House back on market - how to bid?

OK, here is the scenario:

House came on market this time last year with an ask of 340K.

We viewed, started bidding at 300K, que a bidding war and we ended up bidding to 420K. When the EA came back with a bid of 440K, we said that we were out. Next day, EA came back to us saying that the vendor would prefer our bid as we were cash buyers etc. We reiterated that we were out and said good luck.

EA came back to us last month and said that buyers had pulled out (due to rights of way issues) and we could still buy at our last bid (420) before he puts it back on the market.

House is now back on the market at 395K

Seems a lot of fecking around here. The property is old (over 100 years) and there are lots of problems with it. Would take a lot of work to restore, ie is a major project. We have kind of lost interest but might be interested if it was cheaper. Pinsters advice?!

The only fundamental bidding strategy that really works is to bid no more than what you think a place is worth.
Start lower if there are no other bids, and don’t exceed your max.

Would it be worth getting a survey done then take it from there, for 500 quid you’d know what you are getting into and won’t be messing around after going SA trying to get a reduction. It sounds like no bank will lend on it so there is no point bidding if you need a mortgage, that means that anybody bidding against your is just bait to get you to up your bid. If you do bid always ask the EA is the counter offer from a cash buyer, if not they don’t exist.

“The vendor would prefer a cash buyer” is sometimes code for “no bank would lend against this”.

“The vendor would prefer a cash buyer” sometimes also mean: vendor takes EA advise in dealing with cash buyers even they offer less, which is sometimes proven completely wrong as cash buyer have bigger flexibility and freedom of choice and can f… vendor up very easily at the last minute before signing. This whole think is a gamble :frowning: this is our reality. So I wouldn’t rely on EA word very much. Just take other “pinner” advise and stick with your strategy.

Not much point in getting a survey done as the house would have to be demolished, its in such a state. Its just that the location suits us perfectly.

We started at 300K before, so thinking of starting at 300K again and just leaving it at that. The problem is that now they think its worth much more than last year!

The EA is going to have a very hard job persuading the vendor to accept 30% less than two bids that were made a year ago.

It would give you something in black and white as to why your bid is so low but from what you are saying it’s probably why the sale fell through.

Maybe arrange another viewing so that you can talk to the EA face to face and ask some hard questions then make an offer. Don’t play the low ball game tell him it’s more or less a site you are buying and it’s the area you like. May go in at 345 and say it’s a take of leave it off. Be ready to walk, even if another offer comes in unless it’s cash you don’t have to better it. They will run the the survey comes back.

What do you know about the seller do they have to sell at a high price or are you wasting everybody’s time?

Don’t know much about the seller.

345 is 5K more than they were asking originally. The only bidders were myself and the other party. (I assume!).

But you are right, the vendor now has it in his head that that the house is worth closer to 400K. I think I’ll just make my 300K offer and let it sit on the market.

@Eschatologist, I’m thinking the below validates your theory.

Price of house has now been changed to 350K. Such shenanigans! If they had accepted our offer over a year ago they would have sold for 50K more!

I had an experience last year where I was looking at 2 houses. We were outbid around the 550k mark. We went on to buy something else. However, we then got a call to say that they would accept our 540k ish bid. We said no thanks. It’s now now on the PPR having sold for around 500k even. So, it looks like both bidders backed out and they tried to get us at our highest bid (understandable) but it does goes to show you that just because someone bids 550 does not mean that if it falls through that someone else will.
Bids cost nothing and as such are worth as much.
TB

We only bid high because there was another bidder. EAs seem to think that your bid is still valid after the winner drops out.

Update on this. House has now been repriced to 290K. So two years ago, the EA had a solid bid from us of 420K.

With all their fucking around (EA/Vendor/Other buyer?), they are now down a potential 140K. Such shenanigans!

Look on the bright side - you’re in essence ‘up’ 140k. The fact that it is down to 290k now though raises some serious questions about the structure in general… Why is it so unappealing to people? I’d say you were right to hold back.

Its basically a rebuild, and there are right of way issues which we were aware of before we bid as we are local. Not really up 140K as we spent our money on something else!