how to deal with auctioneers

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shaz021

Guest
i am looking at buying my first home. i have found one i like, the guideline price was 298 and when i viewed it the auctioneer told me there was an offer of 260k on it and the owners were very near accepting it.
i did not really believe him so i asked how long it was on the market and he stumbled and said about 2 months and that he only put up the sign 3 weeks ago,
i knew this was untrue as i had look at property watch and saw the house was put on in may 2009 with a price of 315k, he said 325k..

i am very intersted but am wondering how to go about it,i would pay 260k for it but no more,
any tips would be appreciated
 

haminka1

Frequent Poster
let him sit on it for a while, up the offer at about 262 K if this is really the house you want but tell him this is your treshold and you are currently viewing other houses as well.
remember, this is EAs commission so of course he is trying to up the price but let's be honest, there is plenty of properties on the market and you don't need to get stuck on one. if the EA doesn't want a sale, they're not gonna get it.
 

sadie

Frequent Poster
I wouldn't offer him the 262 on any account. You would be playing right into their hands.
The other bid may well be there - however the other people bidding may still have their own house to sell or something and the EA is just using that offer to put down some sort of marker. You already know the EA fibbed about how long the house was on the market. What you know is the seller will accept 260.

Estate agents are trained in sales techniques, it's how they make their living so they are actively trying to get as much money out of you as they can, and don't forget that. When you are having a conversation with an EA - they are the wolf dressed like kindly Grandma and you are little red riding hood walking alone in the forest with your basket of money, so you need to keep your eyes and ears open and be on your guard.

If you really really love the house and absolutely have to have it, then you need to bid much lower than your walkaway point, otherwise you've nothing to negotiate upwards with and might be pushed into paying more than you wanted. A good EA in one conversation will psychologically pick up you by the ankles and shake you to figure out how much you actually have to spend. You may find yourself getting off the phone having agreed to 265k.

Impress on them the EA that you are not in a chain, and are mortgage approved (I presume you have mortgage approval in place) and can move straight away.
I posted my bidding tips below in a thread below called FTBhelp.
The first house you bid on may well not be the house you end up buying.

Don't rush into anything. Think about how long it would take you to save 20k,and wouldn't it be great to get a house for 240k not 260k. It's very easy to get carried along on tides of emotion when house buying.

Is the house in Dublin?
Where I live in the Midlands 2 houses that I know of asking 295 or thereabouts went for 200k. And one of those the first bid was 170, and they buyer eventually went up to 200k, over the course of a few weeks which was accepted.
 

MrMan

Frequent Poster
I wouldn't offer him the 262 on any account. You would be playing right into their hands.
The other bid may well be there - however the other people bidding may still have their own house to sell or something and the EA is just using that offer to put down some sort of marker. You already know the EA fibbed about how long the house was on the market. What you know is the seller will accept 260.
Could it have been put on the market at the time stated by the OP by another EA?
It may have come to the EA in question at the time that he stated.
 

MrMan

Frequent Poster
let him sit on it for a while, up the offer at about 262 K if this is really the house you want but tell him this is your treshold and you are currently viewing other houses as well.
remember, this is EAs commission so of course he is trying to up the price but let's be honest, there is plenty of properties on the market and you don't need to get stuck on one. if the EA doesn't want a sale, they're not gonna get it.
The commission is important of course but €2,600 now is seen as better than the possibility of €2,700 later.
The EA wants the sale, he doesn't own the house though.
 

senni

Frequent Poster
Dear Shaz021

I agree with Sadie, do not offer 262,000...offer a figure that you are
Embarrassed to offer..€210,000 to €220,000 you can always go up, very rarely can you come down..( unless structural problems from a survey )

Also tell the auctioneer that you " have your mortgaged sanctioned and you are ready to go "

Remember you are in control not the estate agent
 

haminka1

Frequent Poster
The commission is important of course but €2,600 now is seen as better than the possibility of €2,700 later.
The EA wants the sale, he doesn't own the house though.
MrMan, that's correct, however, this is something where the seller has to decide whether he wants the house or not and if he is willing to gamble. If yes, insisting on the max 260 K is OK. The problem is, the EA is the contact between the vendor and the seller so it's not guaranteed this offer will be getting to the vendor.
 

MrMan

Frequent Poster
MrMan, that's correct, however, this is something where the seller has to decide whether he wants the house or not and if he is willing to gamble. If yes, insisting on the max 260 K is OK. The problem is, the EA is the contact between the vendor and the seller so it's not guaranteed this offer will be getting to the vendor.

The EA is obliged to pass on all offers and stands to gain nothing from with holding offers, so really it doesn't add up to suggest the EA won't pass it on
 

haminka1

Frequent Poster
well, if the offer is the same as the other bid ... it's a gamble, for sure ... to be honest with you, i'd say there is a difference between obligation and reality
 

chlipps

Frequent Poster
get a friend to ring the EA to see what they say to him/her... as per other posts do not offer the 262k... shop around as many houses out there
 

MrMan

Frequent Poster
well, if the offer is the same as the other bid ... it's a gamble, for sure ... to be honest with you, i'd say there is a difference between obligation and reality

I know what the common perception is here, but really what is in it for an EA not to pass it on?

Any offer is a sign of progress so at least the vendor can see that with an offer. I'm not saying the OP should up their offer, just putting a bit of perspective on things.
 
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