Bidding on 2 (or more) properties at once

[armelodie]

Hi
Bid accepted for 1st property (putting a refundable deposit down on tuesday nxt week)
Viewed a very similar property this week and thinking of bidding lower than Property1.

Q1 Are there any legal implications to consider e.g. when does the offering process become legally binding?

Q2 Does it change anything from the banks point of view ?

Q3 Can you bid on as many properties as you like (assuming you have enough for refundable booking deposits!!) without any hassles.

Q4 Would you let the EA/seller know that you have other bids on other houses to get them to move quicker to accept offer earlier.

Q5 Would a surveyor give a discount for hiring them twice?

Alot of questions, but would also just appreciate any other insights on people whove done multiple bidding,

Thanks

 

[extopia]

Q1 Are there any legal implications to consider e.g. when does the offering process become legally binding?

When you've signed the contract to buy.

Q2 Does it change anything from the banks point of view ?

Don't see why it should, as long as you're only looking for one mortgage.

Q3 Can you bid on as many properties as you like (assuming you have enough for refundable booking deposits!!) without any hassles.

Theoretically, yes. But you'd soon become known as a nuisance if you repeatedly pull out of a sale agreed.

Q4 Would you let the EA/seller know that you have other bids on other houses to get them to move quicker to accept offer earlier.

Sure, why not?

Q5 Would a surveyor give a discount for hiring them twice?

Maybe, but I doubt it.

 

[Vanilla]

Alot of questions, but would also just appreciate any other insights on people whove done multiple bidding,

While I accept that you are legally entitled to do this I personally consider it to be very bad form. There are real people trying to sell these houses who are going to be terribly disappointed when you pull out of a sale agreed. There are real people that you are bidding against who will be bid up on a property that you might not even want.

 

[Mr DT]

100% Rubbish. Bid on as many as you want and negoiate the best price you can. Remain professional and keep everyone informed in what you are doing.

They are real people, correct BUT they are living in a strong buyers market and need to get used to that quickly!!

I didn't hear any cries in the boom days of "They are real people who want to buy your house so don't get greedy make sure you take a fair price. Don't go with a bidding war!!"

 

[MrMan]

100% Rubbish. Bid on as many as you want and negoiate the best price you can. Remain professional and keep everyone informed in what you are doing.

They are real people, correct BUT they are living in a strong buyers market and need to get used to that quickly!!

I didn't hear any cries in the boom days of "They are real people who want to buy your house so don't get greedy make sure you take a fair price. Don't go with a bidding war!!"

Its funny you say that but I wonder how many of the other people who are getting their prices pushed up are blaming the EA and saying he is using a phanthom bidder. Why not just take it one house at a time and choose the one you actually want.

 

[LDFerguson]

Bid on as many as you want and negoiate the best price you can. Remain professional and keep everyone informed in what you are doing.

So are you advising that people should bid on properties but tell the estate agent when making a bid that they are also bidding somewhere else simultaneously?

 

[Mr DT]

Why not.

If you really like two+ houses, have finance in place, BUT untimately the "best" price (might not be the cheapest) would really win you over I would let the EA know this.

"look we are also bidding on another property which we really like BUT at €xxx we would have to go with this one. Are the seller interested or not?"

There is SO much choice out there at the moment, never seen so many houses for sale it great for the buyer!! A short list of properties must be a buying strategy.

The one you get the "best" price on would be the one you take?

 

[LDFerguson]

I guess that's fair enough if you are being up-front with all concerned, although I think if I was the vendor I'd be inclined to tell the estate agent to refuse your bid because I wouldn't want to be messed around by going sale agreed, only for you to pull out some months later having found another house.

On the other hand, it's easy for me to be so black-and-white as I'm not selling a house at the moment. Maybe if I was desperate and under pressure I'd think differently.

 

[Welfarite]

There is a difference here, I think between "bidding" and putting a deposit down. The OP is asking for advice before they have put a deposit down which is fair. The bottom line is that anything can happen before the contract is signed and binding. Both the vendor and the buyer know this. Emotions and feelings don't come into it. It is a business transaction involving a lot of money.

 

[Mel]

I didn't hear any cries in the boom days of "They are real people who want to buy your house so don't get greedy make sure you take a fair price. Don't go with a bidding war!!"

Agree completely. Gone are the days when an agent wouldn't even be bothered returning your call, or the receptionist at the agents for a new development would sneer down the phone because the 200 houses were sold in ten minutes.

 

[MrMan]

I wouldn't say those days are gone, if an agent didn't call you back he was either bad at his job or considered you a waster and those two things wouldn't have changed. Regarding receptionists, I don't know what they had to sneer about but maybe you were just over sensitive because you had just missed out? And its not the EA's who are losing out through multi bids its the vendors.

Agree completely. Gone are the days when an agent wouldn't even be bothered returning your call, or the receptionist at the agents for a new development would sneer down the phone because the 200 houses were sold in ten minutes.

 

[GoldWings]

Has anyone been through the situation whereby they have pulled out of a sale agreed? How did this fare with the mortgage broker/bank?

 

[Vanilla]

I didn't hear any cries in the boom days of "They are real people who want to buy your house so don't get greedy make sure you take a fair price. Don't go with a bidding war!!"

That is not what I said. By all means everyone wants to get as much as possible for their house when selling and everyone wants to pay as little when buying.

As LDFerguson points out if you attempted to bid on a house, telling them that you were also bidding on another the most likely reaction would be that your bid would not be accepted. I would have no problem with this if people were honest about it, but doubt in most cases they would be.

The OP has actually had their bid accepted on a property and still wants to bid on another. Meanwhile the vendor of the house who has accepted their bid thinks their house is sold. It's just my opinion but I do not think this is good form.

 

[rmelly]

There is a difference here, I think between "bidding" and putting a deposit down. The OP is asking for advice before they have put a deposit down which is fair.

Not quite - he has agreed to put the deposit down, as such the bidding has ended - his bid has been accepted.

 

[GoldWings]

yes, but if property 2 came on the market AFTER the OP had placed a bid on property 1, and OP preferred property 2 (maybe it's better value).. then I think its a fair that one has the right to pull out of property 1 if nothing is signed. Sure, the vendor will be put out - but this is the way things happen, isn't it?

But I don't know how this works with banks etc.. once they have sent out a valuer and discussed rates etc with the buyer..... are the banks used to this kind of thing happening?

 

[rmelly]

I was clarifying what I took as welfarite misinterpreting the situation.

I didn't say he couldn't pull out - of course he can do whatever he wants, no contracts have been signed, as to whether it is 'fair' to the vendor is debatable.

Impact on the bank would be minimal in this example - he hasn't even paid the deposit yet, so he probably hasn't even given them the details of the property. Impact would depend on how far along the transaction got. Organising a valuer and discussing rates are minor enough considerations.

 

[Mr DT]

Meanwhile the vendor of the house who has accepted their bid thinks their house is sold. It's just my opinion but I do not think this is good form.

It just my opinion, but i wouldn't consider my house sold until the money was received and banked by my solicitor!!

 

[rmelly]

It just my opinion, but i wouldn't consider my house sold until the money was received and banked by my solicitor!!

Correct, but the vendor/EA stops actively trying to sell it at this point, otherwise they'd be accused of acting in bad faith.

How do you feel about gazumping & gazundering?

 

[Mr DT]

On the way up gazumping....on the way down gazundering.
I have now feelings it happened and it will continue to happen.

 

[rmelly]

I have now feelings it happened and it will continue to happen.

Is that 'no' or 'now'? The attitude that it's not a deal until money is exchanged encourages this behaviour (gazumping & gazundering) which many people consider repugnant. Exception to above is that survey results may be a pause for thought or issues with mortgage approval etc.