Guide Price Set Too Low

D

dlane99

Guest
I was hoping people might be able to give me some advice.
We recently viewed a property that had been on the market for 6 weeks.
It had one bid on it, the guide price.
The EA told us during the viewing that the couple selling were hoping to get
the guide price + 15k.
We bid the guide price + 5k and that bid wasnt accepted.
The person who bid the guide price dropped out of the bidding.
So we bid the guide price + 10k.
Just found out that this offer has been refused aswell.

Now, I know that houses always sell over the guide price.
I think that its grand when people are bidding against eachother driving up prices.

What I'm really annoyd about is the fact that they had no intention of selling
for the guide price and wont even settle for 5k less.

I'm really annoyed.

Is this a common practise?

Thx.
 
From dlane99: What I'm really annoyd about is the fact that they had no intention of selling for the guide price and wont even settle for 5k less.

Why are you annoyed? They MAY accept the guide price but you haven't made this offer to them??! They don't have to settle for 5k less. I assume you wouldn't accept 5k less for something if you didn't have to?
 
Mark, I think if you reread the OP, you'll note that they offered €5k ABOVE the guide price.

In saying that, the seller is not obliged to sell at the guide price. We had to wait a month upping our bid each time until we met the price our sellers were willing to accept. We could have played hard-ball and refused to up, but, as here, they may have simply refused to sell. Chances are, while the current climate lasts, they can wait and will eventually get what they are looking for.
 
dlane99 said:
So we bid the guide price + 10k.
Just found out that this offer has been refused aswell.
Click to expand...
I clearly stated in my original post that we bid 5K over the guide price first.
Then we bid 10k over the guide price.
Both bids were rejected.

Im annoyed that they posted a guide price that they have no intention of selling
the property for.
They want the guide price + 15k.

And they wont settle for the guide price + 10k

Edit:
sun_spark, we bid the guide + 10k :(

i know they dont have to sell,
but why dont they post the price they want,
it seems a bit dishonest.
 
Apologies todlane99, will read the OP carefully before replying in future.Very frustrating for you but reasonably common I'd expect. We all think our home is worth that little bit more...
 
I know its easy to say...but be prepared to walk... you may be outbid anyway given the current climate.

If you are prepared to walk then why not state your price & if not accepted within 48hrs then your offer will be withdrawn.

if there still are no other bidders then you may have a chance of them accepting

ninsaga
 
ninsaga said:
I know its easy to say...but be prepared to walk... you may be outbid anyway given the current climate.

If you are prepared to walk then why not state your price & if not accepted within 48hrs then your offer will be withdrawn.

if there still are no other bidders then you may have a chance of them accepting

ninsaga
Click to expand...

I think that is what is going to happen.
We already increased our offer.
The EA said when we were viewing that he had told them that they wuldnt get the
extra 15k, so if he dosent think it is worth it then thats saying something!
Will ring him back tomorrow and give them 48 hours.
We have already told them that we wont be biding any higher.
 
Also, be prepared for a sudden mystery bidder who arrives at the very last minute.

(Oh and after my correction to Mark, apologies for not reading more closely myself!)

To be honest, stick to your guns, and consider all advice from here. All I would say is that we eventually just offered what the sellers wanted, and were all the happier when we went sale agreed. Yes, it gives in to them, but ask yourself what you would be prepared to pay and then consider whether they have a reason for wanting the amount they do - have other properties sold at that amount (are they reasonably expecting to fetch that?). If yes, then perhaps they are right to wait.

Balance up what is right for you, and keep us posted of any sudden outside interest!! :)
 
I don't really get why you upped your bid in the first place. There was only one other bidder who dropped out as their bid was rejected. Whilst I'm sure you're really just interested in closing the sale asap at the end of the day the vendor is selling for a reason, either they are in a chain or an investor selling out. Either way they have to sell otherwise they would never have put the property on the market.

Stick to your own valuation and be prepared to walk. A lower bid may be a more appropriate action than a higher one, and would probably illicit a quicker response.
 
The estate agent is acting(and paid for by the seller). I actually think that he is doing a pretty good job. He did tell you at the beginning what the vendor would accept. Guide Price +15k, the guide price is exactly what it says "a guide". You have raised your bid once so they may think that you will raise it again. At the rate prices are rising, 5k extra may seem cheap in a couple of months.
 
Howitzer said:
I don't really get why you upped your bid in the first place. There was only one other bidder who dropped out as their bid was rejected. Whilst I'm sure you're really just interested in closing the sale asap at the end of the day the vendor is selling for a reason, either they are in a chain or an investor selling out. Either way they have to sell otherwise they would never have put the property on the market.

Stick to your own valuation and be prepared to walk. A lower bid may be a more appropriate action than a higher one, and would probably illicit a quicker response.
Click to expand...

They are a couple who are moving into a new house thay are building.
They have been moved out for the last 6 weeks and have somewhere
else to stay in between houses.
It would be great if they were in a rush to sell but it seems like they are willing
to wait untill they get what they want.

When our bid of the guide + 5 was rejected we thought meeting them half way
at guide + 10 would close the sale.
We were wrong :(

We arn't really in a position to bid any more and have told the EA that was our
final bid.

I think we will just tell him that the offer stands for 48 hours and that we will be
walking then.

Its just all so bloody frustrating.
 
sandymount said:
The estate agent is acting(and paid for by the seller). I actually think that he is doing a pretty good job. He did tell you at the beginning what the vendor would accept. Guide Price +15k, the guide price is exactly what it says "a guide". You have raised your bid once so they may think that you will raise it again. At the rate prices are rising, 5k extra may seem cheap in a couple of months.
Click to expand...
Thats exactly what I have a problem with,
its not a "guide" at all, as in its not an acurate reflection of how they value the
property.

They have a minimum figure that they are willing to sell for, shouldnt that have been the
guide price?
And if it goes for over that then good for them.
 
dlane99 said:
They are a couple who are moving into a new house thay are building.
Click to expand...

Assuming they have a mortgage for the place you are bidding on then they are losing money by not accepting your bid. ie; they are still paying interest to the bank. Regardless of whether the property market in general is rising, since they are selling their property the value is simply what YOU as the buyer place upon it, not them.

You're entering the tail end of the spring selling season and whilst the property market in general is bouyant with an interest rate rise imminent I believe they are taking an undue risk and are simply hoping you'll crack first.

Put your foot down.
 
I think it is annoying but they said they wont sell for lest than 15K above asking price so if you really want the house I think you might have to bite the bullet even though it stinks.It is a sellers market
 
Why the hell did you raise your bid after the only other bidder dropped out? If anything, you should have dropped your bid.

The fact that the house was on the market for 6 weeks and before you had only attracted one offer, at the guide, in those six weeks, shows that maybe the guide is the fair market price.

It really doesn't matter one iota what the vendors 'want' - the market decides the price, not them - maybe you need to remind the EA of that fact - after all, he's probably only in the business a few years, and doesn't realise that not all houses since the dawn of time have smashed their asking price.

You should drop your price to the asking, and tell them they have 2 weeks to make up their mind, otherwise you walk.

It is a sellers market
Click to expand...

Well, it obviously isn't on this house if it only attraced one bid at the asking price in 6 weeks - poor show for a fairly priced house in today's market I would have thought.
 
Hi,

We were in a similar situation when we were bidding for a house recently. We waited for a while as we were the only bidder just above the asking price but the vendor was not interested in closing the deal unless he got 20k above the asking price. We waited to see what happened & then all of a sudden came another offer higher the ours which inturn triggered a bidding war which lead to the house price being pushed beyond vendor's asking price + 20k! As you would except the vendor was thrilled with the offer he had but we ended up paying more! So be careful not to let any more bids on the property by waiting. Also, if the vendor is not interested in a quick sale then you would be better off paying the asking + 15K if you think you can afford it. By paying 15k more than the asking you are atleast sure to close the deal and not end up bidding higher like I did!
 
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