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Smallest amount I can bid?

2»

Comments

  • #52
    ted1
    Registered Users, Registered Users 2 Posts: 23,661 ✭✭✭✭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


  • #53
    Claw Hammer
    Registered Users, Registered Users 2 Posts: 6,299 ✭✭✭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?


  • #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.


  • #55
    ted1
    Registered Users, Registered Users 2 Posts: 23,661 ✭✭✭✭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.


  • #56
    ted1
    Registered Users, Registered Users 2 Posts: 23,661 ✭✭✭✭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


  • #57
    Claw Hammer
    Registered Users, Registered Users 2 Posts: 6,299 ✭✭✭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%


  • #58
    meijin
    Registered Users, Registered Users 2 Posts: 1,268 ✭✭✭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


  • #59
    ted1
    Registered Users, Registered Users 2 Posts: 23,661 ✭✭✭✭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


  • #60
    Claw Hammer
    Registered Users, Registered Users 2 Posts: 6,299 ✭✭✭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, Registered Users 2 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 .


  • #62
    ted1
    Registered Users, Registered Users 2 Posts: 23,661 ✭✭✭✭ted1


    Claw Hammer wrote: »
    So your 76% was wrong so1

    No, it was used as an example based on price of 100k someone else mentioned.
    However your figure based on a house value of 246k was indeed wrong.


  • #63
    Claw Hammer
    Registered Users, Registered Users 2 Posts: 6,299 ✭✭✭Claw Hammer


    ted1 wrote: »
    No, it was used as an example based on price of 100k someone else mentioned.
    However your figure based on a house value of 246k was indeed wrong.

    You were replying to me . You took an 80% LTV and then produced another figure which you claim is a lower LTV. makes no sense.


  • #64
    ted1
    Registered Users, Registered Users 2 Posts: 23,661 ✭✭✭✭ted1


    Claw Hammer wrote: »
    You were replying to me . You took an 80% LTV and then produced another figure which you claim is a lower LTV. makes no sense.

    If you pay less and use the same deposit, your LTV will reduce. Makes perfect sense.


  • #65
    Claw Hammer
    Registered Users, Registered Users 2 Posts: 6,299 ✭✭✭Claw Hammer


    ted1 wrote: »
    If you pay less and use the same deposit, your LTV will reduce. Makes perfect sense.

    Where did you get the 192.8 from?


  • #66
    ted1
    Registered Users, Registered Users 2 Posts: 23,661 ✭✭✭✭ted1


    Claw Hammer wrote: »
    Where did you get the 192.8 from?



    246k * .2= 49.2 deposit
    Mortgage = 196.8

    Take away the 4K you saved by not increasing your bid. Your mortgage =192.8


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  • #67
    wench
    Registered Users, Registered Users 2 Posts: 1,652 ✭✭✭wench


    ted1 wrote: »
    246k * .2= 49.2 deposit
    Mortgage = 196.8

    Take away the 4K you saved by not increasing your bid. Your mortgage =192.8
    You've deducted the 4K twice there, off the purchase price and again off the mortgage.


  • #68
    ted1
    Registered Users, Registered Users 2 Posts: 23,661 ✭✭✭✭ted1


    wench wrote: »
    You've deducted the 4K twice there, off the purchase price and again off the mortgage.
    It’s a fictional purchase price.

    If you pay less , you take a smaller mortgage.


  • #69
    wench
    Registered Users, Registered Users 2 Posts: 1,652 ✭✭✭wench


    ted1 wrote: »
    It’s a functional purchase price.

    If you pay less , you take a smaller mortgage.
    Yes, the mortgage went from 200 to 196.8
    You can't deduct the 4k again


    Your suggested deposit of 49.2 + 192.8 only gets us to a purchase price of 242


  • #70
    ted1
    Registered Users, Registered Users 2 Posts: 23,661 ✭✭✭✭ted1


    wench wrote: »
    Yes, the mortgage went from 200 to 196.8
    You can't deduct the 4k again


    Your suggested deposit of 49.2 + 192.8 only gets us to a purchase price of 242

    Yes, as opposed to the fictional price 246


  • #71
    wench
    Registered Users, Registered Users 2 Posts: 1,652 ✭✭✭wench


    ted1 wrote: »
    Yes, as opposed to the fictional price 246
    You started with a price of 250 though, so 246 was the discounted amount.


    ted1 wrote: »
    Say they have mortgage approval of 200k and a 50k deposit. Instead of paying 250k, they could pay 246k. Thus keeping 4K cash.


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  • #72
    Claw Hammer
    Registered Users, Registered Users 2 Posts: 6,299 ✭✭✭Claw Hammer


    ted1 wrote: »
    246k * .2= 49.2 deposit
    Mortgage = 196.8

    Take away the 4K you saved by not increasing your bid. Your mortgage =192.8

    You are paying 246k. You have 50k. The least you can borrow is 196k. 192.8 doesn't come into it. You have deducted the 4k once and then 80% of it subsequently. You can't spend the same money twice!


  • #73
    Graham
    Moderators, Society & Culture Moderators Posts: 17,642 Mod ✭✭✭✭Graham


    Mod Note

    ted1 / wench / claw hammer, take it to PM.


  • #74
    witnessmenow
    Registered Users, Registered Users 2 Posts: 7,203 ✭✭✭witnessmenow


    I'm not sure how much other peoples bidding tactics would have impacted us when we were buying. We decided a max figure before we started bidding on the house (it probably helped the max was limited by our finances more than how much we liked the house) and we wouldn't have been put off if someone made a "strong bid" of an extra 20k, if it was below our max, we would have put a new bid in.

    As for minimum bids, I'm not sure about that. I would have thought 1k is the minimum, but im not basing that on anything.
    ted1 wrote: »
    I bought mine for xxx,500
    I let on thats alm I could afford and had to borrow and scrounge to come up with that amount.

    I tried this tactic too, they called my bluff though! It was E2500 less than we ended up paying, my thoughts were E2500 on the top of mortgage, while not a lot extra per month, it was close to E5k over the lifetime of the mortgage. We were the only bidders at the time so we rolled the dice a little. We folded like a bad hand pretty sharpish though!


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