The Bidding War!

Martin_OB

My girlfriend and I want to make our first offer on a property early next week. We’ve read all the tips, but can anyone offer us a little bit more clarification on the bidding process?

The house we like is on the market for £149,950. It’s a semi-detached house in good condition and if we moved in, we would not have to do any work to the property.

However, the house next door went for £119,000 two years ago. The vendor has had the house on the market for six months.

As yet, no offers have been made on the property.

I was thinking of an opening offer of £130,000 (which I know will probably be refused) – would people agree? Reading Andrew White’s advice, he suggests going up in small increments of £500 or £1,000. But how long should I wait before making my second, third, fourth, fifth offer and so on….?

Many thanks,

Martin

CB1979_2

what are you prepared to pay for it?

then deduct £15k.

well that's what i'd do and see how it goes from there.

but i also like odd figures like offering £132k. no idea why but just do! lol


also have you got all your finances sorted out, to be able to proceed quickly?
most sellers would look favourably on this.

good luck

nrsql

Has the selling price been lowered?
If not then as it's been on the market for 6 months I think an offer of £130k is high.

Could be that the vendor is desperate to sell now (stress that you are in a position to move quickly).
Could also be that he is not too bothered and you will find that he will eventually decide not to sell at any price when it comes to it.

Casual

Also stress that you're a FTB - it's a buyer's market at the moment and you are much more 'attractive' because you have no chain or commitments.

I also agree with the odd number thing. Put in like £128k and if they refuse it, WAIT a few days. Yeah, the waiting will drive you crazy but it'll be worth it. Then raise your offer a couple of grand and float that. You'll appear like a couple who have searched to find some more money and raised your offer - rather than people playing the bidding game.

Let us know what you do.
-Catherine

Martin_OB

Yes my finances are sorted and my solicitor is ready to go...

The guy wants to move to be nearer his family - he's ready to move quickly (i.e. there is not much stuff in the house) - but he's very easygoing..and doesn't seem to be too bothered that the house hasn't gone yet.

The asking price has not been lowered in the six months it has been on the market.

Phil_rich

I would agree with going in with odd amounts, I made an initial offer of £128000 then increased to £132500 which was accepted as I played on the fact that I was a FTB and said I had searched hard for the extra £4500.

Good luck

Martin_OB

So, if we were to offer, for example, £126 as the opening offer, which I think would almost certainly be refused, how long should I wait before making my next offer?..and how long should I wait for subsequent offers?

jamminjamaica

be patient and play them.

i would offer £130K wait and see what happens. i usually leave it a day before i would come back with another offer. on my existing property that i have just gone sale agreed on the house was on the market at £169,950 i offered 160K

someone bid 161K

i waited 2 days and bid £161.5K

same day told it was at 162K

waited 2 days and bid 163K

same day told it was at 163.5K

day after i bid 165K

my offer accepted an hour later.

dont let them predict what you will bid. offer a mix of £500 & 1000 increments. be unpredictable and stay clam. remember its not ebay so dont get carried away in bidding and ensure you set a limit before you start bidding and stick to it.

good luck

mi-key

If its been on for 6 months and hasnt sold, it isnt worth £150K - its also not worth £145K, otherwise someone would have offered that and the seller taken it - Its doubtful if its worth £140K

I would go in at £125 ish and then go to 127,500, then 130,000 - if 130K is refused, tell the agent you will go to £131K, but if the seller isnt willing to start moving towards that sort of price then you'll leave it.

I would also leave at least two or three days between each offer, possibly a week before putting in anything above £130K - nobody else wants to buy it so theres no real reason to rush.

I'm wouldnt say let the seller sweat, but let him have a decent time to think about the offers, and the fact nobody else is interested - he may decide that if he waits another 6 months, he'll be lucky to get £125K for it, so its better to take an offer now.

Doozergirl

I'm in agreement with mi-key. Both on what it's worth (well, what it isn't worth, anyway!) and the longer you leave it between offers, the more insecure the vendor becomes about losing a buyer.

Have you checked what house prices have done in your area in the last two years? If you use the land registry's quarterly data, you can get a pretty good idea in terms of % increase.

http://www.landregistry.gov.uk/propertyprice/interactive/ppr_ualbs.asp

Choose 'postcode sectors only' where it says 'search England and Wales' (assuming that's where you are, of course) and then search on the first part of the postcode. It'll break houses down by type.

Martin_OB

Ok, using the land registry website, I've found the following:

Average price of a semi in the postcode area is:
Apr-Jun 2006: 216,811 with 9 sales
Jan-Mar 2006: 214,307 with 13 sales
Oct-Dec 2005: 168,166 with 3 sales
Jul-Sep 2005: 152,812 with 8 sales
Apr-Jun 2005: 199,200 with 5 sales
Jan-Mar 2005: 156,571 with 7 sales

I have to say that £149,950 seems to be the lowest asking price for a three bedroomed semi in the area. It is a very nice village. But, I do think the estate agents haven't given much thought as to the valuation...

I can almost hear them now..."Ah! It's a three bedroomed semi in the village! That'll be £149,950!"

So, what do you think?..