Smartest way to win a bid on a house

Cocobeans101

So I’m going to bid on a house. In my opinion, it’s priced around it’s worth. I won’t pay much more for it anyway. How would you play it?


It just went up and has had one viewing. No bids yet. Come in early and low or wait to see who else is bidding?

godtabh

If there is no bids on it I wouldnt be the first to bid.

Give it a week or two and see how the land lies then but keep checking in to see if there is bidding.

realitykeeper

Don`t bid or buy. Wait for the next crash in property prices. Buy gold while you are waiting.

Cocobeans101

realitykeeper wrote: »

Don`t bid or buy. Wait for the next crash in property prices. Buy gold while you are waiting.

I need somewhere to live!

big syke

realitykeeper wrote: »

Don`t bid or buy. Wait for the next crash in property prices. Buy gold while you are waiting.

This x 10000000.

My mortgage company were delighted to issue the loan pack for gold while I wait to collect the €€€ on the other side after the crash

amcalester

big syke wrote: »

This x 10000000.

My mortgage company were delighted to issue the loan pack for gold while I wait to collect the €€€ on the other side after the crash

Op can also use the gold as shelter while waiting for this crash.

realitykeeper

big syke wrote: »

My mortgage company were delighted to issue the loan pack for gold ...

What is this obsession with borrowing! Even when someone suggests saving (in the form of gold), immediately there are those who think of borrowing to buy gold.

realitykeeper

Cocobeans101 wrote: »

I need somewhere to live!

Do you need negative equity?

listermint

realitykeeper wrote: »

What is this obsession with borrowing! Even when someone suggests saving (in the form of gold), immediately there are those who think of borrowing to buy gold.

Credit makes the world go around, otherwise many economys would be stationary.

Ginger83

realitykeeper wrote: »

What is this obsession with borrowing! Even when someone suggests saving (in the form of gold), immediately there are those who think of borrowing to buy gold.

Hows gold doing these days

realitykeeper

Ginger83 wrote: »

Hows gold doing these days

Its going down. Houses are going up. That is why I would buy more gold and wait it out. Regrettably, I can`t because of other commitments.

realitykeeper

listermint wrote: »

Credit makes the world go around, otherwise many economys would be stationary.

Credit depends on creditworthiness. I am a bit dubious about the quadrillion dollar derivatives market and the ability of central bankers to stop another systemic failure.

Cocobeans101

I'll buy gold with the change. I have the money to buy the house. No lending involved.


Any advice on the bidding?

Brian?

Cocobeans101 wrote: »

I'll buy gold with the change. I have the money to buy the house. No lending involved.


Any advice on the bidding?

There is no right and wrong way to bid. If people want to out bid you, they’re going to do it anyway. Worry about what you can control. Bid the asking or 5k below.

Don’t get emotionally attached though, you’re probably going to be outbid. I was outbid on 5 houses between January and March. You get used to it. Pick the figure of how much you want to spend and then stop bidding at that.

JoeyJJ

Bid early a few grand below and let them know you are serious and want to be updated if you are trumped.

Don't go above what you are happy to pay.

binncheol

If you're the first bidder, bid lower than the asking.

I generally waited a week before bidding.

amacca

JoeyJJ wrote: »

Bid early a few grand below and let them know you are serious and want to be updated if you are trumped.

Don't go above what you are happy to pay.

My problem with the whole process has always been you have no way of knowing if the counter bids are real or not.

Bob24

Cocobeans101 wrote: »

So I’m going to bid on a house. In my opinion, it’s priced around it’s worth. I won’t pay much more for it anyway. How would you play it?


It just went up and has had one viewing. No bids yet. Come in early and low or wait to see who else is bidding?

There isn’t necessarily a smart way to bid as depending on who you are up against the same strategy could be good or bad.

But don’t feel any rush to place your first bid, and be clear about rhe max price you want to pay.

o1s1n

A larger jump in price can help. (well it did for me! )

I was bidding against one person. 5k increments. Had a final 10k before hitting my limit so decided to go all in and bid 10k extra rather than 5k, they didn't come back with another bid and I got the house.

Bidding against someone on another property. I put the first bid in. They came back with a 2k price increase. I went 5k. They didn't come back and I got that property.

It's risky as in both the above scenarios, a smaller increment might have done it. But I do feel it lent itself favorably in securing both properties. I bid on countless other properties without doing the above and was outbid on them all.

That's the thing about this whole process, you'll never know and are just guessing the who way along based on what you've experienced.

s7ryf3925pivug

Make a reasonable bid with a hard time limit of no more than two working days. Refuse to compromise on the time limit.

whatever76

Brian? wrote: »

There is no right and wrong way to bid. If people want to out bid you, they’re going to do it anyway. Worry about what you can control. Bid the asking or 5k below.

Don’t get emotionally attached though, you’re probably going to be outbid. I was outbid on 5 houses between January and March. You get used to it. Pick the figure of how much you want to spend and then stop bidding at that.

+1 on this advice. I have been outbid numerous times as well and just stuck to my cut off point - it was tough as I was like what's another 5 k etc but just have to stand firm - felt a few times like as if I was the sellers friend with the way I increased the price and just a contributor to booming house prices ! I was getting so close but just not enough to get me over the line.

Also my thinking if the bids were fake the EA would get back to me 2 weeks later or something and say the sale fell through etc and if I was still interested - of all the bids I bailed out on not one came back to me so I can only assume it was all above board and lost out fairly .

Such a cloak and dagger process … you never know what's going on behind the scenes - every bid scenario has thought me a different lesson ( go aggressive jumps v's incremental jumps ) - no right way just go with you head/gut ; get in your interest early with EA and just hope for the best - that's what keeping me going anyway and I am still searching nearly 12 months later !!

Tombo2001

I dont think there's a right answer to your question.

I think there's a wrong answer; such as all that stuff about gold earlier.

I also think trying to 'second guess' the estate agent, or the seller.....dont go there.

Here is the situation
- You are bidding, you have an idea in your head re what the house is worth and how much you want it. You dont know how many other people are thinking of bidding.
- Other people thinking of bidding have exactly the same information as you.
-The seller has an idea re the minimum they will take.


So basically
- if you can and are willing to pay more than other bidders; and if your bid price is enough for the seller; then you will go sale agreed.

After that - do you bid now or wait, do you go up small increments or one large jump.....you'll just never know what they right approach is IN THIS CASE.....so I wouldnt bother second guessing. Its what you feel comfortable with.

greenttc

Yeah I don't think there is any good way to do it at all. I can see how the bidding in big jumps can work but it actually worked opposite for us. We were close to our limit and had tiny bids in the end compared to our previous bids, and it is only when we slowed down and started bidding small increments that we started to win, the counter bidder bid small amounts too and then we eventually won . I often wonder if it was just EA seeing how much more he could squeeze out of us. No way of knowing and no point in us thinking about it either.

The lesson is though, as others have said, there is no right way, or best way. Everyone will have different contrasting stories of experiences for you.

BorneTobyWilde

Bid really low first, and then let others have a bidding war and then swoop in with a bid to blow them out of the water.

Tombo2001

whatever76 wrote: »

+1 on this advice. I have been outbid numerous times as well and just stuck to my cut off point - it was tough as I was like what's another 5 k etc but just have to stand firm - felt a few times like as if I was the sellers friend with the way I increased the price and just a contributor to booming house prices ! I was getting so close but just not enough to get me over the line.

Also my thinking if the bids were fake the EA would get back to me 2 weeks later or something and say the sale fell through etc and if I was still interested - of all the bids I bailed out on not one came back to me so I can only assume it was all above board and lost out fairly .

Such a cloak and dagger process … you never know what's going on behind the scenes - every bid scenario has thought me a different lesson ( go aggressive jumps v's incremental jumps ) - no right way just go with you head/gut ; get in your interest early with EA and just hope for the best - that's what keeping me going anyway and I am still searching nearly 12 months later !!

+1 to this. The amount of nonsense I saw on property pin about 'fake bids' and phantom bids.

Estate agents are far more professional than people give them credit for. In fact, i do think it helps a lot of in the bidding process if you accept EA's as professionals who are out to do a good job representing their client (the seller, not the buyer), nothing more and nothing less.

davo10

Oscar Bumpy Druggist wrote: »

Make a reasonable bid with a hard time limit of no more than two working days. Refuse to compromise on the time limit.

Completely useless tactic if you are trying to buy a house. What seller in their right mind would accept a bid within 48hrs? Better to leave it on the market and wait for other bidders.

realdanbreen

Just a bit of an aside if ye don't mind.
What percentage would I expect to pay if I was hiring a project manager to manage a house build?

Tombo2001

hector_gomez wrote: »

only thing you have any control over is yourself and how far you are willing to bid , dont worry about whether the estate agent is telling lies because they are always telling lies , you might hate the game but you have no choice but play it , in this market , even the agent bluffs too far , the house will be sold anyway

set your price limit but allow yourself to cross it by 5 k , its worth going over your limit a little as you dont know what will be the tipping point for another bidder

Are you joking?

The 'In this market' bit......the market today, in terms of the processes or the competition, is no different to how it was five years or fifteen years ago.

The aberration was a period from mid-2007 to mid 2011.

draiochtanois

This post has been deleted.

davo10

draiochtanois wrote: »

Make one bid for slightly over, tell them it's time-limited and want it off the market straight away.

Why would they agree to this?

Pintman Paddy Losty

You need to play hardball OP. You need to get inside the mind of the seller and **** with them.

A good tactic is to offer the asking and say your offer will reduce by 1k per day until they accept. Puts time pressure on them and they'll just jump at your offer.

If there's open viewings make sure to attend and loudly criticise the house in front of other potential buyers. Point out phoney structural issues with the house.

Best of luck.

draiochtanois

This post has been deleted.

davo10

draiochtanois wrote: »

Cash buyer offering over the asking.

Isn't that what all vendors want?

Yes, a seller prefers a cash buyer, but unless there was a property crash last night or 50k new houses were built in the last 24hrs, a seller won't take a property off the market after 48hrs or with the threat of 1k reduction. They wait for the highest bid to come in, then accept a cash bid for a bit less.

cruizer101

Really don't understand this time-limited bid bulls**t.
Maybe, just maybe, if prices were going down and it was a buyers market it might have some value but even then I can't see a seller going for it.
But with current market conditions its absolutely pointless, why would a seller agree to it when for most houses out there there are lots of interested parties who are more than happy to bid prices up. Even if they wanted a quick sale they are still going to give it a few weeks before accepting a bid not a few days.

whatever76

cruizer101 wrote: »

Really don't understand this time-limited bid bulls**t.
Maybe, just maybe, if prices were going down and it was a buyers market it might have some value but even then I can't see a seller going for it.
But with current market conditions its absolutely pointless, why would a seller agree to it when for most houses out there there are lots of interested parties who are more than happy to bid prices up. Even if they wanted a quick sale they are still going to give it a few weeks before accepting a bid not a few days.

totally agree - if there are 10 houses on same road for sale say and you wanted X house then the seller would certainly consider a time limited offer if you submitted it but in todays market not a hope - its a sellers market esp for high demand / Limited supply areas so sellers are happy to let the interest bubble up and line up the bidders .

Only other scenario where this might work is if a long drawn out sale fell through and the seller just wants to get rid and sick of the process and you timed it well to put in a time limited aggressive bid and get to sale agreed !

evolving_doors

realitykeeper wrote: »

Do you need negative equity?

And renting is positive equity?

Tombo2001

Pintman Paddy Losty wrote: »

You need to play hardball OP. You need to get inside the mind of the seller and **** with them.

A good tactic is to offer the asking and say your offer will reduce by 1k per day until they accept. Puts time pressure on them and they'll just jump at your offer.

If there's open viewings make sure to attend and loudly criticise the house in front of other potential buyers. Point out phoney structural issues with the house.

Best of luck.

I would say not only would you have zero chance of getting the house, but you also mark the cards of the Estate Agent who would be warning other sellers that you are a messer.

Also - by the way - this business of loudly criticising the house at open viewings. This assumes that other people are idiots. That they will hear you saying "oh look, there's dry rot"' and not actually think "this guy wants to buy it, and is coming up with this bull to put us off".

davo10

evolving_doors wrote: »

And renting is positive equity?

And gold only goes up?

I wonder what a high rent and drop in gold does to your balance sheet.

Tombo2001

whatever76 wrote: »

totally agree - if there are 10 houses on same road for sale say and you wanted X house then the seller would certainly consider a time limited offer if you submitted it but in todays market not a hope - its a sellers market esp for high demand / Limited supply areas so sellers are happy to let the interest bubble up and line up the bidders .

Only other scenario where this might work is if a long drawn out sale fell through and the seller just wants to get rid and sick of the process and you timed it well to put in a time limited aggressive bid and get to sale agreed !

Possibly might work - in todays market - if you are trying to buy a house on a ghost estate in Leitrim, there's still a few of them left.

GingerLily

Pintman Paddy Losty wrote: »

You need to play hardball OP. You need to get inside the mind of the seller and **** with them.

A good tactic is to offer the asking and say your offer will reduce by 1k per day until they accept. Puts time pressure on them and they'll just jump at your offer.

If there's open viewings make sure to attend and loudly criticise the house in front of other potential buyers. Point out phoney structural issues with the house.

Best of luck.

If I was a seller I'd tell that buyer to get lost, playing games at the outset - how much more trouble will they cause! It would definitely annoy me out of dealing with them

M.Cribben

Agree with above posters. Hopefully my estate agent would filter out rubbish like that 'decreasing offer by 1k/day', but if not I would instruct them not to deal with someone like that for my property anyway. It's like wearing a 'time-waster' neon sign. The chance of them getting everything in place (solicitor, mortgage protection, insurance, etc) in a timely and efficient manner is slim to none.

Bob24

Pintman Paddy Losty wrote: »

A good tactic is to offer the asking and say your offer will reduce by 1k per day until they accept. Puts time pressure on them and they'll just jump at your offer.

Is that serious or a joke??!!

In today’s market (i.e. a rising market), the only way a seller would consider this type of offer is if they think the bidder is being a fool and clearly offering above market value. Otherwise they’ll likely just decline the offer and ignore that bidder going forward.

M.Cribben

Pintman Paddy Losty wrote: »

Point out phoney structural issues with the house.

Best of luck.

That's extremely dishonest and morally wrong, even borderline fraud in my opinion (deception to purchase something at a lower price). I hope the EA would ban someone like that from viewings of any properties on their book.

realdanbreen

realdanbreen wrote: »

Just a bit of an aside if ye don't mind.
What percentage would I expect to pay if I was hiring a project manager to manage a house build?

?

s7ryf3925pivug

davo10 wrote: »

Completely useless tactic if you are trying to buy a house. What seller in their right mind would accept a bid within 48hrs? Better to leave it on the market and wait for other bidders.

If the bid is reasonable then they might be happy with it and they might not get a better one. A time limit just preempts an EA using your bid to start a bidding war.

They're much less likely to accept a lowball offer. That does nothing but give a means to encourage further bids.

Basically if you want the house then you want as little competition as possible. The estate agent's objective is pretty much to stir up competition. Give them as little as possible to help with that.

draiochtanois

This post has been deleted.

Pintman Paddy Losty

A lot of the people posting here have no idea how to think outside the box when it comes to bidding. You need to really get inside the minds of the seller and any other bidders. It's as much a psychological battle as it is a business transaction. You need to get an edge on people. You could pay the neighbour a few hundred euro to park a caravan in his driveway and give the appearance he's a traveller on viewing days. That will make others less interested in bidding.

GingerLily

Pintman Paddy Losty wrote: »

A lot of the people posting here have no idea how to think outside the box when it comes to bidding. You need to really get inside the minds of the seller and any other bidders. It's as much a psychological battle as it is a business transaction. You need to get an edge on people. You could pay the neighbour a few hundred euro to park a caravan in his driveway and give the appearance he's a traveller on viewing days. That will make others less interested in bidding.

Any how do you know what that seller thinks like?

Why would their neighbour allow that tactic, it would affect their own resale value for one thing, and would mean that you'd be the neighbour - who would want that - if your the type to play such low tricks?

Edit to add: this is obviously a wind up because no one would really actually bother go ahead a do this!

Tombo2001

Oscar Bumpy Druggist wrote: »

If the bid is reasonable then they might be happy with it and they might not get a better one. A time limit just preempts an EA using your bid to start a bidding war.

They're much less likely to accept a lowball offer. That does nothing but give a means to encourage further bids.

Basically if you want the house then you want as little competition as possible. The estate agent's objective is pretty much to stir up competition. Give them as little as possible to help with that.

A lot of housing market cliches in there.

Firstly, Estate Agents dont 'start' bidding wars. Interested buyers bid against each other. Nobody has a gun to their head.

Second, they might not get another bid? If you are bidding at the offer price, then yes I think the seller will be waiting to see what else comes in, and will discount any 'you have 2 days to decide' ultimatums.

They're much less likely to accept a lowball offer - true, but dont see how its relevant.

........In sum - if your plan is to deliver a knockout blow, that will give the seller cause to believe they should make a quick decision on the basis that its UNLIKELY anything better will come along......then bid 20% or 30% above the offer price.

Tombo2001

GingerLily wrote: »

this is obviously a wind up because no one would really actually bother go ahead a do this!

Lets all just leave it at that so we can get on with our lives.

Tombo2001

draiochtanois wrote: »

This post has been deleted.

What was the price?