Upping an offer on a house

B

bluebell11

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I'm looking for some advice on a house I'm currently bidding on.

So it's been advertised about 5 weeks now. There have been three open viewings (all very quiet) and we are the only bidders.

We offered 20K under the asking price after the second viewing. We never expected that offer to be accepted but since we were the first bidders we went in low.

Going by the property price register, the house (in Dublin) should get about it's asking price.

We really want the house so what I'm wondering is: do we up our offer in the hopes of closing the sale?

We would happily pay the extra 20K and the purchase would be in line with the area. What are peoples thoughts on this. I'm considering upping the offer to go in 10K under the asking, in case the vendor comes back with a counter offer?
 
I gather they have not rejected your offer. How long ago did you make it?

If you are the only bidders I would not be in a rush to up it. I would set a deadline to withdraw it with the estate agent if it has been more than two weeks.
 
Was it a verbal offer or in writing? Either way I would email the Estate Agent indicating the date you made your offer and the amount, and requesting you be kept informed, including any counter-bids. Ask for current update.

I would not threaten to withdraw the bid unless you intend to actually do so - for the sake of ongoing credibility.
 
Hi XMarks - we placed the offer two weeks ago now and no they didn't reject it. The EA came back, thanked us for the offer and said the vendor is hoping to achieve the asking price. I know it's negotiation 101 to wait it out but it's harder said than done when you want to close!

To complicate matters, it was a long road for us to get mortgage approval and we really don't want to have to go through it again if our current approval lapses so there's a degree of time sensitivity at play also.

Early Riser said:
Was it a verbal offer or in writing? Either way I would email the Estate Agent indicating the date you made your offer and the amount, and requesting you be kept informed, including any counter-bids. Ask for current update.

I would not threaten to withdraw the bid unless you intend to actually do so - for the sake of ongoing credibility.
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The offer was via email and we have also chatted with the EA in person at the third viewing (last Sat), we're still the highest bidders.

What do you think about approaching with the higher offer?
 
bluebell11 said:
What do you think about approaching with the higher offer?
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I don't really see the point in bidding against yourself. If your bid really is low (and this is subjective) there are bound be counter bids. If there are no counter bids, then your bid is not low or there are some issues involved that you are not familiar with yet. If what you were offering might be construed as being at "insult" level then it would be different, but you have indicated it is just €20k below asking.
 
Yeah all fair points. It’s just frustrating when it’s the right house but you may have to go with another because of timing.
 
If the same EA is advertising similar property in the area go to viewings of those. That will signal you're continuing to look at alternatives and they may lose the sale unless they close it out soon without the need to set a deadline.

Upping the offer by say 5k subject to the house being taken off the market immediately is another option if you feel something closer to the asking price will be achieved.
 
Yes that's a good approach. I may just email the EA first to bring up the prospect of us and the vendor working towards a deal in the absence of other bidders. May be a better approach than just going in with a number.
 
bluebell

Have you bought a house before? You need patience.

A common complaint here and elsewhere is that a house is on the market for months with no bids, someone puts in a bid, only to be told that another interested party has just come out of the woodwork and outbid them. At least, your estate agent is being honest.

The market is funny. Others might not see what you see in the house.

I agree with Leo's strategy. Go view another house of theirs. But maybe view ones with other agents. Tell the auctioneer that you are coming under pressure to bid on another house.

You should not increase your bid without having to do so.


Fixel7 said:
It’s just frustrating when it’s the right house but you may have to go with another because of timing.
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I don't understand that comment. You have bid X -€20k. You have not seen any other house. The auctioneer will not sell it to someone else without coming back to you. I suspect that they will get back to you and say "We have no other bids, but if you increase the price to X, you can have it.". Then should say that you will think about it and try to do a deal at X - €10k.

Brendan
 
Hi Brendan! No I'm a FTB (husband isn't) but yes I'm probably being a little impatient.

I thought things would move pretty quickly in the Dublin market but it hasn't been the case with this house.

I guess I'll just keep waiting and looking. Thanks all for the advice!
 
Leo said:
Upping the offer by say 5k subject to the house being taken off the market immediately is another option if you feel something closer to the asking price will be achieved.
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I'd likely do this, if I really wanted this house. I may have paid €5k more for my house than I needed too, but I paid €10k less than I would have. I would be more proactive.
 
XMarks said:
If you are the only bidders I would not be in a rush to up it. I would set a deadline to withdraw it with the estate agent if it has been more than two weeks.
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I'd advise you not to follow this "advice": it will be seen as playing games and lacking any credibility. You'd be painting yourself into a corner: if you end up withdrawing the offer, where do you go from there?
 
michaelm said:
I'd likely do this, if I really wanted this house. I may have paid €5k more for my house than I needed too, but I paid €10k less than I would have. I would be more proactive.
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I think bidding against yourself in this way is just signalling to the EA that you are pretty desperate and can be squeezed for more. I would only do so if the higher bid is well and truly your final offer and you are prepared to walk away (not bluff) if is is not accepted in a reasonably fast time frame.
 
Buying a house is stressful enough without trying to be too clever by half. If this house meets your needs, is priced correctly, then offer the asking price. We are in a sellers market, of that, there is no doubt, and this house will sell.

If I were selling, and the market dictated a realistic price, I would be put off by someone chancing their arm at my expense.. its just human nature, as you know, it will become a battle of wits where nobody wants to loose face.

If you have the time and energy to play these games, they why not, but a good agent will know your playing silly beggars.
 
LS400 said:
If I were selling, and the market dictated a realistic price, I would be put off by someone chancing their arm at my expense.
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Asking price minus €20k is a realistic offer and does not suggest someone chancing their arm. As you indicate, the market generally is hot - but 5 weeks after going on the market the vendors have still not received another offer. Will this offer be enough to secure the property? Probably not but who knows. Unless the vendors are under great pressure to sell quickly, they will wait longer than 5 weeks for a counter offer. Time enough to bid against that, if and when it comes.
 
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