How Much To Bid In Current Market

Status
Not open for further replies.
D

Dingo

Registered User
Messages
27
Hi all

I am looking for some advice as I am currently on the market looking for a new home.
I am not a first time buyer and thus have the misfortune of paying stamp duty. I have budgeted for this, so not too much to worry about.

I have looked at a few properties thus far, in and around the €370,000 mark.
these are second hand homes in maynooth, dating back to the 80's.
One of them would need a new kitchen, new bathroom and a little more cosmetic work and the other would need new windows, new kitchen and again little more cosmetic work. Neither house is in a bad state of repair but you would need to spend about 15K on each to get it up to scratch.

I am quite interested in the second property and would consider making a bid. €370,000 is within my price range, but obviously I don't want to pay more than I should, given the current down turn in the market. I spoke to our mortgage broker last week and he said that you should offer under the 370,000 (or any asking price, because there is just not the same demand as there was last year). I just don't know where to start. Is there anyone out there who has recently bought or had the experience of bidding on a property? I might add that there are no bids on either property.

Is it ridiculous to start at 350,000 or should I start even lower, or does that sound totally ridiculous?

Thanks,
D
 
Hi, I know but I am looking at second hand properties. I should have mentioned that.
It seems that the developers are loading the price with what we would be paying in stamp duty?
 
i was told to drop any offer by anything up to 15% and see how that is to the seller. you may come to some common ground in between that you both are happy with.
 
Do you have a property to sell?
Do you have the money arranged already?
Do you have a big deposit? (ooh-er missus)

If your answers are no, yes, yes then I would steam in at 20-25% below asking on the basis that you can complete quickly. If it's someone who has to sell, they may just take the offer. They may even make some money out of it, but that's none of your business. Your interest is to get the house for the lowest price possible, so don't be embarrassed to bargain for it. If it was a second hand car, you would expect to haggle, wouldn't you? The worst that can happen is that they say no, and you have to put in a higher offer. The agent will certainly be interested in getting a sale, as they want to shift properties for the least amount of work (in effect, they act on your behalf, not the sellers).

One other thing to look at is the cheapest equivalent sized second-hand house in Maynooth and then to discount that and to use that as your offer price - i.e. you are paying a price per square foot within the area.
 
thanks for a great reply.

I have a property with my brother and he is in the process of buying me out.
we have the same mortgage broker dealing with my mortgage application and my brothers top up.
I should net 100K from the sale of my share to my brother, the proceeds of which I should receive around mid - september. My mortgage approval is subject to the receipt of those funds.
i have 13K in cash in the bank, so I can pay whatever booking deposits are necessary.
There are other properties for sale in maynooth at about 345, similar layout, size etc. probably built by the same builder in the 80's.

i have noticed that a lot of these properties have been on the web for about 6 months or so. I was window shopping then and am more serious now. I guess I'll size up a few more and then make an offer on the one I like the most..
Time will tell.

Thanks again!
 
Dingo said:
It seems that the developers are loading the price with what we would be paying in stamp duty?
Click to expand...

That new properties have the stamp duty saving factored in to the price so as to make no real difference to a 2nd hand buyer between buying a new property priced at, say, 390K, verses an equivalent 2nd hand property priced at ~370K.
 
hi dingo, seeing as you have a selection of properties in the area that you sound happy with why not bid a price you feel is ridiculously low

ie you think it will not be accepted, if it is happy days if not you are in a strong position, you will soon find a property at a price you are happy with

good luck and remember if they say no whats the loss??
 
of course put in a ridiculously low offer, its very easy bring it up, the sellers are probably hoping for the asking but go in low and see how it pans out. best of luck with it.
 
Just to add my bit, Would it be possible that the 'downturn' has been factored into the price already, if so they wont accept 20/25% below. you can offer as low as you want but a serious bid would be somewhere closer to what you originally considered €350,000. Why not start at say €340,000 to make yourself feel better at least your offer will be considered serious at that rate, but go in at €300,000 and you'll only annoy the vendor and EA for wasting their time.
 
I was thinking around the 340,000 mark and would be inclined to think they wouldn't take me seriously if I went too low. But as they say, they can only say no and I can just up my offer if I am really serious.
 
340k is definitely a serious offer in the current climate, being less than 10% away from the asking price.

Personally, I'd offer 330k. When they say "no", you can start negotiating (asking how much they would accept, then suggesting something 1/2 way etc.). Don't forget it's your cash you're talking about!
 
I am closing this thread as it has required too much moderation.

If people don't like the answers to questions, they should go to another website.

Brendan
 
Status
Not open for further replies.
Back
Top