Bidding query

M

Maria191919

New Member
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Hi,

Just a quick question.

I was recently bidding on a house and there was only myself and one other bidder.

I was outbid. The auctioneer called and said that the other bidder would probably get the house if I didn’t bid again and I explained I understood but I not bidding again and to let me know if anything changes. This took place Christmas week.

Today the auctioneer rang and said the other bidder had pulled out and was I still interested.

I said yes. They tried to get to match the winning bid. Which I said no. They called me back with a new figure meeting in the middle from my highest bid to the winning bid.

My question is, if there was only 2 bidders, why would I pay the top end of the bids?

House info

Asking 220
Winning bid 233
My bid 231

Would I not review my final bid and offer closer to the 220?

Any help would be great

Thank you
 
Is the property in a high demand area?

If you offer 225k they might think its worth a punt going back to the rising market.
You could offer 231k and say that was your max.

Depends whether you want to lock in the sale or are happy to play hard ball to try to save 5-10k.

Background concern would be why did other bidder pull out - unfavourable survey?
 
This is the way I see it,

If the other bidder, who scuppered events had not got involved, your offer €220k would be the only offer on the table.

That would be my opening gambit.
 
Maria

It's just impossible to answer this question. You have to go on gut feel. The other bidder might well have been a phantom bidder.

If you have a choice of houses, then you can bid €220k.

If you don't have a choice of houses, and you want this house and it's within your range, and it's worth what they are asking then pay it.

Was 231 your absolute limit?

If so, tell them that you had really pushed yourself at 231 and you are glad you were outbid. Let them come back to you. But you might lose the house.

Brendan
 
Stay with your last bid and tell them you've seen another house that interests you. Let them know you want an answer the next day, because if you don't get it you'll buy the other one. I would do that, just be very blunt and direct about it. I bet you'll get it
 
Maria191919 said:
My question is, if there was only 2 bidders, why would I pay the top end of the bids?

House info

Asking 220
Winning bid 233
My bid 231

Would I not review my final bid and offer closer to the 220?
Click to expand...
Something similar happened to friends of ours ~3 years ago. There were 3 bidders which reduced to 2. The final bidder pushed them up by approximately 10k before our friends pulled out. A month or so later, the EA returned asking them if they still wanted it at their final bid which they refused but they were happy to go back in at the last bid where the 3rd bidder dropped out so approximately 10k lower (and just above the original asking price).

As Brendan says, it is impossible to answer your question in general but really depends on your specific circumstances. In our friends case, it was a rural property quiet close to some of their family so it suited their needs and they really wanted it.

I think in the end they asked the EA for a direct meeting with the seller and EA to agree a final offer. They did not want to enter a new bidding cycle or for it to be dragged out over weeks/months. In the end they walked away from that meeting sale agreed 5/6k below their previous high bid so using your numbers as an example, they settled on €225k.

In the greater scheme of things, an extra €5k on their mortgage was not a big deal for a property that they wanted. They just wanted certainty that it would not become another drawn out process
 
It's a tricky one. Something similar happened to me. I was outbid and then 3 weeks later estate agent came back to me to see if I was still interested in the house. I had bid 2 grand over the asking but the estate agent actually suggested they could talk the owner into the asking price so I got it for bang on the asking. I did contemplate bargaining more but I just looked at the market around me. Houses were flying off the shelves and it was the best house I'd seen so I didn't want to push it. Maybe the cowards way but I have a house now that I love and a few grand over the lifetime of a mortgage is worth it if you really like it.
 
Why is it unlikely?

there are many bidders out there.

But as the price rises, they fall away and there were only 2 left.

But there might have been only one left and the auctioneer felt that Maria could and would go further so he made up new bids.

There is no way of knowing for sure.

Brendan
 
Brendan Burgess said:
Why is it unlikely?

there are many bidders out there.

But as the price rises, they fall away and there were only 2 left.

But there might have been only one left and the auctioneer felt that Maria could and would go further so he made up new bids.

There is no way of knowing for sure.

Brendan
Click to expand...
The chances of an estate agent making up bids is slim, think about what her or she gains from the incremental price in commission terms.
 
Whats the definition of a phantom bid?

Presumably it could be either:

1. EA makes up a bid; or,
2. Some randomer (or a friend of the seller etc) makes a bid with no intention of buying?
 
Its irrelevant to the OP at this point,

I agree that you should not agree to pay €231K for the house. You should revise your bid down.

None of us know how strong the market is in your areas or what the expectations of the seller are.

The seller may be desperate to sell and agree to the lower price, or , more likely , they may be convinced that someone will pay €230K and be willing to put the house back on the market. Only time will tell.

IF the house goes back on the market, you can wait it out, and see how many bids there are and decide what to do then,.
 
Brendan Burgess said:
Why is it unlikely?

there are many bidders out there.

But as the price rises, they fall away and there were only 2 left.

But there might have been only one left and the auctioneer felt that Maria could and would go further so he made up new bids.

There is no way of knowing for sure.

Brendan
Click to expand...
It is unlikely because it is an entirely unscrupulous activity for an EA to be undertaking - although I don't attach much morals to your average EA.

It is also unlikely because the EA makes miniscule extra money for slight increases in selling prices. EAs like quick sales with minimal hassle and not repeated viewings etc, not sales that drag on and on and go around in circles with bids and counter offers and take ages to close.

It is further unlikely due to the housing demand at the moment, meaning there is any number of interested parties for any property which is remotely habitable.

If EA's were to engage in this practice, the risk of the interested party pulling out and going elsewhere would far outweigh the couple of extra grand that may be achieved in the selling price.

In my own experience, admittedly nearly four years ago at this stage, having been outbit on many properties in Dublin, often being down to two parties in a bidding war, not one property which we felt may have been a phatom bidder appeared for sale again after we had pulled out.

It's a horrible feeling when your bidding and have to pull out but I suspect it's a lot less common than people feel.
 
You can ask the estate agent for the written record of the bids, it's a legal requirement to record these. I was bidding on a house in 2018 and was always asked to confirm the bid in an email. Of course the estate agent won't be your friend after this!!;-)
 
Leesider32 said:
You can ask the estate agent for the written record of the bids, it's a legal requirement to record these. I was bidding on a house in 2018 and was always asked to confirm the bid in an email. Of course the estate agent won't be your friend after this!!;-)
Click to expand...
The general public isn't entitled to this information, only the vendor who engaged them.
 
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