Negative prices might be a problem from a legal point of view. If the seller pays the buyer to take the property then it might not legally be deemed a sale, and there could be a problem with the title later on. Hence the use of token prices of €1 when selling distressed commercial assets.
If the market were allowed to function, then yes, prices in undesirable areas of ireland, will go to €1. Thats what happened in northern english cities in the late 90s and thats whats happening in Detroit today. Those burnt out houses in Southill Limerick are probably worth €1 right now.
It is beginning to dawn on many people that many development sites in rural Ireland have a negative value - the cost of building on the land does not come close to what a buyer will pay. The concept of a house having a minus value is an intriguing one and must be a probability in some locations. Everyone agrees that there are some houses that will simply be never lived in - so what do we do with them? There is a political and community angle. Should local authorities have the power to take over abandoned estates for the common good? We may even see a constitutional referendum on this and other issues which are challening the very roots of our communities. We may need a new consittuion to cover the very changed world we are entering and where ‘more of the same’ will simply not do.
Yes. As H&S says legal may say €1 but there would have to be a side deal to compensate the “buyer”.
The “buyer” has to pay a solicitor, apply for planning permission for demolition (?), pay for demolition, pay landfill costs less any salvage, excavate and fill the site with topsoil and they pay conveyancing cost if he finds an agricultural buyer.