can you suggest dropping price on sale agreed house

The vendors solicitor apparently is not taking the calls - ok so I was thinking 5% what do you think - given the current market and this mornings figures approx 15%
 
SBW said:
The vendors solicitor apparently is not taking the calls - ok so I was thinking 5% what do you think - given the current market and this mornings figures approx 15%
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Hard to say - that 15% figure is a national average and there's scope for a lot of variation in different localities.

Best bet would be to ask advice from the estate agent who's marketing your own house.

The other question is just how badly you want to buy the house. There's no point going looking for a price cut if you aren't genuinely prepared to walk away if the vendors call your bluff and won't agree.

You could also put it to them that if they don't exchange contracts and complete within a specific timeframe at the agreed price, you will either walk away or reserve the right to renegotiate the price downwards.
 
SBW said:
The vendors solicitor apparently is not taking the calls - ok so I was thinking 5% what do you think - given the current market and this mornings figures approx 15%
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Where about is the house, prices of second hand places in Dublin dropped 8% in Q2 this year. Could end up being more than 15% in some areas.
 
SBW said:
The house is one that we have really wanted for a long time there are only three of them and a family member owns one (next door) so I guess we need to keep this in mind too.
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You dont play poker much do you? I would hope that the vendor doesnt have this info, cause if they know how bad you want the house they will say no to a lower price and call YOUR bluff. At best you might light a fire under them and be in before christmas. Personally If I was prepared to walk away I would certainly chance it in this climate. Whatever is holding this deal up is the vendors problem and he will be sweating losing you believe me.

You are buying with your heart and not your head. This is OK when its your family home and you plan to lie there for 7+ years.
 
well you have to be in the mind of the seller as well. Maybe they will not sell below a certain figure and if they don't get this they won't sell. You are assuming all sellers are desperate when this may not be the case.
 
Im not assuming the seller is desperate. I personally do NOT believe that there are hardly any desperate sellors in Ireland and that is why the housing market is not and will not crash.
Why should there be many desperate sellors? High unemployment? yeah, not here. Global recession, not yet at least. AIB or BOI having a run...not likely. Oversupply of houses - where exactly? I dont see a skyline clouded by empty high rises...at least not in most of the country. Foreign emigrants running for sunny shores in droves - still not happening. Rental return getting lower and lower ... not the direction we have seen it heading so far.

If you are alluding that if this buyer puts in a low offer it will not be accepted because the sellor isnt desperate YET? So are you saying she shouldnt even try and instead offer closer to asking? That is the problem with buyers - not even trying to get a good price.

Desperate or not, if you dont TRY to get a good price the sellor will happily sell at asking.
 
yankinlk said:
Why should there be many desperate sellors? High unemployment? yeah, not here. Global recession, not yet at least. AIB or BOI having a run...not likely. Oversupply of houses - where exactly? I dont see a skyline clouded by empty high rises...at least not in most of the country. Foreign emigrants running for sunny shores in droves - still not happening. Rental return getting lower and lower ... not the direction we have seen it heading so far.
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You don't need many desperate sellers in a market to get a large discounting of prices. Since prices are set at the margin, if you've a small pool of buyers, and a large pool of sellers, only the most desperate will actually have any success in securing a sale. The OP seems to be very keen on this property in question here though and they realize that there are only 3 of them so it gives the seller an advantage. If the OP could find an alternative property that they would be happy with they could then let the sellers fight against each other to see who wants to sell more.

Regarding your analysis of the economy in Ireland, the rental yield is more important than the rental return when weighing up how sound an investment property is. This has been getting progressively worse over the last few years.
The steady increase in the amount of private debt in Ireland and the frequent use of remortgaging to withdraw equity suggests that things may not be as rosy with the economy as you feel they are. Based on those figures, it appears that high inflation is causing some parts of society, at least, to struggle.
I'd also like to point out that, just because your anecdotal experience does not know where the empty properties are located in Ireland it does not mean that they're not out there. The CSO's figures have a breakdown on a county-by-county level, if you're interested enough in actually checking out the facts.
 
This will be a family home for 7+ years and hopefully more !! I went to the EA and she ate me - told me it wasn't a very nice thing to do and how would I feel if I was the person selling - also said if I had sold my house at the asking price this wouldn't be an issue. needless to say I was very upset about the whole thing - we do really want this house this is the problem..... its a perfect house for us and has great potential e.g attic conversation etc etc My Husband dosen't now want to go an re neg the price he is afraid we will loose the sale..... and no I don't play poker ... but I didn't need to answer that anyway did I !
 
SBW said:
I went to the EA and she ate me - told me it wasn't a very nice thing to do and how would I feel if I was the person selling - also said if I had sold my house at the asking price this wouldn't be an issue.
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Well, she would say that, wouldn't she! How the vendors feel is irrelevant - there can be very little doubt that if they have to put the house back on the market now, they will have to reduce the price in order to get a sale. One could also say, if they had completed the sale in a timely way a price reduction wouldn't be an issue because the deal would be done and dusted.

If you really have your hearts set on this particular house, then I guess you'll just have to swallow it, but don't let that EA make you think you're doing anything wrong in attempting to renegotiate the price. If the vendors and their solicitors hadn't been dragging their heels for so long the question wouldn't even have arisen.
 
Afuera said:
Regarding your analysis of the economy in Ireland, the rental yield is more important than the rental return when weighing up how sound an investment property is. This has been getting progressively worse over the last few years.
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Maybe it was getting worse, but now rental yeild is getting better...every day the prices come back and the rent continues to rise.

Afuera said:
I'd also like to point out that, just because your anecdotal experience does not know where the empty properties are located in Ireland it does not mean that they're not out there. The CSO's figures have a breakdown on a county-by-county level, if you're interested enough in actually checking out the facts.
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Empty properties or empty high rises? Im sure there are loads of empty houses out there, but I dont think there are many empty rental properties.
 
SBW said:
My Husband dosen't now want to go an re neg the price he is afraid we will loose the sale..... and no I don't play poker ... but I didn't need to answer that anyway did I !
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And the EA is the best poker player around. Hes playing a hand of cards with OPM, other peoples money. He doesnt care about your needs - just his clients and his commision. If the deal falls through (which is a high possibility if you try to negotiate) then POOF there goes your deposit/his commision.

If you want to lower the price then you have to take the chance of walking away.
 
I think you need to look at this in a very cold way. You seem to have developed an emotional attachment to the new house which is not good.
 
yankinlk said:
Maybe it was getting worse, but now rental yeild is getting better...every day the prices come back and the rent continues to rise.
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True, the trend has changed very recently.

yankinlk said:
Empty properties or empty high rises? Im sure there are loads of empty houses out there, but I dont think there are many empty rental properties.
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The CSO does not make a distinction. Empty properties can easily be added to the rental supply so I'm not sure why they need to be kept separate. If yields continue to get better you'll see more rental supply being added. While yields are low it makes more sense financially to sell up and lock in gains, so I think this is what we are seeing happening right now.

I agree that the OP sounds very attached to this property, which unfortunately is not going to help their cause. I suggest they take a step back and look for alternative properties so that the EA will not pick up on their desperation for this one property. Business is business, so don't let the EA guilt you into paying more than you should/are comfortable with.
 
as gonk says, if they have to put house up for sale again they would have to reduce price, dont let ea pressure u, the house is not worth original price in todays market, imo u would be mad not to reduce offer
 
hmmm.. ok i understand that with you not selling your house that things will be tight...

a couple of things....

1. does your mortgage approval state that your other mortgage must be drawn down prior to mortgage for new house? if so then renting and keeping old mortgage is not an option unless you get that changed.

2. Why go sale agreed on a house when you aren't really in the position to buy it? (until you sell your own)

3. If you were sale agreed on your property now and buyer came back to you and told you they wanted you to drop the pricve by 20-30k due to market conditions.. what would you say to them? would this make it tighter for you to buy the new house??? what i'm saying is the sellers of ur new house may not be able to afford to reduce the price if they have gone sale agreed/signed contracts on a trade up....


pay what you think the house is worth to you....
 
You need to consider you alternatives, look for other houses you can afford or decide if you can stay in your existing house and then present these alternatives to the vendor or his agent as their problem.

'I would love to buy this house but the problem is that prices have fallen and I can't sell my house now so I think I may have to pull out ( or buy another a house I can afford with a realistic price). I am so sorry.'

Then you wait for them to call you back. Over time they come to terms with their loss and become rational. This won't happen in 1 hour or 1 day. The longer you wait in a falling market the stronger your hand. You never have to actually suggest that they drop the price. You should be willing to go through your alternative choice for it to be credible.

As an aside, I once bought a house in a rising market from a divorcing couple and it took a year to complete as they had two solicitors and couldn't agree anything. They couldn't even get it together to gazump me. So, even if you were to offer asking price, your deal may be far from completing.

I can't believe you feel bad for the estate agent.
 
The EA is related to me so genuinely he dosen't have anything to gain from the sale - he is getting very little on the sale I know this for a fact I I bought the house off the vendor well before it went to the market. I knew this before this issue ever arose. He has said he has never had to re-negotiate the price of a house. The house is approx between 50k and 20k cheaper than any other houses which are similiar to it in the area at the moment so maybe we are getting a good price on it - I don't know -..... its a tough one for me - and for me we did have a gentlemans agreement when we went sale agreed. What about getting a survey done on the house and if anything then comes up on it going from there...
 
Why did you go sale agreed on a house that you haven't even had a survey done on?
 
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