Buying a House - Reduced reserve?

angelic123

Firstly..can someone explain what reduced reserve means?

Secondly.. went to view a house where the price had dropped from 299k asking to 265k.. we went to see it at 265k.. put in an offer it was refused upped our offer same story, auctioneer came back and said they want 260k minimum.. makes me mad.. its a 30year old house that needs work.. gun barrell piping and possibly needs new electrics! I think its a joke advertising a house at 265k and expecting to get 260k.. am i wrong! we are willing to give 250k but didnt tell auctioneer this as when they came bk to say min 260k didnt see the point if they werent willing to budge

Thirdly.. trying to be cool calm and un eager - we said we werent in a hurry to buy to the auctioneer.. which were not but our mortgage is approved and we really want this house - we cant see anything else that comes close to it in terms of potential garden location for us etc!

Fourthly Is it illegal to contact the owner direct and suggest doing a private sale cutting out the auctioneer and his fees?

Thanks in advance

i71jskz5xu42pb

angelic123 wrote: »

Fourthly Is it illegal to contact the owner direct and suggest doing a private sale cutting out the auctioneer and his fees?

Not illegal but I'd guess the auctioneer has a contract with the seller that says they have exclusive sales rights for a period i.e. they'll probably get their commission in any case.

That said it'll do no harm to contact the seller to make sure s/he has the full view of your offer.

Ginger83

I wouldn't advise contacting the owner. I did this before regarding making an under offer on a site, the owner verbally abused me and said he gave the land to the auctioneer to get the best possible price. We walked away.

On the other hand nobody is jumping in all guns blazing to buy houses. I'd sit tight if you can and the most likely outcome is getting it even below 250k. Unless the owner is determined to sit on it.

Let us know how you get on.

ednwireland

make the offer (even lower than your max) i thought auctioneers were legally obliged to pass on any offer no matter how low (could be wrong on this )

edit seems they are legally obliged to pass on any reasonable offers which i guess gives them enough wriggle room

robd

Ginger83 wrote: »

I wouldn't advise contacting the owner. I did this before regarding making an under offer on a site, the owner verbally abused me and said he gave the land to the auctioneer to get the best possible price. We walked away.

Kind of a nothing lost nothing gained. You got to try. You did. It didn't work. Shouldn't put you off doing this again though. Bursting out laughing at people like this and prodding them a little is always fun. Be prepared to heed a hasty retreat though.

robd

Getting a house you want a the price you want in this market is largely a factor of TIME. Can't say you'll definitely get this house as this is a factor of vendors real desire to sell, but you will get a house you want at the price you want this way.

When making offers, leave them there for a week of two. Always go in lower than your final price. Allow for 2 to 3 increases. Absolutely, stick to your max. After a week or so of no movement by all means call the EA and ask for an update. Feel free to ask him/her to put it to the vendor again. Feel free to ask vendor to counter at a lower price rather than further increasing you offer.

Never ever ever ever increase your offer immediately on the phone if previous offer is refused. 100% indication that you are eager, hence EA will always come back with a NO. Say you need to talk to your other half and wait a couple of days.

Always always always be prepared to walk away of you can't get it at a price that makes sense. Always.

Most houses are selling for approx 90% of asking at present.

Of course if you absolutely want this house and no other then I'm afraid the only 100% guaranteed way to get it is to pay the price, i.e. pay over the odds.

Up to you really.

EKRIUQ

angelic123 wrote: »

I think its a joke advertising a house at 265k and expecting to get 260k.. am i wrong! we are willing to give 250k but didnt tell auctioneer this as when they came bk to say min 260k didnt see the point if they werent willing to budge

We said we werent in a hurry to buy to the auctioneer.. which were not but our mortgage is approved and we really want this house - we cant see anything else that comes close to it in terms of potential garden location for us etc

By saying your weren't in a hurry could translate to you being not too interested and possibly that you don't have the money, where as if you said that you were in a hurry it would give an indication that your all ready to buy not a messer.

You shouldn't be too disappointed the house was advertised for €265,000.

angelic123

EKRIUQ wrote: »

By saying your weren't in a hurry could translate to you being not too interested and possibly that you don't have the money, where as if you said that you were in a hurry it would give an indication that your all ready to buy not a messer.

You shouldn't be too disappointed the house was advertised for €265,000.

Hmm.. im starting to think your right.. were thinking of going bk on monday to up our offer by 2600 .. to freak them out with an odd figure and see if she will budge any bit tell them were interested but the money is the issue and that mortgage is approved. will keep ye all posted! i really thought it would be easier then this!

angelic123

robd wrote: »

Getting a house you want a the price you want in this market is largely a factor of TIME. Can't say you'll definitely get this house as this is a factor of vendors real desire to sell, but you will get a house you want at the price you want this way.

When making offers, leave them there for a week of two. Always go in lower than your final price. Allow for 2 to 3 increases. Absolutely, stick to your max. After a week or so of no movement by all means call the EA and ask for an update. Feel free to ask him/her to put it to the vendor again. Feel free to ask vendor to counter at a lower price rather than further increasing you offer.

Never ever ever ever increase your offer immediately on the phone if previous offer is refused. 100% indication that you are eager, hence EA will always come back with a NO. Say you need to talk to your other half and wait a couple of days.

Always always always be prepared to walk away of you can't get it at a price that makes sense. Always.

Most houses are selling for approx 90% of asking at present.

Of course if you absolutely want this house and no other then I'm afraid the only 100% guaranteed way to get it is to pay the price, i.e. pay over the odds.

Up to you really.

Made the mistake of offering more on the phone without conferring..!
we just cant give them the full asking - its not worth it, the house needs work, it has gun mettal pipping so that means we have to replumb the whole house and it hasnt been styled since 1970 so the more money we give them the less we have to work on the house! We also dont want to lose the house either.. i just get a bad feeling about the auctioneer - they have a bad name in the town as it stands..maybe im reading too much into it.

stepbar

angelic123 wrote: »

Firstly..can someone explain what reduced reserve means?

Secondly.. went to view a house where the price had dropped from 299k asking to 265k.. we went to see it at 265k.. put in an offer it was refused upped our offer same story, auctioneer came back and said they want 260k minimum.. makes me mad.. its a 30year old house that needs work.. gun barrell piping and possibly needs new electrics! I think its a joke advertising a house at 265k and expecting to get 260k.. am i wrong! we are willing to give 250k but didnt tell auctioneer this as when they came bk to say min 260k didnt see the point if they werent willing to budge

Thirdly.. trying to be cool calm and un eager - we said we werent in a hurry to buy to the auctioneer.. which were not but our mortgage is approved and we really want this house - we cant see anything else that comes close to it in terms of potential garden location for us etc!

Fourthly Is it illegal to contact the owner direct and suggest doing a private sale cutting out the auctioneer and his fees?

Thanks in advance

You're letting your emotions rule.

THIS IS THE SINGLE WORST THING YOU COULD DO!!!

If the vendor is cribbing over 15k, I wouldn't waste your energy any further on this. Walk away.

One particular 1 bed apt I've been keeping an eye on has been on sale for 2 years and has dropped in price from 365k to 150k in recent weeks. The point is letting your emotions rule the biggest purchase in your life will always end in disaster.

angelic123

stepbar wrote: »

You're letting your emotions rule.

THIS IS THE SINGLE WORST THING YOU COULD DO!!!

If the vendor is cribbing over 15k, I wouldn't waste your energy any further on this. Walk away.

One particular 1 bed apt I've been keeping an eye on has been on sale for 2 years and has dropped in price from 365k to 150k in recent weeks. The point is letting your emotions rule the biggest purchase in your life will always end in disaster.

Thanks stepbar..weve walked away from that house..had gotten too attached it was silly. viewing 2others today to occupy our minds.
Will see if its stil on the market in a few mths might go in with an even lower ofer

jdivision

robd wrote: »

Most houses are selling for approx 90% of asking at present.
.

Just wonderinf is there a source for this. I'd find it surprising if it was that high?