How much should I offer on price guide €118k?

Hi folks,

Seen a new 4 bed semi that i am interested in with a price guide of €118,000. 2 questions for you.

1) Should i offer the full amount straight away? (Average price of a new 4 bed semi in this town is €160,000)

2) A 10 year mortgage will cost me approx €1030 - €1100 per month. I am a FTB and i reckon that i could afford this but is this advisable or should i take it out for a longer period?

Any other comments/suggestions appreciated!

Cheers.

Re: How much should i offer on price guide €118k?

Have you asked a bank how much you can borrow? Why is this house cheaper than other 4 beds, is it a different location, is the builder eager to sell etc Can you give an idea of the location.

Re: How much should i offer on price guide €118k?

Bronte said:

Have you asked a bank how much you can borrow? Why is this house cheaper than other 4 beds, is it a different location, is the builder eager to sell etc Can you give an idea of the location.

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The house is in Letterkenny. To be honest i have no idea why they are going cheaper than the rest of the town. It's in a fairly good location. The estate opposite has new houses going for €160k. I had a meeting with the bank 6 months ago looking for €152k, the only reason i didn't get it then was because i had zero money for a deposit. At the minute i would have enough for an 8% deposit on the €118k. Is this to good an opportunity to turndown?

Re: How much should i offer on price guide €118k?

Chance a lower offer and see, maybe say the bank will clear you for 100k and family are giving you 10k so they might agree on 110k sale price, others might suggest trying lower but it seems a very attractive price as it stands.

Re: How much should i offer on price guide €118k?

Hanks09 said:

The estate opposite has new houses going for €160k.

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Doesn't make sense that there would be such a price differential unless there is something different between the estates or that the builder is keen to sell. I'd try a lower offer leaving yourself room to manoeuvre. As the price is so low already I can't see it selling for a lot less than 118.

Re: How much should i offer on price guide €118k?

Either

a) Something wrong it
b) Builder really really desperate

The challenge is to find out which one.

Can you even build a 4 bed for that price ?

Re: How much should i offer on price guide €118k?

Hanks09 said:

The house is in Letterkenny. To be honest i have no idea why they are going cheaper than the rest of the town.

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If you want to PM me the address of the house i'll let you know the story behind it. I might even know the house your talking about, is it out old town?

Bronte said:

Doesn't make sense that there would be such a price differential unless there is something different between the estates or that the builder is keen to sell.

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Nothing is selling in letterkenny at the moment and 118k for a 4 bed semi is the price if the seller is serious about selling, there are still 3 beds on the market for 200k which was unrealistic in 2006 and sear madness now.

There are estates in letterkenny that i wouldn't pay 20k for a house in.
Far too many were just thrown up by doddgy developers who were only interest in making money and not providing a suitable home.

jhegarty said:

Can you even build a 4 bed for that price ?

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At the moment you can build a house for €45sq ft for an average finish and €55sq ft for a good finish. Seen the cost of sites are dropping just as fast as houses, then 118k could build you a very nice house on a nice site.

Re: How much should I offer on price guide €118k?

Offer 95k and see what they say.

At the moment you can build a house for €45sq ft for an average finish and €55sq ft for a good finish. Seen the cost of sites are dropping just as fast as houses, then 118k could build you a very nice house on a nice site.

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I would have thought that €45 psft would mean a builder working at a loss, and that can't continue for long for obvious reasons.

Re: How much should I offer on price guide €118k?

Thats for building from scratch, so i assume no one would take on a build to make a loss. If the builder(s) are making €400 per week for there time, i would say thats a reasonable price seen there is so little work.

Those might seem low, but build cost in donegal were much lower than most other areas, during 2005/6 €80-90 sq ft was considered a very high standard, i'm sure that price could have been a lot less if you leave out extras.