FTB Advice on bidding

[Gooner84]

Hi All,

My partner and I recently got approval in principal for a mortgage of €110k. We have 25k in savings plus another 5k of a gift from my parents.

We have found a property on the market for €125k. Its a brand new four bed finished to a builders standard. The estate agent has told us there is a bid of €115k which he expects to be accepted (i know the bidder). A liquidator is selling the property.

I am thinking about making a bid of €125k. I know that the person who has bid doesn't have the funds to go above that. (bidder is a neighbour of mine at the moment, she doesn't know I am interested in the property)

I would appreciate any thoughts on the bid...my partner thinks we should just bid at €120k

 

[Knuttell]

she doesn't know I am interested in the property)

She will soon enough...I would lob a bid of €120k in to the pot and see what happens,if they walk away happy days you saved yourself 5k,if they up it fair enough you still have one more barrel left to fire...do not be in any rush to fire 5k down the jacks for no reason.

I remember a few years ago I put a bit of €320k on an apt in Killester,it was on at €330k,the E/A came back to me and said there was another bidder just come in ahead of me at €322 and did I want to up the ante,to his disgust I came back with a final bid of €323k,his reply to this derisory offer was to say that he thought this was poor and that he thought I was a "player" (I really would have liked to get the conversation on paper because it was comical.)He went on to say he would be embarrassed to pass on that bid to the vendor who was holding out for the full asking.

Turned out there was no other bidder because it was still on the market in late 2006 when the market turned,as far as I know it never sold.

Anyhoo I have gone off on a tangent...

 

[leonmahon]

Bought my first place last year and did expensive research on this site regarding bidding tactics. The gist was basically: go in as low as possible and ignore everything the EA tells you. When the crunch time comes, it can be difficult to follow, unless you have nerves of steel.

Personally, I would go in with an odd number, more than the other bidder but less than the asking price. If it's your dream house and you don't want the stress of a mini-bidding war with your neighbour, go for the asking. However, it sounds like you need to save all the money you can at this point.