Distressed house for sale- bidding approach?

dinneenp

Hi,
A house that was repossessed & boughtvulture fund/property fund is on the market through an auctioneer a few days ago for €299k. They said it has to be on the market for 4 weeks before closing a deal & the fund/sellers would accept something close to the asking price. 
There's 1 official offer of €275, auctioneer told me this is them showing their interest & if there's any higher bids that the will (or have to) get back to the person who has offered to inform them. If the house has to be on the market for a minimum of 4 weeks is there any point in putting in a much higher offer at this stage? Will it just end up pushing up the price? I know the bidding close to the 4 week mark would also push up the price but I'm thinking that it mightn't go as high as there's less time. 
Any thoughts on best strategy please? 
Thanks,
Pa.

spaceHopper

If it is to be on the market for four weeks then I'd approach the EA, ask them what would you have to offer for it to be taken off the market. This is a test to see if they will sell it sooner. Depending on their answer I'd go with their off the market figure or 1K more than current offer to say in the game. If funds are getting out of the irish market it can't be a sign of a healthy market

dinneenp

spaceHopper wrote: »

If it is to be on the market for four weeks then I'd approach the EA, ask them what would you have to offer for it to be taken off the market. This is a test to see if they will sell it sooner. Depending on their answer I'd go with their off the market figure  or 1K more than current offer to say in the game. If funds are getting out of the irish market it can't be a sign of a healthy market

Hi,
I asked them re taking it off the market but the fund states it has to be on the market for 4 weeks min.
Cheers,
Pa.

Colonel Claptrap

spaceHopper wrote: »

If funds are getting out of the irish market it can't be a sign of a healthy market

One swallow does not a summer make.

Funds dispose of individual assets every day of the week.

qrx

Go above the 275 and wait to see if there are better offers. Not much else you can do, there really are no tactics involved. You have to pay more than other interested parties, simple as that. EA should give you a chance to counter bid whenever a higher bid comes in. Be prepared to walk away or you will end up inflating the price and it will be used as an asking price for other house in the area so you risk pricing yourself out of the area completely if you take it too far.

April 73

I'd hold fire on bidding until much closer to the four week timeline. Is that the minimum time it has to be on the market or the max?
Why would you start driving the price up at this point?

Graham

spaceHopper wrote: »

If funds are getting out of the irish market it can't be a sign of a healthy market

I think you're reading too much into that.

It's entirely likely a fund wants to dispose of a portfolio over a prolonged period.
Could be a sign the fund thinks price growth is levelling to normal levels.
Could be an indicator that the fund has to repay investors at the end of a fixed term.....

Victor

spaceHopper wrote: »

If funds are getting out of the irish market it can't be a sign of a healthy market

'Vulture' funds don't want to own individual properties and an early exit was always on the agenda.

There are dedicated property funds who are interested in commercial properties or owning entire residential developments.

dinneenp

My thoughts were the vulture fund/whatever you want to call them bought a package of distressed properties in a bundle from PTSB, happy to sell off individual properties quickly at a substantial profit...