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Old 13.06.2021, 12:36
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Buying a house - bidding war

Hi All,

I was wondering if any of you have experience in buying a property through the bidding process.
We have found a great property but are completely clueless when it comes to the bidding part.
What are the do’s and dont’s?
How do you make sure you are not outbid / you dont overpay?

Any tips and tricks much appreciated!

Nalatajka
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  #2  
Old 13.06.2021, 15:06
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Re: Buying a house - bidding war

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Hi All,

I was wondering if any of you have experience in buying a property through the bidding process.
We have found a great property but are completely clueless when it comes to the bidding part.
What are the do’s and dont’s?
How do you make sure you are not outbid / you dont overpay?

Any tips and tricks much appreciated!

Nalatajka
Have tried to, didn't achieve buying it.

How do you make sure you are not outbid and don't overpay? You can't. You don't know how much someone else is willing to pay.

You have to decide what's reasonable and feasible for you, how much you can go over the initial price. Can't do much about the others, obviously.
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Old 13.06.2021, 15:11
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Re: Buying a house - bidding war

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How do you make sure you are not outbid?
Offer one thousand times the evaluation...

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How do you make sure you dont overpay?
If you are getting a mortgage from a bank - they'll ensure you don't overpay!
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Old 13.06.2021, 15:27
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Re: Buying a house - bidding war

Bid what you think the property is worth to you, or the maximum you can afford if that is less.

If you do that you should be able to accept the result since you have neither over or under offered.
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Old 13.06.2021, 16:20
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Re: Buying a house - bidding war

When we sold MIL's house, my wife's lawyer and I figured 1.3-1.4 was fair.

However, two people got into a bidding war, and it went for 1.85!

Tom
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Old 13.06.2021, 17:37
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Re: Buying a house - bidding war

A couple of recent threads discussed the process and possible strategies:

https://www.englishforum.ch/housing-...y-auction.html

https://www.englishforum.ch/housing-...g-process.html

They weren't very long threads, but I found the anecdotes and advice (from those on the bidding as well as selling ends) eye-opening; perhaps you'll also discover something useful there.
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Old 13.06.2021, 21:27
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Re: Buying a house - bidding war

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If you are getting a mortgage from a bank - they'll ensure you don't overpay!
Oh yes, the bank will make sure they won't put their money in something over evaluated. If you want to outbid the others at all costs, then you do it from your own pocket. I guess.
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Old 15.06.2021, 16:28
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Re: Buying a house - bidding war

Also be very careful you understand the process. We were told by the Agent that we would have one bid, and we were just going to submit our highest bid. Our bank recommended we check with the Agent as there were usually two bidding rounds, with everyone being told the highest bid from round one. The Agent confirmed that it would indeed be a two bid process and everyone in the first round would have the chance to submit a fresh bid. This made quite a difference to how we went about the process.
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Old 16.06.2021, 09:23
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Re: Buying a house - bidding war

We just lost out to a place. We bid a bit lower than others. Considered bidding higher. And then it went for much higher than we imagined. But it was a top top place. Problem was it was already at the top of our budget.

Clearly you have to decide what you are willing to pay. But if its a really great place, perhaps you want to consider maxing the banks valuation plus their tolerance (5 or 10%). That I suppose is the highest most can go to. Any higher than what the bank is willing to give, its out of the game (at least for us).

Yes you may pay a bit more, but then you could get your dream house, and you would know, there was literally nothing more you could do to win it. It is risky but only if you plan to sell up and leave any time soon. You also wont be able to enter the bidding process, you have had one go at it, and its for others to decide if they beat that offer.
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Old 16.06.2021, 22:07
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Re: Buying a house - bidding war

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Hi All,

I was wondering if any of you have experience in buying a property through the bidding process.
We have found a great property but are completely clueless when it comes to the bidding part.
What are the do’s and dont’s?
How do you make sure you are not outbid / you dont overpay?

Any tips and tricks much appreciated!

Nalatajka
You might find some info on this thread, and those to which it links:
https://www.englishforum.ch/housing-...-property.html
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Old 16.06.2021, 22:17
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Re: Buying a house - bidding war

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Also be very careful you understand the process. We were told by the Agent that we would have one bid, and we were just going to submit our highest bid. Our bank recommended we check with the Agent as there were usually two bidding rounds, with everyone being told the highest bid from round one. The Agent confirmed that it would indeed be a two bid process and everyone in the first round would have the chance to submit a fresh bid. This made quite a difference to how we went about the process.
And ours was the opposite. We were told one bid and it was indeed one bid. We put in an offer over asking price, but it was what we felt it was worth and were willing to pay. We don't know what it sold for but we suspect well over asking price.
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Old 17.06.2021, 08:03
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Re: Buying a house - bidding war

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And ours was the opposite. We were told one bid and it was indeed one bid. We put in an offer over asking price, but it was what we felt it was worth and were willing to pay. We don't know what it sold for but we suspect well over asking price.
Same here. I have to say it's a daunting process. And even though you tell yourself it is, after all, a game in which the highest bidder wins, you can't stop feeling very disappointed afterwards.
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Old 17.06.2021, 10:00
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Re: Buying a house - bidding war

It indeed is a daunting process , As others have already said, you would generally not want to go above the valuation by bank, so for me bank valuation +50k that was my upper limit.

Talk to agent and also to your banker, I got sound advise on pricing from both during my search, ex in some cases banker would say even x is valuation, there is a buffer of X+50 . There were also cases were Agent said price is X, and they have already received X+100 as highest bid.

Always consider bidding price from agent with a pinch of salt, not all of them would be genuine.

Bidding price would also vary on property, its Age, location , views , condition, any modifications or repair work you wish to do etc etc.

And finally, do not be disappointed if this property does not workout, consider this as learning experience for next one.

good luck!
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Old 17.06.2021, 10:55
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Re: Buying a house - bidding war

Do Forum members believe/have experience whether it is mainly price or a mix of factors as the main factor or for an ultimately successful bid?
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Old 17.06.2021, 11:15
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Re: Buying a house - bidding war

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Do Forum members believe/have experience whether it is mainly price or a mix of factors as the main factor or for an ultimately successful bid?
I have sold twice. First time it was mixed, second time it was price.

I loved my first apartment, it was just too small when my kids got to schooling age. The buyer was not the highest bidder, but just had a baby and the one most resembling my family when my kids were born. I would have sold to the highest bidder, but made up my mind when I met this family. Added to that, I needed the certainty that I could sell because I was committed to my next purchase, and this family had everything lined up and was ready to sign immediately.

Second house went to the highest bidder. I didn’t like the house that much, and anyway didn’t really meet any bidder which I particularly favoured.
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Old 17.06.2021, 11:29
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Re: Buying a house - bidding war

Out of interest, can you do that? i.e. have an auction and then not sell to the highest bidder? Is it legal?
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Old 17.06.2021, 11:42
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Re: Buying a house - bidding war

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Do Forum members believe/have experience whether it is mainly price or a mix of factors as the main factor or for an ultimately successful bid?
IMO, It is a mix of factors ,

While there are many who like to buy, there are a few who are serious, doing homework helps, be familiar with the area even before you see the property, be ready to decide as soon as you see the property. I lost on few properties because I was little late to decide. as Axman mentioned, be ready to sign immediately if you like the property.
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Old 17.06.2021, 12:15
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Re: Buying a house - bidding war

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Out of interest, can you do that? i.e. have an auction and then not sell to the highest bidder? Is it legal?
Why not?

Anyway, submitting a bid is not the same as having an auction.

Tom
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Old 17.06.2021, 12:36
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Re: Buying a house - bidding war

If its a closed envelope bid make sure the number you put in is uneven.
So for example if you believe the property is worth 900k, then bid:
900,011chf for example.


The idea being is your estimate is correct and 2 or 3 other people bid 900k as well you edge in front.


Only really works on close bids though.
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Old 17.06.2021, 12:47
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Re: Buying a house - bidding war

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Why not?

Anyway, submitting a bid is not the same as having an auction.

Tom
I guess so.

Interesting though. Buyer A, a family, might bid x but are a nice family with a young child.
Buyer B is an unpleasant individual and bids x +1 but the seller stills sells to Buyer A.

But what if Buyer B bid x + 1/2x? What will the seller do then?
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