Bidding Strategy

owen1978

House advert says 'offers in excess of £100,000'

Just put in our first bid of 90k
Im willing to go upto £97,500 for the house

This is how i planned it

Bid 1 90k (Today)
Bid 2 94k (Wednesday)
Bid 3 96k (Friday) - gives them the weekend to mull it over
Bid 4 97.5k Final offer - if all else fails

Is this the correct way to bid!, or should i make consecutive bids
on a single day e.g After first bid gets rejected immediatley put in
Bid 2, if that gets rejected then go in with Bid 3 etc...

Thanks

Robert_Sterling_3

I would make the first bid and wait for a response to that.
I would decide what to do next when I had had time to mull over the response.
Possibly tell us what the response is.
I think you are changing your bid to quickly.

owen1978

Thanks for the quick reply, will keep this thread updated

Richard_Webster

Bids should reasonably second guess what others might bid. I'm not talking about how far up you go and whether to do it in stages etc, but whatever you do, you should then modify your figures slightly to gain an advantage over others who are offering round about the same as you.

For instance, if two of you bid say £94K then they will probably ask for higher offers, but if you bid £94,102 then if the other person/people bid £94,000 you would win, but you would also win if they bid £94,100 to cover a £94,000 bid, and you might as well add an extra pound or two in case they bid £94,101!

Robert_Sterling_3

That sounds like and is a good ebay strategy.
I do not think it applies to house purchase.
All other thing being equal it would apply.
All other things are not likely to be equal when buying a house.
How soon can you exchange contracts is a factor.
How soon or how late can we have completion is another factor.
Do I like one of the potential buyers rather than another might be a factor.

theGrinch

sometimes those strange offers like £94,101 show that you are squeezing out every penny and there isnt much left.

chickmug

theGrinch wrote: »

sometimes those strange offers like £94,101 show that you are squeezing out every penny and there isnt much left.

Interesting as I have dealt with thousands of sales in my career but never had this sort of offer not even £93,999.99p:D

alexlyne

When I bought my first (and current) house, I unfortunately ended up in a bidding war with another person. My first bid was 85k. I was then told a higher bid went in, so changing tack, i went to 86k5.. then 87k5.. thinking that most people increment in round 1Ks, and me not wanting to push up the price too quickly. Ended up buying for 88k5.

While £94.101 sounds a bit silly, think of numbers like 250,500,750.

owen1978

EA says the vendor declined the offer, asked if they have any feedback, said that The vendor values the house over £100,000 and then used the example of when the house was nearly sold last september for about £107k.

I explained that since then house prices have been falling each month, and that the vendor is unrealistic with the price.

EA then says to me, that im entitled to make a further bid if i want to, of what i think the value of the house is

So now what?

beegee123

Offer £89k


why didn't they sell at £107k?

theGrinch

chickmug wrote: »

Interesting as I have dealt with thousands of sales in my career but never had this sort of offer not even £93,999.99p:D

I wouldn't go to the nth degree as such

but something like £94,260. Usually, I would do it on the second offer. Tried it twice and both times it did the trick.