Bidding Strategy

Andrew365

Registered User
Messages
157
I have recently gone through this myself in Dublin and tried many different strategies and ultimately it ended up the agents were willing to just let it ride out through a bidding process. They were not open to offers a few k above the asking to take off the market etc. This is were I can't recommend highly enough to do as much research as possible, find every other house in the area and work out the price per sqm, look at property price register and get final sale prices.

What I found is that agents had different strategies with some pricing quite a bit below perceived market value, some pricing at what the owner wanting and some pricing at or just below market price. This was particularly frustrating on properties priced below market value and I observed them being bid up the most.

In the case of your property if your research shows that it is 'cheap' for the area then be prepared to have a longer drawn out bidding war with seeing the most increase above the listing price. This should also be factored into properties you view i.e. if the listing price is at your budget be prepared to look at properties 5-10% below your max.

Lastly an important aspect to consider is your situation for example if you are renting, will the mortgage be cheaper? In this case it may be worth bidding slightly above your max because getting a property now vs 6 months may equate the same after considering equity and lower mortgage payments etc.
 

EvenStevens

Registered User
Messages
33
Viewers are not necessarily interested parties. They might just be nosey people. Don't adjust your bidding strategy after seeing the brand of cars other viewers drive. Stick to your budget and good luck.
That's really true. I viewed a house recently and I've never seen so many people through the door for one property or so many SUVs outside a place. It's so daunting but in the end only I and another person ended up bidding.
 

username123

Frequent Poster
Messages
1,452
Went to my first (& last) open viewing ... lots of neighbours (& other interested) people in Audi’s there. I went round in a bit of a daze tbh. Anyway, the interior was nicer than expected (I was hoping that would put potential buyers off). A friend had gone to the earlier open viewing and said lots of interested parties there also ... he bumped into a good friend who came down from Dublin midweek to view with his wife! EA seems a nice guy (family have dealt with him lots before). He said that he’d expect offers to be in next week ... tbh, I’d say that it’s already started. As my friend said, this could go for silly money.
Why is there talk of silly money after some open viewings and no offers? Silly money only comes from silly buyers......

You seem to be going into this with an unusual attitude to viewings. Why were you in a daze?! Its just people looking at a house - take a brochure, wander around, ask some questions, have an idea of what you'd realistically pay for it, its nothing more. You seem to be more worried about the EA or other viewers judging you, or you judging other viewers, whereas you should be concentrating on judging *the house*. If you say this is your first and last open viewing, you are unlikely to ever buy a house.

If the people are arriving in fancy cars that just means they have less money to buy the house :D I cycled to our open viewings (about 10) and we were not laughed at once. In fact, we bought the very first house we put a bid on. I agree with @Leo, go view a house you have no intention of buying and just look around. I honestly think you need to just relax about the whole process (which I know is easier said than done!)
 
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pennywise

Registered User
Messages
46
As I said before, there maybe many viewers but only a few willing to buy. The one I'm buying right now had a few people at the viewing, including a couple who had just sold their house in Howth and wanted to downsize. I thought we were toast. But we ended up being the first and only ones bidding on it.
 

elcato

Moderator
Messages
3,216
@2Clueless - Are you down the country ? This would make tongues wag I guess in viewings. I think you still need to go to a few and start testing a few bids to get the feel of things. As mentioned by someone else, go see a house you would never think of buying and look for the right questions which should include listening to some questions others ask.
 

NoRegretsCoyote

Frequent Poster
Messages
870
Don't worry about viewers. My mother spent six months viewing 40 houses and never bid on a single one. Some people are just nosy.

If estate agents charged a fiver a viewing they would cut viewing numbers in half.
 

2Clueless

Frequent Poster
Messages
72
Update: Called in to EA on Friday and asked were there any bids. EA said bidding was at 240 (it had started at 200 a week ago). I entered the bidding and bid 245 that evening. EA asked me whether I was a cash bidder or mortgage approved. I said the latter. My bid is just below asking price-I am able to go higher. I am a FTB with Mortgage approval in principle. I have an excellent deposit. I wonder whether the sellers are looking for a quick sale. There are not a lot of contents. Am wondering what my next step should be?
 

RedOnion

Frequent Poster
Messages
3,292
Should I be fussed about cash buyers?
Nothing you can do about them. Don't worry about things you can't control. You don't even know for certain if there are cash buyers bidding.

Am wondering what my next step should be?
Just wait. You're currently highest bidder.
If agent calls you back to say there's a higher offer, take a breath, tell them you'll call back. Be as rational as you can, and don't let your emotions take over.

Don't be afraid to ask for another viewing if there are things you want to check out - if you go back take someone with you who isn't emotionally invested in it. The agent knows you're serious and not a time waster.

In the mean time, have you already selected a solicitor, so you're ready if offer accepted? And a surveyor to check it out for you?
And get clear steps from your bank on what next steps are once offer is accepted?
It'll give the agent confidence if you know what you're doing. The agent only gets paid their commission after the sale closes, so they will recommend someone who can close to the seller if it comes down to it.
 

Bronte

Frequent Poster
Messages
13,680
That would be telling!
There was a point to asking.

Anyway right now you're at 245 so you sit tight and wait for the EA to get back to you.

Have you looked up the property price register for the sale price of similar houses recently.
 

username123

Frequent Poster
Messages
1,452
Also worth doing recon on life insurance and buildings insurance. These are always left until the offer is accepted and people then scrambling. Life insurance especially can be awkward if you have any existing conditions. I used https://www.labrokers.ie/ for this and FBD for house insurance. You don't have to (and shouldn't IMO) buy life insurance from the bank that provides your mortgage. With a broker, its your policy and it will move with you if you switch mortgage. If you buy the bank's one, its tied to them and makes switching more difficult.
 
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