Selling property - personal experience

Just wanted to get feedback on my property sale and see if others out there who are selling are encountering similar - also to give those who are buying the other side of the story.

We are selling to potentially rent for a while waiting for further developments and to see if a suitable property comes on the market in the next couple of years.

Property on the market in a leafy SCD suburb for about 6 weeks - 500k price range.

Aimed at pricing ourselves under the neighbourhood - started 6-8% under similar type properties and we are now 12% under as were not getting sufficient viewers through the door.

Received an offer today 10% under our current asking (20% less than houses are advertised for in the area)- would appear to be a little room in that offer so might get them to within 5% or better if we can attract another bidder.

From my experiences this is what I am seeing:

  1. Property market is very very quiet
  2. Estate agents are way out with their pricing and can’t believe those houses can be getting any attention/viewings
  3. Whatever property is selling currently has to be achieving well under their asking prices
  4. Only way to sell quickly is to price well below the area and be prepared to sell lower still
  5. Anything that hasn’t dropped iprice in the last 6 months is over priced as the market has moved on substantially

Would also like to point out that I am thankful to those who have posted here who have given me the insight to develop a strategy to sell our house - it would have been very easy to price the property at the same level as the neighbours and no doubt get no viewings for months and slowly snip prices to potentially never sell.

Not being smart but I think that you have done very well to get
an offer in that price rangein the current market and would seriously
consider accepting it provided that the buyers are kosher and are able
to close the sale. Prices are on a steady decline and the only question is how
steep the decline will get in the next 4-5 years.

12% below similar properties was a great strategy, very tempting for
buyers.

Best of luck whatever you decide to do.

Just sold a property myself in South County Dublin area (not my principal residence).

I agree with all the points you made. I too priced below the market in the area (10% to start with; 300K price range), ending up having to price down further (approx 13%), before accepting an offer of about 15% below the original asking.

I found that estate agents I talked to were completely unrealistic regarding the market and what time/price range would be required to make a sale. They were far too ready to hear the price I wanted to set it at rather than telling me what their experience of the market would dictate in terms of price. Obviously, people don’t want to hear exactly what price is clearing in the market at the moment and it’s estate agents who tell people what they want to hear that get the business. There are a couple of exceptions in the area mind you, one of which I eventually went with.

When the price is pitched ahead of the market it will get viewings and has a decent chance of selling.

Was not in a position at that time - however if I had a time machine…

Would have loved to have pocketed the money at peak - probably would have gotten closer to €1mil. However times have changed so no point dwelling over them - there’s plenty of people out there thinking like that and still believe their house prices have similar value to 2006 as reflected by the property web sites.

The whole trick to selling now is getting past the peak mentality!

We want to find somewhere bigger and feel that now is a good time still to sell as we should be able to get more for our money now than we would have done years ago. The only way to sell is by undercutting the market - although the market is 20% less than advertised prices so in effect we probably aren’t undercutting it just getting what someone is willing to pay for the property.

We are not using property as a commodity - we are looking for the next house to be the house for life and are in a position to hopefully achieve that at a much lower cost relatively than at peak prices.

There is no doubt that selling at peak prices would have been great but that boat has long since sailed.

I don’t know what prices in leafy SCD are going to drop to but the sentiment here is that there is quite a bit more dropping to go and even if we sell at bottom we will still buy at bottom and that is considerably better than selling at top and buying at top. Also the market will take quite a while to recover so there is no rush to find the next property or settle for something we are not happy with which is also a good reason to sell now and the cash buyer is obviously in the best position.

So if he sold now and decided to wait for a year (having decided the property market is still going downwards) to see if he could get his new upsized property at a lower price (also taking into account the rental costs he’ll incur over the year) it wouldn’t make sense to you?

That’s the intention - it’s not about selling to buy back a similar house it’s about trading up at a much lower outlay than it would have cost in years gone by. Having said that there isn’t much on the market in the area we want to buy currently (or what there is appears to be still inappropriately priced) and this is also part of the reason for renting for a while - and as previously stated it’s best to be in a position to buy when the right house comes along.

I’m confused.
How do EAs make money, then, in a down market, if overpriced properties are not selling, surely volume/quantities of commissions is much more important than keeping values up ?

i.e 2x1500 is better than 1x1700.

Agents dont set prices. Sellers set prices.

Ask MR . A.

Agents dont set prices. Sellers set prices.

Ask Mr. A.

We got a couple of EAs out to value our house and both suggested similar prices which now appear to be 15-20% more than be will achieve. We had no high end expectations although were aware of what prices were being priced at in the area. Would therefore appear that EAs were quite a bit off in their prices.

I agree that EAs don’t set prices but they suggest the price to pitch it at and generally the buyer runs with that - however the EA has to state this is dynamic nowadays and so the price may need to drop if no viewers are coming or submitting offers due to properties being overpriced.

There is probably still a mentality of people going with the agent who quotes the highest value for the house as people believe they will achieve this. I guess the higher the figure the more the drop required later and people nearly have the high figure spent when they are informed and so it becomes more difficult to drop and drop… until the right price is achieved to attract buyers.

Agents dont set prices. Sellers set prices.

Ask Mr. A.

Sellers don’t set prices - buyers set prices. Sellers & EA’s can do what they like, its the guys & gals with fistfulls of euros make the market