What to offer in our current situation

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emmage

Registered User
Messages
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Hello
We are thinking of buying a house - the asking price is 2.7M...in this market, what would be a fair offer...we are not in a chain and can move on it immediatetly...does this put us in a better position of offer...Your advice would be greatly appreciated.
Many thanks
emmage
 
2.7 million!! if you've money like that to spend you should look for better advice than from a couple of numpties on an internet board!
(no offence fellow numpties )
 
Far from 'numpties' I think..we figure we would get as good (if not better) advice here as going to the banks, estate agents etc! They are not going to tell us to put in a bid for 1.9 - of course they want us to put in a bid as close to the asking price as they are getting a percentage...We have no trust in the system, would prefer to hear what others think here. Others may be in a similar situation.
Thanks
emmage
 
To be fair, we're going to need a lot more details about the house. I know someone who sold a house for 1million 3 yrs ago, she reckons the present sellers (the bank) will be lucky to get 200k for it.
 
slaphead, you will require to be somewhat specific about the size to work it down per sq.foot. Also the location will play an important part. What were similar properties fetching in 2006 (height of the boom). Is it a distressed sale ? You are creating the market itself as I do not think that there is a line been formed at present. Basically I would say you are the only show in town.
 
Slaphead said:
To be fair, we're going to need a lot more details about the house. I know someone who sold a house for 1million 3 yrs ago, she reckons the present sellers (the bank) will be lucky to get 200k for it.
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Wow, thats incredible...
no I was just wondering if in the current market it was normal to offer say asking price less 20% and whether not being in a chain puts us in a better position if the person wants to sell...
We can take our time, we are not in a rush to move but if we could get a good deal then we would go for it!
Thanks for your replies anyway!
e
 
emmage, apologies i got your name wrong. 20% less than the asking price is not enough. You need to do some work on the price but at that level I would be thinking a minimum of 40%.
 

2600 sq, feet ...good area in Dublin...think was fetching about 3.3 in height of boom...
Excuse the ignorance but what is a 'distressed' sale?
Thanks for your reply.
E
 
mercman said:
emmage, apologies i got your name wrong. 20% less than the asking price is not enough. You need to do some work on the price but at that level I would be thinking a minimum of 40%.
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Wow, 40% that much? Thanks mercman..will look into it...as I said, no rush etc but just want to make sure that we would go in with the right price...I appreciate your reply.
E
 
A distressed sale is whre the Bank are selling the property. Are there people living there at present ?? I have a fair idea where the house is and yes a 40% discount on asking price would be about right.
 
The articles in the papers seem to suggest that the higher end of the market has taken the biggest hit in prices. I'd follow the advice above and look to see if you can compare prices against similarly situated properties (or properties in a similar class of area) at that size. Appreciate that you don't want to give out a heap of details but it's difficult to gauge as one might pay 2.9M (if one had it!) for a 2600sqft house on Shrewsbury, but perhaps not in a posh estate in Malahide...

As has been mentioned on other threads, there's no harm at all in putting in a v low bid and seeing where that takes you.

Btw, a "distressed" sale is where someone *has* to sell - e.g. if the current owners are in financial difficulty.
 
From what I have seen, a few houses in Dundrum (which are priced to sell, most are still in dream land) are asking around 2003 prices, and offers would be comming in 20% lower, rather than 20% higher, as it was at the time.
 
If the house would have been for sale in 2006 for 3.3m then i would defiantly be thinking well under 2m.
Prices (advertised, not sale) have dropped about 30% from 2006 and have further to go. The house you're looking at is at the highend of the market and these are falling faster. Really who has the money to be spending even over a million.
If i was you i would not even touch the market now. If someone like me bought a average house and it dropped 10% i'd be losing 20k odd, which is bad enough but for yourself a 10% drop could be 200K, i dont think anyone could dismiss a drop like that.

Would you be content to lose maybe a million? that could be very very realistic.
 
I've been watching property and the more expensive the property the highter percentage drop there has been so I'd offer 40% less at a minimum. Some of the expensive houses are not selling at all. You have a buyer's market so I'd check out other houses, and see how much they have dropped and check out some of the articles recently in the property pages of newspapers which show how much some expensive houses have dropped. I also agree that you'll get as good if not better advice on here and it's impartial and costs nothing.
 
Thank you all so much for your very clear advice....I obviously didnt want to give too much info as dublin is too small!!! However, I have taken on board your advice and we are not going to rush into anything....will keep you posted.
Many thanks
E
 
I also agree that you'll get as good if not better advice on here and it's impartial and costs nothing.
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It may or may not be impartial but is it balanced, is the advice not going from one end of the scale to another. The posters here may be correct but as it was suggested earlier the figures being quoted are against a property that none of us know and you really should sit down with someone who is in the know and doesn't have a vested interest in the sale of this property. do look for the best deal but don't stand bemused when an offer of at least 40% below asking isn't accepted.
 
MrMan said:
sit down with someone who is in the know and doesn't have a vested interest in the sale
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With every respect to you Mr.Man are you implying that the OP should speak with an Estate Agent ? The EA trade only relented to a falling market after all and sundry knew and realised what was going on. Throughout the length and breath of the country properties have remained on the market at crazy prices as the EAs tell vendors not to advertise at a lower price. If they want to get the market moving again they will act honestly and advise their clients on the actual state of the market which just might get things moving eventually. Oh, the joys of using the services of entities working on a commission basis !
 
"Throughout the length and breath of the country properties have remained on the market at crazy prices as the EAs tell vendors not to advertise at a lower price. If they want to get the market moving again they will act honestly and advise their clients on the actual state of the market which just might get things moving eventually."


I wholeheartedly dispute this version of reality. I have said it before and I will say it again, VENDORS - yes the people selling!- are the ones who make the decisions about the sale price.Could we please stop peddling the notion that clients take no decisions, have no responsibilties and are led by the nose by all their advisers! Its as if everyone else is always responsible - never the individual.

I have no doubt that there are bad EA's out there but, be under no illusion, if you are a vendor, it does not take Einstein to explain it to you what is happening in the market place and what you need to do to try and sell a property. Even if you have the worst EA in the world, it will only take a glance at the papers or a listen to the news , to put you right.

If I had a client in the same position as OP, I would be happy to have a chat with some of the EA's my clients use to see what their view was.

mf
 
mercman said:
Throughout the length and breath of the country properties have remained on the market at crazy prices as the EAs tell vendors not to advertise at a lower price.
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And with respect to you mercman I find this hard to believe, I've never heard of it, I doubt it is very common and is neither in the interest of vendor or estate agent so what would be the point. In my opinion I think prices have remained high because vendor's are unrealistic in their expectations. Anyway with banks raising the stakes on criteria for mortgage approval reality will eventually prevail.
 
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