Looks like I was willing to pay over the odds

The Irish Property Bubble Sell, Buy or Rent?
#1

I was watching a property in countryside in cork(one off house) and it was €250/260 in 2008 and now down to €220. It is builders finish and builder not stuck for money is holding out for the 220k. How do I get builder drop price to fair market value.
Tonight looking at The Sunday Independent 11/04/10 page 3 business section was very sobering in regard to value of houses. It was saying some houses have to drop 60% from peak so take 250-60%= 100k

methods used in article

  1. open market value
  2. comparison method
  3. new model for market realties
  4. investment income/ rental yields
  5. house price afforability indices
  6. cost approach

Based on max rent say 650 est1215= 117k
Am i missing something. It is like property prices are similar to shares now with the movement down.

I am going to contact the builder during summer and my main points to him would be
no matter what he thinks its worth the bank will have it valued at the lower value which suits me.
i love the house but if their is near to 80-100 k difference in true value, i think i should fight for low value

#2

Offer what youre willing to pay and if he doesnt go for it just forget about it and move on. If you find you cant move on and absolutely have to have it then its worth more to you than the calcuations suggest. If it were me id just wait.

#3

Just be more concerned with the bank value on it. Looking at it now their is no way the bank will value it at the level builder is valuing the property

Now prices are so hard to determine, nothing to say in 4 months time the value could be more depressed as the property i feel has no rental and little resale value due to remote area.

I am a novice in looking for property and would love to get a good deal in current downturn

#4

from your posts it would appear that this house has little going for it, why do you want it ? and would others want it for the same reason

#5

up to now others are not interested in it. The reason I want it is the touch of a remote location near mountains etc and a peace and quite location. it is a new build in progress for a while

#6

What do you get if you work out the approx build cost?

One off houses in remote locations, from what I can see as a buyer your choice is to buy what’s there or build one yourself.
If it’s cheaper to build it yourself, then do so.
If it’s cheaper to buy the one that’s built, then to a certain extent the price isn’t that unreasonable.