Bidding advice - First time buyer

Audioh8

Hi,

myself and partner have a substantial cash sum which will allow us to go for a “fixer-upper”.

This has put us in with (I am guessing) other cash buyers, investment property buyers etc.

Could I ask if anyone has advice on how to approach bidding or dealing with estate agents.

There is a property now on the market which we would like and have set our budget for.

Thank you in advance.

Alkers

What do you mean?

You make an offer if you're interested, as does everyone else.

You can be sure to tell the estate agent that you are a first time buyer and not subject to a chain. This will give you an advantage over some people but it's totally down to the seller how they value this over a higher offer from someone who's trading up or down!

Icantthinkof1

You answered your own question with regards tips for bidding “set your budget” and stick to it

Best of luck

walterking

Investors are rarely interested in "fixer uppers". Your competition for these are usually small builders who flip them.

Be sure of your "fixing up" costs as it has become very expensive to hires trades people, but if you are handy at some of the work yourself, you have a small advantage.

Don't let the EA know you have substantial funds sitting there, just enough to fund the purchase and mortgage approved with a little extra. I'd be making an initial offer at least 10% below asking to get your name on the bidders list. Also, the market is slow, so you may not have much other interest in the property

Audioh8

Thank you for the advice. I know my question may seem a little daft but I feel the process of bidding is so unregulated that any help is of huge benefit and the response thus far has helped massively in how we will approach the bidding process.

May I add an odd query which is inspired by the methods of CrazyHousePrices on Instagram. I know the owner of the property in question and they would have amicable relationship with my family going back a generation or two. Could a letter be sent to the estate agent making them aware of the buyer? (local, want to make it a home, willing to pay a fair price etc etc)

or, does money simply supersede all else.

Thank you again.

awec

https://www.boards.ie/discussion/comment/119852643#Comment_119852643

Realistically money supersedes everything.

That CrazyHousePrices guy is IMO not worth bothering with, he's always going on about how far prices go over asking and I don't think he's ever realised that asking price is pretty much irrelevant.

"A fair price" is a bit of a misnomer in property. The fair price is whatever someone is willing to pay for it. It is extremely unlikely you'll get a discount just cause you know them, and there is a chance that the vendor may feel you've put them in an awkward position by suggesting they do you a bit of a favour.

Just know your maximum and don't go over this. Other than that there are no games and no strategies. You bid, someone else bids, you bid, someone else bids, it goes on until the last bidder standing. IMO it's better to either win fast or fail fast so you can move on, you don't want a long drawn out bidding process, so I would avoid bidding in tiny increments (which might also piss off the vendor).

spaceHopper

Do an excel sheet with all you finance, talk to the bank about what you can borrow. Look at it two ways borrow or cash buy and then fix up. If you dream house that isn't a fixer upper comes along you could go for it...

Bidding, tell the EA you have finance, aren't in a chain. You may need proof of funds, a letter from the bank or solicitor would do.

Use you spread sheet to set a budget, remember building expense have gone crazy. Be prepared to being an architect QS or builder to a second viewing. If you can make an offer on Friday morning, gives the EA something good to tell the client at the end of the week and they are thinking about your offer all weekend.

Be a slut, see lots of houses and there is nothing to stop you making lots of offers.

If you do go for a mortgage get life insurance sorted early it often catches people out

Brock Turnpike

https://www.boards.ie/discussion/comment/119852965#Comment_119852965

I would ignore everything apart from the final paragraph here.

herbalplants

https://www.boards.ie/discussion/comment/119852643#Comment_119852643

Money superseeds all, nobody cares who is the buyer once they are happy with the offer, they won't care a bit they know your family.

Set up a budget what you want to offer and stick to it. Have a small margin of going up and know when to exit if it goes over.

Be prepared to walk away, it is an art to learn to walk away if it doesn't go for your price.

walterking

Forget social media fools - they are attention seekers and will always sensationalise everything.

Bidding is very regulated. Agents can by fined large amounts if they don't adhere to rules. (And have been)

All bids have to be in writing in some form - text/email is the normal format.

Remember, agents get about 1% or 1.5% - it's not worth their while creating pretend bids but they are a good target for people who just want to find something to moan about - and remember, they work for the seller. They are not your friend.

Brock Turnpike

"Money supersedes all"

"Don't use a family connection"

All bad advice. If there is a family connection there then use it. That doesn't mean asking for money off. The vendor decides if they have a preferred bidder, and it's possible they will be willing to sell to you due to the amicable family connection. Write a letter to the vendor directly - the estate agent will not be a help to you in this scenario. I am speaking from experience here.

Best of luck.

monaghanmissus

Is there a certain amount of time you’d recommend to counter-bid. Bidding myself via SherryFitz online and have put on a counter bid within an hour or two of being outbid. Worried though about coming across too eager?

Alkers

https://www.boards.ie/discussion/comment/119855528#Comment_119855528

If its you and one other bidder, then the mind games comes into it. If multiple bidders still involved, just hang on until it fizzles down to you and one other, then start tactics

monaghanmissus

https://www.boards.ie/discussion/comment/119855753#Comment_119855753

Any advice for tactics?

herbalplants

https://www.boards.ie/discussion/comment/119855528#Comment_119855528

Absolutely, you were too eager! I would wait at least a full day to counter bid

walterking

https://www.boards.ie/discussion/comment/119859079#Comment_119859079

There's no "right way".

An immediate counterbid might deter another buyer if they think you will do the same again and again.

Some people jump 5k or 10k to frighten off other bids.

Likewise some people are wise to this and play the opposite game and increase by the minimum at the last minute.

It's cat and mouse. No right way, no wrong way.

herbalplants

https://www.boards.ie/discussion/comment/119863256#Comment_119863256

Agree, I have seen it myself this April gone, where the other bidder was increasing by 10k every bid, it definitely deterred me 😂. But I do think that peak is gone.

True no right or wrong. Best is not to get too emotional attached on the house you are bidding and know to walk away it rather than get carried away in the heat of the moment over your budget.

ted1

You have cash don’t get carried away, whatever you think repairs and upgrades are, double them

don’t be to entuasistic about bidding make it seem each increase is a struggle

knucklehead6

The most important thing is knowing when to walk away, have a figure in your head for the property and stick to it