Bidding Strategy

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2Clueless

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Hi all,
Viewed house today. Asking price is 180k. Has been a lot of interest since it went for sale a week ago. First bidder offered 160 and it went up in thousands to 172 before I saw it. I offered 175 today but expect that to be improved on as there are other viewings scheduled today. I’m not mad on the tit for tat bidding (e.g 167, 168, 169 etc.) Am I mad to add 5 thousand to a potential next bid?
 
No, that's often an effective way to put off some of the other bidders who are approaching their max bid.

The most important thing for you to work out is the maximum you would be happy to pay for that property and not get caught up winning a competition only to lose out in the long run.
 
I did that buying our house. Think I went €10k over where the back-and-forwards was happening but was still at a point where we were willing to pay and felt it was fair value for the house. Also said to the EA that I wasn't interested in messing around, said I had mortgage approval all sorted and if the vendor would take my bid of XXX we'd close it off quickly with no messing around with us. It was a probate sale so the vendor just wanted to get it done with... Won't work in every scenario, but as Leo said once you set your personal limit and walk away once you've hit that then I think this is a good strategy.
 
Other bidder might go up 1K, then you go to 180. But like other posters said, know your walk away bid.
 
Did the same on our house. We were in a bidding war that was going up by 5k each time. I added 10k to bring it up to our "walk away" ceiling. The logic is if we had added 5k, and the other bidder added 5k, they would have hit our "walk away" bid instead of us, leaving us either walk away or go above our limit.

This was in the heady days before the crash, so 5k bids are probably todays equivalent to 10k bids then.
 
Here, for what its worth is my experience.

I bid, the other party bid and so on, from a starting price which represented good value through a full price and onwards. I decided not to think about the price, just keep bidding until I won. After all I did not even know for sure that there was an other party.

Finally my offer was accepted. That was a Thursday. I then took a few days to think, do I want this property at this price, I decided not and called the auctioneer on the following Tuesday, to say that I would not be going ahead with the purchase.

I half expected that the auctioneer would call me back to say that the other party had backed out, was I interested at a previous level, but he did not. The house did not appear on the PSRA site in the following few months. I must check if it has since.
 
cremeegg said:
Here, for what its worth is my experience.

I bid, the other party bid and so on, from a starting price which represented good value through a full price and onwards. I decided not to think about the price, just keep bidding until I won. After all I did not even know for sure that there was an other party.

Finally my offer was accepted. That was a Thursday. I then took a few days to think, do I want this property at this price, I decided not and called the auctioneer on the following Tuesday, to say that I would not be going ahead with the purchase.

I half expected that the auctioneer would call me back to say that the other party had backed out, was I interested at a previous level, but he did not. The house did not appear on the PSRA site in the following few months. I must check if it has since.
Click to expand...


Has the house appeared???
 
cremeegg said:
The house did not appear on the PSRA site in the following few months. I must check if it has since.
Click to expand...

It can take up to six months for properties to appear. It can take months to close out a sale fully and after all that the register is only updated after the solicitor has completed the stamp duty return.
 
cremeegg said:
Here, for what its worth is my experience.

I bid, the other party bid and so on, from a starting price which represented good value through a full price and onwards. I decided not to think about the price, just keep bidding until I won. After all I did not even know for sure that there was an other party.

Finally my offer was accepted. That was a Thursday. I then took a few days to think, do I want this property at this price, I decided not and called the auctioneer on the following Tuesday, to say that I would not be going ahead with the purchase.

I half expected that the auctioneer would call me back to say that the other party had backed out, was I interested at a previous level, but he did not. The house did not appear on the PSRA site in the following few months. I must check if it has since.
Click to expand...
Does this not make you think that the other bidder might think you were fictional?

I think it's poor form to keep bidding on a house if you're not sure you actually want it, you're just driving the price up for some other schmuck.
 
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