Advice required re: bidding on a property

G

Germaine

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The house has been on the market since last November. It was priced at 425k. I felt this was very overpriced compared to other houses. Price bothered me and I left it.....it would max me out. My ideal was 370k.

It went sale agreed, then this fell through. EA says the potential purchasers found a property they preferred.

Time passed....it comes on market again, reduced to 399k. In a weird Irish way, it was discovered that the vendors know people I know. (It's a small town).
This person contacted me and told me the venders are desperate to sell having found their dream home, and would take 390k for it if I was interested...

I am interested...but trying to be budget savvy and a good person.....what do I bid? 390 or lower? Was thinking of going in at 385k. is 370k too low...? Agent told no other offers right now...

I know I'm letting emotions rule here, so would appreciate advice.
 
Your ideal is €370k.
But if the house worth more than your ideal?

They might not be able to sell it for €370k, because if they have bought another house, they need more. However, they may be forced to sell it for whatever.

Why don't you compile some price information. "No 25 sold for €380k and it had a new kitchen. No 15 sold for €360k and it's comparable. So I will offer you €360k for it."

The auctioneer will probably come back with some more price comparisons and then see how it goes.

Brendan
 
Brendan Burgess said:
However, they may be forced to sell it for whatever.
Click to expand...
A word of warning, if this is a small town & it will be your long term home; everyone is related to some one.

Gossip has a habit of getting around & if you squeeze too hard, resentments can last a very long time.

If there is price comparision information available, then Brendans approach will be a good start.

20k might seem a lot now, but in 10 years it likely won't be.
 
Your ideal is €370k and there ideal is €399k,so let the haggling begin if you really want the property.
 
Personally speaking I feel a house is only worth what somebody is willing to pay for it
It doesn't matter what anybody else thinks it's worth, only what is achieved on the day of the sale
Me, I'd open with an offer of €350K or your €370K and see what comes back to you
If they say no, they might come back with a counter offer or you can decide to raise your opening offer
 
It sounds like the gap is one which will close sufficiently for an agreement if 1) you have some flex and 2) they do need to move. If they do need to move, a willing buyer that wont fall through or change their mind is not worth losing over 10-15K. Likewise if you have been watching it for months, and have a genuine interest, there is no point letting it slip for the sake of 2% of the price.

What Brendan said, put forward an offer based on some sort of evidence, this shows you aren't being a muppet pulling a low number from thin air, let them counter it with their own evidence or argument of situation, go from there.

Given you mentioned its a small well connected place and you are dealing with an informal channel; I would avoid a total low ball and bidding in small denominations like 1 or 2k, as it is that which might get peoples backs up. I would prefer to show I am serious with one serious offer, then a 2nd if that fails, making it my final offer.
 
We've changed homes on several occasions and found that if you are "soft" the price increases by the day. If you are really interested in the property I suggest you put in one bid and inform the estate agent your bid is live for 48 hours only and instruct that on the 49th hour your offer ceases. I also suggest that if your offer is not accepted you withdraw and under no circumstances get involved in a bidding battle.
 
If you're not embarrassed by your offer, it's too high.

About 10 years ago, we were buying a house in the UK - market was doing well enough. House was on for £400k. Mrs Time to Plan wanted to offer £380k and I wanted to offer £360k. She was embarrassed to offer so low. I phoned up to offer 360k and they accepted. Did I get any thanks?

I wouldn't bother with hardball tactics like 'my bid is only valid for 48 hours'. Why would that be true? My tactic is to put in a bid and tell them that you're looking at other properties as well. The message that I like to convey (but not in so many words) is that I've not 'fallen in love with the house', but I think it's one good house out of a few good houses, and what I'm looking for is value - I'm just as happy to buy another house if it represents better value.
 
 
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