Buy and Sell in a Crisis - The Sunday Times 9 August 2009

Today’s Home Section of The Sunday Times has an interesting article re Buying and Selling property in today’s market.

Two things struck me in light of the article and my own recent experiences:

  1. the continued practice of some EA’s who assert there is an existing [high] bid on a property when the facts suggest otherwise; and

  2. from a buyer’s perspective identifying those vendors who genuinely want to sell at a realistic market price, and discarding properties from one’s search where the respective vendors and EA’s believe they will still get those Celtic Tiger prices.

I wonder just how rife the practice is of misinforming potential buyers of existing [high] bids, when the bid is a figment of the EA’s imagination. I believe that the practice is widespread in Dublin at least; most properties we have viewed in the last 12 months have had “existing bids” at levels any reasonable vendor would have accepted if the bid was genuine, and the house is sitll on the market!

The practice of inventing high existing bids, has a number of adverse effects; frustrtes an orderly realignment of the market, creates an obstacle between an othewise willing buyer and the vendor to agree a deal for sale of the property; and artifically inflates the market price.

If any one has any advice on how best to deal with an EA who says there is an existing bid on a property, when there are reasonable grounds to believe that this information is incorrect, I’d be grateful. Thanks.

How do we know you are not an EA? :laughing:
Seriously though, if I check out a property, and there have been a few, and I hear the same old guff that there is an existing bid on the property, I walk… Simple. Will not get into a bidding war real or imaginary. :nin. If enough people do this it should sort’em out!

PS.The title reads like the Buy and Sell is in crisis!. Did I hear somewhere that it has gone bust?

They may be under instruction from the vendor not to go below xxx and this is about the only way they can test your willingness to countenance a bid approaching xxx

If you then bid ‘close’ to it they can talk to the vendor , if not they have no news for the vendor .

Mr A has long railed about the stupidity of a large percentage of vendors if not the vast majority . Remember the EA actually makes money selling a house at €300k , asking €500k . They make no money on bids of €450k …only on sales .

Make sure they know you’re a serious buyer with funding available. Make your offer then end the conversation and your display of interest immediately when told about the higher bid.

We have an offer of X
Wow that’s great, fair play to them I hope it works out. Bye, bye.

You’re looking at a vastly oversupplied market. There’s absolutely no need to be competing with anyone real or imaginary. Offer what you think it’s worth and walk away immediately if an EA tries to involve you into a biddding war with Mr Hantom.

Hard as it is you have to try and be as patient as you can. Make the bid and it won’t be accepted. Tempting to go higher and buy the damned thing and get on with your life without looking at bloody property prices every day. You have to make yourself play the long game and only pay what you think it is worth. However once prices fall to what you think it is worth I would say go for it and don’t try to hang on for the absolute bottom either.

+1

Very few people will catch the absolute bottom…some years away. Nor will it be worth putting your life on hold for that last 10k you can squeeze out of the bottom.

I have long predicted bottom around October 2011 , work out a business plan to save until then and to pounce around then .

Even if I am wrong I will be nearly right and you will be getting older by then :smiley:

Excuse my naivety, but why is that the only way…?
couldn’t they just tell buyers that that the vendor won’t go below a minimum, instead of making up some b/s that i know to be crap and simply reinforces any distrust that i have of estate agents. Instead of walking away thinking, “god that vendor is an idiot”, I walk away thinking the vendor is an idiot, and the estate agent is a greasy chancer

What is there to lose in this situation by being honest?

anchor effect of other offer is probably reason
works in a market where things are selling for at or above asking
in this market their bluff is often called so not sure why they persist

Agreed entirely.