Bidding Strategy

0gac3yjefb5sv7

Hi there,

So I'm really interested in a house I viewed.

There have been 4 viewings the past month and no bids.

They are using auctioneera which sets off a timer of 15 days if you bid 95pc of asking price.

Similar houses in the area have gone for their asking price so it isn't particularly high.

Not sure whether to low ball or consider going 95pc of asking?

Any advice welcome.

marieholmfan

contact them directly with 60℅ of asking.

Pheonix10 wrote: »

Hi there,

So I'm really interested in a house I viewed.

There have been 4 viewings the past month and no bids.

They are using auctioneera which sets off a timer of 15 days if you bid 95pc of asking price.

Similar houses in the area have gone for their asking price so it isn't particularly high.

Not sure whether to low ball or consider going 95pc of asking?

Any advice welcome.

0gac3yjefb5sv7

marieholmfan wrote: »

contact them directly with 60℅ of asking.

They would probably laugh at that. The property price register says that it's priced about correct at asking.

Thanks for the comment though.

the_syco

Pheonix10 wrote: »

There have been 4 viewings the past month and no bids.

They are using auctioneera which sets off a timer of 15 days if you bid 95pc of asking price.

I'm assuming no bids, as it's assumed that you either pay the 95%, or you don't bid?

0gac3yjefb5sv7

the_syco wrote: »

I'm assuming no bids, as it's assumed that you either pay the 95%, or you don't bid?

If you bid lower than 95pc then it doesn't start the timer.

amcalester

Is the timer in any way significant? What happens when it his zero, does the house go sale agreed?

I wouldn’t be bidding against yourself just to start a timer that may have no meaning.

0gac3yjefb5sv7

amcalester wrote: »

Is the timer in any way significant? What happens when it his zero, does the house go sale agreed?

I wouldn’t be bidding against yourself just to start a timer that may have no meaning.

The timer means it may close the sale quicker. After 2 weeks then the sale is agreed. So if I bid under it, they may just wait for longer and longer with more people interested

Bid what you're willing to pay. People massively over think these things imo.

amcalester

Pheonix10 wrote: »

The timer means it may close the sale quicker. After 2 weeks then the sale is agreed. So if I bid under it, they may just wait for longer and longer with more people interested

But no guarantee that it does close the sale quicker?

The seller isn't going to accept your bid if they think they can get more just because the timer hit zero.

Equally why would you bid more than you need to just to start the timer.

amcalester

amcalester wrote: »

But no guarantee that it does close the sale quicker?

The seller isn't going to accept your bid if they think they can get more just because the timer hit zero.

Equally why would you bid more than you need to just to start the timer.

While I don’t know much about this auctioneering site, I sounds/reads like the vendor commits to selling at the end of the timeframe, and that the reserve is 95% of asking, no bids are entertained below this.

If that is the way it works, it’s a pretty simple approach to selling and one where everyone knows where they stand. But looking at their website it isn’t immediately obvious that there is any commitment by the vendor/EA to sell when clock reaches 0, so it could just be a gimmick.

amcalester

Dav010 wrote: »

While I don’t know much about this auctioneering site, I sounds/reads like the vendor commits to selling at the end of the timeframe, and that the reserve is 95% of asking, no bids are entertained below this.

If that is the way it works, it’s a pretty simple approach to selling and one where everyone knows where they stand. But looking at their website it isn’t immediately obvious that there is any commitment by the vendor/EA to sell when clock reaches 0, so it could just be a gimmick.

Could be, I spent 2 minutes googling to see how it worked and couldn’t find an answer either so I’m leaning towards gimmick.

JJJackal

I certainly wouldnt bid the asking in this setting. I would bid 10-20% below the asking depending on the price other houses went on the PPR. You mentioned that they all went around the same price as the one your interested in is looking for so maybe 10%. The other point of note is the opportunity cost of bidding low: lets say you bid 15% below asking - its reasonable to think that the vendor will hang on a couple of months to see what happens. If he needs to sell, great, he may accept that offer sooner rather than later. If not he may hang around for several months to see what happens. At the same time you may be renting a property which is costing you x per month. If low balling takes you an extra 6 months to buy the property thats x by 6 to your landlord (which isnt gone into your mortgage or pocket). Just something worth considering