Bidding on a property and unsure how real the bids are?

Bigmac1euro · 06-07-2020 12:23pm #1

I know this kind of thing is posted time and time again but i'd like to share my story.

So I am currently bidding on a property.

Price is 385,000

We viewed it before lock down and liked it.
After viewing and being the only couple to view it we decided to offer 350.

The vendor refused this and said they'd like it to be on the market a little longer and see what happens.

Fast forward a few months and we viewed the property a 2nd time as lock down is over.
We were told there wasn't much interest in the property.
The EA told us the vendor was open to offers and was very eager to move so we increased our offer to 360 on friday.

This morning the EA comes back and says a couple viewed the property on the 12th of May and has offered €362,500

We then upped our bid to 365,000
Then the under bidder offered 366,000,

At this point I emailed the EA and asked what the time lines where and that I needed to think about it before making another counter.

She replied and said the other couple have mentioned this is their final offer and that could I let her know in the next few days.

It all sounds so fake considering the country was in lockdown whilst supposedly the other couple viewed it.

I'd like to hear peoples thoughts.

The add actually has a video of the property so maybe they looked at the video and decided they wanted to spend 366k on this property.
It really seems like I'm being squeezed for the extra few k and I'm bidding against myself.

gourcuff · 06-07-2020 12:27pm

how bad do you want the place?.

id be tempted to pull out and see if you get a call, if you do, drop your offer back to 360.

6k is alot of money, could be used to do some refurb,

Bigmac1euro · 06-07-2020 12:38pm

gourcuff wrote: »

how bad do you want the place?.

id be tempted to pull out and see if you get a call, if you do, drop your offer back to 360.

6k is alot of money, could be used to do some refurb,

Well this is the dilemma.
It's a beautiful property.
We love it. It's the only property we actually like except another one in the same area which we got outbid on. That property is identical and sold for 373 in basically the same condition though the asking price was initially lower at 375.
Both properties drew very little attention.
We are also on a timeline as our AIP is underwritten with an exemption but expires in 8 weeks.
Without the exemption we wont be able to go for these prices.
We will no doubt lose the exemption too.

I think I've answered my own question.
I don't think it's worth risking pulling out.

I'll probably just go 367 but I might wait a few days before countering.
I just got a promotion and my partners job is safe for now. We wouldn't have trouble with the mortgage repayments and if prices drop next year it wouldn't really matter because this is a forever home. We're going to be here long term anyway.

Treppen · 06-07-2020 12:51pm

You'll probably never know. But the first red flag was when the seller said they'd like to wait longer. They mightn't be pushed about selling. House down the road from me was on and off the market for 4 years and went sale agreed multiple times.

I'd hang on till the market changes. I doubt prices will be rising with a recession coming.if it's part of a ' trade up in a few years' plan you could be Stuck for a while. If it's your forever home then that changes things.

Maybe go back and review how much money you'd have to put in on top. Electrics, plumbing, new kitchen, extension!

What's the general supply like in the area?

Edit: just see you answered questions above.

Treppen · 06-07-2020 12:57pm

Is it the same EA as when you were outbid last time?

If so then just put in a higher/max offer with time limit and remove the for sale sign. You can tell them your AIP is running out soon too.

SteM · 06-07-2020 1:09pm

OP, why do you think it's fake? You don't think people were looking at properties during lockdown? Maybe they lived 1 street over and could walk to the place.

Do you think these are fake offers? Your offer was 365k and your next offer may be 367k if you decide to go for it. If that's accepted the EA would have made an extra 2k. Their charge is what, 10%? Why would they risk their reputation for the sake of €200?

Bigmac1euro · 06-07-2020 1:46pm

Treppen wrote: »

Is it the same EA as when you were outbid last time?

If so then just put in a higher/max offer with time limit and remove the for sale sign. You can tell them your AIP is running out soon too.

Different EA to the last time.

Turkish1 · 06-07-2020 1:49pm

SteM wrote: »

OP, why do you think it's fake? You don't think people were looking at properties during lockdown? Maybe they lived 1 street over and could walk to the place.

Do you think these are fake offers? Your offer was 365k and your next offer may be 367k if you decide to go for it. If that's accepted the EA would have made an extra 2k. Their charge is what, 10%? Why would they risk their reputation for the sake of €200?

More like 1-1.5% so its an extra €20-€30. In the grand scheme of things it sounds like 367k will get it done, so €2k extra in your position (AIP with exemption, forever home, secure jobs, easily affordable, €6k lower than equivalent house you were outbid on) I wouldn't give it a second thought.

Outkast_IRE · 06-07-2020 1:51pm

If it was me , i would beat the other bid slightly and then engage your engineer to do a survey and get him to do his utmost to find a few thousand of work to bring it back down towards the mark you are happy with.

Is it a bit of a **** thing to do - Yes and No .
I have lost out on multiple properties that in the end sold for less than my offer cause someone else went in higher, then ensured that 10k or 20k in some situations of work was found to bring it back lower.

I am an engineer and qualified plumber so made realistic offers knowing the extent of the work only to be outbid by someone who is clueless and then pushes the price down later. - The auctioneer doesnt care he wants just the highest offer to show he did his job and when engineers come back later he will just relay the message to the seller he doesnt care anymore at that stage.

It doesnt pay to be 100% nice in this scenario.

Bigmac1euro · 06-07-2020 1:54pm

SteM wrote: »

OP, why do you think it's fake? You don't think people were looking at properties during lockdown? Maybe they lived 1 street over and could walk to the place.

Do you think these are fake offers? Your offer was 365k and your next offer may be 367k if you decide to go for it. If that's accepted the EA would have made an extra 2k. Their charge is what, 10%? Why would they risk their reputation for the sake of €200?

I know what you mean I agree, it is more than likely a real person.

I just find it hard to believe the EA showed the property at the time due to the restrictions.
It would have been technically against the law no?
Why would an EA risk its rep by showing a property during a pandemic.
I know I couldn't get a viewing on other properties which i wasn't mad about anyway.

Supply in the area is terrible. The market has been basically stalled since December.

HillFarmer · 06-07-2020 1:55pm

Op, if you like it and you can afford it go for it.
In 20 years from now you wont really mind the 6K.

The EA may well be a *ick, but if you like the house go for it.
Best of luck either way.

Bigmac1euro · 06-07-2020 1:55pm

Turkish1 wrote: »

More like 1-1.5% so its an extra €20-€30. In the grand scheme of things it sounds like 367k will get it done, so €2k extra in your position (AIP with exemption, forever home, secure jobs, easily affordable, €6k lower than equivalent house you were outbid on) I wouldn't give it a second thought.

Yeah I'm going to go for it.

Bigmac1euro · 06-07-2020 1:57pm

Outkast_IRE wrote: »

If it was me , i would beat the other bid slightly and then engage your engineer to do a survey and get him to do his utmost to find a few thousand of work to bring it back down towards the mark you are happy with.

Is it a bit of a **** thing to do - Yes and No .
I have lost out on multiple properties that in the end sold for less than my offer cause someone else went in higher, then ensured that 10k or 20k in some situations of work was found to bring it back lower.

I am an engineer and qualified plumber so made realistic offers knowing the extent of the work only to be outbid by someone who is clueless and then pushes the price down later. - The auctioneer doesnt care he wants just the highest offer to show he did his job and when engineers come back later he will just relay the message to the seller he doesnt care anymore at that stage.

It doesnt pay to be 100% nice in this scenario.

Now that's a scenario that never crossed my mind.
Thank you, I appreciate the advice.

SteM · 06-07-2020 2:05pm

Bigmac1euro wrote: »

I know what you mean I agree, it is more than likely a real person.

I just find it hard to believe the EA showed the property at the time due to the restrictions.
It would have been technically against the law no?
Why would an EA risk its rep by showing a property during a pandemic.
I know I couldn't get a viewing on other properties which i wasn't mad about anyway.

Supply in the area is terrible. The market has been basically stalled since December.

My numbers were way off at 10% so the EA has even less to gain by extracting an extra 2k from you than I thought.

You're just caught up in the excitment of the whole thing which is making you a bit paranoid. Plenty of people broke lockdown, certainly by early/mid May which is the date you were given. You said yourself you were willing to break lockdown to see properties you weren't really interested in, why would someone who was interested in a property be any different?

ning sudnaen · 13-07-2020 8:36am

sounds like the ea is corrupt and most replies telling the op to ignore signs of corruption and buy anyway are encoraging corruption which is an illegal act

mariaalice · 13-07-2020 9:07am

It will only wreck your head, work out a price you are comfortable with offer that and stick to it, be prepared to walk away there are a lot of houses out there.

Don't get emotionally involved.

Queenio · 13-07-2020 9:32am

I did a virtual viewing of a house. Loved the look of it and location. Was peak lockdown with the 2km limit. Told EA I couldn't bid without seeing. Right before June 8th house went sale agreed. I was very surprised as EA was adamant no viewings during lockdown. It is still sale agreed so I'm guessing they bid off the viewing and continued with sale after the surveys etc. It happens for sure. Especially in areas with limited supply of good condition second hand homes. Best of luck with the bidding. It's a painful process. Im not enjoying any of it.

Dav010 · 13-07-2020 1:33pm

ning sudnaen wrote: »

sounds like the ea is corrupt and most replies telling the op to ignore signs of corruption and buy anyway are encoraging corruption which is an illegal act

I’ve been reading boards.ie for years, I don’t remember one poster ever being able to substantiate their claim about phantom bids. Often the allegations suit an agenda, some are just ill informed, but if the op has proof the bids are not genuine, all the posts encouraging corruption will be seen for what they are.

Bigmac1euro · 14-07-2020 9:04pm

Went sale agreed this morning at 370 after giving the EA an ultimatum yesterday.
They had 4 interested parties viewing the weekend so we weren’t holding out and I asked the EA straight out what would possibly take the house off the market she said 370 and I offered that.
She then went to the vendor and got back to me this morning saying they accepted.
I transferred booking deposit today and hired a solicitor.
Buying a house in this country is a nightmare.
Fingers crossed nothing messes us up now.
I have also booked an independent surveyor.

Darc19 · 14-07-2020 9:11pm

Bigmac1euro wrote: »

Buying a house in this country is a nightmare.
Fingers crossed nothing messes us up now.
I have also booked an independent surveyor.

Try buying in France. It's an absolute doddle here in comparison.

Once you have a solicitor that is not overly pedantic, the sale could be completed in 4-5 weeks.

If either side have a pedantic solicitor, it can be twice that.

Bidding on a property and unsure how real the bids are?

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