Drop in valuation on affordable apt. Haggle on price?

M

mayo exile

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My mortgage provider (BoI) has just done their valuation on the property I am about to buy. Its a 2 bed apt in Dundalk Town. The valuation they gave was €220,000. However in the offer letter from the council received before Xmas the market value was given as €240,000. Actual purchase price is €182,000. Clawback is 24%.

Given the drop in market value do I have the right to haggle on the purchase price with the council? I have already given the council a deposit of €9,000.
 
Hi

I have the same suitutaion as you at the moment - my home was valed at €410k by the council and 385K by the bank - IF you haven't signed yet you can request it to be re-vauled - i'm in the process of this at the moment BUT if you have signed sadly thats it

T
 
Thanks for that swordshead! Apologies for starting a new thread when one on this topic existed already! Much good existing info in there.

Traceybere: I gave them a deposit but haven't signed anything yet. Was quite happy with price I was about to pay, but if there was a chance of knocking off another 5 or 10k I would be happier! I have sent an email to the council. Awaiting a reply.
 
Council sticking to their valuation of €240,000. Also even though I have not signed any contracts yet I had signed the provisional offer letter which stated the market price, purchase price and clawback %.
 
mayo exile said:
Thanks for that swordshead! Apologies for starting a new thread when one on this topic existed already! Much good existing info in there.

Traceybere: I gave them a deposit but haven't signed anything yet. Was quite happy with price I was about to pay, but if there was a chance of knocking off another 5 or 10k I would be happier! I have sent an email to the council. Awaiting a reply.
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Hi Mayo,

If you HAVENT signed you can request a re-val. Ring the council and email with the same so you have a written record of everything.

Your purchase price may not drop but your clawback will - so when you sell the house you will pay back less

TB
 
Hi, sorry to be the bearer of bad news, check on the neighbours.ie site (Phibblestown Wood), sorry I dont know how to add it as a link! and you will see many other people are in the same boat.
 
They are in a simular situation but sadly many they have already signed - if you haven't signed you can request a reval. The OP hasn't signed so he is in a postion to negotiate.

The val that your house has its the val on the day you sign, if you sign in Dec for €300k and you house price drops you still pay that price - simularly if you sign and you house price increases you don't pay more
 
According to Tracybere (tx for that :))...Liveline between 2pm and 3.15 today will be discussing AH property valuations etc! Maybe worth listening to or even contributing to!
 
A word of warning to any perspective buyers in Erris Square! Have just found out today that 2 bed apts are now selling for €260,000 a drop of €85,000 (!!!!!!!!!:eek:) in less than a year! Put it like this, last summer the cost price was supposedly €345k and the affordable housing price to me was approx €237k....less than 12mths later....the cost price is barely over what im paying as an affordable owner!! Its not worrying me now as i wont be selling anytime soon, but just a warning to anyone buying now to make sure their valuations are correct and not to get stung by over inflated valuations by the ahp!!
 
swordshead said:
According to Tracybere (tx for that :))...Liveline between 2pm and 3.15 today will be discussing AH property valuations etc! Maybe worth listening to or even contributing to!
Click to expand...
Anyone catch this? Was trying to listen online in work but couldn't.
 
You can listen to the latest liveline show here (for now):
http://www.rte.ie/radio1/liveline/

That was a huge drop for Erris Square. I nearly bought put pulled out. I figured no matter how much they dropped their valuation it wouldn't be enough. They are a nice development though, hopefully it will pick up again. Great thing afforable housing is that noone has lost money. Anyone who bought privately would be in trouble now.
 
I listened to all but 10 minutes and heard nothing about AH. And believe me it was hard work listening to it ;)
 
Re: Inflated Valuations

Hi,

I got on to the Liveline show to highlight the issue and they said that they would not talk last wk as the AHP would not come on air but that they would get back to me, I explained that there are loadza people in the same boat and he asked would anyone be interested in speaking about it also....?
 
Re: Inflated Valuations

Hiya guys, has anyone gotten a recent valuation from any of the nominated lenders? I had one in Oct but would like to compare any recent figures..?
Thanks a thousand...
 
Hi, I am just after talking to county council on the same issue. house under AHI, valued at 265k and 280k by 2 valuers, council has value 330k on their offer letter. yes, i signed the offer letter - but i didnt realise that current market value is so low (i want this house, i didnt think the market value is set in stone!).

council started the scheme 2 years ago and this is when market value was put on the house. i asked if they are going to put something more realistic into the contract - i was told that it's 330k and i can either take the house on their condition or pull out.

i asked if i can appeal - was told that 1 more person tried in the past, wrote to the director of housing in the council, but got nowhere. (i would love to find that person!)

does it say anywhere in the legislation that it is CURRENT market value of house to be purchased that determines the clawback? can i do something or its pointless?
 
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