A thought on buying a house

Trampas

If you are walking by a estate agent and you see them putting up a house x for asking price y.

You walk straight in and say I will buy that house for the asking price.

Of course the estate agent is going to say emm well but that we have other people who are interested and they have offer that price also.

Whats the situation with that??

Has not happened to me. It is just something i was thinking off.

Kinetic^

You start off with an asking price set by the seller.
Then you make a bid. Then usually someone else makes a bid. This continues till no bids are made and the highest bid wins.

No point in me going into further detail as you seem to have limited knowledge of this area. If you are buying, go to a broker as they will explain everything in simple terms for you.

kc66

Its up to the vendor. The estate agent should tell them about the offer and they can accept or not.
It happened me. Estate Agent showed me a house before it was advertised. The vendor wanted a quick sale and gave his price. I offered asking price but he decided to hold out for higher offer.

Trampas

kc66 wrote:

Its up to the vendor. The estate agent should tell them about the offer and they can accept or not.
It happened me. Estate Agent showed me a house before it was advertised. The vendor wanted a quick sale and gave his price. I offered asking price but he decided to hold out for higher offer.

Then whats the point in having an asking price then.

Borzoi

Trampas wrote:

Then whats the point in having an asking price then.

It's a guide really, nothing more

Omnipresence

yeah read : "preferred absolute minimum"

smashey

aloleary wrote:

yeah read : "preferred absolute minimum"

Preferred absoulute minimum ................ commission.

byte

I'd imagine in some cases it's possible to get a house for less than the asking price? Maybe only for houses on the market for a long time, or an acquired taste.

r3nu4l

There is also the practice of you making an offer, the estate agent (EA) taking it to the vendor but advising the vendor of the following:

EA: Okay, you have an asking price offer.
Vendor: Great, let's get going.
EA: We could do that or we could say we've had an offer of asking price plus 5K :devious grin:
Vendor: But we haven't had another offer.
EA: No, but s/he doesn't know that and you get at least 5k extra :evil grin:
Vendor: What if the person who put in the offer can't go any higher?
EA: We can hold out and try on someone else or if you really want to sell then we can say the other offer collapsed :twisted grin: :lovely commission €signs in eyes:

Grrrr!!!:mad:

dunkamania

agents are putting in guide prices that are less than the average price for similar homes in the area.

This should create interest in the house and start a bidding war,if it doesnt,at least the house should sell quickly which is also good for the agent,though not the seller.

Chipboard

Keyser Soze 5 wrote:

You start off with an asking price set by the seller.
Then you make a bid. Then usually someone else makes a bid. This continues till no bids are made and the highest bid wins.

Or sometimes it goes like this;

You see a house with asking price 215k.
You have a fair idea that there are no offers because even though the auctioneer doesn't know it, your staying with a friend 2 doors up the street and you know that very few people turned up to view the house when it was being shown on Saturday.
You make a bid of 190k and the auctioneer shrugs it off by saying they already have a bid of the asking price.
You contact the buyer and make an offer of the asking price for cash which they gladly accept because they don't actually have any offers.
Auctioneer toddles off goes and tells his lies to someome else.

This happended 2.5 years ago - before the whole thing got ridiculous. No fear of an auctioneer being stuck for a bid these days. Imagine what one slippery auctioneer can do with a house, 50 couples desperate to get on the property ladder and a few good lies.