House Buying...FTB

A

andycole

Registered User
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150
Hi,
First to acknowledge message from Administrator Clubman regarding comments regarding House Price Speculation being banned from AAM Discussion Forum. Here are a couple of issues that I wish to get feedback from other FTB's if I can.

1. I have been looking to purchase a two bedroom second hand house (terraced and end of terraced) in the Dublin North area's in particular Santry and Whitehall for about 6 months or so. Twice I have been the highest bidder as informed by the EA handing the sale of the houses. However on both sales the vendor has withdrawn the house from the market with the reason given that they have not being happy with the highest price being achieved. One lady went with another EA with the result that the house was again advertised on a popular house buying website for a higher price. Actually on this particular occassion I was able to view the same house being advertised for two different prices within a couple of pages of each other...on the house buying website. The second occasion the vendor sold the house to a friend of his...
I am wondering if other FTB's are having the same type of experiences that I am, with regard to being the highest bidder only still not getting any success in making their purchase?

2. My second query and request for feedback is concerning the display of identical property being advertised on many house buying websites. I don't want to name these websites here in my post as I understand this is against posting guidelines. However aside from the example given above which I was directly involved...there are other examples of not only different houses being advertised for big differences in prices and rougly in the same condition and on almost identical address....but also apartments being advertised for almost 50 grand differences in prices and these being located within the same development and sometimes the same floor as well??

My particular question is focused on how are FTB's determining what bids to place on these types of properties. I have asked the EA's that I have been talking to explain to me why identical properties are being advertised for such a huge difference is prices and have been told that they cannot comment on that as the other property would be part of the portfolio of another EA company etc.. This I have checked myself and can confirm that this has always being the case. It seems to me that the different EA companies use different selling strategies to sell property and to achieve the highest prices for their clients.

I could post a couple of links to these advertisements to back my comments up...but first maybe an AAM can clarify if I am allowed to do this?
 
Beware the moderators-you have now submitted three posts-two of which will be shut down.
Re your post. I am glad I am not a FTB. EA's can only poass on the offers to sellers, ultimately it is the seller that decides. That said there is no doubt that the EA's advise the seller on the best course of action. They do after all have a vested interest in keeping prices high-commission being the main one.
I have also seen identical properties-apartments-being advertised by different agents for varying prices. The fact that theya re apartments rulse out the fact that they could be modified-extended, etc, which is not possible in Appartments. It makes a joke of getting an auctioneer to 'Value' a property. They are price takers and will do their bast to using the words of EA's ' stimulate' interest in a property by offering it for sale way below what they hope to get for it. This tactic has been shown up for all its warts by the new AMV system. House are being withdrawn from auction without receiving a single bid and then sold privately for more than the AMV. EA's could not value a 48c stamp-they would wait to see what demand was before telling you what it was actually worth!
 
There are plenty of threads already on bidding strategies, worth reading to get the different perspectives. The advice seems to be to bid low & don't believe anything an estate agent says, but this mainly comes from people sitting on the fence :)
 
I don't see any reason why this post should be shut down.
I'm not speculating or asking for speculation about house prices...I'm
looking to hear from other FTB's who may or may not be sharing the same
difficulties that I currently am experiencing. Yes...I can understand that if an EA works by commision than the higher the selling price the higer the fee. I have also worked in retail (drapery retail) and have worked for commision also.

A question...has any other FTB's gone directly to any owners of these houses / property...and tried to directly negotiate a price etc..Personally I would be a bit scared about doing this myself but the thought has crossed my mind...desperate needs...desperate measues...

And if so have you had any success..or have you heard of any FTB's couples who have tried this and have met with success?
 
The advice seems to be to bid low
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Hvae to say would disagree - I have 2 friends that used that premise and €50K ltr they pulled out....

When we were buying our houses (trading up), what we did was asked how long the house was on the market, if you make a reasonable offer and the vendors want to sell you are more likely to have you offer accepted.

When we bought our last place, I was informed by the EA, after asking my questions, that the vendors are looking for a quick sale, if they got €5K above the asking price the house was ours - which we did. He did try and retract his statement....when another couple put in an offer but I told him I am withdrawing the offer. The rest is history.

Be strong and firm, if you really want the house - make a reasonable offer and it will more than likely be accepted...
 
pinkyBear said:
Be strong and firm, if you really want the house - make a reasonable offer and it will more than likely be accepted...
Click to expand...

Yes, but what is a reasonable offer? The asking price should not be used to determine what offer to make. A potential buyer should only make offers based on what they feel the property is worth.

If there are no other offers on the table, always ignore the asking price and bid low based on your own valuation of the property. The worst thing that can happen is the bid gets rejected - that's not the end of the world.

The asking price could have been inflated which means that if you used this as a measure to bid low, you could still be offering more than the vendor would for sell for. Always bid based on your own assessment of value, don't let yourself get anchored to the asking price.
 
Yes, but what is a reasonable offer?
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If there are a number of houses that have been for sale for the past while, that will give you a guide of what is expected.

In or around (5-10K below) that is what I would offer.

The asking price could have been inflated
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I can not comment on this - as where I am living the prices are still rising houses are selling 20K above asking price.....
 
To clarify on the shutting down comment-it referred to duplication of posts and not the content. As predicted they are now gone! :D
The mods are not keen on duplication of posts!
 
pinkyBear said:
I can not comment on this - as where I am living the prices are still rising houses are selling 20K above asking price.....
Click to expand...

Glasnevin - Cedarbook? Interesting, my parents have been trying to sell a house there since October. Reasonable asking price - not one offer yet!
 
"If there are a number of houses that have been for sale for the past while, that will give you a guide of what is expected."

But the difficulty is that frequently on the property websites there are
numberous examples of the same type of property being quoted for a huge difference in price by different EA's...
As a source of information these websites are totally unreliable...
 
Definitely some patience required as sellers are having to adjust to an unfamiliar and probably unexpected environment.

I'm familiar with several houses that have had quite sizeable asking price cuts and even at that, the highest bid is still way below the new price. But the vendor is still holding out - probably because they know what they could have got last year and they cannot bring themselves to accept the current highest bid.

Time will tell how this new tug-of-war between seller and buyer will pan out.
 
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