Reducing a bid...

Himselfe

I've bid on a property, and it looks as if they are going to accept. But I now think I've bid over the odds. Whats the etiquette in such situations? How should I approach the owner to tell them I want to offer even less?

TheCityManager

Himselfe wrote: »

I've bid on a property, and it looks as if they are going to accept. But I now think I've bid over the odds. Whats the etiquette in such situations? How should I approach the owner to tell them I want to offer even less?

Is it the fact that you feel they may accept what you considered a lowish offer that has you thinking you could have gotten it for less??


I think you can but be honest with them...

Explain that you feel you have bid too much (with falling prices and recession..) and that you'd like to lower you offer..

Do be prepared though that they might be annoyed and refuse any offer from you..be sure you offer a price that you now feel you can / will pay...

Himselfe

TheCityManager wrote: »

Is it the fact that you feel they may accept what you considered a lowish offer that has you thinking you could have gotten it for less??

No, its just that I think that its worth less than what I've bid. This is based on other similar properties in the area, as well as the way things seem to be going. And with Cowen telling me yesterday that I'm gonna lose 10% of my living standards why shouldn't I offer at least that amount less?

We've been bidding back and forth for a while now. My latest thinking is that I should have stuck with my original offer, which is 18% less than the current bid.

Freddie59

Himselfe wrote: »

No, its just that I think that its worth less than what I've bid. This is based on other similar properties in the area, as well as the way things seem to be going. And with Cowen telling me yesterday that I'm gonna lose 10% of my living standards why shouldn't I offer at least that amount less?

We've been bidding back and forth for a while now. My latest thinking is that I should have stuck with my original offer, which is 18% less than the current bid.

Withdraw your bid.

Then visit these sites before doing anything else.

www.thepropertypin.com

www.treesdontgrowtothesky.com

www.irishpropertywatch.com

www.irishhometruths.com

The_Conductor

It depends entirely on how desperate they are to sell.
A relative was in a similar situation not so long ago. They put the house back on the open market and indeed sold it for less than they might have done, just to avoid having anything to do with the person they considered to be messing them around.

If you have agreed a price and signed on it- you have a contractual obligation at that price. If you haven't signed anything- you are still free to negotiate, but should consider that the seller is going to treat you with a high degree of skepticism and is unlikely to trust your intentions as a purchaser.

What you are proposing has been well documented- its known by the term 'gazundering'. If you do a google search you'll find other people's experiences.

3DataModem

Just withdraw the offer. Simple as that.

Tell the agent you are reconsidering your position, and call them with revised offer in about 2 or 3 days.

While this can be frustrating from a sellers perspective, they have the right to do the same to you up to the date contracts are signed by both parties.

They may tell you to go to hell, but when it comes to contract signing money > principles.

Himselfe

So, after much deliberation I have withdrawn my offer, much to the 'shock' of the vendor (he's a very bad actor). I don't think he was surprised. It was almost as if he expected it

He said he was 'very disappointed' and then in the same breath asked 'Well, would you like to make another lower offer?'.

I said no, not at the moment anyway, that I've to go away and reconsider my financial situation due to the current economic climate, upcoming mini budget, etc. One thing I didn't mention was that I thougt it was over priced, don't want to insult the guy as I reckon a lot of vendors would be sensitive about that kinda thing.

I almost felt bad for doing it, but now I would say I feel relieved!

Tom123

Himselfe wrote: »

So, after much deliberation I have withdrawn my offer, much to the 'shock' of the vendor (he's a very bad actor). I don't think he was surprised. It was almost as if he expected it

He said he was 'very disappointed' and then in the same breath asked 'Well, would you like to make another lower offer?'.

I said no, not at the moment anyway, that I've to go away and reconsider my financial situation due to the current economic climate, upcoming mini budget, etc. One thing I didn't mention was that I thougt it was over priced, don't want to insult the guy as I reckon a lot of vendors would be sensitive about that kinda thing.

I almost felt bad for doing it, but now I would say I feel relieved!

It is your hard earned money so I wouldn't feel to bad.

The_Conductor

Himselfe wrote: »

So, after much deliberation I have withdrawn my offer, much to the 'shock' of the vendor (he's a very bad actor). I don't think he was surprised. It was almost as if he expected it

He said he was 'very disappointed' and then in the same breath asked 'Well, would you like to make another lower offer?'.

I said no, not at the moment anyway, that I've to go away and reconsider my financial situation due to the current economic climate, upcoming mini budget, etc. One thing I didn't mention was that I thougt it was over priced, don't want to insult the guy as I reckon a lot of vendors would be sensitive about that kinda thing.

I almost felt bad for doing it, but now I would say I feel relieved!

You were fair enough with him.
I don't think vendors are sensitive to people saying things cost too much though- you'd be doing him a favour pointing it out, and giving your reasons (I presume there are examples out there to support your contention).

S.

Himselfe

smccarrick wrote: »

I presume there are examples out there to support your contention.

To be perfectly honest I couldn't use examples of propeties of the same type to support my contention. Its a site for a self build. Similar sites in the area are currently asking about 30% more than I offered, in some case even more, though none of them have shifted despite being for sale a year +.

I based my thinking on the cost of similar finished houses in the area that are for sale. The cost of the site plus build costs would be similar/a little less than the asking of finished properties of similar calibre. But I think that because I'm going through the trouble of building it myself I should have an overall cost thats a good bit less than the asking for a similar property.

I don't intend to sell, if I do build me own house it will be to live there for the foreseeable future at least.

Also, most of the similar finishes properties have been on the market for a year + too.