Bidding - how low can you go?
- Thread starter Voda
- Start date
liteweight
Registered User
- Messages
- 1,678
If you show them your balls, they'll throw you out, or have you arrested!
The auctioneer usually asks the bidding to start at a certain price. If no takers he'll go down a tad. In any event, he will not put the house on the market until the vendor's reserve is reached.
I don't think the OP is referring to an auction, but a regular estate agent orientated jobbie.
It's a buyers market and the seller may be looking to sell quickly. You'll feel a bit of a chump if you bid 375K and then the neighbours sell theirs for 317 in a months time.
It's a buyers market and the seller may be looking to sell quickly. You'll feel a bit of a chump if you bid 375K and then the neighbours sell theirs for 317 in a months time.
liteweight
Registered User
- Messages
- 1,678
Very true. Go as low as 317.5K and let it roll on from there.
Bid low they can only say no!
(ah the poet comming out in me)
Seriously I have been researching the market recently and things do seem to be slowing down, although I doubt any EA will admit to that. If EA keeps upping the price via another bidder and you have suspicions drop a note into the seller (assuming they live in the house you are bidding on) failing that go into the E.A and ask them to put the offer to the vendor there and then in front of you( try you luck and ask them to put the call on speaker phone) remember you are the one parting with the cash and its their job to get as much as they can form you for their client (and themselves). Also worth rembering the stamp duty limit of 381,000!!!
Best of luck.
keep us posted on how it goes.
(ah the poet comming out in me)
Seriously I have been researching the market recently and things do seem to be slowing down, although I doubt any EA will admit to that. If EA keeps upping the price via another bidder and you have suspicions drop a note into the seller (assuming they live in the house you are bidding on) failing that go into the E.A and ask them to put the offer to the vendor there and then in front of you( try you luck and ask them to put the call on speaker phone) remember you are the one parting with the cash and its their job to get as much as they can form you for their client (and themselves). Also worth rembering the stamp duty limit of 381,000!!!
Best of luck.
keep us posted on how it goes.
I've seen a house that I'm interested in. It was put on the market for €325k in August. They had one offer of €285 in September but purchaser pulled out of negotiations because he couldn't put the cash together. There have been no further offers on the place. I was thinking of making an initial offer of €200k.
Is this a good or a bad idea? I couldn't afford to go more than €250k but I live in the hope of maybe getting it for €220 or €230k.
Advice appreciated.
Is this a good or a bad idea? I couldn't afford to go more than €250k but I live in the hope of maybe getting it for €220 or €230k.
Advice appreciated.
There is nothing stopping anyone bidding as low as they want for a property. The seller can only say no. You never know, you might get lucky and have your bid accepted but you won't know that until you bid.
If you're trying to guess a price, I believe 20% under asking is where we are at. If it was me however I'd bid as low as I thought the property was worth to me and which I could afford. That is something one cannot quantify for someone else.
If you're trying to guess a price, I believe 20% under asking is where we are at. If it was me however I'd bid as low as I thought the property was worth to me and which I could afford. That is something one cannot quantify for someone else.
Evaluate what you think the house is worth and base your bid on this. This should be the absolute max that you will bid so you really want your first bid to be a good bit below this to allow room for negotiation.
For my money, basing your offer on some percentage or factor of the asking price is nonsense.
For my money, basing your offer on some percentage or factor of the asking price is nonsense.
Keep us updated, be nice to have a live report, ill be heading down this road straight after xmas.
House i liked for 300k last yr is now advertised at 220K.
Am thinking of 180k bid, but it'll be in january.
I put in a bid but was told that it wouldn't even be considered. Too low. I upped my bid and am now waiting to see what the vendors will say. Vendors live abroad so communication may be slow. Auctioneer obviously hasn't heard of email!
Vendors aren't in need of cash/a sale so they aren't inclined to negotiate (I'm led to believe). I'll know when the auctioneer gets back.
Vendors aren't in need of cash/a sale so they aren't inclined to negotiate (I'm led to believe). I'll know when the auctioneer gets back.
You upped too soon, slowly slowly... Remember if they are not in need of a sale they may not sell for a lot less than the asking.
The estate agent is duty bound to make the vendor aware of all offers.
Go back to the EA and say you have revised down your offer based on the general market trends and the findings of your survey.
1) Find as many comparable CHEAPER houses in the general area as you can and give them to the EA.
2)If you have a friend who's an engineer ask them to do a once over for you. They may charge you a small fee but it willl be worth it if you really want this house. Role out as many negatives as you can. I suggest 15 to 20. You can start the list with the garden size, room size, age of kitchen, distance to work/school etc. Then pop in as many as the engineer can give you. The more faults the better.
When the EA knows comparable houses in the area are cheaper and that there are faults (possibly structural which need repair) with the property, he/she might advise the vendor to accept less.
Go back to the EA and say you have revised down your offer based on the general market trends and the findings of your survey.
1) Find as many comparable CHEAPER houses in the general area as you can and give them to the EA.
2)If you have a friend who's an engineer ask them to do a once over for you. They may charge you a small fee but it willl be worth it if you really want this house. Role out as many negatives as you can. I suggest 15 to 20. You can start the list with the garden size, room size, age of kitchen, distance to work/school etc. Then pop in as many as the engineer can give you. The more faults the better.
When the EA knows comparable houses in the area are cheaper and that there are faults (possibly structural which need repair) with the property, he/she might advise the vendor to accept less.
This would beg the question why do you want it if the garden is too small, rooms are too small, too far from work or school, any EA should recognise you as the bluffer that you are in this respect. I would retort that it is after all a second hand house and any need for improvement has been factored in already to the price but by all means factor in the cost of making improvements before entering a bid, either way if it is way off no amount of 'faults' will change a vendors mind.
The EA should already know the comparables in the area as they have valued the property so it wont be news to them. If there are legitimate structural faults in the property the vendor will take it into account but they must be real issues, and if structurally there are alot of faults it should make the purchaser look elsewhere if anything.
Good idea re list:
Ive done one up for a house im intrested in, nice house, nice area but it's totally rundown after being let for 5 yrs. 220K advertised price, im thinking of offering 170, spending 35-40 on renovations.
Things wrong with house: why 170k is fair!
1)Leaking bathroom upstairs, needs to be gutted and redone.
2)Leaking showerroom upstairs, needs to be gutted and redone.
3)Repair kitchen ceiling
4)Repair living room ceiling
5)Crack in bedroom window
6)Vermin problem, mousetraps noted
7)Large dog next door, generally unkept rear gardens to left
8)Insulation/energy rating suspect, need to insulate
9)No solar heating
10)Total new kitchen, plumbing, electrics, needs to be gutted and redone.
11)Total new kitchen appliances
12)Total new carpets and floors
13)Total new alarm system
14)Installation of living room stove
15)Redoing of utility room
16)Paint exterior???
17)Clean roof & drains???
18)No energy rating on house???
19)No side gate
20)No suitable back wall on either side.
21)Bank will only loan us what the house is worth, ie 170, they wont loan for to do it up. That money will have to be loaned from other sources.
Ive done one up for a house im intrested in, nice house, nice area but it's totally rundown after being let for 5 yrs. 220K advertised price, im thinking of offering 170, spending 35-40 on renovations.
Things wrong with house: why 170k is fair!
1)Leaking bathroom upstairs, needs to be gutted and redone.
2)Leaking showerroom upstairs, needs to be gutted and redone.
3)Repair kitchen ceiling
4)Repair living room ceiling
5)Crack in bedroom window
6)Vermin problem, mousetraps noted
7)Large dog next door, generally unkept rear gardens to left
8)Insulation/energy rating suspect, need to insulate
9)No solar heating
10)Total new kitchen, plumbing, electrics, needs to be gutted and redone.
11)Total new kitchen appliances
12)Total new carpets and floors
13)Total new alarm system
14)Installation of living room stove
15)Redoing of utility room
16)Paint exterior???
17)Clean roof & drains???
18)No energy rating on house???
19)No side gate
20)No suitable back wall on either side.
21)Bank will only loan us what the house is worth, ie 170, they wont loan for to do it up. That money will have to be loaned from other sources.
While a lot of these things would be nice to have, the vendor can't be expected to pay for the likes of redecoration, new appliances, new alarm system and cleaning drains. Large dog living next door?! Seriously.
Im well aware of that but normally a seller can justify a price with lots of extras, like an alarm, ovens are normally sold with house etc.
Points 1-6, 8, 10, 11(well partly, over, firdge, freezer, etc), 12, 13, 16, 17 are all things that will have to be sorted either by the seller or the buyer.
The rest are all things that i'd personally like to get done and had they allready been done would have coaxed me to pay more for the house. A large noisy dog nextdoor in a back garden that looked like Steptoe & Son's is definitely a put off imo. He cant fix it perhaps but it does bring down the price of the house. (Although i've been told that the neighbours are fine, just messy out the back but the landlord can prove this or know that i know this)!
Fair?
By all means try it - you're in a strong position in this market so it's worth a shot
Obviously everything above wont be on my list, the house is valued fairly @ 220k had it been in good condition. As it is it's going to take 40k of renovations so i reckon a €170k bid is fair.
Im considering handing in a written bid, one through the letter box (house is unoccupied) and one in the EA's hand, outlining that both have gotten copies and why €170 is a fair bid seeing as it's going to cost me €210-€220 either way.