Bidding War - Assistance Appreciated

irldonalb

Hi

I found a house I want but there's a bidding war going on under what I'm willing to pay. I'm trying to decide what to do. Here are the bids to date:

Bidder A: 295
Bidder B: 300
Bidder C: 305
Bidder 320
Bidder B or C: 325
Bidder A: 330

The asking price was 345 and I'm willing to go to 365 at a push.

Obviously there were some low checky bids in there and it looks like it's now getting serious. It went from 305 on Saturday to 330 Tuesday morning. EA thinks it'll go above the asking price and I'm sure she's advising the seller to hang on.

Any tips or suggestions? I'm concerning bidding 332 to get my name on the list and then sit back and watch . Alternatively I might go in at 350 and try to lose a few stragglers. Any thoughts?

Thanks all

Woodville56

If it was me, I'd go 332k also, then wait it out for a bit and watch, no point in overbid @350k at this stage - the other bidders may not go that far, so hold ur fire !

the_syco

irldonalb wrote: »

I found a house I want but there's a bidding war going on under what I'm willing to pay.

<snip>

Alternatively I might go in at 350 and try to lose a few stragglers. Any thoughts?

How long has the property been on the market, and how sought after is the area? Are there many other similar houses in the area also for sale? I ask as the otehr bidders may or may not exist... not unheard of during the boom years, and a lot of EA's still employ such methods now. Have you by any chance told the EA what the max you can afford? Bad idea, as the "bidders" will reach your "max amount" shortly!

Also, are you a cash buyer, or what are you approved for?

irldonalb

Thanks for the responses.

I think the property in 4-6 weeks on the market. I'll need to ask the EA to be sure.

It's in a sought after estate. There's not much else going in it but there seems to be a constant stream of houses selling. Two others are sell agreed. Another is for sale for 50k more with no offers and I heard of another coming to the market in Jan. The size and quality of houses differ so much in the estate so it's quite difficult to compare them.

The EA is from one of the bigger agencies so I'd be surprised if they were doing the tactics you mentioned but I'm gullible.

I haven't mentioned my position to the EA nor to I plan to. I'm mortgage approved (in principle) for 65% and have a lump sum for the rest. I was going to mention this as I should be their preferred buyer but I didn't want to overplay my position.

Any further thoughts would be appreciated. Thanks

whatnext

Personal opinion here.

Ask them what will it take to take the property off the market.
If they give you a figure that is acceptable to you tell them the can have a holding deposit on the spot. You will be no worse off, and you don't have to respond.

Having attended many auctions and from buying properties in the past I feel that people will always find a way to get a grand or two more if its a property the think they want. But if someone comes in with a bigger segmental bid, (for example, say the property is going up by 5k per bid and someone adds a +20k bid ) it tends to burn off the bidders that are pushing their limits.

If it still draws out the other bidders you know where you stand.

When you put in your final bid tell the EA you are prepared to stand by it if the sale falls through on a higher bid, make it easy for them to come back to you.

I tend not to play games in bidding processes and for that reason tend not to get messed about. Also I find calling into the EA's office to put bids down carries more favour. Its harder to mess with someone that is across the table from you.

There is no science to it, you are dealing with a broker whos job is the get every last cent they think they can out of you for their client. Be strong and confident in your dealings and above all don't be afraid to walk away. A home is not the bricks and mortar you buy, its what you do inside the bricks and mortar that make it a home, regardless of location, size, garden or otherwise.

Baby01032012

Apologies if im hijacking another thread..however my situation is similar but possibly further down the tracks.

Property with asking of 355k. There were a few offers and counter offers bringing it to 335k. Ive gone in with my first and only offer of 345k. Seller has stated asking price of 355k is what is required but agent believes 350k could secure it. Either way an under bidder has asked for another viewing next Monday. Agent thinks i should increase offer to 350k possibly getting rid of underbidder in process.

My dilema is increase offer now to 350k before counter offer and hopefully throwing under bidder off. Or stick with my offer of 345k...let under bidder view on Monday and put the ball in his court, if he increases offer then i increase mine.

At the moment my preference is to hold tight with my offer and let under bidder come back or not.

All views as to approach i should take appreciated.

miezekatze

Baby01032012 wrote: »

Apologies if im hijacking another thread..however my situation is similar but possibly further down the tracks.

Property with asking of 355k. There were a few offers and counter offers bringing it to 335k. Ive gone in with my first and only offer of 345k. Seller has stated asking price of 355k is what is required but agent believes 350k could secure it. Either way an under bidder has asked for another viewing next Monday. Agent thinks i should increase offer to 350k possibly getting rid of underbidder in process.

My dilema is increase offer now to 350k before counter offer and hopefully throwing under bidder off. Or stick with my offer of 345k...let under bidder view on Monday and put the ball in his court, if he increases offer then i increase mine.

At the moment my preference is to hold tight with my offer and let under bidder come back or not.

All views as to approach i should take appreciated.

I wouldn't offer 350 if I were you. You would effectively be bidding against yourself. It depends on what you think the house is worth though I guess.

riclad

BID 340 or 345, see what happens,
is there counter bids,
hopefully other bidders will drop out/

spaceHopper

Baby01032012 wrote: »

Apologies if im hijacking another thread..however my situation is similar but possibly further down the tracks.

Property with asking of 355k. There were a few offers and counter offers bringing it to 335k. Ive gone in with my first and only offer of 345k. Seller has stated asking price of 355k is what is required but agent believes 350k could secure it. Either way an under bidder has asked for another viewing next Monday. Agent thinks i should increase offer to 350k possibly getting rid of underbidder in process.

My dilema is increase offer now to 350k before counter offer and hopefully throwing under bidder off. Or stick with my offer of 345k...let under bidder view on Monday and put the ball in his court, if he increases offer then i increase mine.

At the moment my preference is to hold tight with my offer and let under bidder come back or not.

All views as to approach i should take appreciated.

I think even if you bidd 350 the seller will still want to hear from the under bidder, I'd hold off. Then if the under bidder drops out you are last man or woman standing and the ball is very much in your court. On Tuesday text the EA and ask them were there more bidds, if not ask them to get back to you about your offer. You need him to be chasing you from then on. If you phone them they know they have you -you're keen, if you don't it confusses them and you might save a few grand - however is the house worth it to you. I reckon we over paid for our house by about 10K but happy to be in it and not looking anymore .

Baby01032012

So on my bid of 345, the under bidder has come back and matched the asking price of 355. I wasn't expecting him to raise it to the asking.

So I have to seriously consider letting it go or putting every penny I have into a higher bid. Decision time. If I get the house it's a house for life or long term anyway that I'd be very happy with. If not, I go back to the drawing board, there's no other comparable houses around or any that I'd be completely happy with.

I know it's my decision but any thoughts very welcome.

newbie2013

Baby01032012 wrote: »

So on my bid of 345, the under bidder has come back and matched the asking price of 355. I wasn't expecting him to raise it to the asking.

So I have to seriously consider letting it go or putting every penny I have into a higher bid. Decision time. If I get the house it's a house for life or long term anyway that I'd be very happy with. If not, I go back to the drawing board, there's no other comparable houses around or any that I'd be completely happy with.

I know it's my decision but any thoughts very welcome.

Let it go, therell be more for cheaper

mad m

Baby01032012 wrote: »

there's no other comparable houses around or any that I'd be completely happy with.

You have answered your question. Do you know if other bidder has a house to sell or is a cash/first time buyer?

Baby01032012

mad m wrote: »

You have answered your question. Do you know if other bidder has a house to sell or is a cash/first time buyer?

Other bidder isnt a cash buyer...they are part cash part finance...i dont know if first time buyer..

mad m

What's your situation? Do you have a house to sell?

If you have no house to sell also, then match other bidders bid. Tell them you can move quickly etc. try and have some left to do up house the way you want.

I don't envy you in a bidding war. The house I'm in now I bought over 14 years ago, we went to a closed bid. Had it wrote out and didn't tell wife at time but before I brought it into EA I tore it up and re wrote it putting in a lower bid...the rest was history.

ArraMusha

mad m wrote: »

You have answered your question. Do you know if other bidder has a house to sell or is a cash/first time buyer?

There is no transparency in relation to other bidders and there never will. (unless we agree to adopt ebays modle...i.e see other bidders). So every house in the country is "only worth what someone is willing to pay for it".

View it, tell yourself what you think its worth, and keep in mind what you expect to get for it in say 5 years time if you need to sell it.

There are a lot of 'buy to let' repo's to enter the market and distressed property (according to receivers) over the coming months. I'd be in no rush whatsoever.

mad m

^^ yeah totally agree but I'm just going with what poster said in what I quoted them.

Sometimes when you go into a house you get a nice vibe,area etc.

ArraMusha

mad m wrote: »

^^ yeah totally agree but I'm just going with what poster said in what I quoted them.

Sometimes when you go into a house you get a nice vibe,area etc.

Ya, I agree with you in relation to a nice vibe....not often we get that feeling these days as most of the stuff on the market is rough and needs lots of work.

If you like it ignore all the estate agent sales talk in relation to "I have this offer from couple X " etc. its just talk... instead come up with a figure what you can afford, what you think the site and re-build costs would be...thats all you'll be insuring it for!

Check out daftdrop.com (an excellent site) asking prices continue to point south. Also thepropertypin.com for local and allsopspace auctions.

Baby01032012

If i was looking at it as an investment with a 5 year term or any return i wouldnt buy it...its a home for the long term..

Impossible to put value on or know if im over paying...only 1 house sold on road...early this year for 100k less but that was 3 bed in poor condition..this is 4 bed...extended...in near mint condition with a good BER..

Its frustrating that there are so few family homes for sale...if i dont get this ill put my search on hold for at least another year..

Im not first time buyer...will sell...but not under immediate pressure to sell current home..not in negative equity....staying in same area but moving to bigger home..better area..

Will know in next day or 2 whether i have my home or not.

jon1981

Baby01032012 wrote: »

If i was looking at it as an investment with a 5 year term or any return i wouldnt buy it...its a home for the long term..

Impossible to put value on or know if im over paying...only 1 house sold on road...early this year for 100k less but that was 3 bed in poor condition..this is 4 bed...extended...in near mint condition with a good BER..

Its frustrating that there are so few family homes for sale...if i dont get this ill put my search on hold for at least another year..

Im not first time buyer...will sell...but not under immediate pressure to sell current home..not in negative equity....staying in same area but moving to bigger home..better area..

Will know in next day or 2 whether i have my home or not.

I think the time has passed for getting a house in nice condition that is in anyway a nice or desirable area under asking price . We experienced the same, we went in way under asking and ended up paying over the asking by a few grand. We were mortgage approved buyers and got into a bidding war with a cash buyer and another mortgage approved buyer. Unfortunately the cash buyer was very aggressive.

Baby01032012

Thanks for all the responses very much appreciated.

We went sale agreed today at 5k over the asking price. Possibly over paid but with no comparable house on market in terms of size or condition and with it is a house we will be happy to live in for a very long time...we're happy.

Fingers crossed nothing there's no hiccup with the sale process.

mad m

Baby01032012 wrote: »

we're happy.

Dont dwell on price....Above is the main thing now. Goodluck with it.