How to avoid bidding up the price of a house

dominoman

I have now places offers on three houses in the past month and each time lost the house. In every case I went in with a strong initial offer, over the asking price. However the price got bid up by other people and the EA went back and forth between us, as we upped the price a little each more each time. Eventually I hit my max max limit and had to pull out.

In a sellers market like today, where everything seems to be selling at over asking price, what can you do?

How can I avoid this crazy situation where we are bidding on a house as if it is an auction?

monty-doggy

We are FTB and viewed our new house the day after it went up for sale.

When we offered on ours we stipulated that our offer only stood if it was removed from the market.

Sold sign went up same day.

R_P_W

Where is it a sellers market apart from London?!

Seabee42

I am sympathetic to whats happening. What I understand from your comments is that someone else is prepared to pay more for a house than you. If that is true there is not a lot you can do about it. :mad:

Like most house buyers including me you clearly have a budget. All you can do is bid up to your budget and if its not to be then so be it.
I however would not personally want to get into a bidding war and would initially offer what I thought I might get it for, increase it once if the first one was a low punt then that is it.

I do think by initially offering over the asking price you are telling the estate agent you are very keen as a result they are reeling you in.

ognum

R_P_W wrote: »

Where is it a sellers market apart from London?!

There are other areas apart from London that are sellers markets in pockets. Cambridge is one.

I_have_spoken

York, MK, Aberdeen,...

princeofpounds

It's a seller's market if you just got outbid on a house, and a buyer's market if you can't shift the one you are trying to sell! You know how people's perceptions get coloured by their own experiences.

If you want to avoid an auction, make a best and final offer and then walk away. That's it.

hamster2013

you can't 'avoid' such situations for the simple reason that :
1. if the property just came on the market, the seller will most likely not take the first offer, unless its his asking price or very close to it
2. if you offer him his asking price the first day, and he doesnt find any other place to move out - eventhough you might have secured the property - he will not hesitate a second to pull out and let you feel the wrath of british law by ending up paying mortgage, legal and admin/search fees', where he will hardly have to pay anything out of his pocket.
3. EA's use the tactic of - another one is offering slightly more - very regularily.

I guess the way you can minimize is by looking at
1. empty houses -where seller is moved out and the sale can proceed quick
2. houses where seller is in a chain and has found his dream house - hopefully its a chain only between you and him and his seller - so that you can act fast and get his committment
3. direct contact - if you like a street or area - drive around, see the houses with sale boards and knock on the door - if the seller is happy to sell direct to you - depending on the contract he has with his EA, he might sell direct and make a small profit too whilst doing so. Other way for direct contact is leave a note that you are interested in buying a house on so and so street, and leave that in the post boxes of the houses - if someone was considering selling, they might just call you -