House bid process

C

chicc

Guest
Hi

My partner and I are planning on bidding on a house in the next few days. We're going to make a relatively low offer on the house and expect it to be rejected but are unsure what to do once it is. Do we wait a few days and then come back with an offer closer to what we would expect to pay or do we just wait it out until the EA comes back to us?

Any other time I have bid on a house there has always been a second bidder to it was always a simple choice between a higher bid or walking away.

Thanks, Aggie
 
chicc;1188297 Any other time I have bid on a house there has always been a second bidder to it was always a simple choice between a higher bid or walking away. Thanks said:
Don't worry. It will be no different this time. Despite the fact that the house may have been on the market for the last year, the auctioneer will tell you that a second bidder has just emerged.

So you will have to set your price and decide if that is what you want to bid.

Or tell the auctioneer that you are bidding on a second house at the same time and the first to accept your offer, gets to close.

Brendan
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agree with brendan - the only way to get rid of the mysterious second ghost bidder is to say you've an offer in on 2 houses.
 
Some advise please. We recently made an offer on a house. An under bid to an existing offer with the package that it was a cash offer. We expected a call back from EA. EA called a few days later to confirm Sale Agreed (deposit paid) as per the original offer. We contacted EA to convey we expected a call back, however the under bid just wasn't seen as serious. We had intended to go higher. There was a real lack of negotiation on this transaction. I think the seller and the prospective buyer (us) were not served here. Is there anyway back here or should we let go. Please note have been looking for years.
 
My advice would be to move on but if you were intent on the place
1) why not ring up and give a cash offer above the original and if you get it well and good but just walk away if you get asked to match a higher bid.
2) Sit tight and forget about it and call their bluff. You have shown an interest by ringing back so they may tug at you here also.
 
So you played it badly.

It was a bit presumptuous to bid lower than an existing bid and expect to be taken seriously.
 
Yes correct Padraigb - expected EA's to negotiate as we flush if other bid was real. A tall order to expect proffessional EA's to negotiate .. I didn't think so.
 
If I were the E/A I would have definitely come back to you to see if I could get a bit of heat in the negotiations,its not rocket science is it?

I have seen this again and again from E/As most of whom are frankly just lazy,they really aren't that bothered about making an extra 5-10k for their client as their commission remains roughly the same.

I think if I were ever to sell again I would do it myself.
 
Padraigb said:
So you played it badly.

It was a bit presumptuous to bid lower than an existing bid and expect to be taken seriously.
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I dont see how it was played badly, they underbid - but with the added extra that it would be a cash sale. In the current climate with banks not lending easily this could easily have swung the sellers. Also they didnt know the so called existing bid was a real bid.

Its the EA at fault for not negotiating.

Im inclined to agree with Elactos point 2 and add to it to keep an eye on the property to see if it really goes sale agreed and if it does, does it stay that way.
 
Thanks for the inputs.

Knuttel and truthseeker I take some "consolation" that you understand our bid theory and agree on the "weak" EA response. We'll be bypassing EAs where possible in future for buying/selling.
 
goldenrules said:
Thanks for the inputs.

Knuttel and truthseeker I take some "consolation" that you understand our bid theory and agree on the "weak" EA response. We'll be bypassing EAs where possible in future for buying/selling.
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Cannot say I blame you.Drop a letter to the owner with your bid and offer to bypass the E/A,for the most part they just seem to run interference between seller and buyer and you know what??its a simple well paid job and again and again speaking both from experience and second hand anecdotes they are just unbelievably useless and lazy.

I had to ring an E/A recently on 4 separate occasion,leaving 4 separate voice mails indicating i wanted to bid on the property before I eventually got him and I did not get a return call once...not once!!

I sale agreed on the property despite him,no help whatsoever,yet he will take a big commission for doing less than absolutely nothing.
 
Knuttell said:
I have seen this again and again from E/As most of whom are frankly just lazy,they really aren't that bothered about making an extra 5-10k for their client as their commission remains roughly the same.
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There is a way to incentivise the estate agent, I did it myself by saying it's x commission for y sale but if you achieve z I'll give you an extra 1K etc.

We used to have gazumping and another one with G, does what the OP did have a name?
 
Further advice please. Given we feel that the EA should have returned call, are we in any position to offer the owner a further bid?
 
Depends on the time frame,if this only happened in the last few days/week,then I would definitely put a letter together with a new bid,mention to your disappointment that the E/A never even bothered getting back to you and hand deliver it to the address and see what happens...you have nowt to lose.

If its for you it wont pass you by.


There is a way to incentivise the estate agent, I did it myself by saying it's x commission for y sale but if you achieve z I'll give you an extra 1K etc.
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Good thinking Bronte,definitely a good idea.
 
goldenrules said:
Yes correct Padraigb - expected EA's to negotiate as we flush if other bid was real. A tall order to expect proffessional EA's to negotiate .. I didn't think so.
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I'm puzzled - are you saying the EA didn't put your offer to the vendor?
 
goldenrules said:
Further advice please. Given we feel that the EA should have returned call, are we in any position to offer the owner a further bid?
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Ok, lets get things in perspective here, you put in an underoffer, the EA has no obligation to go back to you. The EA was left in the position of getting a confirmed sale through with someone who had been in the process for a while so they obviously had a developed line of communication or gamble on the person who came in looking for a bargain.
He would have gambled the vendors sale by going with you, because he would have lost the serious bidder for someone who was taking a punt on a lower price.
Forget all of the 'EAs make easy money for doing nothing' because EAs are now making no money and Vendors aren't exactly swimming in offers either.
 
Bronte said:
There is a way to incentivise the estate agent, I did it myself by saying it's x commission for y sale but if you achieve z I'll give you an extra 1K etc.

We used to have gazumping and another one with G, does what the OP did have a name?
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the funny thing is that many of the people that say EAs are gonna screw you for as much as possible (hence why everyone seems to think they are up against a ghost bidder) are the same oners who then tell the losing bidder that 'sure EAs don't care about your bid because it would only add a few hundred to their commission.

Damned if you do.......
 
Key to EA job is negotiation. An initial cash underbid was interpreted as a final bid with not a call back as requested. No negotiation took place. I rate this as poor performance. A call can take minutes of the form 'your cash offer is rejected, we're going sale agreed - any advance'. House on the market for weeks, not months. Not 'rocket science' as previously paraphrased. All about standards in my view.
 
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