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In a bidding war - how soon do you respond?

  • 30-09-2019 1:35pm
    #1
    Registered Users Posts: 4,700 ✭✭✭ Naos


    Hello all,

    In a bidding war, how long do you generally take to come back to the EA and what are the pros & cons of coming back early vs letting them hang on?

    Example - I put in a bid of 350k @ 9am. 2 hours later the EA says someone has bidder 351k.

    What do you believe is the best timeframe to provide a response (assuming you could go higher)?


Comments

  • Registered Users Posts: 8,853 ✭✭✭ duffman13


    Naos wrote: »
    Hello all,

    In a bidding war, how long do you generally take to come back to the EA and what are the pros & cons of coming back early vs letting them hang on?

    Example - I put in a bid of 350k @ 9am. 2 hours later the EA says someone has bidder 351k.

    What do you believe is the best timeframe to provide a response (assuming you could go higher)?

    Depending on your budget is and what you think it's worth, I'd go straight back in with 355, that's just me, might bully them off, might not. I believe in bidding quickly, shows the agent and the other purchaser you are serious, you'll get good info from the next offer too.

    Everyone will have conflicting thoughts on the above though


  • Registered Users Posts: 21,759 ✭✭✭✭ ted1


    duffman13 wrote: »
    . I believe in bidding quickly, shows the agent and the other purchaser you are serious, you'll get good info from the next o

    I disagree , I believe that shows your hand to much and indicates that you have access to more money and will get pushed up.

    I’m a believer of slowly dragging it out making each bid seem like a struggle


  • Registered Users Posts: 21,872 ✭✭✭✭ endacl


    Just bid what you’re willing to pay. If it’s accepted, it’s accepted. If not, you can move on instead of entering into silly mind games with an EA and vendor who’s getting paid no matter who buys the house.

    Life’s too short.


  • Registered Users Posts: 21,759 ✭✭✭✭ ted1


    endacl wrote: »
    Just bid what you’re willing to pay. If it’s accepted, it’s accepted. If not, you can move on instead of entering into silly mind games with an EA and vendor who’s getting paid no matter who buys the house.

    Life’s too short.

    People are buying houses here, not a bag of popcorn. I dint think it’s as simple as that.


  • Registered Users Posts: 8,853 ✭✭✭ duffman13


    ted1 wrote: »
    I disagree , I believe that shows your hand to much and indicates that you have access to more money and will get pushed up.

    I’m a believer of slowly dragging it out making each bid seem like a struggle

    I've bought two houses in my life and bid on multiple, I've yet to pay more than I was willing to for a house:D As I said in my above post, there is pro's and cons to every strategy, having been a vendor and had someone take 4 days to respond to the bids, I happily went with someone who seemed keener and also appeared to have more money to spend. (Both mortgage approved)


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  • Registered Users Posts: 13,946 ✭✭✭✭ Cuddlesworth


    Naos wrote: »
    Hello all,

    In a bidding war, how long do you generally take to come back to the EA and what are the pros & cons of coming back early vs letting them hang on?

    Example - I put in a bid of 350k @ 9am. 2 hours later the EA says someone has bidder 351k.

    What do you believe is the best timeframe to provide a response (assuming you could go higher)?


    Do you know where your limit is? I'd be less concerned about bidding and more concerned about not knowing when to stop.


  • Registered Users Posts: 4,240 ✭✭✭ JeffKenna


    ted1 wrote: »
    I disagree , I believe that shows your hand to much and indicates that you have access to more money and will get pushed up.

    I’m a believer of slowly dragging it out making each bid seem like a struggle

    If I were the seller in this situation I would be leaning more towards the other bidder. If you're making each bid seem like a struggle and dragging it out then you may start acting like that once the bidding is over and pulling other stunts.


  • Registered Users Posts: 725 ✭✭✭ Funfair


    Go 353 don't go to 355 and take it from there, it sounds like thet testing the waters with you..Who bids 351 ? Either a guy on a tight budget or a phantom bid...


  • Moderators, Science, Health & Environment Moderators Posts: 23,062 Mod ✭✭✭✭ godtabh


    Funfair wrote: »
    Go 353 don't go to 355 and take it from there, it sounds like thet testing the waters with you..Who bids 351 ? Either a guy on a tight budget or a phantom bid...

    I had some one bid like that when buying current house. They'd match a bit by €1k. Did my homework to see how much similar houses were going for, our budget and what worked needed to be done to come up with a final figure. Bid that and that was the end of it. It was about €6k over the last bid.

    It did take about 2 weeks to get an update though. The under bidders were looking to buy/renovate/flip and they I assume were doing the same calcs as me but took them longer to **** or get off the jacks


  • Registered Users Posts: 21,759 ✭✭✭✭ ted1


    Funfair wrote: »
    Go 353 don't go to 355 and take it from there, it sounds like thet testing the waters with you..Who bids 351 ? Either a guy on a tight budget or a phantom bid...

    My last bid in the family home was a 500 euro increment that did it. It went x10, x11, x12, x12.5.


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  • Registered Users Posts: 32,141 ✭✭✭✭ is_that_so


    Do you know where your limit is? I'd be less concerned about bidding and more concerned about not knowing when to stop.
    This would be my attitude as well. Push closer to that limit. As for the question 24 hours is enough time for reflection.


  • Registered Users Posts: 30,626 ✭✭✭✭ Lumen


    My own experience was that if the bidding runs too fast, people will lose the run of themselves and bid more than the place is really worth to them. Then it goes Sale Agreed, the "winner" gets cold feet and pulls out and you're back to square one. (There are other explanations, like phantom bidders, but I think this is relatively rare).

    So I think a sensible delay of at least 24 hours helps fend off the mental.


  • Registered Users Posts: 1,622 ✭✭✭ Baby01032012


    I’ve bid on 3 properties and was successful on all. I went up in increments of 5 and rapidly. It quickly puts off those going in 1s and 3s.

    On one property I was getting on to luas. After 3 luas stops I had the property sale agreed.


  • Registered Users Posts: 7,127 ✭✭✭ Lux23


    I would say thanks for letting me know, I will be in touch shortly. Then I would ring back the next day and offer another €1k.


  • Registered Users Posts: 1,888 ✭✭✭ SozBbz


    I'm inclined to agree wiht posters who say to make a significant bid, assuming its within the limit you'd set yourself for the property anyway.

    Myself and my OH recently outbid someone by €20k in one fell swoop. We really wanted the house and we knew roughly what the vendor wanted to get the deal done. The under bidders offer had been on the table for a little while and was neither accepted nor rejected.

    We saw the house very last minute and didnt have our finance in order (we were in the process, but didnt formally have the AIP paperwork in our paws to prove it). We offered €20k on the basis the the vendor would need to wait 1 week for our paperwork. We knew because our bid was a bit complicated that we'd need to get his attention, so we decided to try to knock the other bidder clean out and it worked.


  • Registered Users Posts: 190 ✭✭ mint man


    if you are not in a chain ie.first time buyer or cash buyer your bid will have more power than someone that is in a chain .
    try find out what type purchaser your bidding against imo


  • Registered Users Posts: 1,279 ✭✭✭ em_cat


    mint man wrote: »
    if you are not in a chain ie.first time buyer or cash buyer your bid will have more power than someone that is in a chain .
    try find out what type purchaser your bidding against imo

    This is not always the case, we are locked in a bidding war, we are cash, not in a chain and have proof of funds. We believe the main op bidder is the owner of the neighbouring property who is a serial landlord and has a previous relationship with the EA’s.

    From the first open view an initial bid was put in by that buyer, we spent a wee bit of time speaking to the agent, said we’d be in touch. Arranged a second viewing, 2 days later, which had another buyer, they left really quick tho.

    We put in an offer 10K above the first, then it was ‘improved’ by 5k buyer A. We countered by 5K, buyer A countered by 5k, then another couple came in making 2K bids, withdrew after 3 attempts, we then put in a 10K and at present it’s at 5K over asking (buyer A). We have yet to counter as the initial bidding was rapid and I’m not in a rush or time limited, but bidder A may be as he is mortgaged, I gather he’ll be able to get an extended approval.

    The EA is still showing the property, but no offers over the current bid.

    I honestly don’t know what to do now other than to hold atm so am not sure if being a cash buyer is of benefit.


  • Registered Users Posts: 6,451 ✭✭✭ Alkers


    Naos wrote: »
    Hello all,

    In a bidding war, how long do you generally take to come back to the EA and what are the pros & cons of coming back early vs letting them hang on?

    Example - I put in a bid of 350k @ 9am. 2 hours later the EA says someone has bidder 351k.

    What do you believe is the best timeframe to provide a response (assuming you could go higher)?

    Is there only one other person bidding or multiple?

    If there are multiple bidders, do nothing until it's just you and someone else, they won't go sale agreed without letting you know.

    If it's you Vs someone else then you can start to play mindgames and tactics.


  • Registered Users Posts: 1,005 ✭✭✭ poker--addict


    Do EAs not discourage 1k bids unless it really is the end of the line/late on?



  • Registered Users Posts: 172 ✭✭ Littleredcar


    Been in a recent bidding war and four bidders all went up in 1,000 per bid



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  • Registered Users Posts: 10,949 ✭✭✭✭ Dav010


    It’s up to the seller/EA to set the bid increments that will be considered, for some it’s minimum €1k for others it’s more. Also depends on what other bidders are going up by, if they are €5k and you are €1k, the EA may tell you to up your bid or piss off.



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