Friends of ours thinking of buying in Dublin 6W note that comparable houses on the same road but slightly bigger sold for between 105,000 and 110,000 euros less than the house they want to buy!!! How can that be? are people not looking at the house price register before deciding the value of their property?. Can anyone shed any light on the thinking behind this both from the estate agent and the seller. The way I see it, overpriced houses remain on the market, become stuck and dont sell so you have frustrated sellers, and estate agents not making any money on a sale. How can our friends get beyond this? The agents told them the seller wont accecpt anything unless it begins with an 8, yet a few doors down but a little bigger, structurally better with no damp, and ensuite sold in September for 680,000 euros. Any ideas on how they should handle this one? they really want it but not at over its worth.
They have 2 options:
- Pay something beginning with an 8
- Walk away
See, there’s two emotionally invested parties here:
- A vendor, who believes that their house is worth 800,000 or more, or can’t afford to sell it for less
- A buyer, who really wants to live in that part of Dublin 6W
Your friends should walk away. You can get a whole lot of lovely house for 680,000 euros in Dublin. Vendor expectations and buyer expectations do not match. There can be no deal.
Come on the market recently?
These are the special MIR prices.
I’ve seen two such houses come on in Skerries in the last 3 weeks - about €50k more than what was being asked mid year. Sadly one of them seems to be sale agreed.
They should handle it by taking the piss and offering €500k, then move on. Whats the rush?
What they think it is worth amounts to nothing on its own, - anymore than what the seller thinks it is worth. If they aren’t prepared to pay what it would take to buy the property now, then they should just leave their name and number with the auctioneer and move on.
800k+ homes for first time buyers?
Very true, but i think people are being swept along in this, prices are rising vacum
MIR does not only include first time buyers. i.e. mortgage interest relief for somebody trading up €600,000 25 yrs @ 5% = €300 relief per month. I have spoken to a number of so called intelligent people who seem to have lost the plot for the €300 relief. They don’t seem to think about what will happen in a couple of years when they lose it (the attitude seems to be “we will deal with that when it happens”). Prices have jumped stupidly (in certain areas) over the past few months and this is only because of the MIR going. Speaking to an auctioneer in DNG recently they believe the first half next year will be horrendous. Sellers won’t sell for less than last years prices and buyers will have lost MIR and the budget will bite them hard.
Conversation I just had.
Man : I’m looking to sell my house.
Me : how much for ?
Man : €500,000
Me : You do realise your next door neighbour just sold for €200,000.
Man : Yes, but ours is better.
Me : How so ?
Man : We spent €80,000 on an extension and refubishments.
Me : €200,000 + €80,000 = … ?
2005 called, it wants its decking back.
Seems the PPR data is keeping prices artificially inflated in some areas of Dublin, the exact opposite that most of us hoped for!
It won’t/can’t last. And that’s not just wishful thinking on my part. (Though it is too )
Thanks guys, No they are not first time buyers, and are cash buyers having returned from US about 6 months ago. Dont think its what the house is worth from their point but what has sold on the road this summer is where they are getting their figures from. Been doing some research myself of the area this morning and found 4 others houses similar size, period, etc and they too sold for 100 plus.
Thanks for the advise, and agree they can make their offer leave it there and walk away.
I’d laugh more if people hadn’t horribly urbanised so many gardens in the last 10 years.
does anyone remember the frenzy there was buying diesel cars, and how the price of petrol cars collapsed due to the motor tax differences?
so people changed their cars and spent more buying diesel cars to save a couple of hundred a year
but didn’t factor in that diesel cars are harder on fuel for short journeys, and are more expensive to run
people are irrational and are herd animals
ever watch a queue of people form in front of an exit, where there are perhaps other exits, but people just blindly follow a crowd?
i don’t even think its MIR at this stage, as most sales will close too late to get it anyway. I think its sheer herding again. people are afraid that prices have bottomed and they will miss out.
will this fear create the scenario that is feared?
Heard a story this week about a couple who had signed contract for sale agreed in September, were two days away from closing, really looking forward to moving in after having a bit of crap in their personal life - only for the seller to pull out as she reckoned she could get more money. Seller hadn’t signed contract, somehow buyer’s solicitor had missed this.
Really hope this comes back to bite the Seller on the ass and she gets less money when the property goes on the market again (surely a risk if MIR ends and property tax comes in)
As an aside, this whole “first time buyer” business is bs
There is no reason why a first time buyer should have more or less money than a 10th time buyer.
It plays into the insane ideas of ‘property ladder’ and that you accumulate wealth by buying houses, allowing you to ‘trade up’ in time.
There is no reason this should be so. So, ‘1st time buyer, 10th time stock market speculator’ is as valid as ‘2nd time buyer’
I saw a house yesterday, and went home to check property price register so I could know what to offer.
Within an hour, the EA called to say the other viewer had offered asking price, which is 45 thousand over the last two houses sold on the street. I’d seen one of the other houses and they were in similiar condition. I may bow out of the search for the moment, and hope for the best in the New Year.
Second+ time buyer used to have equity in the house they were selling so did in fact have more than the average first time buyer.
What percentage price increase is that?