Is there such a thing as too low a bid?

My wife and I have been looking for a house for 9 months, and are about to put in a bid.

I'm fairly clueless about the whole business (FTB) and am quite intimidated about bidding and about the prospect of telling the estate agent what my bid is.

Before getting to my question, I'd suggest people looking for basic advice on how to approach the bidding process should read this post in another thread - http://www.askaboutmoney.com/showpost.php?p=784934&postcount=11

My specific scenario.... I'm steeling myself to make an offer of 19% below asking (which puts the overall amount below asking into 6 figures) on a house which is already priced below other houses on the same estate. There are cheaper houses in the estate but they are in worse shape, hence we're not bidding on them - yet.

I don't expect to buy the house with this offer - we are prepared to go to about 11% below asking.

My concern is whether we just look like complete chancers with our first offer and the agent or seller don't treat us seriously....

I imagine lots of you will tell me not to be silly and that in this market, any offer will be treated seriously... but just wondering if there's anyone out there who's been on the seller/agent side of the deal and thinks that very low offers are simply not worth making and we should pitch this first offer somewhat closer to our walkaway value.

All opinions welcome!

Another note - this house is very new to the market.... < 2 months

I've put in a few very low and unsuccesful bids, the agents have been pleasent enough but i allways get the feeling that they wish it was 2006 and could laugh at me and tell me not to darken their door again.
19% under sounds fine as a starting bid, leaves you lots of room before you get to your 11%. Sadie's post is class for the likes of us.

Might be easier on you to bid on a few houses at the same time.

I would say a better idea would be to view another similar house on the same EA's books, put in a low ball offer, say 30% less than asking. Seen this isn't the house you want, you wont be as nervous when putting in the offer, when it's refused, just say to the EA 'well that all i think its worth and i'm not paying more than i think its worth'. Then view the house you want, put in a more realistic offer, maybe 10% less than you would pay. If thats refused go to 5% less than you would pay etc.

This will get you used to dealing with the EA, but it will also show the EA that you will walk away if you dont get the price you want, its alot about mind games and showing that you wont be influenced by what s/he says. They want to sell it more than you want to buy it.

No there is no such thing as too low a bid. Just put in your bid, the attitude of the estate agent is not important and don't worry about it in any case. Best of luck.

I was told in no uncertain terms by an EA that she wouldn't be "entertaining any silly bids". I said 'fine' and moved on. Given that some houses in the same area have been on the market over a year, I will leave her to it....

I think that a bid below say 40 or even 50% would be the starting point, if it is a second home that is being sold. Of course this would not apply if it was the sellers main residents.

Many people in Ireland have second homes and may want to sell them to pay back the lender.

Made the 19% below asking offer to the EA this morning.

They were perfectly polite - just said they thought it would be too far off the asking for the buyer to accept, but they'd put it to them and let me know what their response was.

Thanks for all the replies from previous posters on the thread.

Note - it's not a second home. I don't know for sure but am fairly definite it's been a family home for 10-20 years at least. I'm guessing now they're getting rid / downsizing.

grudgehugger said:

Made the 19% below asking offer to the EA this morning.
They were perfectly polite - just said they thought it would be too far off the asking for the buyer to accept, but they'd put it to them and let me know what their response was.
Thanks for all the replies from previous posters on the thread.

Click to expand...

Fair play to ya, just sit tight now, follow Sadie's advice and wait a few weeks. It'll allow you time to mull over it aswell.

I put in a similarily low bid a few weeks ago, 25% below original price, 19% below the recently reduced asking price. I was thinking i'd return after two weeks and raise it a bit but after thinking it over im not going to as i reckon the bid was in fact fair, the EA knows where i am if he wants to sell it.

Read a very good guideline on a post here - you should be mortally embarrassed by the offer you put in. If you're not then ashamed, then you're offering too much. I reckon knock 33% off the asking price and be prepared to play chicken. Check out [broken link removed] for a list of asking price drops on daft.

Best of luch

Hi there,
I too am a ftb and recently decided to put an offer on a house. The house was priced at €365 in 2007 and was being advertised for €325.
I watched the property on another website for a few months and decided to put in an offer of €250. The auctioneer didn't laugh me off the phone!! I was surprised but very glad that i made that offer. They tried to get me to €265 and i said €250 was my only offer, they said he probably wouldn't accept that. I said ok, I will leave it. They rang 10 days later and it was accepted.
So look at Sadie's article.
Goodluck.

Grudge sorry but do you mind me asking what part of teh country this house is in, i.e. in Dublin or elsewhere? I like the response about if you dont feel ashamed youre offering too much