What Options if house doesn't sell?

Hi,
Chin up - you gotta keep telling yourself that it'll work. I had started a previous thread here during the summer about voluntary reposession due to financial difficulties with a mortgage and I'm still going through the machinations tho I believe I'm sale agreed.

Putting aside variables that can't be controlled - such as demand in the market, the affordability of mortgages etc., the single biggest problem I have encountered is the one that you can do a lot with - the EA. I've had five in total since first putting my place on the market and have not been impressed. There are a lot of good EAs out there but I have met my fair share of those who either weren't great or were pretty bad.

If I had any advice at all for anyone selling it would be to take control of the EA rather than letting them take control of you, and by that way you will make sure that they do the best job they can. It is in my opinion extremely important to get on their case and push them hard to deliver.

The EA should be actively pursuing potential buyers and discussing strategies with you - you should talk at least once a week and they should be making helpful, realistic suggestions about ways to increase exposure for your house and making it more desirable to potential buyers. Dropping the price is one of a number of things that can be done but it's not the only one.

If viewings have dried up - get on the phone and ask why potential buyers in the market for your type of house aren't coming to see it. If you get a lot of people viewing once and vanishing, ask what reasons they give to the agent for not wishing to go further with your house. Ask where its advertised, take an interest in how its described and do anything reasonable and workable that is suggested to improve the appearance. Have no sympathy - if the agent won't work with you in a way where you feel listened to, informed and in control, then change - asap.

Having faced it myself, this will mean you do all you can. Even so, in the event that you are still stuck, go visit MABS for some advice. It seems that they could play a very useful and professional role in acting on your behalf if it comes to restructuring the mortgage or renegotiating other borrowings pending the sale of the house.
Good luck
 
can I just focus on one point you made: your mortgage will run until you're 81....is this correct?
 
What about a social lending loan from your local credit union in association with MABS, they have a rate of 1%..in the mean time i would drop the price your asking by 20K (leaving you another 10K if you have to drop again) and if you get offers then you can decide weather to close the deal or not, it may also create a bidding war...you never know
 
You said you cannot drop more than another 30,000 and be able to afford another house.

I would suggest you drop untill you can sell and not incure neqitive equity on your morgage and rent.

Why do you need to buy another house straight way, rent see how the market enfolds, save some money and build back up your credit rating.
 
camry where are you pulling the figures out of? I viewed a house in cabra asking 410k went sale agreed at 407k. not exactly a masive discount.
 
Thanks Paulone, I've just discovered my estate agent is leaving the company in two weeks time. I originally went with them because of him. Im not sure i want to deal with somebody else in that agency. If I move agencies how much will I have to pay the current agent. I have'nt paid anything to date and have had one newspaper ad, my home and daft plus two signboards.

Kemo Sabe: correct current mortgage is till im 81. Im wrong side of 40 even 45.

Shirley D: Rents in my area are well above what im currently paying for the mortgage.

I may have to look into letting my own house and renting somewhere smaller myself.

One more thing All the agency's I had to value told me not to do anything to upgrade the house. Im now thinking this was bad advice and maybe i should redecorate, recarpet etc. What does anyone think?
 
If you cannot afford the repayments, where are you going to get the money to redecorate a whole house??
 
I'm my experience, EA's primarily work on the 'no-foal-no-fee' basis, though you will expect to pay for any advertising over and above the normal - that newspaper ad might cost you something but I think you will probably have been made aware of that and asked permission beforehand?

Sounds like a new agent (whether with the current office or a new one) might inject some enthusiasm and gives you the chance to do the motivated seller thing with them afresh.

Regarding the improvements - as the owner, you're always going to be subjective about how your place looks and you need the help of someone who is not so heavily connected to it - the agent is in a good position to give this help. Ask them to be completely frank with you about the appearance of the place and be coldly realistic with yourself about what you have the capacity to do. From the sound of it, I agree with other posters that redecorating etc., is something you can ill-afford so don't go to that hassle and expense if its not required.
 
It is possible that the property is now "stale" it might be wise to take it off the market for a few weeks, freshen it up and start agin with another agent at the reduced price. This will stop people thinking there must be something wrong if it has not sold after X months on the market. Decluttering and tidying the garden costs nothing but can go a long way.
 
I've been watching Irish Property watch and in the areas I'm looking the price reductions seem to reducing the house to the current going rate in that area, not below, i.e they were overpriced to begin with.
I would say do the place up, we're looking at the moment have a small baby and want a place ready to move into so we have as little as possible to do. Houses in the area I'm looking in are moving if they are on good streets and in good condition less desirable streets and houses needing work are sitting there. It's worth remembering buying a house is quite an emotional decision despite best efforts to be rational, seeing a cot in a room has me warming to a house! No harm in making the house warm and welcoming to your potential buyer.
 
Annie,
Re the decorating, i'd suggest if you feel that teh house needs something done you do it yourself. We sold up a couple of years back, decided (after a lot of obsessive viewing of aforementioned selling houses, house doctor) who was most likely to buy our place, and set about making it their ideal home. It took us a few weeks as it was weekends and evening, painting / decluttering (we used a storage company, if moneys short try and borrow a garage), generally freshening the place up.
In the end I then called in 3 x EA to value it and ask for recommended prices... ended up going with the one who had sold the apt opposite a few weeks before, and ours sold in 2 days.
Before anyone says anything, yes this was in the 'good old days' of rising prices, but the basics of clearing, tidying, cleaning.... looking around with fresh eyes to see what might not be working, is worth it (we also cleaned up the communal areas and kept them spic and span for the duration of the sale).
You've said that renting a room might be a possibility in the near future - is there any way you can pull that in to now? Get the money in now.
Regarding the renting of the full property, maybe it will be worth it - i know you say it won't cover the mortgage, but if for example you are currently paying 1500 per month on the mortgage, and can rent it for 1200... then you rent a room in someones home for 300-400 (I realise that you may prefer your own place, but as a short term solution maybe its a possibility). Bottom line you need to pay that shortfall of 300 plus your room rental of 400, even with day to day expenses, you may be in a healthier position, by approx 800 (out of that you will have some specific rental expenses, tax, etc).
Annie, it will all work out...
 
The rent a room scheme applies to taking in students as well. I know a few single parents who were uncomfortable with renting a room to an adult stranger, but taking in a student worked really well for them.
 
what kind of viewings are you getting,

if you are getting viewings but no offers then you asking price is probalvy not too bad but people arent as happy when they see the house,

if you are not getting viewings then wither the asking proces is too high or the estate agent is doing something wrong,

i dont trust estate agents, even thou they come across real nic etc. have you though about putting it on daft yourself

renting is an option aswell, your in a lucky position that the rent is greater than your mortgage, this is a stong position to be in,

Chin up, relief could be around the corner
 
Annie Q said:
Shirley D: Rents in my area are well above what im currently paying for the mortgage.
Click to expand...
Indeed especially if you bought some time ago, however depending on how much capital you are putting into the new house a morgage at the current overly inflated house prices may be a great deal higher than rent.

But obviously if you are adding in more than a standard deposit you would have a much smaller morgage.
 
Home Staging is the way to go. Unless your house looks fantastic already then you need to make sure that the pictures of your house stand out. Sometimes you don't have to spend much money on home staging it can be just a bit of painting, tidying up the gardens, dressing each of your rooms (e.g. throws, nice duvets, matching cusions, matching lampshades etc), it's amazing how spending a little bit of money will get way over the asking price in a booming market and will get you the asking price in a depressed market.
 
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