Need some advice on how to bid

Hi lads,
Myself and the missus have found a house we like in the area we like. Asking price is one of the only sane ones we’ve seen and is 72% from peak prices. The house needs some work like heating, re-wiring, etc.
There’s been a fair amount of interest in the house and we have put a bid in 10,000 under asking.
Don’t want to get into a bidding war with someone if we don’t have to. Should we ask the ea what the vendors would go sale agreed for or give him our “final” price.
Appreciate any thoughts on this,

What was the response to your 10k under asking bid?

If you’re already offering so close to the asking, I can’t see the agent saying anything but the asking in response to such a question at this point. Have they given any information on other bids (real or imaginary)?

The EA will get back to you and will either accept or reject the bid . Then to limit a bidding war only up your bid by 500 or 1000 Euro at a time .

This is meaningless information out of context Bombas: 10k under asking on €500,000 property is very different to 10k under asking on €200,000 property.

Since it’s my view that on average Irish property is still c.30% overpriced, I wouldn’t be paying more than [Asking - 20%] to allow for rent not paid between now and the bottom + allowance for an ownership premium. So unless the property you are bidding on is asking €50,000, I think you are over-bidding.

Think you’re probably overpaying. If your that keen to pay for it tell them your offer is valid until Monday at which point you’re withdrawing it and putting in an offer at 20-25% below. See if they want the market to decide or take their cash and run…

On one of the Irish private seller websites it advises people selling to set their asking price at least 10-15% above what they expect to sell for, because buyers will expect to get this much off the price.
The EA will still try to come back and get more off you if he thinks you have it. So 10k under the asking price is like as close to the asking price as you could get already, without actually offering the asking price. So stand firm and don’t offer any more. See some more tips here:
Good luck with it anyhow f its the house of your dreams, and feck the begrudgers.

€150-€180 per square foot (chartered surveyors official ‘fully loaded’ rebuild costs, ex plot) , plus what ever the area is worth to you. Don’t let emotion get in the way. This is a business deal, play hardball. There is no shortage of houses and no shortage of “good areas”. There is a shortage of buyers. More properties are coming to market(both the trickle of new builds and estate sales) while the FTB cohort is the age group worst hit by unemployment and the demographic that is emigrating.

If the property needs modernisation, reduce the per square foot pricing, as that’s for a “ready to move in” property (including fitted kitchens, bathrooms, wardrobes, labour and all taxes paid).

Blue Horseshoe

Thanks for all the replies and advice.
Sorry, realise the info was a bit vague earlier.
The house is in Dublin. Price is sub 150,000.
Ea’s response to the offer was that they might take it but another viewing of interested parties is on Saturday and vendor wants to wait until then to see if they get other offers.Fair enough, if it was me selling the house I’d do the same.
We’re going back on saturday with our builder so we’ll see what the ea says then.

Now…off to repeat a hundred times “must play hardball, must play hardball, must play hardball…” :wink:

I think I know the house you’re talking about, have viewed it myself. If we are talking about the same property, then it will definitely sell, and probably be fairly close to the asking as it’s the cheapest house of its kind on the market by a fair bit.

The extended property bubble was a salutary reminder of the value of the Cary Grant technique :mrgreen:

What bothers me are some repossession tactics. XX

If it’s any help we bought two years ago. Three houses in the same estate. Two on at €300k, the one we wanted on at €195k (executor sale). Offered €169k. Dragged out for a fortnight. Agent then came back quoting great interest, family members interested, blah, blah. We told him we weren’t interested in phantom bidders. There was €175k on the table and that was it. Offer accepted. Play hardball. And remember - while this may seem the be all and end all for you at the minute; believe me - you will do even better. Be patient. For every €10k saved you’re knocking years off a mortgage. Hope that helps. :wink: 8DD

Turn that around and tell them the offer is only good until Friday, then it’s going to drop by 5k.

Excellent advice.

Just had our offer accepted!
Was a mini bidding war between interested parties but we stuck to our guns and offered what we wanted to.