How to approach this situation?

peposhi

Hi, All

We got a sale agreed on our investment property and pending on closing the deal the bank has agreed to lend us money to buy another property that will become our primary residence while our current house will be rented out.
The property we picked is on the market only a month, we were the first one to view it before it was even advertised. We showed we are very keen to go for it once bank’s agreed. Since then we have the feeling the agent is playing us. We put a bid €15k lower than the asking price, the agent said the seller might go for it or might not. Came back a week later saying the seller would not agree on less than asking price. Said he’s had 4-5 more viewings already but nothing was offered.
Eventually we agreed to pay the asking price as we decided it is where we want to live. The minute I said we agreed on the asking price and we want to hear from the seller if she’s happy to proceed with the deal, the agent came up with another viewing that afternoon and apparently the other couple liked the house too. So the agent advised us to bid asking price + €5k before the other couple (who have not even put an offer yet) so he can persuade the seller to go for our offer...
The whole situation has put us off as we really got the feeling we have been fooled around. Bear in mind they know buying-selling houses is not our strength...
Are we been messed around? How to approach it?
We decided to go for once more to see the house and we are meeting tomorrow.
How to approach it?!? We do want the house, but not to be paying silly money for it...

peposhi

And just to add - the agent told us he has not even informed the seller we matched the asking price... what is he waiting for?!?

davo10

I reallly don't see anything unusual here. The house has just gone on the market, there is interest in it, you bid below asking, owner wants to hold off until other viewers have had a chance to enter a bid, all quite normal. A house is worth what the highest bidder is willing to pay, to you that might be silly money, but to someone else it is what it is worth. No doubt there will be "phantom bids" mentioned soon.

EA is waiting for higher bids, he works for the seller, not for the buyer.

James 007

Your are not been 'fooled around'. The EA is doing his job and he/she seems to be good at it. People when buying always seem to think if they like the house that they are entitled to it. An EA's job is to wager your offer to the other bidder so that the other bidder could counter offer.

Whats coming across here is that you like the house and that you sound too eager. If you sound too eager, and EA will pick up on this and have other bidders coming out of the woodwork (genuine or not).

As pointed out above the EA works for the seller not the buyer. They may be very nice to you, but the more you tell them the more inclined you are to give your cards away.

Step back from this, take a deep breath, only offer what you feel the house is worth and hold your offer. Be prepared to let it go and don't get emotionally attached to the process.

peposhi

I do agree the EA has a side to be looking after and that’s totally understandable.
It unsettles us though is the fact that he had not even mentioned yet to the seller that the asking price is matched. He knows the asking price is the maximum we could afford and yet asking to be putting a circa +€5k on top to “secure” the sale. All that while saying that it does not matter to him if there’s 0 or -€5k, or €5k difference as it only matters to close the deal ASAP and move on to the next...

peposhi

And yes, perhaps, a step back is best.
Will let you know how the viewing went today.

davo10

Asking price is a guide, nothing more. Matching it does not mean the seller will accept it.

arctictree

If only it worked like this here:

'I'll take it'

Claw Hammer

peposhi wrote: »

I do agree the EA has a side to be looking after and that’s totally understandable.
It unsettles us though is the fact that he had not even mentioned yet to the seller that the asking price is matched. He knows the asking price is the maximum we could afford and yet asking to be putting a circa +€5k on top to “secure” the sale. All that while saying that it does not matter to him if there’s 0 or -€5k, or €5k difference as it only matters to close the deal ASAP and move on to the next...

It is not for you to tell the EA his business. He might want a reputation for getting good prices. He might also want the owner to feel he has worked hard and earned his fee. Not alone has he to get bids in, he has to get the owner to accept. I have known agents o hold back and tell the owner that have a lower offer than they really have. Some owners, as soon as they get an offer, think they are underselling. They have to believe they have got the last cent.

draiochtanois

This post has been deleted.

arctictree

draiochtanois wrote: »

In a sellers market you bid under the asking!?

Your strategy should be to initially bid 10k over as a time-limited offer until the end of the business day.

Buyers/Sellers market BS. If the asking price is too high you bid under, if too low you bid over. Simple. Many properties are being put on the market with unrealistic asking prices.

jimmycrackcorm

OP, you made a mistake offering asking price without setting a time limit. Now the agent knows it's worth that he can simply hole on for higher offers.

It's a seller's market. If you really want the house then offer the extra 5k for immediate acceptance or withdraw.

Also take lessons on playing poker.

peposhi

Well it’s clear we could have/should have approached it differently. On other side though we don’t buy and sell houses for living nor spent years in preparation for getting one.
So it is what it is.
We would be putting a time limited offer today, that’s for sure.
Yet to be seen if the price will change.
If it’s meant to be - it will be.

Graham

peposhi wrote: »

Well it’s clear we could have/should have approached it differently.

I wouldn't beat yourself up with the thought you should have approached it differently.

There is no 'winning strategy' here, what worked for 1 person in 1 specific scenario is likely to play out entirely differently in the next similar scenario.

peposhi

We placed a final offer. Gave them until Monday to decide. If not agreed - bye-bye.
That’s not the only house in Ireland that would suit us

peposhi

Just to close the thread - final offer was accepted.
Thank you all for the contribution you’ve made. It was an eye opener for me to hear so many different points of view!

James 007

Thats great, now where is the house located, what address, I have a few quid to spare. What Agent is it. Just remember no contracts are signed. Thread reopened.

peposhi

James 007 wrote: »

Thats great, now where is the house located, what address, I have a few quid to spare. What Agent is it. Just remember no contracts are signed. Thread reopened.

Thread closed
Contract were signed a good while ago...