Hi
We’ve seen a property we like. The asking price is 350. We will not go over 340. Where is a good starting point and what is the best approach? I think the house is worth around 320. So do you start at 300 and see what happens?( Id say we havent a hope of actually securing the house considering the droves and droves of people who came to view it) but at the same time I feel we may as well give a chance. Any advice/tips would be great. Thanks.
Well if you phone the EA and say you’re interested they’ll almost certainly tell you that they already have a bid of x. Whether that’s true or not, it’s your starting point.
So your prepared to overpay by €20k, seems like a good tactic alright
I think you need to settle on what you actually think it’s worth. You’re willing to pay 340K yourself and even at that you don’t think you’ll have the winning bid. Therefore it sounds like you think it’s worth > 340K.
Where does this 320K figure come from?
Read the OP again. He was proposing to start at €300k and then see what happens.
My preferred tactic is not bid until the bidding gets near a realistic price and the bidding is slowing. Once you do start bidding re-raise quickly and decisively everytime somebody else comes in. The idea is to demoralise the other guy and/or ward off somebody who fears getting into a bidding war and going too high.
I would ring the EA and arrange for another viewing.
In person ask him if there are any offers.
Whatever his answer just ask him what he thinks is the minimum the buyer will accept.
If you want to offer that amount, then do. Otherwise don’t.
+1
Apologies - I was talking about an auction situation. Got mixed up there.
Check in with the EA regularly (without bidding) and then come in and bid at the last minute. Has worked for me a couple of times
Well its the difference between what things cost and what things are worth. There is often a disparaity and no more obviously so than with house prices. I don’t know really if prices are going to come down much in the D14 area so I suppose when we see a place in our budget and our budget has a top end we try and get it within that budget. I mean in all seriousness none of the houses i have seen are actually worth 340 k but thats what they cost. Thanks for the suggestions.
Do you mean a real auction in an auction room, real-time (english-auction in ex-patrick’s link)?
In that situation, I think the key is to know your absolute limit price, and don’t go above that, ever, even if you get caught up in the spirit of the day. By the same token, you shouldn’t feel much reluctance going up to your limit.
You should also do everything you can to understand what a good price is (surveying area, look at property & condition, your finances and ability to pay, etc.,).
I don’t think there’s much more you can do.
There’s not much important difference between a real-time english auction and a bidding process on a property, assuming that everyone engages fairly in the process.
Will he give a truthful answer?
Have had this experience - thats why I would now prefer to set the floor myself so I favour making an offer very quickly and setting it very low.