Bidding strategy advice - is there any point in a very low bid?

Pineapple82

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I am interested in a property that has been on the market since February at €350k, there have been no bids, and I was wondering how low I could go with a bid? I honestly wouldn't pay more than €310K, but I don't want to start there - would €280K be way too low?
 

David1234

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A house is only worth what someone is willing to pay for it. I would bid 280k if that's the level you are comfortable at for now.
 

Leo

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Sometimes vendors can have an unrealistic expectation of what they can achieve, and won't budge. What are similar properties in the area selling for?

The only real risk of bidding too low is that the vendor or agent might take the hump, not take you seriously and ignore any subsequent offers.
 

Pineapple82

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Sometimes vendors can have an unrealistic expectation of what they can achieve, and won't budge. What are similar properties in the area selling for?

The only real risk of bidding too low is that the vendor or agent might take the hump, not take you seriously and ignore any subsequent offers.
This time last year, you might have got €330k but everything seems to have slowed down. It's very hard to judge to be fair. I think the vendor is expecting to get about that, so they're not accepting any low ball offers. I will wait and see.
 

demoivre

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I am interested in a property that has been on the market since February at €350k, there have been no bids, and I was wondering how low I could go with a bid? I honestly wouldn't pay more than €310K, but I don't want to start there - would €280K be way too low?
How much rent could you get for the property ?
 

Bronte

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Of course you can bid 280K, nothing stopping you. And you most definitely do not start at your top price.
 

Murt10

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A piece of advice I got years ago was "if you're not embarrassed by the size of your first bid, then you're offering too much"

The house has been on the market since Feb and has had no offers. Therefore, by definition it is overpriced. No question about it. Put your lowest offer in. I'd go E10k lower than you are thinking, just for to plant that idea that they are looking for way OTT. All your first bid is really doing, is letting the buyer know that you're interested. This is a very high stakes game of poker.

Let them take the hump if they want. The fact that they haven't had any other offers should concentrate their mind a bit. Nothing to stop you coming back in a months time and up your offer a little bit. If they don't succeed in selling in the next few weeks, they haven't a chance of selling until next Spring and with all the international global uncertainty, it's very likely that they still won't be able to sell at anywhere that price then.

It's unfortunate that there are resident tenants. This takes a lot of pressure off the seller as it is producing an income. If, on the other hand the seller wanted to move and was in a chain, they would be more likely to come down to a more realistic price quickly.
 

demoivre

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I'd offer €250k. and see what happens. There are still many deluded sellers out there.
 

Pineapple82

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I just found out it is owner-occupied which changes things a bit. There is also a line in the advert which says "Zoning Objective as of Fingal Draft Development Plan 2017 - 2023. Zoning MC- Major Town Centre. "To protect, provide for and/or improve major Town Centre facilities". And I am wondering what this might mean? I've emailed the council, but I'm not expecting a response anytime soon.
 

Leo

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Read and understand the development plan, that zoning means that planning will only be granted on the site for works that serve the interests of the plan. Look at whatever planning is currently in effect on the site. If for example it is mixed use, then converting it to solely domestic would likely go against the development plan and be refused.

Talk to someone familiar with planning matters in that area before going any further.
 

Leo

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It's just a house, but what you're saying is they might not let us extend if we wanted to?
Potentially, yes. It'll all come down to the details of the property, the site and the aims of the development plan, hence the recommendation to talk to a planning expert in that area with familiarity of what the LA are looking to achieve.
 

bill_cash

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21
I am interested in a property that has been on the market since February at €350k, there have been no bids, and I was wondering how low I could go with a bid? I honestly wouldn't pay more than €310K, but I don't want to start there - would €280K be way too low?
Hi pineapple,

I think you should always bid low to start out.
However you have to be realistic, especially if the house is in for example an estate and you can see that the same size house went for twice your offer a few months ago on the ppr. A lot depends on your personal circumstances, if you are in no rush and there are no other bidders I'd be inclined to try it at 280-290 and see what they come back with. If left a while longer they might come back and negotiate the price up from your starting bid if they are motivated enough.
 

Pineapple82

Registered User
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10
I think one of the problems is that there are no real comparisons because it's an odd little house with little bungalows built beside it.
 
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