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Smallest amount I can bid?

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2

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    #32
    riclad
    Registered Users Posts: 8,184 ✭✭✭riclad


    When bidding on a 240k house, I would offer a few grand,
    Bidding 1k more is a waste of time.
    There's not many people who can afford to buy a house
    with 240k cash
    Most people know how much they can afford to spend before they put in a bid


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    #33
    ted1
    Registered Users Posts: 23,266 ✭✭✭✭ted1


    riclad wrote: »
    When bidding on a 240k house, I would offer a few grand,
    Bidding 1k more is a waste of time.
    There's not many people who can afford to buy a house
    with 240k cash
    Most people know how much they can afford to spend before they put in a bid

    There’s a sh1tload you’d be surprised.


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    #34
    antix80
    Registered Users Posts: 2,419 ✭✭✭antix80


    You're saying bidding but assuming you're talking sale by private treaty the seller doesn't have to sell to the highest "bid"

    Offers can increase by small amounts but at some stage the seller will hear the amount they're happy with, it will go "sale agreed" and when you offer an extra €500 they'll say "this guy again... €5000 or gtfo"


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    #35
    ec_pc
    Registered Users Posts: 446 ✭✭ec_pc


    Certainly I would not consider €500 euro bids if I was selling, it could be seen as a sign that you are reaching your limit. I don't think it will have the desired effect, if I was in a bidding war with you, I would come in with a 3-5K bid to see If I can blow you out of the process so in effect you are achieving nothing.


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    #36
    ted1
    Registered Users Posts: 23,266 ✭✭✭✭ted1


    ec_pc wrote: »
    , I would come in with a 3-5K bid to see If I can blow you out of the process so in effect you are achieving nothing.

    So you could be paying 4,500 over the odds


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    #37
    Graham
    Moderators, Society & Culture Moderators Posts: 17,642 Mod ✭✭✭✭Graham


    ted1 wrote: »
    So you could be paying 4,500 over the odds

    Similar could be said of almost any counter bid.

    It's just as likely a strong counter would put off competing bidders who may have otherwise placed several + 1k bids.


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    #38
    kippy
    Registered Users Posts: 18,394 ✭✭✭✭kippy


    ted1 wrote: »
    So you could be paying 4,500 over the odds

    What are "the odds"?


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    #39
    ec_pc
    Registered Users Posts: 446 ✭✭ec_pc


    ted1 wrote: »
    So you could be paying 4,500 over the odds

    Over whose odds? All things in life come with a price, if you want it pay up or walk away.

    A strong bid sends out a serious message to other bidders. I know from selling previously a 5k increase removed several of the 1K bidders.


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    #40
    ted1
    Registered Users Posts: 23,266 ✭✭✭✭ted1


    ec_pc wrote: »
    Over whose odds? All things in life come with a price, if you want it pay up or walk away.

    A strong bid sends out a serious message to other bidders. I know from selling previously a 5k increase removed several of the 1K bidders.

    What message is that ?
    I’ve bought and sold a few houses over the years , I find small bids work better.
    If someone increase by 10k I’ll stick with small increments. If it’s going over what I am willing to bid. I’ll either stop bidding or if the other bidder is bidding aggressively I’ll increase by bid by 5k, just so they’ll increase again.


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    #41
    Graham
    Moderators, Society & Culture Moderators Posts: 17,642 Mod ✭✭✭✭Graham


    The only thing you can say with certainty is there is no sure-fire-win bidding strategy. What works in some occasions for some people, won't necessarily work in others.


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    #42
    spaceHopper
    Registered Users Posts: 3,967 ✭✭✭spaceHopper


    JustAThought wrote: »
    I know someone who was encouraged by an EA to bid against herself to guarantee she would put everyone else off and get the house. Totally unethical EA weaseled another 10K out if her by scaring her into paying over her own bid before he closed the deal. CA should be put onto them.

    Having experienced the totally unethical dealings of someone working in one of the big EA I’d ve extremely cynical. Do these other bidders or bids even exist? Are you the only person interested and in a position to buy? Is the EA just having a laugh at your embarasment and misery - they get a % of the final sale price.

    Someone should look at this whole industry.

    We did this and it's a great house very happy with it.

    There are 3 prices for a house, what you are prepared to pay, what somebody else is prepared to pay and what the seller is willing or able to take.

    We offered 312 on a house that had an offer of 300 asking 329. We felt 300 was lowballing so blew them out of the water. EA phoned me back and said that the sellers were looking for in the 320's so we went to 320500 and got. There was one other viewing after our bid but they didn't bid. From first bid to sale agreed was 4 days and not much stress.
    Very happy we did. It ended months of searching I got my saturdays back.

    OP don't play games, do up a spreadsheet on what it would cost you each month if you go up by x. Cost of borrowing is low at the moment less than a fiver. How much home and life insurance will cost.... What you have as a deposit and who much you think it would cost for any work needed, management fees, professional fees, stamp duty.....

    If the house is right for you the go for it but know when to stop. If you bid in 500's I wouldn't take you seriously if I was an EA. But if you'd put in decent bids and said no I've reached my max well I might believe you.


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    #43
    Bluezar
    Registered Users Posts: 423 ✭✭Bluezar


    Brian? wrote: »
    You bid €1 At a time. But it'll piss the seller off.

    I wouldn't bid any less than 5 grand at a time. Depends how much you really want the house

    You could be costing yourself a few quid bidding this way. When I bought my home in Dublin 2 years back, we were bidding against another party and and were up a bit over the asking price. My missus wanted to bid an extra €5k to try secure it where as I said the other party could be at their max now so lets just go a grand higher.

    We bid an extra €1k on their bid and it was accepted the next day when they withdrew as they had hit their ceiling.

    Would have cost myself an extra €4k needlessly by bidding €5k more than their offer


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    #44
    awec
    Administrators Posts: 53,365 Admin ✭✭✭✭✭awec


    Bluezar wrote: »
    You could be costing yourself a few quid bidding this way. When I bought my home in Dublin 2 years back, we were bidding against another party and and were up a bit over the asking price. My missus wanted to bid an extra €5k to try secure it where as I said the other party could be at their max now so lets just go a grand higher.

    We bid an extra €1k on their bid and it was accepted the next day when they withdrew as they had hit their ceiling.

    Would have cost myself an extra €4k needlessly by bidding €5k more than their offer

    Yes but on a month to month mortgage payment basis the difference in that 4k could be negligible.


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    #45
    Melanchthon
    Registered Users Posts: 1,118 ✭✭✭Melanchthon


    awec wrote: »
    Yes but on a month to month mortgage payment basis the difference in that 4k could be negligible.

    Have 4 grand extra for doing up the house isn't
    negligible though.


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    #46
    ted1
    Registered Users Posts: 23,266 ✭✭✭✭ted1


    awec wrote: »
    Yes but on a month to month mortgage payment basis the difference in that 4k could be negligible.

    It’s the difference is changing windows ? New kitchen appliances. A nice patio. Good furniture.


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    #47
    awec
    Administrators Posts: 53,365 Admin ✭✭✭✭✭awec


    Melanchthon wrote: »
    Have 4 grand extra for doing up the house isn't
    negligible though.

    But you won't have 4 grand extra to do up the house.

    This would only be true if you were buying with cash.


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    #48
    awec
    Administrators Posts: 53,365 Admin ✭✭✭✭✭awec


    ted1 wrote: »
    It’s the difference is changing windows ? New kitchen appliances. A nice patio. Good furniture.

    Again, this is only true if you are buying with cash.

    Getting a mortgage of 96k instead of 100k doesn't mean you have 4k to spend.


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    #49
    ted1
    Registered Users Posts: 23,266 ✭✭✭✭ted1


    awec wrote: »
    But you won't have 4 grand extra to do up the house.

    This would only be true if you were buying with cash.

    ??

    No. They may be paying with a mortgage. Say they have mortgage approval of 200k and a 50k deposit. I stead of paying 250k, they could pay 246k. Thus keeping 4K cash.


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    #50
    ted1
    Registered Users Posts: 23,266 ✭✭✭✭ted1


    awec wrote: »
    Again, this is only true if you are buying with cash.

    Getting a mortgage of 96k instead of 100k doesn't mean you have 4k to spend.

    Or get the mortgage of 100k and keep 4K in cash from deposit /savings


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    #51
    Claw Hammer
    Registered Users Posts: 6,160 ✭✭✭Claw Hammer


    ted1 wrote: »
    ??

    No. They may be paying with a mortgage. Say they have mortgage approval of 200k and a 50k deposit. I stead of paying 250k, they could pay 246k. Thus keeping 4K cash.

    What if the needed to maintain an 80% LTV?


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    #52
    ted1
    Registered Users Posts: 23,266 ✭✭✭✭ted1


    Claw Hammer wrote: »
    What if the needed to maintain an 80% LTV?

    What if ? Well then they’ll appreciate only having a 76% mortgage.

    Cant believe people are trying to justify paying more for a a house than they need too


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    #53
    Claw Hammer
    Registered Users Posts: 6,160 ✭✭✭Claw Hammer


    ted1 wrote: »
    What if ? Well then they’ll appreciate only having a 76% mortgage.

    Cant believe people are trying to justify paying more for a a house than they need too

    Where are you getting 76% from?


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    #54
    [Deleted User]
    Posts: 14,344 ✭✭✭✭ [Deleted User]


    ted1 wrote: »
    What if ? Well then they’ll appreciate only having a 76% mortgage.

    Cant believe people are trying to justify paying more for a a house than they need too

    I think you're looking at it in a very black/white manner, though.


    If you don't know the other party's circumstances, and you see a 'big' bid come in, it sends a message that the other party has money and isn't acting the bollocks. They want the property and they've deep enough pockets to put you in your place.


    So by you putting a big bid on the property, you can potentially scare off other parties that are looking but feel a bit like they may be getting out of their depth a little.

    If the property is at 100k, and Joe Soap has 110k to spend, bidding up in 500 amounts isn't a lot of money. "sure why not".

    So you could potentially 500-bid your way up to his 110k limit. Whereas if you're at 100k, and you suddenly drop a 5k bid on it, Mr. Soap might be more likely to think his money is running out quite quickly and perhaps he should consider another property, as 5k is a lot of cash to drop in one bid.


    That's the theory anyway. Of course it won't always work. A lot of times it just wont work at all. It depends how focused the other buyers are on the house, but the thought-process that by making a bigger bid, you could save money, does have merit.


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    #55
    ted1
    Registered Users Posts: 23,266 ✭✭✭✭ted1


    [Deleted User] wrote: »
    I think you're looking at it in a very black/white manner, though.


    If you don't know the other party's circumstances, and you see a 'big' bid come in, it sends a message that the other party has money and isn't acting the bollocks. They want the property and they've deep enough pockets to put you in your place.


    So by you putting a big bid on the property, you can potentially scare off other parties that are looking but feel a bit like they may be getting out of their depth a little.

    If the property is at 100k, and Joe Soap has 110k to spend, bidding up in 500 amounts isn't a lot of money. "sure why not".

    So you could potentially 500-bid your way up to his 110k limit. Whereas if you're at 100k, and you suddenly drop a 5k bid on it, Mr. Soap might be more likely to think his money is running out quite quickly and perhaps he should consider another property, as 5k is a lot of cash to drop in one bid.


    That's the theory anyway. Of course it won't always work. A lot of times it just wont work at all. It depends how focused the other buyers are on the house, but the thought-process that by making a bigger bid, you could save money, does have merit.

    Or the other bidder will think this guy is a bit of an over enthusiastic ejeit. The house is still within my budget. I can increase my bid to 1k over there’s. Maybe they went to their limit.

    Or I’m at my limit, this guy will outbid me again sure I’ll just stick in a bid to see how high he’s willing to go. < thus the other guy pays way more over the price needed


    Best advice is to pay no attention to what others do? Set your budget. And don’t bid above it, bid cleverly.


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    #56
    ted1
    Registered Users Posts: 23,266 ✭✭✭✭ted1


    Claw Hammer wrote: »
    Where are you getting 76% from?

    Smaller mortgage. As he’s paying less , therefore. 80% reduces, could be 79,78, etc


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    #57
    Claw Hammer
    Registered Users Posts: 6,160 ✭✭✭Claw Hammer


    ted1 wrote: »
    Smaller mortgage. As he’s paying less , therefore. 80% reduces, could be 79,78, etc

    It does not mean a 76% LTV if the loan is reduced by 4K on a purchase price of 246. It would be a LTV of 79.7%


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    #58
    meijin
    Registered Users Posts: 1,251 ✭✭✭meijin


    awec wrote: »
    But you won't have 4 grand extra to do up the house.

    over the time of the mortgage, you will save 4k + interest


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    #59
    ted1
    Registered Users Posts: 23,266 ✭✭✭✭ted1


    Claw Hammer wrote: »
    It does not mean a 76% LTV if the loan is reduced by 4K on a purchase price of 246. It would be a LTV of 79.7%

    Keep up with the conversation another poster used 100k as an example.

    Also with a purchase price of 246 and a 20% deposit. 4K reduces the LTV to 78.3%

    Deposit of 49.2K
    196.8 =80% LYV
    192.8= 78.3% LTV


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    #60
    Claw Hammer
    Registered Users Posts: 6,160 ✭✭✭Claw Hammer


    ted1 wrote: »
    Keep up with the conversation another poster used 100k as an example.

    Also with a purchase price of 246 and a 20% deposit. 4K reduces the LTV to 78.3%

    Deposit of 49.2K
    196.8 =80% LYV
    192.8= 78.3% LTV

    So your 76% was wrong so1


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    #61
    riclad
    Registered Users Posts: 8,184 ✭✭✭riclad


    Most people have x amount to spend , i have mortgage approval for x amount, i can only afford to bid this and you need a few grand to cover stamp duty ,legal fees etc
    you want to buy a house, you are not gonna put off other bidders by bidding x plus 500 euros.
    if the agent thinks the house is worth 230, it,ll be advertised at 200k,
    to attract bidders .
    an extra 3k to an agent means nothing ,hes on 1.5 per cent commision.

    if you can afford to buy a 200k, house you can get a credit union loan to
    put in a kitchen or make other upgrades .


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