- Strategy for outbidding rivals on a house purchase
It’s a blind auction. You’re blind 🙂
You’ll just have to bid what you think it’s worth to you. It’s a fool’s game trying to work out what the opposition will bid and the Estate Agent certainly can’t be trusted – he’d be unprofessional to tell you anything but if he’s going to be unprofessional then he’ll probably try and bid you up by telling you someone else is making a higher offer than they actually are.Posted 4 years agoglupton1976Member
If there were houses coming on every week I’d be less intense. But there’s literally one every 2-3 weeks.
£20k over the term of a mortgage is going to cost you in the region of £100/month extra. That’s £1200/yr every year….
I wouldnt be suckered into paying £100/month for e bloody long time, just to make sure that I got a house. You say yourself there are houses coming up every 2/3 weeks. I’d be going low with this one and not quite so low on the next one then one day i’d be getting the amount just right.Posted 4 years ago
We recently viewed a house at £375k asking.
We politely withdrew our interest when asked to submit a best and final offer because we knew already that there had been a bid of £425k on the property (our mortgage adviser found this out).
Ended up buying a house marketed at £425k and got it for £392k.Posted 4 years ago
No it’s not. prices go up because people are willing to pay more. The asking price is only a notional figure by definition.
Pretty much. As we know, agents will often start high whereas it’s the MVs who are trying to price more realistically so as to minimise the loan/debt.Posted 4 years ago29erKeithMember
It’s blind, best thing we did was list and sell ours before bids closed (12 hours to spare!!!!) with the same estate agents. because they were getting 2 sales (none of the other bidders were selling with them if at all) they might have been a but naughty and said something along the lines of “all bids are in, yours isn’t quite enough…” we upped 10k and we got it (40K over asking, was 3 now only 2 beds)
To this day I don’t know if they just rinsed us for 10k or not. I did feel a pang of guilt about it, but it was a rare opportunity for us to have any chance of buying in the area we wanted and most of the other bidders were developers I think.
Estate agents job is to get the seller and themselves every penny they can. Times are tough for them and many will bend\break rules for their own gains (as many many people do in all other walks of life)
Good Luck!Posted 4 years agopoolmanMember
if you lose the bidding battle chances are the winner will pull out when he finds he has overbid.
This happened to me, I blame the greedy vendors – I offered the full ask price in cash & was told to submit my highest bid, I reduced my bid by 10k & lost the bidding battle.
1 mth on, the property was remarketed as the winner pulled out.
I am so glad I lost out – I bought a real peach at similar money.Posted 4 years agothegreatapeMember
pretty much the norm in Scotland
Buying in Scotland can end up just being a guessing game. We bought our house in Scotland for £22,000 above the ‘offers over’ price. £17,000 over it was not accepted, so I’ve no idea how they set the ‘offers over’ price when they were never going to take even that much above it?
Someone else offered £32,000 over the ‘offers over’ price just before we exchanged missives, but thankfully the seller stuck to his verbal agreement.
Which pretty much confirms that it’s worth whatever someone will pay for it.Posted 4 years ago
johndoh, how did your MA find that out? Were they affiliated with the agent?
She is just very pally with them by all accounts (and IIRC, she had just been on some social event with them) – she really knew our local property scene really well though – even down to describing the sort of person that would buy our place (and she was right – two offers, both from people in an identical situation).Posted 4 years ago
You got lucky there john!
if you lose the bidding battle chances are the winner will pull out when he finds he has overbid.
Depends on what they can afford and how much they want the house. The reality is anyone can bid high just to get first dibs. Immoral maybe, but also a tactic that can no doubt work.Posted 4 years ago29erKeithMember
depending on the work to be done to the property get a full survey and then try to knock them down afterwards if you expect issues.
we knocked ours back down 10k in the end on some of the hidden horrors we found after the full survey, they’ll usually only move if the issues found weren’t in plain sight.
we found completely bug riddled rotten floors and damp hidden behind sheets of plastic and ply on some of the walls 🙄Posted 4 years ago
all hidden/patched over by the old chap that used to live there
We’ll be having a buildings survey anyway. Plus the FIL has done some building and he’s been round to say it’s fine – apart from the aesthetics which we want to replace/change anyway. We’re not expecting the report to deem anything as an essential repair so I think it’ll be hard trying to negotiate down on that basis. If something is found, then we go down but end up spending the money to fix it.Posted 4 years ago
Barely any houses coming on the market in these parts so it’s no surprise there are two other families bidding on the house we want. Agent has been instructed by the vendor to obtain highest/final offers from all parties by tomorrow. Buyer A hasn’t yet sold so isn’t in a strong position. Buyer B is SSTC. We’re renting (having sold a while ago) and have deposit/mortgage in place.
House is a blank canvas requiring a new kitchen and about £10k of tidying up. All happily within budget if we get it for the asking price. But methinks we might have to go say £15-20k over ‘the asking’ … whilst kind of hoping the mortgage valuer says it’s worth IRO ‘the asking’ … therefore giving us the chance to negotiate/meet in the middle.
Am going to ask the agent if buyer B are upping their offer or even pulling out. Not expecting him to give anything away, but I’d be mightily peeved if B opted out and we went up £20k just to secure it.
Any tips/ideas? CheersPosted 4 years agocbSubscriber
I didn’t read all of the above but the sellers are being pretty ruthless, why not return the favour? Bid as high as you can go and then negotiate back down again near completion time. Sellers never reveal everything – use this to find new bits that need repair or replacement and lower your offer. You’ll be a long way down the process by then and no one will wish to start again…
Btw, I’d much rather we all operate more honestly than this and have a better set of regulations and legislation surrounding house buying…but we don’t. At the moment it encourages greed, selfishness and stupidity…Posted 4 years agomudsharkMember
Blind bids are not nice and glad I haven’t had to do one – having said that I’ve never been desperate for a particular house as always quite open on location.
But blind bids are probably best were several people are very keen on a property – well either that or open bidding which could be just as expensive. I’m unsure which is likely to give the vendor the best price really as in open bidding people can get carried away and think they can push it up by just another £1k and go beyond their initial max price.
CB is talking about gazundering which is a risky tactic – mostly likely to work in a buyers’ market but this isn’t the case here.Posted 4 years ago
BTW, on the occasion we were asked to go into a sealed bid situation it made us look at what else we could get for the higher price we would have had to go to and ended up buying the house that we had previously not even looked at as we were looking at lower priced houses and it wasn’t even on our radar.Posted 4 years agoDickyboyMember
house buying is a right royal pain in the bum – was hoping to move mid July but turns out the front garden on the house I had agreed on actually belongs to the council & the “allocated” parking is nothing of the kind, meanwhile the opportunity to buy another better house has passed 👿 any attempt to bump up prices like “offers in excess of” & sealed bids are a real turn off for me, but then again I haven’t found an ideal must have house in my price bracket yetPosted 4 years ago
Btw, I’d much rather we all operate more honestly than this and have a better set of regulations and legislation surrounding house buying…but we don’t. At the moment it encourages greed, selfishness and stupidity…
+1 Do our Highlands friends still have to pay for a survey/valuation when selling (which needs renewing every 3 months or so)? Seems reasonable to me although I think people should pay less for each successive report.
Bid as high as you can go and then negotiate back down again near completion time. Sellers never reveal everything – use this to find new bits that need repair or replacement and lower your offer. You’ll be a long way down the process by then and no one will wish to start again…
Yep, we’ve thought of this even though it’s not exactly playing ball.Posted 4 years agotrail_ratMember
I got fed up of playin the guessing game and losing
So next house i saw i started viewing quickly and i played the perfect for raising a family card with the seller and then went back to my solicitor and said – ask them how much to take it off the market now (2 days after it went on market) they said 5k extra and i said deal.
Previous offer i put in on another house that went to closing in february last year i lost out by 80k – and i was already 8k over asking!Posted 4 years ago
ask them how much to take it off the market now
I asked the agent the same thing last week and he came back with “… the vendor won’t name a figure … he wants every interested party to submit their highest/final offer.”
so how about stressing that to the seller by making your offer contingent on early exchange, with a reduction if not
That could be a plan. I’ll see how land lies in the morning.Posted 4 years ago
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