Advice needed re: offer made on Mayo house.

The value of a house is the price that someone is prepared to pay for it and if they receive no offers over 200k well that's what its worth. Stick in there and if the vendors are really seriously thinking of selling you should get it at that price. In the meantime continue to rent and wait for prices to reduce further in the new year.
Spin
 
Myself and my missus are in a good position to purchase a semi-rural mayo house.
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Best thing you could do with your budget is get westport out of your mind and buy in castlebar where you get much more for your buck.
It's near to westport
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Castlebar is 5-10 mins from westport.
 
Spin said:
The value of a house is the price that someone is prepared to pay for it and if they receive no offers over 200k well that's what its worth. Stick in there and if the vendors are really seriously thinking of selling you should get it at that price. In the meantime continue to rent and wait for prices to reduce further in the new year.
Spin
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This mindset is fairly typical and the reason behind so many frustrated buyers who just can't understand why people are not accepting their 'fair' offers. What you are willing to pay is not what its worth its what you hope to get it for while secretly hoping that is actually worth more. there are two parties involved in the process and if the buyer is 'serious' they will consider offers and not refuse them out of hand but also not just accept a paltry sum because its the only one on the table.
 
Hi,

Tend to agree with Mr Man - while you don't want to pay over the odds for the property - there are two people involved in the process - the purchaser and the vendor - a house is only sold when an agreed price is reached between the two parties. I had my house for sale - reduced price - plenty of people interested but all sitting on the fence - I took it off the market as it wasn't viable for me to keep dropping after reducing by E100,000 that was my limit as we had poured a lot of money into house over the years and to go and build another house it wasn't stacking up. So in the end I'm staying put have renovated even further, am thrilled with decision and will not be moving. I wish you the best with buying house in Mayo.

Angela59
 
Just a slight correction. A house is only sold when contracts have been exchanged. Otherwise the matter of Gazumping has the chance of taking centre stage.
 
PaulyB63 said:
I have looked into the 2003/4 price regions for the type of property and area etc. and the asking price would have been about 190 - 210k..... I am certain this is where asking prices are headed as that was a more natural house price level at that stage before the madness ensued...
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What would your own reaction have been if a similar type offer was made to you on your own house?

On the other hand if the prices were rising would you be prepared to offer the price the house would be expected to reach in 2 years time?- I guess not.

Presumably the sellers will have to purchase another dwelling and don't fancy there chances with €200,000.

If you want the house for this amount you may have to wait until all houses suffer a similar drop in value. I'm optimistic and don't think they will.
 
Willowchase said:
On the other hand if the prices were rising would you be prepared to offer the price the house would be expected to reach in 2 years time?- I guess not.
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On the contrary during the boom many people were quite prepared to make exorbitant offers on properties on the basis of expected future rises. Remember the need people felt to get on the ladder before prices went beyond their reach? Are you surprised to see the opposite behaviour now?

And as the OP pointed out the vendor is still asking the same price as in late 2007. Do you believe the market or broader Irish economy has not changed since then?

I suppose I'm surprised that even in the current climate some see €200,000 for a house in rural Mayo as a paltry sum or a somehow offensive offer.
 
noel_c said:
On the contrary during the boom many people I suppose I'm surprised that even in the current climate some see €200,000 for a house in rural Mayo as a paltry sum or a somehow offensive offer.
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Why do you not think any house in mayo should sell for over €200k?What price should houses in mayo be selling for then? Nobody on this thread bar the person who posed the question knows what the condition of house is , how well finished the house , the size of the house , the location of the house so in fairness its hard to give advice. However as some other poster said people are saying its a buyers market which is true and they can make any offer they want however at the end of the day its the sellers decesion whether he/she wants to sell for that price, if they are other no financial pressure they might just sit tight and take it off the market. Is there any particular reason you like this house? Have you looked at many others in the area?
 
Two things. To respond to Willowchase....

I'm offering what I believe the market and I can support at the present moment. If I had not had the foresight and massive luck to get out of the market with my last house at the right time I would be facing into a situation where I would be offered way less then I wanted! I'm not making offers based upon how I would make the vendors feel...

How would you feel if you bought BOI shares at €18.67 last June ('07)... Sure you can't lose...!! 16 months later somoeone offered you €0.87 for them... That's the way things pan out...!!!! Right or wrong..... And yes... People were offering exorbatent (sp?) prices on the basis of where they though the market was going.

To answer last poster...

We've looked at loads of houses and this is the one that ticks the important boxes for us.... It's in a safe area re. traffic for our very young children, there are no main roads around at all yet we're not too far from town. It's in presentable condition, but is in need of a new kitchen and flooring throughout. My Dad is taking a look at it with me this weekend to see what else it needs re. insualtion issues etc.

We just get a lovely feel from the house!! It's the one house that we've seen that's had that for us!!
 
I'm not arguing with you. I believe you are entitled to make any offer you feel is justified. I just know that if there was no compelling reason for me to sell I would not accept your offer and take my chances on a better offer coming along. As I said maybe in 2 years time I would be prepared to give it serious consideration if the market continues to fall as you predict.

I just wonder though, as it appears to be the house for you, why not make a better offer which may be seriously considered. As you say you want to make this your home and wouldn't regard it as a short term investment. It may well be worth paying a bit 'extra' to get the house you really like.

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How would you feel if you bought BOI shares at €18.67 last June ('07)... Sure you can't lose...!! 16 months later somoeone offered you €0.87 for them.
Unfortunately I know exactly how it feels, having bought shares some years ago at > 450 punt and now find they are worth €60. - sore, but that's life
 
Hi Willowchase... Fair point... We're not rushing into anything but considering all of our options.... Thanks again for everyones advice!


Sorry to hear about the share deals... They can be sore for sure.....
 
Its simple - you offered what YOU believe you want to pay taking into account the 'risk' you are taking by buying in the current market. You need to feel you are factoring in another drop in price that is being predicted in the coming year(s). The estate agent HAS to tell the vendor your offer whether he likes it or not (so make sure your offer was passed on). IF the vendor doesn't accept well, they may be facing another 2.5 years on the market. I wouldn't trust your EA now either - I would stick to your guns and leave your offer the way it is, don't be bullied by a greedy EA or vendors who are unrealistic. It would be different if they had gotten other offers over the years but the simple fact is they haven't until now. Do they take your 200K now or wait until another 2.5 years! If you do buy this house, don't worry too much about the price falling if you intend this to be your family home for a long time. Negative equity is only a reality if you intend to sell on after a few years or you need to remortgage. If its long term the market will EVENTUALLy recover.
 
You could quite easily make that post out to the vendors and say don't take that greedy purchasers offer and if the EA says take it then don't take that greedy EA's advice as he is only after a quick and handy sale (do you think the EA enjoys having houses on the market for 2.5 years, really?) Your last line might actually reflect the vendors thinking aswell.
 
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