Recently "Ghost Gazumped"-advice please

Rent, bid higher or lower expectations

  • Continue renting (using some money to make house better.)
  • Apply for higher mortgage to get better house
  • Use all our saved cash to get a better house
  • Buy generic 3 bed semi

0 voters

Went sale agreed last year on a house that isn’t in Dublin and with huge delays on the seller’s part the house is really only in a position to be sold now. More fool us for being patient. Sellers have come back asking for an astronomical amount more for the house due to what they consider to be price increases in the market. It’s more than we could afford so we’re out.

We have continued to save but it seems increases have out paced our saving.
In a position now where we really want to buy but could be easily outbid on the one other house we like. And perhaps that would be a good thing-i feel we’d be stretched at that price. (Though not as stretched as friends who seem to be spending astronomical amounts on housing in SCD and the countryside! )

What to do…
Continue renting in crap house &use some money to make it a less depressing place?
Bid higher than we’ve ever thought of before to get a house we actually want?
Lower our expectations and buy a generic 3 bed semi in an ok part of the town? (and try block out the voices in our heads that tell us if we’d only done this earlier we’d have got a much better deal.)

We’ve been looking to buy since 2008. We didn’t care that we’d “missed the bottom” because we hadn’t found a place we wanted. When we were sale agreed it seemed like we’d done the right thing. Starting to wonder now. Sick of limited rental market &crap houses & paying someone else’s mortgage.

Where is the emmigrate / check out of the aslyum option?

I wonder about closing process of houses in Ireland. In another industry I’m familiar with, there is a MOU and then contracts in the closing process. The commercial deals are agreed upon at the MOU level, and sometimes if the sale is expected to go through at a significantly later date, there is a mechanism to change the price based on some transperant way.

The fact that you were sale agreed, and both you and the property were off the market should be have preserved the price, but obviously greed gets the better of some people, at the expense of principles and honour. Actually given it’s Ireland we are talking about, I’m not surprised.

You’re not paying someone else’s mortgage,you are paying for accommodation,pure and simple.

Are prices actually rising where you are, or are you running up against delusional vendors who have been reading too much into what is happening in Dublin?

Review your psychology in the light of objective reality?

If you’ve been looking to buy since 2008 then why not pay the increased ask on the house you want? It presumably will still be a lot cheaper than the same house would have cost you in 2008.

If you can’t actually pay that level of money now then you certainly couldn’t have paid it in 08, in which case your expectations for an '08 purchase would have had to have been lower. You’ll still do better now than 2008’s expectations. You missed bottom but did better nonetheless for holding out. I can’t imagine even the recent upswing has gobbled up the differential between price drops and cost/inconvenience of renting.

It strikes me as more likely the case that although nominally going to market in 2008, with ever-plummeting prices you did the sensible thing and waited it out. This permitted your expectations to rise (expectations tending to expand to fill the finanical space vs. remaining constant with your gaining the satisfaction having those same expectations being met for a cheaper price than in '08). Now that things have turned and the absolute bottom has been missed, it’s hard to reverse expectations even slightly - even though you’ll still get more for your money than in 2008.

Either gamble on the market turning back (I don’t see anything on the horizon bringing that about in the short term myself) or let the expectation lower and buy now and get on with life. I imagine that once you have, you’ll quickly forget all about following the housing market and forget all about what might have been

Edit. I’ve just seen your poll. It’s impossible answer for getting a bigger mortgage for the house of your dreams vs. a bog standard semi-d whilst presumably keeping savings vs all your savings for a peg or two less than your dream. That rests on your view of what a house means to you. Some folk are perfectly content in a bog-standard semi-d in a estate. Others (like me) would be miserable. Only you can decide whether your dream house puts a financial noose around your neck

When prices were falling many a buyer dropped their offer during the sale agreed phase.

The two different sides of the side coin.

My point applies equally to both sides. If both parties agree to a price, subject to certain conditions like contracts, surveys, why is there a renegotiation? Especially ifthe party at fault for the delay is the one who is one trying to renegotiate?

Mrs. podge and I went sale agreed on a property about 6 weeks ago. (first time buyers)
Our solicitor has not received a sales contract to review yet.
Our solicitor has written two reminder letters to the vendor’s solicitors.

Are there valid reasons for delay from vendor’s solicitors to delay sending through contract. Do they have to check title first.
If there are valid reasons for delays how long do they usually take?

Thanks

Have they missed the bottom though? The OP has said they are not looking in Dublin. Prices in most areas of the country are still falling.

Do you know if the vendor is in negative equity? If so they need the bank’s written consent to sell the property for the agreed amount and that they will discharge the loan on the property for the amount you are buying for. This can take a long time to happen.

I do not think that this is the case.
EA says they are trading up and buying a new build in a small development close buy. Also some renovation work done in last 4-5 years so I don’t think bank sale / negative equity is an issue

It could simply be a wait to get the title deeds from the bank, this can vary in length between the institutions. If the vendor hadn’t engaged a solicitor to start that process before the house was sold it can delay matters. Any decent solicitor can turn around a contract in a few days. They do have to read it but not to the same extent as the purchaser’s solicitor. There is usually a precedent in last sale of the property to give a guide.

You don’t appear to have considered looking for a nicer rental.

My advice, based purely on my own experience is to take a step back and try and look at things from a different point of view. I have been renting in the same general area for many years and had you asked me a couple of years ago what my plans were, I can tell you they were significantly different to what they are now.

While I love the area, there’s not a chance in hell that I would buy here. My kids are almost going to college (yay) and I am very much looking forward to not being restricted to schools anymore, thankfully my kids have survived the “trauma” of living in rented accommodation…

Use this time to move a couple of times to different parts of the city where you want to live. If you have children I appreciate that it may not be possible, but if you commit to a generic house, or a different area and don’t like it, then selling and moving will be far more difficult than if you were renting.

Personally I don’t think we have reached the bottom, I wouldn’t consider entering the market for at least the next 12 - 24 months. But looking back from when I started and having come this far, renting has been good to me and I don’t regret it for a second.

Thanks everyone. We’ve been looking out for nice rentals but they seem to be hiding! We’ve maintained the same level of saving despite having to move last year from a lovely house to a worse one &pay €200 more a month for the privilege. It just reminded us that we can be turfed out at any time when renting. I think we’d be paying far more in rent again for a nicer place and we don’t want to cut into our savings. Realistically, with us starting a family pretty soon, our choice may be made for us. Then it will be a case of how much it is worth to us to rent a proper home (if any turn up)
As spending every last penny of our savings to get a nicer place seems to be winning the poll, I’m wondering how much those more reserved would advise keeping as a safety net? (Something I never had the luxury of thinking about when we first went looking for a house)

We recently bought after missing out on a lot of properties we really liked. It was clear that we could keep renting, but with the landlord raising the rent(we were lucky to have had a reasonable rent for all our time there, but our good luck had ended) we felt even more pressure. We had been trying to have a cushion just in case we needed it after buying, but this was decimated to finally get a place of our own. All I can say is I’m soooooo glad my OH talked me into taking the risk. It was the only way we’d have gotten our home, and we are paying significantly less in our mortgage on our 2 bed than the rent on our 1 bed beforehand. So, personally, I would be saying if the extra money can be used and the mortgage is less than/comparable to the rent you would pay, do it!! Good luck!!