About to bid on a house

jimbling

Myself and two of my friends are trying to buy a house. We have found one that we really like and think is excellent value.

There is currently a bid on the house of €385,000. Our absolute maximum is 400,000... and we really don't want to go that high either.

I don't really know anything about bidding wars.. so am just looking for some advice on how to approach it... should we put in a small bid and see what happens, or should we throw in a big bid (maybe 5/6 over) and try and blow them completely out of the market...

any advice at all really.....

NotInventedHere

Information is key. What is the vendor looking for? Why are they selling, HAve they bid on another property. Who are your rivals. Are they investors, trading up or first time buyers. eg people trading will have some money behind them but many will have to sell their own property

More info please?

homeOwner

I'm in a similar situation....but its first time for me bidding too. Offer a few grand higher and see if the other person comes back. I wouldn't go bidding your max or you might end up paying more for it than you could have gotten away with. But then again I have no experience of these things.....

jimbling

NotInventedHere wrote:

Information is key. What is the vendor looking for? Why are they selling, HAve they bid on another property. Who are your rivals. Are they investors, trading up or first time buyers. eg people trading will have some money behind them but many will have to sell their own property

More info please?

It has been on the market for a month and a half.... and the current bid is the asking price. The auctioneer told me the sellers are happy with that and just want to wrap it up now... Id say they need the money for their new house.

There is another guy looking at the house tomorrow I think. And they have an add in the paper this week, so basically they are letting that run and accepting the bid.

they must be in a fair rush, as if they waited until end of sept / oct they would get another €15000 for it easy......

jimbling

homeOwner wrote:

I'm in a similar situation....but its first time for me bidding too. Offer a few grand higher and see if the other person comes back. I wouldn't go bidding your max or you might end up paying more for it than you could have gotten away with. But then again I have no experience of these things.....

ya... i was thinking along those lines alright... put in a bid of €387,000 and see what happens...

rummy

If you can show that you are chain free (not dependent on selling your own house or anything). If you have your mortgage approved by the bank this can act in your favour.

I would go an additional 1000 with the above statements as these are strong points in your favour. The other person might not be chain free or got their mortgage approved. If they are in a hurry to sell you can show that you can close quicker.

When I sold my house I had a higher bid from a couple who were in a chain and I took the offer which was a couple of quid less because the guy was a first-time buyer.

Hope all goes well.

jimbling

rummy wrote:

If you can show that you are chain free (not dependent on selling your own house or anything). If you have your mortgage approved by the bank this can act in your favour.

I would go an additional 1000 with the above statements as these are strong points in your favour. The other person might not be chain free or got their mortgage approved. If they are in a hurry to sell you can show that you can close quicker.

When I sold my house I had a higher bid from a couple who were in a chain and I took the offer which was a couple of quid less because the guy was a first-time buyer.

Hope all goes well.

ya... I havent a clue what the other bidders situation is obviously... but I am not chain free.... but I also do not have the mortgage approved yet. Actaully only sending it off today. One of the guys I am buying with works in the bank, so we are getting it through this staff system that should be quick enough.. about a week or so.

Anyhow.. I think I will just put in a bid of €387,000 this afternoon and see what happens....

homeOwner

If you really want the place, get your mortgage offer sorted asap with the bank and once you produce it insist they mark the property sale agreed. I have been outbid waiting for mine when I was the only bidder for 2 weeks. Should have been done and dusted by now but I cant afford to bid higher than the other person.

Good luck.

jimbling

well due to advice from an auctioneer (a friend of ours) we put in a bid of 390,000... so now its the waiting game... lets hope for the best...

jimbling

just got the news that the other bidder put in a bid of 391,000.....

now is it just me or does that seem desperate???

we made a 5k jump and he comes over the top with a 1k jump...


my thinking would be for us to go up to 395,000.... I'm sure this will blow him out of the water....

any other ideas or imput???

lomb

jimbling wrote:

just got the news that the other bidder put in a bid of 391,000.....

now is it just me or does that seem desperate???

we made a 5k jump and he comes over the top with a 1k jump...


my thinking would be for us to go up to 395,000.... I'm sure this will blow him out of the water....

any other ideas or imput???

if u want it keep bidding....hold your nerve.

jimbling

lomb wrote:

if u want it keep bidding....hold your nerve.

what do you mean??

Victor

jimbling wrote:

my thinking would be for us to go up to 395,000.... I'm sure this will blow him out of the water....

No, you should bid incrementally, seeing as you are so near your limit. It is quite possible they are also near their limit.

jimbling

Victor wrote:

No, you should bid incrementally, seeing as you are so near your limit. It is quite possible they are also near their limit.

but wouldn't the follow up bid up to 395000 show that we're really pushing and that for each one he goes we'll go round up etc...

if we only put a bid of another 1000 then we are telling him we are close to our limit as well... and might entice him a bit more

????