Bidding on a property questions

01-02-2021 12:00pm #1

Wondering what peoples opinion is of bidding on a property where it was at a significantly higher asking price late last year, the property was within reach, but it would have been pushing the limits, so walked away without making a bid.

Now property newer asking price is significantly less, it seems obvious no one showed interest at the original price, I rang the agent, may have caught an inexperienced person on the hop, but person stated that highest bid was even less than the newer asking by a reasonable amount. Told Id get a call back and nothing for almost a week, out of the blue I am rang, was busy and planned to ring at the start of following week myself anyway, but am now told property highest bid is back at the newer asking asking price (its possible),
Im wondering if I should put a bid in for the same price, they may be expecting me to place an increased bid, which might seem usual, Id even considered putting a lower bid but dont want to make it seem like Im a time waster and just messing them about or have them disregard any future bids. While interested, I dont want to escalate out of hand or bid against myself, it seems likely they are going to try get as close to the original price.

The problem is, if I bid and am outbid in the end, the agent has another property which is has a lower asking price still, and the agent would have a good idea of my limits then.

Prefer the original property, and would like to bid, have approval, and am just waiting on a pdf of that to send on.

bilbot79 · 01-02-2021 12:20pm

1874 wrote: »

Wondering what peoples opinion is of bidding on a property where it was at a significantly higher asking price late last year, the property was within reach, but it would have been pushing the limits, so walked away without making a bid.

Now property newer asking price is significantly less, it seems obvious no one showed interest at the original price, I rang the agent, may have caught an inexperienced person on the hop, but person stated that highest bid was even less than the newer asking by a reasonable amount. Told Id get a call back and nothing for almost a week, out of the blue I am rang, was busy and planned to ring at the start of following week myself anyway, but am now told property highest bid is back at the newer asking asking price (its possible),
Im wondering if I should put a bid in for the same price, they may be expecting me to place an increased bid, which might seem usual, Id even considered putting a lower bid but dont want to make it seem like Im a time waster and just messing them about or have them disregard any future bids. While interested, I dont want to escalate out of hand or bid against myself, it seems likely they are going to try get as close to the original price.

The problem is, if I bid and am outbid in the end, the agent has another property which is has a lower asking price still, and the agent would have a good idea of my limits then.

Prefer the original property, and would like to bid, have approval, and am just waiting on a pdf of that to send on.

You can think about same or lower if your ability to close is better than the other bidder. Otherwise, if you are willing to outbid and your price is accepted its yours. It all comes down to what you're willing to pay

I tend to think that in or around my estimated 'market value' is acceptable. Even if it's mildly overbid it's fine as you can potentially claw some value back by accelerating mortgage repayments etc and in 30 years time that small difference will make no difference really.

If I felt it was way over market though I'd steer clear

awec · 01-02-2021 1:20pm

Why not just bid a very slightly higher amount than the existing?

If you bid the exact same bid without any other redeeming feature (e.g. a cash bid) you'd probably not be seen as someone worthwhile.

on_the_roots · 01-02-2021 5:35pm

I would bid by 1k above the current bid, it shows that you have a serious interest on the property but that you don't want to proceed significantly above the asking price because you know the real value of that property.

01-02-2021 6:31pm

thanks for the replies, it helps as I have not been involved in a property purchase in a longtime.

Bidding on a property questions

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