Bidding Question

J

jhegarty

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The brother has been bidding on a house. There are two bidders left (we think) and its been going up in 1k jumps for the last week.

He is currently the highest bidder and today the esate agent phoned him to ask "is this your finial bid?" no more details...

whats that all about then ?
 
Scenario 1: The remaining counter-bidder has just dropped out and the EA is concerned that your brother is at his limit so the phantom bid they're about to insert into the process will drive your brother out and they'll be left with nobody.

Scenario 2: There hasn't been another bidder so the EA has been conning your brother with a series of phantom bids for some time and they're concerned he's now at his limit.

As long as your brother remains engaged in an auction (in a sale that by the sound of it is "private treaty" and not "auction" by the way) he'll end up paying more than he has to in order to secure either this or another property.

No buyer should ever presume that an EA is telling the truth - in a private treaty sale decide on the maximum price you're prepared to pay and bid a little under it to allow for a subsequent negotiation with the seller. But once the EA introduces the magical other bidder, walk away. Otherwise you're in the weakest situation possible - a blind auction with no regulation and no ethics. And when you are brave enough to walk away it's amazing how often the EA comes running after you with the sad tale of the demise of the other bidder/s once a decent amount of time elapses.
 
please go along with Oysterman's Scenario 2 suggestion , I completely agree. And good luck to your brother, let us know how it turns out

GG
 
my son was involved in house purchase asking price was 160k ,bid on property was 156k my son asked if asking price bid would be accepted which he did bid ,e/a phoned saying a matching offer was bid, then about 2 hours later called saying there was a bid of 165,500 and if he bid again he could guarentee the under bidder would not come back, it stunk to me and i told son to pull out ,but he did bid again and offer was accepted but the e/s asked for £500 deposit as a sign of goodwill as he put it, which my son paid, contracts have not been yet signed date for this is 3rd july
 
Update....


He got a phone call again yesterday (she was going to ring him back about if it was his final bid) and she says the other party put in another offer and the seller has accepted it , and we won't be taking any other offers !!!!


(he was the highest bidder yesterday at lunch time , this was around 4pm)
 
Hang on . . .

Unless your brother specified that it was his final bid the EA is obliged to come back and tell him he has been outbid and would he like to up his offer?

They cannot agree to an offer without informing all involved parties. It would be in the EAs best interest to go back looking for another offer - they're out to make as much as they can out of the deal.
 
Get a mate to send the auctioneer a registered letter offering 5 grand more and then when he gets it pull out in a couple of weeks time and you get back in again. Just worked for a guy in my office albeit an investment property.
 
Claire1981 said:
Hang on . . .

Unless your brother specified that it was his final bid the EA is obliged to come back and tell him he has been outbid and would he like to up his offer?

They cannot agree to an offer without informing all involved parties. It would be in the EAs best interest to go back looking for another offer - they're out to make as much as they can out of the deal.
Click to expand...

Yeah they can, they owe no obligation to the bidders - only to their client, the vendor. Once their client instructs them they are happy with a particular bid, end of story.
 
harvey said:
Get a mate to send the auctioneer a registered letter offering 5 grand more and then when he gets it pull out in a couple of weeks time and you get back in again. Just worked for a guy in my office albeit an investment property.
Click to expand...

Don't agree with this. What goes around comes around! Purchasers will be vendors one day!!
 
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