You say the bank will only loan what its worth (170k) just don't forget thats your valuation based on a string of unnecessary costs. I would say that if you do buy the house and attempt to bring it to market quality i.e no extras then you will probably spend about €20/25k on improvements. Its amazing the costs people see when valuing down a property. If you are going to submit a list of what is faulty with the house I suggest you strip it back to what would be the standard requirments.
Bidding - how low can you go?
- Thread starter Voda
- Start date
Well my costs could go up as far as 50k, ive been advised to add 20% to my estimate(40k =8k) + another 20% on that for eventualities (9.6k) giving me a total of 57.6k i should be prepared to pay on it.
If i go the house exactly as i want it for an end total of 230k id be happy. the more i think about it 170k is what im prepared to pay for it.
Ill think about it over xmas.
I've allready exlained this, roughly half of the 21 are minor faults or musings on my behalf, the rest are serious and expensive faults that would have to be fixed.
When I rang the auctioneer with my offer he reacted with stunned silence. He told me that the vendors wouldn't/weren't prepared to accept such an offer. I told him that my uppermost limit was €30k/€40k more but that was it.
There would still be a €55k gap between what they were prepared to sell for and my newly revised offer. The advertised sale price is €35k higher than that again.
The difficulty is that I'm trying to purchase in an area where property has always been naturally high and where quality location is at a premium. The vendors are not Irish and they aren't in any rush to sell. My inquiries lead me to believe that they would hold onto the property and keep it vacant in the long term if they don't achieve their asking price.
A buyer offered €10k less than what they were prepared to accept and the offer wasn't accepted.
To be honest, my initial offer was quite cheeky given the property I was bidding on and I would consider myself very lucky to get it at my new bid offer. Beyond that I couldn't afford it. Fingers crossed.
(Bronte - If I didn't up my offer ..... my hopes of purchasing this particular property were finished)
Neil_Ireland
Registered User
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I viewed a property earlier on in the year, it was advertised at 275k, I liked the house so I put in an offer of 235k, the EA asked me was I taking the pi$$ and that I was way off the mark, he also said he would not be in a position to show me any other properties if I was going to make offers like that again 
Needless to say I didn't buy.
Needless to say I didn't buy.
Will you be accepting offers of 20% under the asking price for your own house, or will you laugh at them ?
My initial bid was low but allowed me enough room to increase my offer. I didn't want to kill my chances by offering my mortgage limit. The bank may loan you 240k but it you don't have to borrow then you shouldn't.
Make the offer ..... if they laugh .... so what? up the offer then. My guy didn't laugh ... his silence said it all. Start low .... you can go up .. start high ... you can't go down.
Sorry but EAs out there need to get a grip.... There is a worldwide financial crisis never before seen and this WILL be reflected in the prices sooner rather then later.... The EAs I've been dealing with keep going on about current market value yadda yadda yadda... This is total BS as there IS NO MARKET at the moment.
To illustrate this, the latest borrowing figures were released recently for October, where €26,000,000 was borrowed in the mortgage market country wide. In the same period (Ocotber 2007), €700,000,000 was borrowed!!!
I started a thread recently wondering was I mad to be offering about 33% less then what was being asked for a house where the EA basically laughed and stated that her market area (Westport, Co. Mayo) would in no way be affected like the rest of the country and that my offer was laughable etc. etc. That house is 2.5 years waiting to sell at "current market value"... We have since revised our offer DOWN! Oh yeah... And since making that offer, the EA in question is on a travelling leave for the next "number of months" from her invincible firm!!
This market will get a lot worse before it stabilises IMHO.... Like the banks, it's the EAs who've fueled this whole mess our country is now in.... Rant over....!!
To illustrate this, the latest borrowing figures were released recently for October, where €26,000,000 was borrowed in the mortgage market country wide. In the same period (Ocotber 2007), €700,000,000 was borrowed!!!
I started a thread recently wondering was I mad to be offering about 33% less then what was being asked for a house where the EA basically laughed and stated that her market area (Westport, Co. Mayo) would in no way be affected like the rest of the country and that my offer was laughable etc. etc. That house is 2.5 years waiting to sell at "current market value"... We have since revised our offer DOWN! Oh yeah... And since making that offer, the EA in question is on a travelling leave for the next "number of months" from her invincible firm!!
This market will get a lot worse before it stabilises IMHO.... Like the banks, it's the EAs who've fueled this whole mess our country is now in.... Rant over....!!
I viewed a property earlier on in the year, it was advertised at 275k, I liked the house so I put in an offer of 235k, the EA asked me was I taking the pi$$ and that I was way off the mark, he also said he would not be in a position to show me any other properties if I was going to make offers like that again
Needless to say I didn't buy.
Amazing figure! Have you a source for it?
I'm looking in Wexford and they have the same excuses, Wexford never took off in the boom yrs and the prices wont go down that much.
The majority of asking prices are still laughably high, saw a crappy 3 bed in a crappy estate go on sale recently for €298K. When i know a mate of mine recently sold a much nicer and bigger 3 bedded in a much nicer estate for €210k.
I worded it incorrectly but the message is much the same. I was quoting from memory from the Examiner dated Nov 29th. The figure of €26m is accurate for November 2008. The Actual October figures from 2007 aren't accurately listed but the previous three months July/August/September '08 showed lending of €700m..... The article then goes on to state that at the peak of mortgage lending that €2,000,000,000 was not unusual PER MONTH!! Therefore the previous October could have been even higher then I stated in my last post (Speculation of course!)
Here's the article!
[broken link removed]
Here's the article!
[broken link removed]
Sorry to burst your bubble but you may be amazed to know that EA's work for the vendor who as it turns out has the final say on the 'market value' and the accepted sale price. sometimes we deal with very difficult people, but if we take on a property and the vendor will not accept our valuation we are obliged to try and sell to that valuation or walk away from the property. What a lot of EA's will do is take it on at the vendors inflated value and eventually talk them down to the realistic value, obviously it works best if you can do this from the outset, but as you can see from AAM people have very forthright opinions when it comes to pricing houses.
He 'basically' laughed so I take it he didn't actually laugh and now that his job is in jeopardy who find it amusing or somewhat like justice being done, nice piece of work you are.
At least you were good enough to recognise that it was a rant you were having;
Rant: High-sounding language, without importance or dignity of thought; boisterous, empty declamation
Yes, I was laughed at. I offered what I believed to be the value of the property, which is on the market for 2 and a half years remember at the same level, and I was dismissed out of hand and told when I clarified my offer a week ago that the EA would NOT be contacting the vendor to let them know. In my, and many other peoples opinions, this is pure arrogance.
In light of global events of the last few days, I have revised my offer down but will not be contacting the Estate Agents in question until next year.
With regard to the leave of the person in question, I do not see it as justice being done. I am not that kind of person. I see it as reality setting in. It is happening in every trade in the country. Every single area of employment is being squeezed. Especially in sales, whether it be Cars, houses or retail etc. I gain no satisfaction, as you put it, from this.
As far as market value is concerned. The market value is dictated by the current closing sale prices of houses. FULL STOP. Not what the buyers will pay or the vendors want but what's finally agreed... On the basis of the mortage figures for October this year, those closing sales are few, very few and far between. In essence what sellers want is a long way from catching up with what buyers and the "market" will pay... If the vendors want what they're asking for, then they will have to wait for the next upswing which could be anywhere from 3 - 10 years away.
I was having a rant as I understood the word rant. I didn't define it in the dictionary prior to describing my post and I definitely do not think that my "rant" was boisterous, empty declamation!
Sorry if I've offended you....
In light of global events of the last few days, I have revised my offer down but will not be contacting the Estate Agents in question until next year.
With regard to the leave of the person in question, I do not see it as justice being done. I am not that kind of person. I see it as reality setting in. It is happening in every trade in the country. Every single area of employment is being squeezed. Especially in sales, whether it be Cars, houses or retail etc. I gain no satisfaction, as you put it, from this.
As far as market value is concerned. The market value is dictated by the current closing sale prices of houses. FULL STOP. Not what the buyers will pay or the vendors want but what's finally agreed... On the basis of the mortage figures for October this year, those closing sales are few, very few and far between. In essence what sellers want is a long way from catching up with what buyers and the "market" will pay... If the vendors want what they're asking for, then they will have to wait for the next upswing which could be anywhere from 3 - 10 years away.
I was having a rant as I understood the word rant. I didn't define it in the dictionary prior to describing my post and I definitely do not think that my "rant" was boisterous, empty declamation!
Sorry if I've offended you....
I see what you mean but it wasn't my intention to come across that way... I was intending to illustrate the reality of the situation we all find ourselves in... I was/am pretty p*ssed off at how I was treated though so perhaps that shone through in that line...! Again though, not intended to be smug... I'll re-read before I post anything again!
I hope this wasn't your real upper limit. Never tell an EA what your max is otherwise he'll hold out till you offer it! Don't forget, he's not working for you but for the vendor, to get them the best possible price.......as you would want, if you were selling.