First off, I’m in Ireland and the property market here is insane.
Last house I offered on is currently €85k over asking so I haven't even stayed in the bidding frenzy. It’s a nice house but not worth that amount, IMO. Saw one before Christmas that I wanted to bid on and the agent told me the following day that they wouldn’t take an offer from me as they had so many cash bidders lined up, they knew they’d have it sold ASAP and it looks like they did.
Anyway, our budget for the exact (rural) location and spec/size house we want is €500k.
Current restrictions mean that we haven’t been seeing houses in person but doing virtual viewings. Estate agents seem to think restrictions will lift early May. We’re happy to bid based on a virtual viewing, knowing well then see it in person and can withdraw.
We did a virtual tour of a house at the weekend that we love. Fantastic house but the location isn’t 100% ideal. It’s grand, but not perfect as it’s not near a village or town. The asking price is €435k and there’s an offer in at that price from a cash bidder.
To be fair, I think it’s mad money for a house in such a rural location but the market is just nuts and would hate to wait another year to see everything is up massively again.
The reason I’m so hesitant is that we went sale agreed on a house early last year but it fell through (vendors became very difficult and kept gazumping us). We had gone sale agreed at €475k which was our killer bid on a €450k asking price (we offered asking and they declined as they had 42 other viewings arranged), but then gazumped to €500k by a cash buyer. We went to €505k, other buyer went to €525k. We withdrew. So it went for €75k over asking. Not sure what happened but it went back on the market in March at €500k and is now sale agreed but no idea of the final price. I’d guess it went for considerably more than €500k due to spec and location.
It’s not on Property Price Register yet.
It completely knocked my confidence as it was drawn out for weeks and weeks. From my perspective, I thought that our offer was fair and competitive but I was made a fool of. I know that sounds dramatic, but it seems like the owner wanted to sell to the cash buyer (who was local and known to them) and using me to drive up the price knowing they had no intention of selling it to me. I’m frustrated by that and don’t want to be in that position again. I just want to pay a fair amount based on the asking price.
We’ve been searching now for 18 months. Fully mortgaged approved and not in a chain.
So what do we do with the €435k house we saw at the weekend? Offer €437k knowing we can edge up as needed, or go in with a killer offer? If a killer, what would you offer?