Bidding against another buyer - normal practice?

phuket

Hi

I have just offered on a property and lost out to another buyer. The property was being marketed by two agents and the successful bidder was with the other agent.

When the agent made my offer he was told that by the vendor they had just received another offer the same day through the other estate agent. The vendor didn't say what the other offer was for so my estate agent suggested it was probaby same although I don't think he knew he was just guessing. As I was at the top of my budget I didn't increase my offer immediately but the agent told me we might have to go to final bids.

The next day I was told the vendor had decided on the other offer. My estate agent thought that the other offer was now marginally higher than mine so feeling disappointed I increased my offer a little and then as I didn't hear anything before the end of the day I offered another small amount.

The following day I was told that I was not successful and the vendor was still going with the other offer.

I am wondering

- Is it normal for vendors not to give an indication what other offers are?

- Should my estate agent have tried harder to find out what the other offer was?

- Should my estate agent have asked the vendor to let them know before they made a final decision to give me a chance to make any final offer?

- How do I ensure I am successful if this happens again?

Thanks!

giddypenguin

Is it normal for vendors not to give an indication what other offers are?

Of course - they want people to bid as high as they can... not just a little more than the other bidder - keeping you guessing is part of the game.

Should my estate agent have tried harder to find out what the other offer was?

Why? The other estate agent wouldn't have told them anyway (if they get outbid they will lose their commission) And be very careful, its not 'your' EA, its the vendor's EA, they don't work for you.

Should my estate agent have asked the vendor to let them know before they made a final decision to give me a chance to make any final offer?

I would argue the decision isn't final until exchange... but they've gone with the better offer... nothing stopping you offering more (except your finances, and you don't want to overpay for a house do you?)

How do I ensure I am successful if this happens again?
Bid more?! Seriously, unless you start offering more than the house is worth you can't. It's up to you to view the house, work out what you think it is worth, in line with sold prices in the area RECENTLY and work out what you can afford then offer your best price. That's it.

ValHaller

phuket wrote: »

- Should my estate agent have tried harder to find out what the other offer was?

If you dispel the notion that the Estate Agent is yours, the rest of it becomes clear. The Estate Agent is paid for and instructed by the seller.

To ensure you are successful in future, be prepared to pay silly money. Always go into bidding knowing what your maximum is. As long as you either get the house or the bidding goes beyond your maximum, you have to regard it as successful - if only for the fact that you did not overpay.

fishpond

You can always try to renegotiate a lower price if you get a survey done later.
Only you know what you can afford.
The deal is not done until exchange of contracts, in England.
As has been said "ignore the estate agent, they are not working? for you"

zzzLazyDaisy

OP, for many sellers. once they have accepted an offer, they won't budge, and that sale will proceed unless the other buyer drops out. That may well be what happened in your case, albeit the other buyer's offer was accepted only that day.

Hopefully when you do get an offer accepted on a house, your seller will be of the same mind-set.

Wellieboot

Too many unknowns here. It could be that your offers were the same but the other buyer was simply more 'attractive' - cash buyer, no chain etc.

quidsy

The people who "won" may have had other factors that the vendor took over you. Better chain, more secure financing, fast moving ability.

Sometimes you win, sometimes you lose

bluebaron

Very common to go to Bids now, very few properties on the market. I got 3 above asking price offers on my recent sale within 1 week of marketing.

We went for the highest offer,taking into account the buyers position. Being chain free is a big must these days.

phuket

Thanks for all the comments so far. (BTW I was only referring to the estate agent as my agent in the sense that they were negotiating for me not the other buyer).

If this happens again I think I would push to find out whether the competing bid was the same. I see no reason why it would weaken the vendor's position to just confirm if this is the case.

What about going to sealed bids, does anyone recommend asking the vendor to do this?

( On an aside I wonder why estate agents don't issue vendors and buyers with a guide to the sales process how to dealing with offers so both parties know what to expect. At least everyone would be reading from the same page then.)

SG27

They won't tell you what other offers are. Unless is "your nearly there" or "significantly more" they are trying to get the most money our if you as they can. If they told you the amounts you could just offer a couple of hundred more.

jules888

All might turn out well in the end.We got an offer accepted for a house,then told had received higher offer and got into a bidding war.They said were going with other buyers as no chain.We were gutted but all turned out ok as other buyers let them down,pulled out ,so came back to us.House had been for sale a year though.
We"ve been living in house for 5 months now.