Bidding advice

garyt43

Here is my conundrum:
House price 230k
Our opening offer 200k

Estate agent got back to me saying that the vendor will not go below 220k. The house has being on the market for a while now. It will need a fair amount of cash to modernise it and make it our own.

Is there anyone with any advice on what to do next. I would like to offer 210-215k and say that that would be our final offer.

Any advice would be appreciated.

davo10

garyt43 wrote: »

Here is my conundrum:
House price 230k
Our opening offer 200k

Estate agent got back to me saying that the vendor will not go below 220k. The house has being on the market for a while now. It will need a fair amount of cash to modernise it and make it our own.

Is there anyone with any advice on what to do next. I would like to offer 210-215k and say that that would be our final offer.

Any advice would be appreciated.

If €215k is your limit then offer it and tell them this is your final offer. But you can only use the "final offer" line once, you won't be taken seriously if you later put in another bid.

The fact that it is on the market for a while may mean there were no bidders, but it could also mean that the vendor will not sell below a certain price and right now when prices are rising, the longer he/she is will to wait, the more likely that that price will be reached.

garyt43

The house has being on the market for 5 yrs. The EA said that there was a couple interested in the house but had to sell their current house. Apart from that there have being no offers and no other interest. It is a fine house but the current owners had a thing for Red Deal and it completely ages the house. We would be spending a considerable amount to modernise it.

I will be contacting the EA tomorrow. I might try an offer at 210k but can't see us going much higher.

April 73

What are the owners' plans? Where are they moving to?
For them to have the house on the market for 5 years with no offers & then for them to turn down an offer that's 91% of what the EA says they'll accept seems strange to me.
A house that gets no offers in 5 years is either overpriced or there is something else going on.
I suspect the house is not really on the market at all.

garyt43

April 73 wrote: »

What are the owners' plans? Where are they moving to?
For them to have the house on the market for 5 years with no offers & then for them to turn down an offer that's 91% of what the EA says they'll accept seems strange to me.
A house that gets no offers in 5 years is either overpriced or there is something else going on.
I suspect the house is not really on the market at all.

They are downsizing. A couple in there late 60s and the family are all either married or not living in the area. They will sell at 220k but we could do with getting it cheaper than that especially with all the closing costs.

davo10

April 73 wrote: »

What are the owners' plans? Where are they moving to?
For them to have the house on the market for 5 years with no offers & then for them to turn down an offer that's 91% of what the EA says they'll accept seems strange to me.
A house that gets no offers in 5 years is either overpriced or there is something else going on.
I suspect the house is not really on the market at all.

Given their age, there is probably no mortgage so they are under no pressure to sell. You might as well disgard the first four of those five years as nothing was selling and no one could get mortgages. It is the last 6-12 months which matter. If they don't need to sell, then they will probably sit tight until they get the offer they want. This will be an important transaction as it may be their retirement money so they understandably want to maximise the return on their biggest asset.

Water John

I think if you have it or are willing to go as far as it and want the property, I would offer the €220K.
But I would give them 4/5 days only, that the offer would be withdrawn then.
The EA will be very anxious to get the deal done and will end up working for you. You having convinced the EA that you are not messing and at your limit.
I think pitching 5K below isn't worth it.
Ring the EA each day from day 2 to 5, progress report, building a relationship.

garyt43

Good point. Didn't even think of that. I will have to see if we can get a small bit of movement on their side.

garyt43

Water John wrote: »

I think if you have it or are willing to go as far as it and want the property, I would offer the €220K.
But I would give them 4/5 days only, that the offer would be withdrawn then.
The EA will be very anxious to get the deal done and will end up working for you. You having convinced the EA that you are not messing and at your limit.
I think pitching 5K below isn't worth it.
Ring the EA each day from day 2 to 5, progress report, building a relationship.

I see what you are saying but 5k is a lot of money. I would prefer to put that into paying the closing costs. After talking with my wife we reckon 215k is probably our limit on this property with what has to be done to it. We might have to walk away. We feel it's a very fair price.

sKeith

Your current offer is 200k. They want more than that. You are willing to go to 215k. Why not up your offer. Personally I'd try half way first. 208k. Some people state that you are only bidding against yourself, but If they are not willing to sell at the offered price, you may need to up your bid to get the bite.

FWIW. I bought below asking myself, and the sale price was above my first offer but still below asking.

MarkAnthony

If the house was everything I wanted I wouldn't let a few K bother me, unless I was genuinely at my limit, at which point I'd walk away.

Is it the overriding Irish imperative of 'got a bargain' or are you geninly at your limit. If it's the latter you've answered your own question.

Walter H Price

I would definitely try half way if there are no other offers but dont go down the 'this is our final offer route' if you really want the house and would be willing to pay 220.. Maybe tell the EA you have approval and deposit for 210 and want the house but would need to go back to the bank and get further approval? If there is no other offers you can risk them saying no to 210 but if the EA thinks it will draw out she might be able to convince them to go to 210 for a quick sale..

Henry Ford III

If you really want the house up your offer, but time limit it.

If that's not accepted so be it.

garyt43

Contacted the EA today and offered 210k. I told her that we aren't willing to go 220k and will walk away. I'm not going to keep bidding against myself, especially when the vendor isn't moving. The reason we are not going to offer the full 220k is because between furnishing and modernising it will cost in the region of 40-50k and every cent will count. That extra 5k would pay the closing fees alone. We will see what happens.

kala85

At a similar situation myself.

Any advice on bidding and dealing with estate agents

westcoast66

davo10 wrote: »

....You might as well disgard the first four of those five years as nothing was selling and no one could get mortgages....

Bull. The following (from the PPR) are the amount of house sales in those 5 years:

2010 : 20,945
2011 : 18,373
2012 : 25,276
2013 : 29,951
2014 : 31,968

The OP has a choice. Sit it out or increase their bid. Personally, I'd do the former.

athtrasna

westcoast66 wrote: »

Bull. The following (from the PPR) are the amount of house sales in those 5 years:

2010 : 20,945
2011 : 18,373
2012 : 25,276
2013 : 29,951
2014 : 31,968

The OP has a choice. Sit it out or increase their bid. Personally, I'd do the former.

The OP posted three months ago. Thread bumped by a poster with a new query.