Is this a tactic?

rekdtangle

Dav010 wrote: »

Interesting if you gave them a call and let us know what they say.

Now we know though, that even in this tiny sample of people who viewed this thread, there are two people interested in bidding on this particular house (one values it €11k higher than the other), stands to reason, there are others.

Cash offer of €179,000 on it.

Genuinely do not think that house is worth that price.

Dav010

rekdtangle wrote: »

Cash offer of €179,000 on it.

Genuinely do not think that house is worth that price.

It’s worth it to someone, therefore that is the value the market has placed on it.

rekdtangle

Dav010 wrote: »

It’s worth it to someone, therefore that is the value the market has placed on it.

If 1 person is willing to pay that is that the market value? I mean if no one else is willing to pay that amount then he has paid too much in my mind.

Dav010

rekdtangle wrote: »

If 1 person is willing to pay that is that the market value? I mean if no one else is willing to pay that amount then he has paid too much in my mind.

The price/value you place on it is subjective, what it sells for is definitive and is recorded on the PPR as the value of the house to the buyer/market.

That “1 person” you refer to, represents the value the market places on it.

kravmaga

aaaaaaaahhhhhh wrote: »

semi-detached-house

OP, as the house is end of terrace , it has huge potential for a rear or side extension, option for an attic conversion also.

The house is not over looked either going by the photos. End of terrace properties are always in great demand.

I note the BER is C2, so you would need to look at the current heating system, boiler up-grade , replace all the windows and front door with a composite type(palladio maybe).

An EA I know here in Dublin said people are bidding by just virtual video tours now since L5 lockdown. They is a lot of money out there and some people have done very well financially during Covid.

There will always be investors and cash buyers in no chain also.

Could be a missed opportunity imo.

That said I dont know the local market in Waterford city.

rekdtangle

Dav010 wrote: »

The price/value you place on it is subjective, what it sells for is definitive and is recorded on the PPR as the value of the house to the buyer/market.

That “1 person” you refer to, represents the value the market places on it.

I understand that, but have they just offered that because that's the asking price I wonder.

Gumbo

rekdtangle wrote: »

If 1 person is willing to pay that is that the market value? I mean if no one else is willing to pay that amount then he has paid too much in my mind.

It may be worth €200k to the next person whose parents live on the same road, or to someone that wants to extend or build a garage.

Go buy a house with no side space then an extra 10k is pennies to get the extra space.

Large back garden, out building and no development to the side means no over bearing or over looking. Nice house. I’m Dublin based so no personal opinion of location but on the face of it that’s a decent property.

Dav010

rekdtangle wrote: »

I understand that, but have they just offered that because that's the asking price I wonder.

They offered the advertised price, if the seller hasn’t agreed to sell it, there may be more interest in it and they think they can get more. What matters to you is that there is an offer on it already, above what you personally think it is worth, so someone else values it €25k more than you do. Like Gumbo and other posters, I think an end house with room to expand is worth more than one without it.

kippy

Dav010 wrote: »

A €10k increase means an extra €100, no EA is going to jeopardise a sale for that.

While I don't disagree with this generally, in that in a single transaction that's all that is at stake but in the bigger picture the auctioneer is setting the price of the next house that sales in that area etc for them or someone else.
Overall it is very much in their interests to increase prices achieved both for their own status and overall income.
Not saying this happens but you do have to consider it a possibility.

I don't know of any auctioneer ever having been found to or prosecuted for making up bids though

Dav010

kippy wrote: »

While I don't disagree with this generally, in that in a single transaction that's all that is at stake but in the bigger picture the auctioneer is setting the price of the next house that sales in that area etc for them or someone else.
Overall it is very much in their interests to increase prices achieved both for their own status and overall income.
Not saying this happens but you do have to consider it a possibility.

I don't know of any auctioneer ever having been found to or prosecuted for making up bids though

It’s what it sells for that sets the reference for future sales, not what it is advertised at. If I sell a house, I could care less what others sell for in the future, I’m paying the EA to get the maximum price for me. That is their job, the €10k increase is €9900 extra for me, they only get €100.

It’s the ultimate hypocrisy, EAs are bandits according to buyers when prices get pushed up, but the bees knees to sellers for doing the exact same thing. It’s worth remembering when you want to sell that house you are trying to buy now.

kippy

Dav010 wrote: »

It’s what it sells for that sets the reference for future sales, not what it is advertised at. If I sell a house, I could care less what others sell for in the future, I’m paying the EA to get the maximum price for me. That is their job, the €10k increase is €9900 extra for me, they only get €100.

It’s the ultimate hypocrisy, EAs are bandits according to buyers when prices get pushed up, but the bees knees to sellers for doing the exact same thing. It’s worth remembering when you want to sell.

Oh I agree with all that. But some people seem to think that the extra hundred euro isn't worth it to the auctioneer.....when that isn't necessarily the case. The auctioneer holds almost all the cards in this market when you look at it. They know what houses are selling for in an area and more importantly know what potential buys are currently looking and where the money is.
And yes. It is hypocrisy. The seller wants as high a price as possible but so does the auctioneer.

Gumbo

kippy wrote: »

Oh I agree with all that. But some people seem to think that the extra hundred euro isn't worth it to the auctioneer.....when that isn't necessarily the case. The auctioneer holds almost all the cards in this market when you look at it. They know what houses are selling for in an area and more importantly know what potential buys are currently looking and where the money is.

Everybody has access to area prices through the PPR.

ByTheSea2019

It doesn't seem very logical from the point of view of the sellers best interests. Ok, they've got their asking price, but for all they know you might love the house and be willing to go significantly higher, but you are someone who would never buy a house without viewing. Would make me inclined to think it's a tactic. Viewing is such a small, basic thing to arrange. Why would it be such a problem? I mean even if you were only willing to go £2000 higher, I would be willing to give up the time it takes to show a house for £2000.

dubrov

EAs just want sales. They will talk down the seller and talk up the bidders.

Where they start getting into shenanigans is when the seller insists they want Price X but the house is really worth X-10k.
They will do anything to get bidders up to that price as otherwise they get zero commission

Dav010

kippy wrote: »

Oh I agree with all that. But some people seem to think that the extra hundred euro isn't worth it to the auctioneer.....when that isn't necessarily the case. The auctioneer holds almost all the cards in this market when you look at it. They know what houses are selling for in an area and more importantly know what potential buys are currently looking and where the money is.
And yes. It is hypocrisy. The seller wants as high a price as possible but so does the auctioneer.

But an EA will not jeoprodise a sale/commission for the sale of an extra €100, it just would not make sense. The job of the EA is to achieve the best price for the person who is paying them.

In relation to “holding the cards”, it is precisely for their knowledge of the market and how best to get bidders to pay more, that sellers pay the EA. That is their job.

Dav010

dubrov wrote: »

EAs just want sales. They will talk down the seller and talk up the bidders.

Where they start getting into shenanigans is when the seller insists they want Price X but the house is really worth X-10k.
They will do anything to get bidders up to that price as otherwise they get zero commission

Sellers often have an emotional attachment that leads us to think our houses are worth the same to others as they do to us. That is understandable. To be fair, a lot of houses are going for above asking at the moment, so I’m not sure what “shenanigans” you are referring to.

kippy

Dav010 wrote: »

But an EA will not jeoprodise a sale/commission for the sale of an extra €100, it just would not make sense. The job of the EA is to achieve the best price for the person who is paying them.

In relation to “holding the cards”, it is precisely for their knowledge of the market and how best to get bidders to pay more, that sellers pay the EA. That is their job.

It's not just an extra 100 euro though. And what are the chances in the current market of the past 5 years or so of the auctioneer getting caught or not getting a buyer in the busier areas.
I know what their job is. My point is they have a fairly good idea of what people CAN go to based on their knowledge of the market.....so why NOT push that? It

Dav010

kippy wrote: »

It's not just an extra 100 euro though. And what are the chances in the current market of the past 5 years or so of the auctioneer getting caught or not getting a buyer in the busier areas.
I know what their job is. My point is they have a fairly good idea of what people CAN go to based on their knowledge of the market.....so why NOT push that? It

Sellers pay them to push bidders to buy.

The auctioneer gets paid when a house sells, if it sells for 200k they get €2k, if it sells for €210k they get €2100, why would they risk €2k for an extra €100 by underhand practices?

whatnext

johnnyskeleton wrote: »

I wouldn't buy a house without viewing it.

And I'd be extremely suspicious of any estate agent who causally throws it out there that you might like to do so.

I have never seen a place I bought before going sale agreed 😂. Just the way things have worked out. Viewed many, but never once managed to get one of them over the line.

impega1

Purchased my home in August after spending 2 years finding the right place.

First viewing of property the auctioneer told me that they had cash offer €10k over the asking price.

I finished my viewing and told auctioneer that based on upgrades needed to house, the asking price was unreasonable let alone the €10k additional the cash buyer was offering.

It was a lovely house in ideal location and it was playing on my mind.
I emailed the auctioneer what I deemed to be a reasonable offer and stated my reasoning for it.

Three weeks later the auctioneer rang me to say that the cash buyer had pulled out and if I was still interested in house that I could have it at the asking price. I turned it down straight away and said that I had put in a reasonable offer. Unfortunately he could not accept it however within 5 mins he called me back to say that offer was accepted.

So from my limited 1 time experience I believe this cash buyer didn't exist and from speaking with friends in similar position, there does seem to be alot of cash buyers offering Full or above asking price that fail to complete transactions

kippy

Dav010 wrote: »

Sellers pay them to push bidders to buy.

The auctioneer gets paid when a house sells, if it sells for 200k they get €2k, if it sells for €210k they get €2100, why would they risk €2k for an extra €100 by underhand practices?

Apologies. It doesn't appear as if I have explained myself properly

aaaaaaaahhhhhh

WOW Loads of questions to answer here so bear with me.

In the end there was 5 other bids, The house was bought for cash for the €179k. Be interesting to see like another poster said, if someone went in higher now and the Buyer pulled out, would you get the call.

All other bidders had morgage approval but as per the EA, thats not enough these days.

I was told the buyers were a local who bought it for the kids.

The house deffo isnt worth the money paid, the houses are old, no extension, attic is too small to convert, fireplace is in the kitchen etc.

Strange the property is still for sale when its been let agreed.

The local market is not that great in Waterford, one main developer who has houses priced between 270&350k which is nuts for this part of the country.

kippy

aaaaaaaahhhhhh wrote: »

WOW Loads of questions to answer here so bear with me.

In the end there was 5 other bids, The house was bought for cash for the €179k. Be interesting to see like another poster said, if someone went in higher now and the Buyer pulled out, would you get the call.

All other bidders had morgage approval but as per the EA, thats not enough these days.

I was told the buyers were a local who bought it for the kids.

The house deffo isnt worth the money paid, the houses are old, no extension, attic is too small to convert, fireplace is in the kitchen etc.

Strange the property is still for sale when its been let agreed.

The local market is not that great in Waterford, one main developer who has houses priced between 270&350k which is nuts for this part of the country.

Someone thought it was worth the money.
It costs about 200K to build a similiar sized house nowadays - maybe a bit less - without the site costs etc.
And to be straight about it, location location location.
Someone deemed this to be worth an additional X amount of money per month over the next X amount of years to have a house in this location.
What is 20K over the course of 30 years in additional repayments at 5 percent say?
110 odd euro a month at a total cost of close to 40K. Its not MASSIVE money for the sake of getting what you want, when you want, but again everyone has their priorities.

C3PO

aaaaaaaahhhhhh wrote: »

I know the house is worth at least 25k less than the asking, I live in the same estate right now(have done for 30+years).

If the house sells for asking or better ..... that’s what its worth! Maybe not to you or in your opinion but its worth what somebody is willing to pay for it!

FromADistance

aaaaaaaahhhhhh wrote: »

Hey Guys,
Based on info here I reached out to book a viewing today and got the below response. Is this a tactic by the agency, or should I call their bluff. I wasnt going to offer full asking price to begin with.

Thank you for your enquiry, we have received a cash offer of €xxx,xxx on this property.

If you would like to put in a cash offer without viewing the property, please contact us on xxxxx.

If that's the case, as the old saying goes 'Fools and their money are easily parted'. It's up to you but there's no way I would make an offer on a house without a viewing.

kippy

aaaaaaaahhhhhh wrote: »

WOW Loads of questions to answer here so bear with me.

In the end there was 5 other bids, The house was bought for cash for the €179k. Be interesting to see like another poster said, if someone went in higher now and the Buyer pulled out, would you get the call.

All other bidders had morgage approval but as per the EA, thats not enough these days.

I was told the buyers were a local who bought it for the kids.

The house deffo isnt worth the money paid, the houses are old, no extension, attic is too small to convert, fireplace is in the kitchen etc.

Strange the property is still for sale when its been let agreed.

The local market is not that great in Waterford, one main developer who has houses priced between 270&350k which is nuts for this part of the country.

On topic of the property still been shown as for sale even though a booking deposit has been paid. In my own limited experience most auctioneers would take the property off the market and mark sale agreed once booking deposit was paid however I have heard of a few examples recently where it doesn't get taken off the market or go sale agreed until the contracts are signed....make of that what you will. I wouldn't be too impressed with that as a buyer.

FromADistance

Dav010 wrote: »

Sellers pay them to push bidders to buy.

The auctioneer gets paid when a house sells, if it sells for 200k they get €2k, if it sells for €210k they get €2100, why would they risk €2k for an extra €100 by underhand practices?

An extra 100eur on a consistent basis adds up... the industry is well noted for light touch regulation..Never trust a sales person.

Dav010

FromADistance wrote: »

An extra 100eur on a consistent basis adds up... the industry is well noted for light touch regulation..Never trust a sales person.

Not if you loose the €2k it doesn’t.

Dav010

kippy wrote: »

On topic of the property still been shown as for sale even though a booking deposit has been paid. In my own limited experience most auctioneers would take the property off the market and mark sale agreed once booking deposit was paid however I have heard of a few examples recently where it doesn't get taken off the market or go sale agreed until the contracts are signed....make of that what you will. I wouldn't be too impressed with that as a buyer.

As a seller, I wouldn’t take a property off daft until contracts are signed. A cash buyer could be bidding on a number of properties, a financed buyer may not be able to draw down mortgage, both can change their mind. Property not sold until contracts signed.

ted1

kravmaga wrote: »

OP, as the house is end of terrace , it has huge potential for a rear or side extension, option for an attic conversion also.

Building costs are about 2,500 sqm, don’t buy a house with a bird to extending. Buy one that has the space already. It’s much cheaper