Bidding Strategy - how to proceed

T

thejuggler

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Some advice please
Property asking price 400k
3 bed semi Cork City centre with planning permission for extension
On market for about a month.
Agent says there is offer of 362k

How should I proceed?
 
Bid with one thing in mind - don't leave yourself in a position where you might end up later bidding for a figure greater than whatever you feel the property is reasonably worth. Unless you have a specific reason to buy that exact house over another similar one (or plenty of excess cash), there's no reason why you should pay any more than what you believe is it's fair value.
 
I have been looking to buy. My strategy when agents (invariably) tell me that is to say I am not interested in an auction. There just isn't the need at the moment as there are 10 houses for sale for every buyer.

Note that in over half the cases the agent has returned to me at a later date asking if I am still interested as the property is still available.

My advice is think if you really, really, really do need to compete with someone else to buy.
 
Camry, you are so right. My experiences show the same thing. EAs are still trying to kick off auctions even in some cases with phanthom offers.

I have said sorry not interested, 10 more houses on the same street. All have come to back to me as well.

If you really want the house then say 365k off the market immediately no further viewings as see how serious the EA is.

Otherwise tell them what you want to pay and say 'give me a bell if the 362k falls through and thanks for your help'.
 
What kind of buyer are you, if you are not in a chain, that strengthens your position now and you should stress that to the EA. Accept EAs love things to go to auctions, but they also want properties off their books as fast as they can to get their slice
 
Also feel free to go direct to the sellers and say you have made an offer and you wanted to check if there really is a another offer on the table. Nothing illegal or wrong about both parties making sure the EA isnt screwing the pooch.
 
EAs are still trying to kick off auctions even in some cases with phanthom offers.
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What would you propose the EA do tell the other interested party that as its currently a slow market I cannot accept your bids because I don't want to start an auction here? Do people really believe that every house will have a max of one bidder on it and that if you have someone bidding against you they don't actually exist?

Nothing illegal or wrong about both parties making sure the EA isnt screwing the pooch.
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One small problem is that the vendor is employing the EA so that they don't have to deal with purchasers personally so they might not be too appreciative of a potential purchaser arriving on their doorstep uninvited.
 
Quote:
EAs are still trying to kick off auctions even in some cases with phanthom offers.

This is a strong statement - I had a friend selling a house about a month ago. The house was up for sale for about 2 weeks had about 15 different parties viewing it, with 4 bidding on it. Certain houses in certain areas - when priced sensibly can attract more than one bidder!
 
Folks while my statements are strong as a buyer in this market people need to be aware that these things happen.

While it may be unorthodox to approach a seller directly they will appreciate someone who is genuinely interested in their house but feels that the EA representing the seller may not be as professional as any seller would like.

Lets not pretend EAs are above lying. I am not saying all are!!!

Its a fact of life that people lie to sell things and make money and people need to understand this, thats all I am saying.

Totally agree with Peeete that a sensibly priced house can generate a lot of interest.

Not sure why people are greeting my comments with such shock.
 
Have viewed house yesterday Think it is worth about 365k but for moment am planning to match offer of 362k
 
slinky said:
While it may be unorthodox to approach a seller directly they will appreciate someone who is genuinely interested in their house but feels that the EA representing the seller may not be as professional as any seller would like.
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I know quite a few vendors who do not want direct approaches from any buyers.

I don't see where the EA has been unprofessional here.
 
Its a fact of life that people lie to sell things and make money and people need to understand this, thats all I am saying.
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As do people buying houses thats one of the reasons that vendors like EA's to deal directly with all would be purchasers.

Not sure why people are greeting my comments with such shock.
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I don't think its shock its just that people may actually be getting fed up with the same tired statements such as don't trust an EA, they are all liars, yadda yadda yadda.
 
Quick update.
Made offer of 350k in the end to be told that someone had made offer of 390k just this morning. Its amazing how someone is so keen they will better a bid of 362k by 28k. The phantom bidder must really want the house.
 
Seems a bit risky to take such a high jump if there wasn't actually somebody there to make a bid to back it up.
 
But is it not really simple?

You like the house, you have a view of how much it is worth, you've made your offer, you've been told that there is a very substantially higher bid in ( possibly because the house does represent value to a purchaser) , you walk away.

You can always say that should that high bid not complete, that they can revert to you but that you are actively looking at other properties.

I really don't get the whole " all EA's are crap and liars to boot" crap.

mf
 
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