Bidding war in a private sale - advice please...

Dinny said:
Another issue you may need to consider is getting the house valued. If the house is valued by the bank at only 200K you will have issues in getting a mortgage if you are paying 230K.

Valuers are being very conservative at present.
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Doesn't seem to have been an issue is far. We have mortgage approval, the banks even checked out the house on Daft and didn't pass any remark!
Hasn't been formally valued though yet so who knows.
 
Hey there. This is the thread that finally made me sign up to the site to comment.

It's not too hard to figure out the house you mean, Joe5791.

I considered it also, looked into it but did not go so far as to go and view it.

The house has actually been for sale by owner since 2009.

From what you describe:
old photos, shock of the owner that you'd bid that high, etc,
it sounds like it's a forced sale. Maybe previous posters were right about the phantom bidder against you to prevent the sale of the house at all.

If you go onto Google Maps Streetview, I believe the image is still there showing the for sale sign outside when they passed a few years back.

Given that the one behind it sold last month for €190k and that has room to drive down the side of the house on a bigger site, I do believe that this one is overpriced, even though the fit out is very nice. It's nice but not €40k nice.

However, all these things aside, you do sound set on it. In fairness, if we found the right house we'd probably pay a bit more for it too (maybe not €40k though ). So I wish you luck with it. You might update on if you get it or not.
Cheers.
 
Sorry, forgot to update this since.

Our latest bid (€230k) was accepted on Friday! It's early days obviously... nothing signed or even close to it, just a verbal acceptance of offer.

atjw - it sounds like you might be talking about the same house alright. I do believe it has been for sale on and off for a few years. I think she took it off the market during the depths of the downturn and put it back on again last year.
 
Bronte said:
How on earth have you figured out which house it is? Are you the owner
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If it was me, I wouldn't sell it!

Unfortunately, the amount of nice houses in/around Galway in this price bracket is very limited at the moment.

The Galway property market is very strange one right now. A big slowdown in houses coming on stream, despite many lying idle. Many of the houses that do come on sale are not great, to say the least. Also, many appear to be for sale, but not for sale really upon enquiry or offer.

Anyone watching the local market wouldn't find it too hard to determine what houses someone was talking about.

It wasn't too long ago that getting a mortgage was the tough part. Now it's finding and finalising a sale.

Best of luck, Joe5791!
 
Joe, do keep this thread updated please. I hope I am wrong but something smells funny and I hope you haven't been sold a red herring.

I am looking at investment property and all I am encountering is " bidding wars " and a boomtime feel about the place. Lot's of " cash buyers " and " mortgage approved " people about or so we are being told. I don't want the hassle of it!

Best of luck.
 
Kerrigan said:
I am encountering is " bidding wars " and a boomtime feel about the place.
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Did you ever feel that you are been fed a load of Porkys. If you're looking for something for next to nothing you not going to get it. And there aren't that many investors sniffing around apart from the Comer brothers.

Without a fluid banking system, this market is going nowhere very fast.
 
Hi Mercman, on numerous times I've bowed out gracefully, having smelled porkys! Joking aside, it is hard to know what to believe. There is a mini bubble going on out there, not in South Dublin but the least desireable locations. People seem to have no difficulty obtaining mortgages. Where has this all come from? I am aware of one couple who are fully (my nephew) mortgage approved. His and his better halfs job prospects are sketchy to say the least.

It's all very strange though . . . only yesterday, I called an estate agent who didn't even bother take my name or telephone number. I was asked to just show up at the open viewing. Apparently, they had already got offers well above the asking price. I'm a cash buyer so I thought I might have got the red carpet treatment, no such luck!
 
There is an awful lot of old boy network in Galway and mates of mates. It really is very difficult here to see where the crack in the door really is. Saying all that wait for the market to go hiccup again and then we'll see who is smiling. With Banks not lending for residential Investments and mortgage rates at a ridiculous level we're not that far from it now.
 
+ 1 @ Mercman.

I am probably going to be blasted for my conspiracy theory; but where I am living there have been a few repossessions, keys handed back by occupiers rather than the banks chasing them.


The properties have all been sold, quick smart, and all notably to mid to low income families, for sums well over the asking price.


The people who previously lived in these properties had all paid high prices back in the boom but their subsequent’ are paying not much less than what they paid; which obviously leaves their predecessors with an obvious write off from their mortgage provider or a relatively small unsecured personal loan. The banks are simply passing around the sword to fix what they see as a quick solution. When this goes pear shaped we will all end up in a worse predicument then we currently are.


As you say the banking system is not fluid but the enablers seem to be hyping this ridiculous property bubble i.e. the banks and auctioneers, the usual contenders.
 
Everybody is missing a very simple point. The Pillar Banks who were bailed out by the Irish people, get their funds at a rate of 0.25%. But for long term safe lending, i.e Mortgages their charge is roughly 5.5 %.

So they set the previous rules, they themselves broke the said rules, but have chosen to blame all and sundry for their reckless lending, at extortion rates. There will not be proper increase in homes prices or demands unless and until a respectable lending rate is applied.

But don't forget these current politicians in control, professed themselves as being for the people. What a heap of sordid crap !!
 
Bronte said:
How on earth have you figured out which house it is?
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Go to Daft
Look for houses in Galway from €225 to €250k
Order by price
On page 3 you will find 4 houses for €229k
One of them has been reduced by €30k (from €259k) - Bingo!
 
DerKaiser said:
Go to Daft
Look for houses in Galway from €225 to €250k
Order by price
On page 3 you will find 4 houses for €229k
One of them has been reduced by €30k (from €259k) - Bingo!
Click to expand...

Nice house, If you'll Google number 50 (same address) you'll see that it's a slightly smaller size (20sqm), same number of bed property, sold for 190 in 11/2013
 
mercman said:
There is an awful lot of old boy network in Galway and mates of mates.
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I don't agree with this. Galway has expanded so dramatically that there isn't enough old boys.

I see it's a house in Turloughmore, and that houses in that estate have been selling for a lot less that the asking price. The last two sold for 150K and 162K and that's this year.

Yes it looks a decent house, but the traffic going into Galway and around the city is absolutely chronic. For that price, you mightn't get as new and large a house, but you'd be better off in 4 houses I've just seen in Daft, Wellpark,, Lurgan Park, Dun na Coirbe or Glenburren Park. I would pick a house on the side of the city where you have to work. Most people make the mistake in Galway of living the Salthill side, Knocknacarra etc.

For the OP, Turloughmore is their home place, so that might be a factor in the decision.
 
Joe 5791;
Bronte says similar sold in Turloughmore for k162.

Yet you have bid k230?

Suggest keep looking @ similar houses .
A difference of K68 sounds that something(s) are wrong.

See can you get similar for less ,you can then start to re-negotiate your offer.
Never forget nothing is done until it is signed for . And be very aware of Buyers Regret.

Wish you well.
 

There was nothing similar sold for anything like €162k. The only one similar-ish to it sold in recent times (within the past year) was auctioned for €190k. I've seen that house up close and it isn't in as good condition nor as well finished, but I do accept you could do a lot for the €40k differential.

I would concur with many posters here that there just isn't the availability out there of good quality family homes in this price range. A lot of stuff out there is very rough to say the least. We aren't really in the market for a do-er upper and well finished well maintained houses are few and far between...
 
Joe5791 said:
There was nothing similar sold for anything like €162k.

. A lot of stuff out there is very rough to say the least.

We aren't really in the market for a do-er upper and well finished well maintained houses are few and far between...
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The one sold for 190K at the O'Donnellan & Joyce Auction, about the only other auction house doing a decent business other than the really well knowns Allsops.

When you say rough, what do you mean. The house advertised looks lovely, but all that glitters is not gold. I am very wary of the new houses that were built during the celtic tiger. A lot of the older houses were better built, more solid, with decent gardens, solid walls, stairs you can actually get furniture up and attics that can be converted. I agree from the pictures it looks turn key.

How close is that estate to local amenities, shops, schools, restaurants, and what is the actual commute time to Galway?
 
Joe 5791;

The one you are looking at and keen on is well finished and well maintained , yet on market for quite a while,.Could well be they require a premium to sell it.
If so ,and if you are happy that is great.

Please, keep your doubting thomas,s glasses on !and be cautious.
Wish you luck.
 

It was built a little before the worst of the tiger years (early '00's) and I know the man who built them and he's got a great rep so I'd have no concerns there.

It's right next door to the local primary school and church and there's a decent shopping facility very close by too (including pharmacy, doctors, hair salon, etc).

Commute time to Galway - about 20 min outside of peak traffic but it can be much longer at the worst of the peak times... but as I said I'm from the area so the traffic problems around Galway are nothing new to me!!
 
OP, Comments are noted.

You derived a post concerning this property and all and sundry have offered opinions. If you want the property, buy it, but as already stated (for all the correct reasons) be careful.

All including myself, wish you luck but you may be back requesting answers for a mistake.
 
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