Tips on bidding for a property (as its now a buyers market)???

Camry said:
Well, my repsonse is to immediately lower the offer, not a lot, but enough to test them out. If they do indeed have a lot of interest and I am "under the market" then fine, it means that isn't the place for me.

If the EA is playing games and there isn't loads of interest, he risks seeing a potential bidder moving out backwards.

So I would go the other way to Mr Mans suggestion.
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Thats good advise and something I will probably use.
 
My sentiments entirely, im a FTB offering a quick buy, my brother who's in the business reckons 70% is a good figure.
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I think some people tend to overcook the actual bonus of offering a quick buy. When that quick buy is at a deficit of 30% then it doesn't represent good value to the seller at all. We could all offer a quick buy if the cost wasn't an issue.


So I would go the other way to Mr Mans suggestion.
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I wouldn't take my suggestion is this case because it wasn't really a suggestion more a retort to the negotiation 101 theory put forward by bamboozle. In the OP's case the offer is realistic and its best to sit on it. Camrys suggestion of reducing your offer might be your choice in this case, I wouldn't recommend it but I can see the validity in this course of action.
 
If anything the EA’s silly tactic made my mind up that I wont be bidding again on that property, as I’m interested in 2 other property’s the EA has on his books, I will look at them and if I’m keen I’ll approach him in the same manner, at least this way he’ll know I will not be bullied/embarrassed into raising my bids above what I consider to be correct.

I’m afraid that some EA’s have not had to work to hard in recent years to move property’s and as such their attitude & personal skills stink!
 
If anything the EA’s silly tactic made my mind up that I wont be bidding again on that property, as I’m interested in 2 other property’s the EA has on his books, I will look at them and if I’m keen I’ll approach him in the same manner, at least this way he’ll know I will not be bullied/embarrassed into raising my bids above what I consider to be correct.

I’m afraid that some EA’s have not had to work to hard in recent years to move property’s and as such their attitude & personal skills stink!
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Some EA's are poor at their jobs irrespective of the way the market is, same goes for all professions unfortunately.
 
Doesn't make sense to 'punish' an EA or vendor for not doing what you want.

That is a prime example of letting emotion take over the decision-making process.

The EA was rude - big deal.

Buy it if you want it and the price makes sense. End of.
 
Fair point Camry.

I was just making an observation, because, reading between the lines, I think it would be tempting for the OP to try to punish the EA or vendor because his offer was rejected out of hand.

But I may well be reading too much into it, and if so, then I retract the remark insofar as it might apply to the OP.
 
Eamonn, I fully appreciate the role the EA is playing but like I said above I’m not going to be bullied or embarrassed into bidding above what I consider is a fair and reasonable offer.
 
Eamonn, I fully appreciate the role the EA is playing but like I said above I’m not going to be bullied or embarrassed into bidding above what I consider is a fair and reasonable offer.
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I think the point is that you are letting his treatment of you alter your decision on purchasing the house. If this was the house that you wanted then you shouldn't let things like this get to you. Fair enough don't be bullied but why pull out altogether?
 
MrMan said:
I think the point is that you are letting his treatment of you alter your decision on purchasing the house. If this was the house that you wanted then you shouldn't let things like this get to you. Fair enough don't be bullied but why pull out altogether?
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Exactly, There should be no sentiment in business, The EA is playing a game with youy and you can't win the game if you refuse to play!!
 
bamboozle said:
Thanks for the tips, just to clarify matters, the property I had bidded on was an apt in a very nice Dublin suburb, 505k was the guide, 445k was my bid, I explained to EA that I was basing my bid on 2 factors, firstly there were 2 other (very similar) apartments in the complex guided at 465k and secondly if I was going to spend more than 445k I would only be interested in buying a house. I was very clear I didn’t see any value above 445k

Just to clarify matters, i had never intended increasing my offer so the EA's attitude had no bearing on my decision.
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hmmm 70% off prices that are probably already down 20% over the last 18 months makes for a large drop from the sellers viewpoint. There's a difference between picking up whatever property happens to drop the most and a property that you want. If you can tick both boxes though good for you but you might be waiting...
 
what most posters seem to be missing is that you can bid what you want but if the seller is in no rush, then all the tricks in the trade won't work and ultimately will weaken your bid in the long term
 
johnnyg said:
what most posters seem to be missing is that you can bid what you want but if the seller is in no rush, then all the tricks in the trade won't work and ultimately will weaken your bid in the long term
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Very true, but there are so many properties on the market that those that don't accept a deal will just sit there. Until the over hang of unsold properties drops buyers can continue to bid very low without risking a whole lot
 
robd said:
This is a standard negotiation tactic. It's called revulsion or surprise or shock. It throws the ball back in you court giving the EA the upper hand as you now have to make the next move. The very fact that you're left wondering what to do now, proves that the tactic is quite successful from the EA's perspective. The trick to deal with this situation, is to stick to your guns. Say you feel that it's a fare offer (without being insulting) in the current market and that you are unable to up it due to restrictions on what you can borrow. State your positives, such as you don't have a house to sell (i.e. not in a chain), you're mortgage approved etc. Request that offer be put to client and leave it at that. If the EA still doesn't play ball then there's not much you can do, other than trying to drop a note in the door directly to the seller.
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I'd very much agree with that: such tactics are just that (amateurish) games to try and force the pressure back to you.

Stick to your guns (I wouldn't say anything about your capacity to pay more or not), and ask them to come back with a revised price.
 
eamonn123456 said:
Quote:
Originally Posted by ang1170 http://www.askaboutmoney.com/showthread.php?p=593920#post593920
Bid what you think it's worth and what you can afford to pay.

IMO it's better to bid under what you are prepared to pay. It's also the most common thing to do, so whatever your first bid, they will look for and indeed expect at least a bit more.
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I'd agree with you: I didn't actually say to bid what you're prepared to pay as an initial bid. Bid (as you suggest on the low side) of what you think it's worth, based on some reasoned criteria (in particular the price similar prperties are selling for). That way, you have some basis for negotiation. The "what you can afford to pay" is more a sanity check to ensure you don't bid beyond your means.
 
Let the EA know that the offer is on the table for a fixed period (2 or 3 months say) and say that is your final offer as you feel prices will be dropping in the future/other properties available and that you think its a realistic offer for the current climate.

If no joy and you are not fixed on that exact property then I would say move on - plenty of options out there unless you feel this property is "the dream one" (you say its for investment so probably not!)

But don't forget - whatever the EA says the client may not want to sell at that price :) (not everyone is desperate to sell) but agree the EA should at least pass on the offer to the client.
 
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