Leaving the forecasts about where houses prices are going to one side, but in principle if the max you can afford is 220, whatever you do, do not start the bidding at that level.
- Start at a level somewhat below that, to allow for bidding tactics from the agent, negotiations etc.
- Check out alternatives...give yourself the choice of a few houses - from different agents. If you have 3 or 4 houses in mind, it it a lot easier to walk away from one and play hardball with another 2 or 3. Plus, this would give you a better sense of value and price sensitivity from the sellers.
- Don't let the selling agent know what level you are approved to or what your limit is. This information is protected under Data Protection laws and they have no right to know it. If they demand to know it, then just walk away from them.
- Understand the risks of non-closure: does the seller have somewhere to go to? If they are hoping to use this sale to move on and buy somewhere else, then you need to understand the risks of the sale not going through and be prepared to live with that.