Bidding Strategy

K

kcat

Registered User
Messages
56
Basics
Asking price: 380k
Current bid: 320k (we're the underbidder)
Our max: 350. Last bid was 315.

House is vacant as was rented in academic year. Apparently went sale agreed last Winter for 350 and vendor wants 350 or above this time. There seems to only be one other bidder. It's a very desirable area but the house needs work and I suspect that is turning people off (particularly if they've had to stump up 20% deposit).

Is there any way to find out if there is really another bidder? Our strategy is to keep going up in 5's until 340 and then slow down to 2k increments. Would you do it differently?
 
My experience, having being through this a number of times, is that there is another bidder. If you want the house, then go with you are prepared to pay and what it is worth to you, and not a penny more. This is always hard though when the counter offer comes back with what you have bid plus +1k. But unfortunately this is the game.

Increasing by small increments also tempts the other bidder along (just one more might do it .... )
 
My opinion. Go up in twos until 330. Then if other bidder still in game go straight to 340 in one bid. If other bidder increases then you know it's most definitely a real bidder and they are serious. Your call if to continue but if other bidders stays the course could end up expensive.
 
Whether there is another bidder or not is moot if the seller has a bottom line of 350K.
 
Bronte said:
Whether there is another bidder or not is moot if the seller has a bottom line of 350K.
Click to expand...
Keyword here is 'if'. I can't explicitly reference why but every bone in body mistrusts this particular EA.

Regardless of my feelings, apparently a recent bid went to 225 and then 227 so we have now placed a bid of 335. Substantial and still gives us some room for manouvre.
 
kcat said:
. I can't explicitly reference why but every bone in body mistrusts this particular EA.

.
Click to expand...

Well he's hardly on your side now is he, nor should he be, his job is to get the maximum for his clients. You don't have to trust him, he has nothing really to do with it.
 
There may be a phantom bidder. Why don't you put in another phantom bidder yourself. Get a friend to view the property. Get them to come back a second time so that they are serious bidders. Then let them bid 230 but no more. See if they are told the same story as you.

Then you can also be a phantom buyer. Tell them that you are looking at another house and you will bid on that if your bid is not successful. This creates uncertainty for the other side. Probably doesn't matter if they do have a minimum price of €350k and a buyer prepared to pay that.

Brendan
 
Bronte said:
Well he's hardly on your side now is he, nor should he be, his job is to get the maximum for his clients. You don't have to trust him, he has nothing really to do with it.
Click to expand...

With respect, I don't think any of my posts articulated that he should be on our side and I think you're wrong in your statement that he has nothing to do with it; he has everything to do with it. He is the only individual who can see both sides of the canvas. The seller and I are equally reliant on him.

Brendan, that's exactly what we plan to do. Have a friend going to see the house tomorrow and he will subsequently place a bid. He's an architect so we wanted him to scope out plans to modify the existing house so he can just pretend to be an interested buyer while doing that.
 
If you dont trust the estate agent (and lets face it we cant really ever trust an estate agent!) then I would go up in 2s and see what happens. If this other bidder is a phantom bidder then you are bidding against yourself and why do this in large increments? The bidding process is a tiring process which requires alot of patience and a real interest in the proprty involved. Go up in 2s for 2/3 bids and see if this other bidders (if a real bidder) interest remains. If it looks like they're sticking around and really fighting for this property then throw in a larger bid of mayb 5k after these 2/3 bids on your side.

Hope it all works out, it is a tiresome game but remember, keep the EA on your side as much as possible!
 
You must log in or register to reply here.
Back
Top