house bidding technical query

mirrorwriter

We were the first bidders on a house. Didn't hear anything for a week and then the agent came back to us with three new bidders all at once. He says that we are now the lowest bidder so it is our turn first to put in a higher one.

Can we say we are passing at this point but ask to be kept up to date in case we want to come back in at a later stage in the bidding? Or if we miss our turn here is it unethical to bring us back in later?

Doop

Ethics?!

Nothing wrong with what you are suggesting however I would imagine it is very plausible that you could potentially get forgotten about.

listermint

An agent wont bother keeping non serious bidders up to date.

They will just stick with those that are actively bidding and push them on the latest details.

Catlady76

mirrorwriter wrote: »

We were the first bidders on a house. Didn't hear anything for a week and then the agent came back to us with three new bidders all at once. He says that we are now the lowest bidder so it is our turn first to put in a higher one.

Can we say we are passing at this point but ask to be kept up to date in case we want to come back in at a later stage in the bidding? Or if we miss our turn here is it unethical to bring us back in later?

EA is trying to get a bidding war started, you can make one more bid and tell them that is your final offer and it is on the table for say 3 days and then your out. Its all well and good bidding higher and higher but you will end up in debt over your head and have no life, I tell people that there will always another house it there it may take time to get but be sensible. I have friends who paid well over the odds for houses in the boom and are crucified now.

mirrorwriter

listermint wrote: »

An agent wont bother keeping non serious bidders up to date.

They will just stick with those that are actively bidding and push them on the latest details.

My experience with agents is increasingly that they won't bother doing anything at all.

I've asked him to keep us up to date while we see if we can up our budget. That's as much as we can do as I don't want to bid up without being sure we can pay it.

gargargar

Catlady76 wrote: »

tell them that is your final offer and it is on the table for say 3 days and then your out.

I'm not in favour of that tactic, as it doesn't leave you any room later. You could say you are thinking about it and will be on in a few days. I would imagine the agent will keep you in the loop. Alternatively put an offer in. It's unfortunate but you have little enough control as a bidder.

JimmyMW

gargargar wrote: »

I'm not in favour of that tactic, as it doesn't leave you any room later. You could say you are thinking about it and will be on if a few days. I would imagine the agent will keep you in the loop. Alternatively put an offer in. It's unfortunate but you have little enough control as a bidder.

I agree with you, the ultimatum offer is the worst advise out there when in a sellers market. Having been recently at the sellers end where we got an ultimatum offer, it is not well received, you make yourself the least attractive buyer as the first thing the seller will think is this aggressive nature of the buyer will cause further issues prior to closing, such as trying to renegotiate the price over minor issues etc.

At this point if you want the house and want to do your best to avoid a bidding war, your next bid should be the max your willing to pay for the house. Then your hoping to blow the other purchasers off by the largest jump your willing to make. If it goes above that then you'll just have to keep searching.

Catlady76

JimmyMW wrote: »

I agree with you, the ultimatum offer is the worst advise out there when in a sellers market. Having been recently at the sellers end where we got an ultimatum offer, it is not well received, you make yourself the least attractive buyer as the first thing the seller will think is this aggressive nature of the buyer will cause further issues prior to closing, such as trying to renegotiate the price over minor issues etc.

At this point if you want the house and want to do your best to avoid a bidding war, your next bid should be the max your willing to pay for the house. Then your hoping to blow the other purchasers off by the largest jump your willing to make. If it goes above that then you'll just have to keep searching.

The ultimatum worked for me, I didnt get in over my head in debt like most of my friends did. Each to their own some good advice either way from everyone just pay what you can afford for a home and think about the fact you also need a life after.

JimmyMW

Catlady76 wrote: »

The ultimatum worked for me, I didnt get in over my head in debt like most of my friends did. Each to their own some good advice either way from everyone just pay what you can afford for a home and think about the fact you also need a life after.

Was the ultimatum offer which worked for you in a buyers market or sellers market?

spaceHopper

It's not the norm to "take truns" in bidding. I would tell the EA you want to think about it and that you are also bidding on another property you hope to hear from them soon. Ask to be kept informed of any new bids but don't expect them to do it. You will need to check in with them every day, alternate between calling the office and the EA's mobile asking what the latest offer is. Also worth asking now if the EA has verfied the other bidders finance, no point bidding against dreamers.

Let the other 3 bid it out for while then come in with you best offer / one you can live with.

Claw Hammer

In a private treaty sale, there is no such thing as "turns" to bid. The Estate Agent is simply using psychological trickery. How you deal with it is a matter for yourself. I would usually tell the agent "I will consider the situation that I will be back to you next week".