Bidding on House

Paddytheman

We found a place we could happily spend the next 20 years but it requires some work that may push it out of our budget, the thing here is what the estate agent said to us on the viewing.

The property is on the market for €350,000 and the sellers are now in a chain as they have found their next property. When we asked the EA about the property being on the market for a length of time he stated that there had been a bid of €335,000 which the sellers didn't accept as they hadnt found their next property and they were now "regretting this decision".

I thought this had been a slip of the tongue by him but in hindsight the EA is fairly experienced and Im beginning to read this as a sign that they are getting desperate to sell??

Its our first time buying and Id appreciate anyone elses read on this before we place a bid? With the work needed we would probably be a bit below €335,000 but dont want to low ball and offend anyone in the deal.

Appreciate any advice.

SB_Part2

Nobody really gets offended. Just bid what you think it's worth.

Cuddlesworth

EA's just want to sell. Its the buyers that accept the price. Put in a offer for what you think its worth.

Walter2016

Offending would be offering under 300k.

Look at the costs of getting it in order, explain this to the agent and that your max mortgage is xx and that at a push you can go to €310-€315k.

Not many people will have 45k + funds to do remedial work on a property.

Non first time buyers would need 65k + funds to do it up.

As a first time buyer you are not in a chain and that can be a clincher to get it for €320k

asteroids over berlin

if they the sellers are in a chain and need to sell the house, it could be to your advantage, however it depends how much they need for the new property, some sellers put the house on the market fr the amount they need, others put it on for more, if you put in an offer for 320k and the EA immediately declines, then i would say your looking at paying at least 20k to asking price more etc
No harm in trying. Also, worst case scenario, you have to pay asking, surely you can move in and renovate later etc?

Paddytheman

Cheers for the responses, guess I really felt his mentioning a price below the advertised price was a pretty deliberate hint that they wanted to get a sale through. Anyway from leaving the property thinking "how do I make this happen" a little time lets you re-evaluate regarding the work and time involved, not as keen now to blow everything to get a project as opposed to a home...

The EA story could indeed be true. However, he may also be trying to stimulate you to put in a bid of 335 or close to it. Once he has that, he can walk you up a little and split the difference with the asking. Its all tactics.
If the vendor is in a chain and under time pressure, then a bid with a time limit should receive a rapid response (one way or another).

davo10

[Deleted User] wrote: »

The EA story could indeed be true. However, he may also be trying to stimulate you to put in a bid of 335 or close to it. Once he has that, he can walk you up a little and split the difference with the asking. Its all tactics.
If the vendor is in a chain and under time pressure, then a bid with a time limit should receive a rapid response (one way or another).

Seriously, do you think time limits work? EA and vendors think they are dealing with muppets when they hear "the offer is only on the table for a week". It puts the buyer in the position that after the time limit elapses, nothing they say/offer will be taken seriously.

allibastor

Bid what you think its worth and nothing more.
You would be surprised at home much these "little" works can add up to.

Also, I dont have a link, but i read somewhere that nearly 50% of sales agreeds fall through, so while they may play hardball, no guarantee that they will sell it.

davo10

davo10 wrote: »

Seriously, do you think time limits work? EA and vendors think they are dealing with muppets when they hear "the offer is only on the table for a week". It puts the buyer in the position that after the time limit elapses, nothing they say/offer will be taken seriously.

Agreed, time limits do not usually work, but in this case the EA has spun the yarn that the vendor is under time pressure.

Turn it back on him, it gives you some leverage in the negotiation.

maximum12

Deleted User wrote: »

Agreed, time limits do not usually work, but in this case the EA has spun the yarn that the vendor is under time pressure.

Turn it back on him, it gives you some leverage in the negotiation.

the way I'd interpret it is he's saying that 335 will secure the house.

agree that time limits just make bidder look like a joker.

athtrasna

Back in the day my ex and I made a generous but time limited offer on a house that was already 100k over asking and were told but the EA "our client will not be dictated to". There was us and one other couple left in the bidding. Went to sealed bids, we pulled out. EA didn't tell the other bidders and they ended up paying 65K over the previous highest offer, not knowing they were bidding against themselves! Found out when we viewed a house down the road 9 months later!

Paddytheman

So when it comes to the bidding process is it best to have a paper trail via mail, was going to get the ball rolling by phone and ask to be kept informed by mail thereafter?

john the one

Paddytheman wrote: »

So when it comes to the bidding process is it best to have a paper trail via mail, was going to get the ball rolling by phone and ask to be kept informed by mail thereafter?

Email?

Getting notified by mail would be dreadfully slow for all parties. You are essentially adding 3 days to each bid rise.

bleary

I would ring them and talk to the ea, it builds some sort of relationship. Try to keep the information you are giving them minimal just your bid but follow up with an email after. I was bidding on a house and lost out on it, their sale agreed fell through and the ea could easily see I was serious with the paper trail following

Walter2016

Paddytheman wrote: »

So when it comes to the bidding process is it best to have a paper trail via mail, was going to get the ball rolling by phone and ask to be kept informed by mail thereafter?

These days all bidding has to be in writing of some form. EA must be able to show verifiable bids.

Usually you will be asked to text / email your bid.

Parchment

Walter2016 wrote: »

These days all bidding has to be in writing of some form. EA must be able to show verifiable bids.

Usually you will be asked to text / email your bid.

In 1.5 years of being a bidder - i have never been asked to email an offer - i have emailed estate agents and they reluctantly dealt with me via email.

I have never heard of any estate agent using text.

All bids have been verbal on the phone (and where i was slightly suspicious i confirmed the bid via email after).