Is it wothwhile viewing overpriced property?

[Slaphead]

Just a quick question, im allowed to borrow max 250k, but am hoping to get away with ca 200k, there are quite a few properties with an asking price of 300-350, (been on sale for over 6 months some have dropped slightly) that im interested in and should/could be getable?.

Is it worth looking at these when im only planning on offering less that 250k? I dont want to waste my or an EA's time. I've looked at over 15 properties with variour EA's thus far.

I cant ring an EA and ask him if they'll go under 250 because that will mean they'll try and get me there. Any tips?

 

[mercman]

First and Main tip -- Do not believe an EA. As a yardstick prices are down roughly 40% from 2006 prices, but guess what the EAs won't advertise the dropped prives. Banks have a heap of repos and they can't move them because why. The EAs won't try and get the market moving by advertising lower prices. So waste as much of their time as youy like. They might see sense some time when it is to late.

 

[Slaphead]

First and Main tip -- Do not believe an EA. As a yardstick prices are down roughly 40% from 2006 prices, but guess what the EAs won't advertise the dropped prives. Banks have a heap of repos and they can't move them because why. The EAs won't try and get the market moving by advertising lower prices. So waste as much of their time as youy like. They might see sense some time when it is to late.

Yeah, i realise these properties are worth considerably less than what they're asking for, but by viewing them at a high price am i not signalling that it's my price range, ie over 300k.

 

[mf1]

First and Main tip -- Do not believe an EA. As a yardstick prices are down roughly 40% from 2006 prices, but guess what the EAs won't advertise the dropped prives. Banks have a heap of repos and they can't move them because why. The EAs won't try and get the market moving by advertising lower prices. So waste as much of their time as youy like. They might see sense some time when it is to late.

Could we just have a little bit of perspective here?

By and large, EA's do not set the price. The vendor does - so could we just project the bile at the vendors who are, rightly or wrongly, baffled at the way that things have panned out?

I have many clients who are vendors who are torn because on the one hand, they may or may not need to sell ( Executors/Divorcees/Pensioners) but who are desperately unhappy at the idea ( again rightly or wrongly) that they can only sell in the current market at ( pick as appropriate) a price lower than they paid for, lower than their mortgage, lower than what their perceived bottom line is.....And I stress again, rightly or wrongly.

EA's are dropping like flies, there is very little happening, very little selling etc.,etc which equates to a NIL income for EA's. Most of the EA's I deal with are telling me that they want properties to sell but, ultimately, unless the vendor is willing to drop the price, there is nothing they can do. Any valuations I am getting in for Divorces/Probates are very much lower than my clients are happy with.

So by all means, waste as much of everyones time as anyone likes but remember always it is the vendor who must decide.

And for the OP, you are free to make any offer on any property you like. Do not be put off by anything but try and be at least realistic - whatever that means to you. Pick your area, your house type and offer any figure you like. If people are desperate to sell, they will consider any offer. They may not accept it, for any of the reasons set out above, but someone may.

mf

 

[Slaphead]

I understand fully that the vendors set the price, an EA will probably gladly sell a 300k house for 200k and pocket 2k instead of 3k. Ea's are still wnakers though

I dont expect anyone to feel obliged to accept a bid and am'nt really that bothered when a bid is rejected as there are plenty more fish in this sea, but i recently had my rent reduced and am happy to sit and let the prices fall.

I just feel that a lot of these houses priced at over 300k will eventually fetch barely over 200k, i could put someone out of their misery right now but ridiculuous asking prices are holding me back.

 

[Brianne]

So by all means, waste as much of everyones time as anyone likes but remember always it is the vendor who must decide.

Exactly and also to be honest ,there are vendors who will have their houses on the market and would like to sell but are not in any rush either. Yes, there are people who for various reasons have to or want to sell at what they might consider a ridiculously low price.Many will rethink their options and decide to stay where they are so pick an area that you like, check what you can afford and bid. You might be lucky. Buyers always say you only need one person to want your house, you only need one person who is prepared to sell . However I think there are a lot of people who are not that excited about selling at any price, maybe they're deluded but hence some of the unrealistic values being quoted.

 

[PaddyBloggit]

Ea's are still wnakers though

What's that? .... a new post Celtic Tiger term?

 

[Bronte]

I just feel that a lot of these houses priced at over 300k will eventually fetch barely over 200k,

.

What are you basing this on? It's possible of course but it's equally possible they'll go for 400K. There are no guarantees when it comes to house prices but one thing is certain, it will only sell for what a vendor will sell for and as pointed out really the EA has nothing to do with this. As you're not in the market for buying I can't see why you're so annoyed with EA's. Are you annoyed because you can't get the house you want for the price you are willing to pay?

 

[Slaphead]

What are you basing this on? It's possible of course but it's equally possible they'll go for 400K. There are no guarantees when it comes to house prices but one thing is certain, it will only sell for what a vendor will sell for and as pointed out really the EA has nothing to do with this. As you're not in the market for buying I can't see why you're so annoyed with EA's. Are you annoyed because you can't get the house you want for the price you are willing to pay?

Im not annoyed, i dont expect anyone to have to sell me, if it were me with an overpriced house i'd sit on it for the next 10 yrs until things picked up. But ppl are loosing their jobs and some ppl have no option but to sell homes as they have new ones built, own several etc.

Im basing it on what i see and hear. A lot of these houses were asking priced at the same prices in 2006. I'd be fairly certain the wont be getting anywhere near the 400k mark any time soon. But this is the problem, i dont want to waste my, the EA's or the vendors time by looking at an overpirced property that's not going to budge. Also im in no hurry to buy, got a recent rent reduction, job secure etc.

 

[DeeFox]

I understand fully that the vendors set the price, an EA will probably gladly sell a 300k house for 200k and pocket 2k instead of 3k. Ea's are still wnakers though

Estate Agents are people just like you and me - they are just doing their job and are acting on the instructions of the vendor so no need for sweeping silly generalisations.

 

[midouri]

hi slaphead,
Don't care bout what the EA thinks..i am a ftb and went to see a place that was €325 and yes it was difficult to do but, i put in an offer of €250. The EA said he would get back to me. He then tried to get me to €290, then €270 and then €265 but i realised that if i didn't get this house there would be plenty of others and so i stuck to my guns and said €250 was all i had (it wasn't). 10 days later, they rang me and accepted.

 

[crabbybear]

Don't agree. In my opinion they are the lowest form of human being - they are liars and totally lack integrity. Their best friends are their ghost bidders. I'm glad they are getting burned.

 

[mf1]

And what do you do for a living?

Its just that its quite likely that someone somewhere dislikes what you do also.

mf

 

[DavyJones]

And what do you do for a living?

Its just that its quite likely that someone somewhere dislikes what you do also.

mf

Possibly, but lets not forget EA's haven't done themselves any favours in the past.

When you have interest in a house it's amazing how all of a sudden there is a second or third offer on a house that has been on the market for a while. I'll all up for earning as much money as possible, but don't con people for it.

This notion that the vendor decides, and EA are innocent middlemen that just pass on offers, i know of atleast three cases where EA hadn't even informed client of offers. Greed is a terrible thing.

If I really wanted a house in todays climate, I would go directly to owner.

 

[callaghanj]

whether or not someone sells is dermined by their mortgage. they cant sell unless the mortgage gets cleared first. you will stand a btr chance with a builder in getting the price reduced. Make the offer and sit back and wait

 

[felixmcg]

I thought there was a ban on discussion of property prices??

Anyway...

[EAs] are the lowest form of human being - they are liars and totally lack integrity. Their best friends are their ghost bidders. I'm glad they are getting burned.

I agree (from personal experience). EAs are also responsible, along with bankers and builders for getting us into this mess. Now is the time to regulate the industry when business in low.

However, the housing market needs stimulation. Thousands are waiting for house prices to drop due to media speculation. Interestingly, in the UK, house prices are on the rise...don't hold off for too long.

 

[mf1]

Possibly, but lets not forget EA's haven't done themselves any favours in the past.

When you have interest in a house it's amazing how all of a sudden there is a second or third offer on a house that has been on the market for a while. I'll all up for earning as much money as possible, but don't con people for it.

This notion that the vendor decides, and EA are innocent middlemen that just pass on offers, i know of atleast three cases where EA hadn't even informed client of offers. Greed is a terrible thing.

If I really wanted a house in todays climate, I would go directly to owner.

Can I tell you that if I was selling, I personally would not want to deal with , amongst the genuine people, every tyre kicking eejit ( of whom there many) who fancies wasting my time! If I appoint an EA , they can deal with them. Very few vendors who employ an EA would welcome the intrusion of purchasers attempting to deal with directly.

mf

 

[Willowchase]

Don't agree. In my opinion they are the lowest form of human being - they are liars and totally lack integrity. Their best friends are their ghost bidders. I'm glad they are getting burned.

It's extremely unfair and childish to make sweeping general statements like this about any trade or profession.

I sold my house last June and within a couple of months of putting it on the market, thanks in a large measure to the advice I received from my E.A.

He gave me a very accurate account of what was happening in the market and what was likely to happen over the next twelve months or so. Based on his observations we agreed on a realistic price for the house and we sold within 4/5 viewings. Identical houses in the estate have remained unsold for the past twelve months (and longer) even though they are now being advertised at prices considerably less than I sold for.

Moral is - be realistic, use a good reputable agent and be prepared to listen to good advice.

On the other hand I sacked an E.A. 30 years ago who made no effort whatever to sell a house for me at that time, didn't even advertise it. Just shows there's good and bad in all professions. Trick is to find the good ones.

 

[crabbybear]

Willowchase, best of luck on selling your house when you did. But when this bottoms out, would you like to have been the family who paid a vastly inflated price for your house. Alot of young families will carry a hugh burden for up to 35/40 years and maybe pay other consequences for the desception of the greedy vested interests.

Ok, families made a decision to buy and must take responsibility for their own actions but the frenzy was whipped up, buy now or miss thye boat as prices will keep increasing. Reasons voices were shouted down.

 

[noel_c]

Interestingly, in the UK, house prices are on the rise...don't hold off for too long.

Not to be pedantic but you should qualify that comment. I assume you're referring to the the December to January report by Halifax bank. Even they have since admitted that the figures did not indicate an end to the downward trend in prices. Nationwide and the RICS have since reported continued falls.

http://news.bbc.co.uk/1/hi/business/7880659.stm