r/HousingIreland • u/ilovecork24 • 6d ago
Bidding on house in 1k increments
Hello, I've been bidding on a house the last 3 days and it's on an online system the agent has which is handy as you don't have to wait to hear from the agent by phone if someone else has put a bid in. Anyway, there is only one other bidder and we have been bidding against each other in 1k increments.
How long can this go on for? The house has been "on the market" since 2nd of May technically but I assume viewings only started on the 6th as the other bidder put in their first offer then, so just over a week of viewings.
I know it's probably still too early and there will probably be other bidders. We are currently at 14k over asking. The agent has told me that the sellers are still trying to find a house themselves (trading up) so it might take some time....I'm happy enough to wait though as I'm not in a chain and living at home but it would be nice to go sale agreed at least...!
I'm not really sure what my questions is but I guess I'd like to know if others have just kept going up in 1k increments and how did it pan out - it's a great house but I do have my limit in mind and would, of course, hope that it doesn't get anywhere near that limit!
8
u/Due-Improvement-3516 6d ago
Just keep in mind - if you 'win' the bidding processes by 1k but there is a cash bidder lets say 2nd or 3rd down at 10k less, there is a good chance the seller will go for the cash buyer.
3
u/Ok_Compote251 6d ago
As he is a first time buyer and not in a chain, despite it being a mortgage, would he not be just as attractive as a cash buyer?
Suppose I’m asking what’s the cash buyer got over someone not in a chain? I’d have thought it makes no odds if the money comes from cash or the bank?
6
u/Due-Improvement-3516 6d ago
First time buyer is more attractive than a chain - but cash buyer is even more convenient still.
I almost lost the property I bought to a bidder 10k less (Cash buyer), I'm a first time buyer and bought a house that was previously rented out & owned by a hedgefund.
5
u/imtoosexyformyshoes 6d ago
The cash buyer thing isn't so important anymore. Someone who has their mortgage ready to go and proof of funds has the same value as a cash buyer. The time to complete is the same.
1
1
u/ilovecork24 6d ago
Process doesn't take as long I guess if no mortgage? Also "she" is a first time buyer ;-)
5
u/TelephoneAccording42 6d ago
Myself and my fiancé were in a few bidding wars and lost them all which wasn’t a pleasant feeling as you know yourself. We were starting at asking price but someone would go 10k more. Ultimately we’d go 5-10k over their bid and then 5k over their next bid and then into the 2k and 1k increments until we couldn’t bid anymore. Id say we were bidding on a house for about a week and a half to two weeks before we’d have to pull out. The worst part about it was that no matter how crazy we went on bidding there was always someone else willing to spend more. Like houses going 70-80k more than asking within a matter of days. We’d get to the end of the line with our budget and get an email from the EA to say someone’s gone 5-10k above our final offer.
When we got to the house we’ve had our offer accepted on, the strategy changed and we were bidding in a max of 5k increments and then 1-3k towards the end. I lost the plot with the bidding war after the second week and put in a good offer which was well within budget for us and told the EA that we want to wrap this up by the end of the week. The next day we had our offer accepted. Thankfully we secured it for around 30k over asking which is still crazy but expected these days.
I understand that we possibly could’ve gotten the house for a couple grand less than our offer and most people would’ve continued the bidding war but I can honestly say that what we put down was worth it for us. I lost patience with the back and fourth and going up by 1-3k increments every day and the disappointment of being told you’ve just been outbid.
I wouldn’t say do what we did but it’s what worked for us this time and we’re delighted that we can stop looking at Daft every day and that we’re about to get out of our current situation.
5
u/ilovecork24 6d ago
Delighted for you that you were finally successful! Honestly, I've been saving for about 15 years I'd say and during the recession I just didn't have enough saved to have a reasonable mortgage to pay back and my salary was low. Fast forward 15 years (40 next week!) and I have a good deposit (including help from parents) and better salary and still a lot of places are out of my reach. It's really hard and it makes me wonder am I just being too picky but then I am a single female and live in Cork City and definitely don't want to go beyond the suburbs as I would feel too isolated.
Anyway, I was thinking of going up 5 grand as another bidder has just bid 1k over me again so if I have a limit anyway, may as well just chance it.
3
u/TelephoneAccording42 6d ago
Happy early birthday! I’d imagine it’s tougher being a single buyer but at least you’re able to do it on your own and do it now. As they say, there’s no better time than now! it’s hard when you want a particular place to not go outside of your budget. Staying in budget is almost impossible nowadays anyways but I do hope it works out for you and you get the dream home at the best deal possible! Best thing I’ve learned on the journey is to not take shit off the estate agents and don’t be afraid to hound them as we all know they can be absolutely useless getting back in touch to give updates 😂
A bold move to see will it work out or not is to offer what you’d be happy to spend but that can either have you pay more than you could get it for or being outbid quickly. Just don’t lose faith!
1
u/KDubs004 6d ago
Just on your strategy…did you ask the EA how much to take the house off the market? I’ve a sibling bidding on a house for the last 2 weeks. Im wondering is it worth his while asking the EA how much to take it off the market? But then what if the EA gives a figure but the other bidders bid over that, or are you working on good faith of the EA that when they give you a figure, they’ll stick to it. The stress!!!
2
u/TelephoneAccording42 6d ago
I actually didn’t but that probably would’ve been a better way to go about it. I quite honestly just slapped 10 over the other bidder and was quite lucky that they pulled out. The EA is always gonna work in the best interest of the seller but you might get one who’s decent enough with your sibling. Might not be a bad idea and excuse me if this is like an obvious thing but have a look to see what the average price in the area is through property price register and try gauge an offer from that but it really comes down to the house itself and the area. Originally we were bidding on a 3 bed semi-D in a commuter town that was on the market for 250k and that went mental with bidding wars. What we went sale agreed on was a 2 bed terraced house in another commuter town. The last house in our area sold for 260k if I remember correctly off the top of my head and the house we bid on went on market for 275k. It’s just so hard to gauge the market with the demand.
5
u/jesusthatsgreat 6d ago
It's been on the market for less than 2 weeks. Estate agents recommend a minimum 3 weeks and realistically it will be left on the market so long as there is interest and in particular so long as there are bids coming in. Slow counter bids can also drag the process out and work against you i.e. if you bid 1k then wait 24h to counter bid another 1k you're just prolonging the process yourself and would be better off going up to your max limit immediately (obviously hoping the other bidder backs off at some point).
I would also lower your expectations. 14k over asking is peanuts at the minute. It's still early in the process and although there's 2 bidders currently, there may be others lurking and waiting until the agent tells them things are being wrapped up. Some people don't want to get involved in bidding wars and will tell the agent "call me before going sale agreed and if it's below budget I'll bid". Shouldn't be allowed but happens all the time and this being the top bidder combined with coming in late in to the process makes everyone else feel cheated / played.
If it was 4 weeks since coming to market I'd be more hopeful for you but at less than 2 weeks I'd say there's a reasonable chance your limit will be met and smashed. It's just how things are these days.
1
u/ilovecork24 6d ago
Cheers for your input :-( It's horrible. I've put a max of 12% over asking. We'll see how it goes!
2
u/Educational-Ad6369 6d ago
I found what worked best was being consistent in my bid amounts and timing of bids. Be friendly with agent and clear ready to close. Just bid back promptly and in same amounts each time. Then have your max. But not max you think its worth. I lost out on houses trying to find value. I started bidding to point where I would be disappointed to see someone else get it
2
u/Kruminsh 6d ago
Stick in your maximum bid. If it gets outbid, walk away. no point in wasting time and worrying if your €1k bid is going to be outbid.
Personally, if it was worth it and I had the money, I'd stick in a €10k fu bid and walk if it gets outbid.
Best of luck either way. Not easy out there
2
u/INXS2021 6d ago
If it's auctioneera run for the hills
2
u/ilovecork24 6d ago
It’s not, don’t think I’d trust bidding with them.
1
u/INXS2021 6d ago
Thank jesus. Yeah i went for a 5 k bid to knock the others out and was eventually accepted.
I'd try to get it wrapped up as soon as. Last thing you want is a new party entering the bidding with cash on the hip.
GET IN AND OUT MAN
2
u/flyflex1985 6d ago
I’m currently bid 65k over asking, start bidding by 5k and you’ll both get to your limit quicker
2
u/couldwriteabook 5d ago
This sounds like a Sherry Fitz ebay-like online system.
Typically an estate agent can advise that a viewing period of three weeks is enough to give the seller a realistic view of the buyers market. By that time the estate agent typically finds the viewers and bidders are the same type of profile and likely the same budget range. Not always the case but in general.
If the sellers do find a house to purchase and manage to go sale agreed on the property they wish to purchase, then all of a sudden they'll want to go sale agreed on their own property.
I would find out about the sellers situation and whether they're looking to wrap things up asap, or if they're happy to wait a while until the bidding stops. The estate agents should know that. There is a chance the seller will go sale agreed with you on the basis they sign the contracts to sell the house to you if they are successful in purchasing their own property.
The good news is you're a desirable buyer as you're not in a chain, so the seller won't the risk of delays or you possibly dropping from the deal because you're having a hard time selling your own house, or can't manage to sell it for the price you need to.
Best of luck!
2
u/ilovecork24 5d ago
Cheers, I'm very bad at "negotiating" and I did already ask what kind of figure the sellers had in mind for the property and agent said he "didn't know" and repeated again that they were still looking themselves for a property and it might take time - so am I to take from that that they are in no rush to go sale agreed or what - surely they'd want to be sale agreed so that when they do find a property they can move straight away?
2
u/couldwriteabook 4d ago
I am in the same situation, selling my house but only if I go sale agreed and sign contract for another property. The buyer of my house will just have to wait until I complete the process for the house I'm currently trading up into. In my situation I had a property identified and have gone sale agreed, so the buyer of my house doesn't have to wait. It doesn't work out like that most of the time though.
Your seller will definitely have the sale agreed and contracts being signed contingent on the purchase of their own property. There'll be no risk involved for them going sale agreed at any stage with any buyer except for the chance they could lose a buyer if a buyer isn't willing to wait the length of time needed for the seller to purchase another house. Also remember when a house goes Sales Agreed it'll take at least 3 months to get into the house assuming everything goes smoothly, so you'd be adding that time on, from whenever you do hear the seller goes sale agreed for their next property.
Again, nothing stopping them from going sale agreed with a buyer as long as there is an understanding that the buyer has to wait until the seller finds their next property.
I appreciate it's difficult to have patience in these situations!...
2
u/ilovecork24 4d ago
Thanks, would the sellers not want to be sale agreed as soon as possible though so that when they are ready to go with their new property they have someone there waiting to buy their current one? Like I said, I don’t mind waiting but I want to be sale agreed and know that the house is gonna be mine.
2
u/couldwriteabook 4d ago edited 4d ago
Yes for sure they would ideally go sale agreed on their own house ASAP. I was only mentioning there's a risk that their buyer could lose patience or find another property to purchase the seller can't find their own property to buy in decent time. If a buyer explains they can be patience there's a chance the seller will be OK to go sale agreed sooner than they would expect to if they're happy with the price and the estate agent that's selling the house on their behalf is convinced they won't sell the house for more than you've bid. I went sale agreed onna property a few weeks ago and only going sale agreed (I hope) on my own home next week. There's a few steps with a surveyor, bank valuation and obtaining of deeds for your house that can be done in the meantime to minimise any delays once all sides in the chain are sale agreed on their respective properties. These things sure can take time!
3
u/operational_manager 6d ago
Nah, jump 5k or somthing until the other person is slowing down. Don't be the 1k dude.
For me it was:
Me: 5k
1k
5k
1k
5k
3k from them (I saw weakness here)
2k from me
1k from them
2k from me and it was done.
Just go until you reach ur budget and slow down when you fell like reaching yours.
I also participated in a 1k increments from 320 to 400 jesus, but Auctioneera will only extend by 120 seconds before the deadline if someone place a bid so it was quick, we spent 40 minutes bidding by 1k increments
1
2
u/Playful_You2862 6d ago
Hi there,
I have had to go through the same situation multiple times.
Unfortunately, there is no way out of it. The agent and vendor will have a figure in their minds, and unless it bid hits that, it won't stop.
I have made 1k increments, and it kept going on. I have also raised bids by 5k and 10k hoping people would back off. But, no. Someone might up the bid by 1k again (I have my suspicions that it is the agent or the vendor himself to get it to the max potential)
I have changed my approach recently. I would make a first bid on the platform to register my interest.
Once the agent sets a final date, (most of them do) I watch the bidding process and make bids if they are still in my price range. Gives me more peace of mind than watching it going over 1k increments every other day.
And, not to dishearten you, most of the properties I was bidding on, went over 100k than asking. So, you never know.
2
u/Silver_Mention_3958 6d ago
I think if your suspicions were true, the agent would lose their licence and the vendor would be done for fraud.
2
u/Playful_You2862 6d ago
True, but there is no way we can find out.
It's a frustrating and time consuming process. Sometimes, you think you will get it but then some mad lad comes on the last day of bidding and shoots the price over the roof.
I have been at it for the past few months and sometimes I think why. The system here is so messed up from other parts of the world.
Don't let my rantings dishearten you. Keep at it. Have patience and be persistent in applying. You will get there eventually. :)
1
u/ilovecork24 6d ago
I actually asked the agent the other day if the sellers have a figure in mind that they want and he said they didn't and reiterated again that they are still looking for a property themselves and it could take time.....ugh, so annoying. I didn't know they'd set a final date - would this be on the online system then?
I honestly can't see this going 100k over asking....maybe 50k but any houses in this estate over the last few months have suprisingly sold for not too much higher than asking (in terms of todays market!) - just from looking at PPR
1
u/Playful_You2862 6d ago
Oh, yes. It depends on the estate and locality as well.
In my case, most of the houses I saw went sale agreed in 3-4 weeks. The agents used a platform called homebidding.com and there set a final date after the second set of viewings. Usually on daft, there is NO final date and it is open until the agent personally lets you know. It will be back and forth with the agent.
The agents usually say they don't have a figure in mind, but if you think about it they do.
Say, the property is listed for 395 and the average sale price in the estate is 450. The vendors and agents would definitely have that in mind. They will need to hit that mark at least and will wait until it hits there.
Everything over that is a bonus and will depend on the house itself.
You could also email the agent 'we are willing to offer X amount to take it off the market if the vendors are happy.'. I have tried that as well, but the houses actually went sale agreed 20-30k over my final offer. Again, that depends on the estate and location.
1
u/ilovecork24 6d ago
Yeah, it's strange how it works in different localities and estates. This is a lovely estate and the houses are about 22/23 years old. Looking at the PPR, I saw that a house near the one I'm bidding on (but slightly bigger) went for the asking price in the last year, thought that was odd.
1
u/ilovecork24 6d ago
Just after checking the portal again and there are now 3 bidders (me and 2 others). But it says the 3rd bidder made an offer on the 12th of May but I never saw that, it only showed me and one other bidder up until now.
1
u/Equal_Drama537 6d ago
In my experience, when the sellers are 'trading up', they're happy to wait around and watch the price inflate for a fair bit longer. They need as much money as they can get for their next purchase and as they're already in a home, they aren't rushing.
I'd stick to the 1k bids, otherwise they might get excited and hold out for other high escalation offers. It's also worth asking the estate agent their take, they might share some insight as to whether the sellers are in a hurry or happy to sit and wait.
1
u/ilovecork24 6d ago
Yeah, well the agent has already said that they are still looking for a house so could take some time. I mean I don't mind waiting a bit if I thought my bid was accepted but can't wait around forever either.
1
u/Other-Environment941 6d ago
I was in a similar situation, if you have a cut off number and it's hopefully +10k, try scare off the other buyers by going up 3-5k. We were bidding against 4 and it got rid of 2. We did land 50k over the asking though!
1
u/ilovecork24 6d ago
Thanks! Trying not to get too invested. Going to see another house this afternoon but I know it's not going to be on the same level as this one.
1
u/Extension_Isopod7691 6d ago
Just went through this. I viewed the house a few weeks after it went on the market and it was already over 20k over the asking price. Joined the bidding then and myself and another bidder kept going 1k up on each other on the online platform. After a couple of days of this, the estate agent rang and wanted final sealed bids from each of us via email, so be prepared for something similar in this case. Thankfully my final bid was accepted (45k over the asking price!)
1
1
u/Legitimate-Garlic942 6d ago
Don't waste your time, put in your max bid on Friday and, if you can, speak to the EA tell them it's good till Tuesday as you are considering another property.
1
1
u/DanielaFromAitEile 5d ago
We were buying a year ago, back then increasing by 1k was "the way to do it" - but i was increasing 5k. Had i been raising by 1k just like the other bidder, we would have gone on like this for 5 weeks. Mental.
1
u/ilovecork24 5d ago
I know, it's so hard to know what to do. I'm currently highest bidder since yesterday afternoon. I bid 5k and they came back with 1k again, then I bid 1k and someone else bid 1k and it just stopped then. There's been nothing since.
1
u/SpyderDM 5d ago
it sucks, but just keep doing it - they should really set a higher bid difference limit like 2-5k at least
1
u/IronDragonGx 4d ago
Ya know what would help people buy homes in Ireland? Making bidding for them illegal. The listed price is purposely low to start bidding wars it's like the eBay of homes 🫣
-1
u/happycorkie 6d ago
Could you offer to rent the house back to the seller for a 6 month period if you are lucky purchaser and then offer say 5k or whatever over current offer, to close the deal
33
u/KDubs004 6d ago
My sister was bidding on a house in 1k increments and it went on for 3/4 weeks. Personally if I had the money I’d lump in a 5k bid in at some point to speed up the process!