Many people, particularly first-time buyers, appear apprehensive of the bidding process and report having been outbid on properties on past occasions. Others, new to the process simply don’t know how to go about bidding on a property they love. We at Hunters wish to make the process as transparent and easy as possible.
Properties are offered with an asking price. This is an estimate of the property’s value based on the size, location, condition of the property and of course, using recent sales comparables from the surrounding neighbourhood. When more than one party is interested in a property what is referred to as a “bidding war” can take place. The property market ultimately dictates the property’s worth, depending on what someone is willing to pay for a property.
At Hunters we have implemented the use of a technology that enables potential purchasers to bid directly online, which of course means bidding in real time. Our Offr platform is very user friendly. Interested parties are encouraged to register on the platform on our website, www.huntersestateagent.ie. This involves uploading a photo of ID and proof of funds.
Once a party is registered on the platform they are entitled to place an offer on the property they have registered for. This is of course anonymous with each bidder having a bidder number. All those registered for the property (including the vendor themselves) will receive an email notification of any activity on the property. While the technology is comfortable and creates a transparent bidding process, communication with the sales agent is still vital and your agent should keep you informed throughout the process of how it is progressing.
TOP TIPS FOR BIDDING:
- Prior to bidding on a property, you will need to have engaged with your bank or mortgage broker and have received an approval in principle letter. If you are selling a property to buy another it is a good idea to have put your home on the market already, ideally it would be sale agreed. If you have sold a property, confirmation of your sale from your solicitor can be uploaded as proof of funds.
- Decide your budget. Know your limits from the outset so you are less likely to get carried away and overextend yourself.
- Do your due diligence on the property and the location. Find out all the pros and of course the cons so you know when bidding on the property what extra costs you are likely to incur if your bid is successful.
- Register early. The sooner you bid on the property, the sooner you will know if the property will be yours.
- Ask the agents advice. Speak to the sales agent and ask them what the client is hoping to achieve. Get a sense of how long the property has been on the market, the number of interested parties there are and what, if any, offers there are.
- Make an offer close to asking price. Depending on the sales agent’s advice you can come in below asking price, but to make a serious offer it should be in line with the asking price.
- Increase your offer in increments that you are comfortable with.
- Engage a solicitor so that when you receive the good news your offer has been accepted you can provide his/her details immediately to the agent.
If you have any questions on the bidding process, or any other aspect of your house purchase or sale, one of our negotiators would be happy to discuss these with you.
Please call Clare Fahy at our Dalkey office: (01) 275 1640
Our other offices in Dublin are:
Donnybrook – (01) 668 0008
Foxrock – (01) 289 7840
Rathfarnham – (01) 493 5410