time thing unless you want to look clueless.

The EA drives up the price of a property by creating competition and getting you to bid against others, its important not to get too excited. I find that if you go look at other properties in the area before hand that are going for similar money and let the EA know you are interested in a different property when you view the property you are interested in it often cuts out some of the messing that goes on. Its important to know what the maximum you are prepared to bid is and walk away once you reach it. Once you reach your maximum let the EA know its your final bid.

C3PO

Well as suggested I started at asking, but as has been my experience with most of the houses I’ve been trying to buy, in less than a week we are now at 10% above the asking price. I made what will be my final bid today and I am currently highest bidder but expect to get outbid tomorrow!