Starting the bidding

Hi,

we've lost out on 2 houses now (after putting in the 1st bid after weeks of the houses being on the market). What is the general view on putting in the first bid on a house? Obviously if we wait around too long we are just increasing the amount of competition for the house.

Thanks!

In situations like this, you have to try and put yourselves in the sellers shoes.

One strategy to consider;

If you feel they would want a quick sale, make a clear offer on what you think it is worth, but tell them that it's all you can pay. Indicate that you are cash approved and give them a date deadline (Eg. 3 days) to decide, from which point you do not want to hear from the agent again. Stick to your guns. If an agent returns and you give another €5k, the agent knows you don't have a budget deadline as first indicated.

If accepted, the offer only stands for a day until the house is de-listed.

Do not tell any estate agent or seller which financier you are dealing with!

Remember, that quick sales suit agents as it reduces legwork and increases cashflow for them.

SineWave said:

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Do not tell any estate agent or seller which financier you are dealing with!

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lot of good sense above, but pray tell why you feel it is so important that the financiaer remain unknown ?

I dont know about the seller wanting a quick sale - the estate agent found it hard to contact him from day one. The house in question is on the market for approx 2 weeks now and only one other person has been to see it. Estate agent was saying that August is very slow usually and seems to be this year too. We're just worried that if we start the bidding , that we are once again going to get outbid. I do feel that the first bid is the most important as it really sets the ball rolling.

AJC said:

lot of good sense above, but pray tell why you feel it is so important that the financiaer remain unknown ?

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I wouldn't dare tell them who I was dealing with. I give information on a need to know basis

lot of good sense above, but pray tell why you feel it is so important that the financiaer remain unknown ?

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I know of one situation where an estate agent's pint with bank worker was able to clarify that a potential purchaser was finance ready.

What if this progressed to how much finance a bidder was qualified for?

Personally, in small town Ireland, I'ld say this situation is common enough (my sister in law's auntie's nephew works for x bank.......)

The same reason you should never get finance from the on site financier or an agent with vested interest in the financing of the purchase.
Never at arms length.

I had this experience with a very dodgy EA in Belfast who was getting info from a mortgage broker (supposedly independent) about what our budget was. Keep your budget under your hat when dealing with an EA as they will only try to extract your maximum from you.

I would go with all of the above, and obviously NEVER tell them how much your approved for, we've been out bid on at least 8 houses over last 3 months, dont be afraid to bid on more than one and let them know your bidding on another and that you are waiting to hear if the 2nd EA will accept your bid within next x amount of days.

Always stress the 2nd house is of course less expensive than this one and that you are out on a limb financially trying to pay for this one, your at your mortgage approval limit. if house is 315K tell them thats your extreme limit of approval that youve discussed this with your mortgage broker or financier and they've reassured you that you are approved up to 325 and no more.

Give them time limit and if they go over it, phone them telling them that you are withdrawing your offer as they have had no response. go through with it and start again.

Thats roughly what we did and so far have gotten as far as paid deposit and valuer has visited, now waiting for contracts.

Best of luck, we know how you feel. Hell this time next week i could be back there, as a deposit paid is not a house guaranteed!

I would say keep tell the estate agent as little as possible. I think I made a mistake when bidding for our house of trying to be-friend the estate agent, who was a lovely girl but out for the best for her client (paying her commission) at the end of the day. I think now, when I look back, she was probably telling both bidders (ourselves and someone else) the same thing, ie playing us off each other. I was too open with her and it gave her confidence to try to push our bids up more.

At one stage it sounded like we had it, then we upped our bid by a good bit more and then lo and behold the others came back with a good bid more after sounding down and out! With hindsight, I would be the best poker player around. The less you give away, the less they can assume! And remember, they are never your ally!