Strategy for bidding below asking price

There are considerable legal differences between selling at auction and Private Treaty sales, if what you propose was applied to Private Treaty sales, the seller could just pick a random number of hundreds of thousands over the realistic asking price, and advertise that as the minimum price. Every seller and buyer would still know that as the market sets the selling price, the asking price/advertised minimum selling price would be completely irrelevant, just as the guide price is when advertised.

Similar situation. Have bid 5 to 10 per cent under asking on three different houses now. None accepted but all have come back and named the actual (below asking) price they're currently willing to accept.

I'm hoping that by letting them sit, one of the vendors will end up accepting or at least further lower their "willing to accept".

Might also backfire spectacularly should more bidders get involved but will keep you posted!

And you got what you deserved.

Meh, when you take the risk, there can be good or bad consequences, it’s no biggy to say you deserve what you get when you take that risk, it’s your decision.

The buyer was willing to sell below asking, the poster was willing to pay it but decided to in his own words be “stubborn”, even though the seller told him they would not sell at the lower offer. In the end the seller got 25k more than what it was offered at to the poster and he was “gutted” to miss out on a house he loved. All’s fair in love and house buying, but considering the difficulty in buying a home in Dublin, and the fact that the poster didn’t say he couldn’t afford it/didn’t think the house was worth it, his “strategy” cost him the house he loved.

That’s the thing, circumstances didn’t work against him, he was offered the house 10k below asking, he was willing to pay it, but stubbornness meant he wouldn’t, until it was too late and the opportunity was missed. Prices have been surging in Dublin for years, and you have no basis for thinking he would have got the house for 30k below asking having already been told that the bid would not be accepted. This isn’t a case of bad luck.

You could get your house at 30k below, or miss out on the house you love, whichever it is, you deserve what you get, it’s your decision.

Your game is not yet the same, your vendor hasn’t come to you yet and said they will accept a bid of €10k below asking, you haven’t yet said you are willing to pay it, but you are stubborn and want to take a chance in holding out. Your strategy could work, but if your game follows the same line as the other poster’s, I’ll say the same to you, you got what your strategy deserved:

Obviously if the poster missed out on the house he “loved” and is “gutted” even though he was willing to pay the price, but wouldn’t due to stubbornness, he is now looking back thinking he did something wrong, he didn’t take the opportunity that presented itself. I dont know if he bought since, if he hasn’t , depending on if he is renting, that’s an extra year of rent, higher house prices and higher mortgage rates.

My vendor has effectively said the same thing - they are holding out for asking, meaning they will accept a bid of the ask. You're stating the obvious when stating that you get the outcome of your decisions - which could be overpaying or underpaying or walking away. It doesn't add anything to the discussion.

Basically what 3 data said above,

I'm surprised the estate agent hasn't gotten back to you ,

If you think your up for it, basically make a "final offer " with a time deadline .. as in - if it's sale agreed by Monday ( or whenever ) then this is what we'll offer , if not we're out ..

OP, sit tight and wait for the call from the EA, give them until Friday and follow up only asking if any update on your current offer. If the EA says the bid was rejected, tell them you think about a new bid and need the weekend to think it over and call again either Tuesday or Wednesday with a new and final offer but remember, you have a budget, and you need to stick to it.

I think that it's important not to conflate an auction with the bidding wars that we see today. In an auction, a bid is binding. In a bidding war, an offer is often just a number, and many agents don't even bother asking for proof of funding before accepting an offer.

Also, there are other factors that come into play in a bidding war. For example, if two people want a house, they will keep bidding out of a desire to not let the other person win. On my mother's road, a house sold for 630k last year when every other house on the road is valued (and selling for) around 500-550k. Many sales also fall through once the buyer sobers up and realises that he/she has well overpaid for the property. This happened recently to a house across the road that was "sold" by that paragon of integrity Auctionera. It went 100k over the asking, and it's now back on the market with another agent.

In short, bidding wars are deleterious in many ways. There should be regulation to prevent them.

Your last sentence is not at all what I suggested.

Bid as low as you want and do not be embarrassed. For example I wouldn’t see any problem with chancing 300€. I bought an old house that needed ‘some’ work. It’s very difficult to appreciate how much you might need to invest in upgrading an old house. I placed significant underbids on 2 places while house hunting and the EA didn’t dismiss them outright. Also got into stupid bidding war on a completely overvalued house ( in good location) but thankfully bailed out.

Also don’t be afraid to be very assertive with EA and while I would always be respectful , by default having a ‘don’t trust them’ is a reasonable advice IMO

Delighted to hear that, best of luck with it, hope all goes well!

You should have started at £350 K to get it at £360K