To sell or not to sell?

Hi all

Long-time lurker and first time poster in need of some opinions. Have house in D14 (rathfarnham), 3-bed semi in good condition, we put it on the market for 450k, have offer of 420k. We bought in 2003 and, not including stamp duty we will more or less breaking even if we sold. We have for a few years thought we’d trade up to a four-bed after the birth of our second child and our personal circumstances and our salaries would allow us to comfortably acquire a house in the region of 600-650k, plus if we sell our current house we’d walk out with about 100k in equity. Given that market is still falling we had thought of selling up and renting for about a year or so, and we have even found a property that we love and is big enough for our needs, at a really fantastic price as well. We would be paying 250eur more a month for this property than what we’re paying for our current mortgage but it’s easily twice the house that we have now and twice the garden as well, which is great when you have kiddies. We have done the sums time and time again and we’re fine for about 650k, both of us are in recession proof jobs and we don’t have to pay for childcare fees cos I only work part time and relatives look after the children while I’m at work. Only downside is the mortgage that we have now is a tracker (ECB+115bp I think) and of course we’ll loose this but we’ll loose it anyway of course if we trade up.

Of course no one has a crystal ball and no one can tell what will happen for sure but “something” tells me we will be pushed to get 320k for this house this time next year. Of course if houses were to fall to that level (in my area that would be a 50% fall from peak) we would walk out with no equity at all and would be on the verge of going into negative equity unless we heavily re-pay the mortgage for the next year or so, which we could do.

So, any opinions welcome, would you sell or would you stay put? This bearing in mind that we would have sold-up to trade up in the next year or two anyway! Is there any considerations I am forgetting about, mortgage interest relief, anything?

Thanks in advance

Loose is spelt Lose not loose…

Your seven years of golden FTB dom is up in 2009 I believe ( 7 years is it not starting in 2003 ) . After that you lose the tax relief you now get .

Hard one, you will find it difficult to get a mortgage for more than 3-400k next year ( everyone will) but if a 420k goes to 320k then a 600k will go to 450k pro rata .

I would be inclined to take the offer.

It sounds like it’s your in your mind to trade up, and in a falling market there’s no better time to do that.

Seems an easy one to me. Sell.

You will be paying 250 more per month for a far better property. 3000 a year. Stick your equity in the bank and the interest will pay that.

Who knows how much prices will fall but if you are correct the value of your current house is losing 8000 per month. Add in the fact that property taxes are on the way in and rents are falling off a cliff. I say sell, rent and save.

I agree with the other posters - sell - if you can.

A word of caution - many sales are falling through after going Sale Agreed.
Apparently purchasers banks valuers are putting 75% valuations on target properties throwing a spanner in the works.
Are you sure this purchaser has the wherewithal ?
In any case I would close as soon as you possibly can (without sounding desperate).
i.e. don’t sweat any small details and perhaps yield quickly on any snags.
Perhaps don’t advertise it as Sale Agreed.
I will salute you if you close and please report back in any case.

Given that you’re planning to move anyway and you have a decent offer on the table right now I’d say go for it. It’s quite likely you won’t get one as good as that for some time to come.

420K for a 3-bed semi in Rathfarnham is crazy money.
If you are planning on selling (either now or at some point), then take the offer and run with it!

edit: no offence to OP - I’m sure house is lovely!

Definitely Sell. And, watch out for the gazunder maneuver of looking for a further 10% drop to complete. This happened to me, and I called their bluff – they pulled out and were back at the table with the original offer in a week. Prepare to be patient - it took 5-6 months to close on my sale last year…

Your responses as helpful as always but thanks (English is not my mother tongue)

Of course, I had forgotten about that

Not a problem for us due to the nature of my husband’s work, but your calculations are correct, only we’re looking at houses of about 800k now, thinking they’ll go down to about 600 to 650k. Have already identified one that we like, it’s going for 850k and they have an offer of 675k (which we could afford) but we don’t want to go in just yet. And there will always be more houses!

My thinking exactly but was just making sure I wasn’t forgetting anything!

Contracts have nearly been exchanged… nearly.

More than likely. There’s already houses in my estate with an asking price of 50k under.

No offence taken. My house is all renovated inside to a high standard but I too think it’s crazy money! That said, I suppose we also bought it for crazy money given that we’re barely breaking even.

Duly noted. I hope it doesn’t take 5 months in my case… that wouldn’t be too good. The 10% reduction they were looking for, was that before or after exchange of contracts?

I just want to make sure you don’t get associated with Casey. English wasn’t his mother tongue either! :wink:

stick to topic folks.

grammer and spelling is not on topic.

Take it to private message if you want to have a lexical love in.

It’s “grammar” and pedantry is always on topic, on the 'pin! :smiling_imp:

Get back on topic then!

So, contracts were exchanged. We’re delighted!

Thanks everyone for your advice.

That’s great news. Congratulations and well done. Enjoy your bigger property.