Advice on bidding strategies 2020

hottea2019

Hi all,
We are FTBs and actively looking for a house in Dublin. Luckily, our jobs are not affected by COVID. We just want to have some better ideas about bidding strategies in this seller's market.
1. Should we offer the highest price we can afford for the property we like? If the bid goes higher, then drop.
2. Or should we start lower bid and then continue on the war?
3. Any tip to develop closer relationship with the EAs? As we learnt from other posts, building some emotional bond with the seller or EAs may help us win the bid?
Appreciate any other suggestions

Queenio

Hard to know what to do when bidding for the first Time, I have recently gone sale agreed and went with a bid fast bid low approach. Had worked for us and we closed at 15k under asking. But there's no guarantee this week be successful. Offering at asking won't necessarily take a house off the market. Vendors will hold out for more especially if you bid fast at asking. Gives the impression house will be Snapped up. I read tons of articles like this. Best of luck. Process is painful. Im still looking on daft out of fear that sale will fall through

https://www.independent.ie/life/home-garden/homes/10-secrets-to-buying-a-home-successfully-35049076.html

buffin

This isn’t exactly bidding strategy but the best advice we got even in a similar position was to start actively following the bids on houses we liked- just ring the estate agents and check what the latest bid is regularly. Even put in a bid and then the estate agent will call you to check if you want to go higher before closing. That helped us figure out the “real price” of houses in our preferred areas. We then knew that they were typically going 10% above asking.

Our strategy on bidding then wasn’t to go in low but wait until others had bid first, then come in about 5% above asking which often seemed to put off others. Ultimately though we really didn’t any strategy made that big a difference and the house was going to go did whatever it went for!

hottea2019

Thank you for all responses. We have lost couple of bids, which is quite demotivating. We went "bid fast bid low" in some houses and "agreesively bid above the asking price" in others, but nothing seems working. Is it also a matter of luck?

Graham

As you have already discovered, there is no magic/secret bidding strategy.

What works for some people, with some vendors, won't work with others, or it might.

whatever76

Yes its very much cloak and dagger and such a mind melt - as a buyer you just don't know what is happening in the background between the seller, Estate Agent and other interested buyers and what there situation is ( like going for job interview) .... I've been in situations where I backed out in bidding race as it was just getting to high ; to being highest bidder and getting trumped but a lower cash bid that seller went with ; to the seller going with another buyer even though I was highest bid, to me not budging on my offer which was a few grand off asking with the seller holding out for more and clearly not happening . you will go through all scenarios and think you just need to go through it all and hope the right one comes on and its for you and I agree there is a bit of luck pending on what the competition is- I finally got my house on my v last bid and was walking away if not accepted ! best of luck !!

wolfyboy555

Viewed a house with an offer in of asking already. The buyers are sale agreed on their own property. Does it make any sense to match their bid as we are FTB with no chain or should we bid upwards. The asking is right on our limit so we would be stretching for anything further.

Pivot Eoin

wolfyboy555 wrote: »

Viewed a house with an offer in of asking already. The buyers are sale agreed on their own property. Does it make any sense to match their bid as we are FTB with no chain or should we bid upwards. The asking is right on our limit so we would be stretching for anything further.

Do you know the situation of the other bidder? To be safe if you could go up a grand then Id do that. No point risking a house you want for the sake of a grand - just eat spaghetti hoops for a month after you drawdown!

wolfyboy555

Pivot Eoin wrote: »

Do you know the situation of the other bidder? To be safe if you could go up a grand then Id do that. No point risking a house you want for the sake of a grand - just eat spaghetti hoops for a month after you drawdown!

Yes the other bidder is in the process of selling their own house and are sale agreed on it according to the EA.

Pivot Eoin

wolfyboy555 wrote: »

Yes the other bidder is in the process of selling their own house and are sale agreed on it according to the EA.

Ah okay. Then its advantage you I'd Imagine.

Either go a grand over if you want to fully secure it, or match it and say its only valid til close of business tomorrow then we're walking away - which is fine to do as you are at your max anyway.

If you really wanted to push it you could send them your AIP letter / proof of funds too with the bid just to signify you can move quick and have the money youre talking about.