What to offer on Renmore/Oranmore houses

Hi Have been reading the forums for a while and am noticing that houses in Galway area not really coming down a lot.
Am interested in the Renmore and Oranmore areas and am wondering what you think of the EA’s pricing on the following two house. Are they realistic or should offers be far lower?

daft.ie/searchsale.daft?id=397612&search=1
1, Tearmann Eala, Ballyloughane Rd, Renmore Galway
440,000

daft.ie/searchsale.daft?id=400532
49 Tudor Vale, Oranmore, Galway Region 395000

Hi Honeysuckle, I don’t know the area other than that it is in Ireland and therefore you can assume the EA’s pricing is not realistic.

Galway is different!! Reality comes dropping slow in these parts.

But the reality is that anything that sells now is way down on the asking price.

This has been listed several times

Originally under this add
irishpropertywatch.com/viewS … &Site=daft

Starting price €495,000 and listed since 13th July 2007.

The average rent in the area for a 3 bed seems to be around €900.
3 beds - Median Rent €900

I think it is well over priced.
A 7% yield on current asking rents would give a price of €150,000 and I think that would be about as much as I’d offer for it.

And prices in Galway are still falling

rent is not an a good indicator of value on it’s own. There are factors that appeal to renters that don’t mean the same to owner occupiers and vice versa.
I don’t know the area, it’s the posh part of Galway right? Well there’s nothing snobbier than country folk but at the same time I’d be pretty certain they have a bit to go yet. I would think 350k was generous now. Less later.

Not sure I why see the logic of rental yields doesn’t hold in Galway.
Is Galway different?

Not at all, I just think what a renter is looking for and a buyer is usually different in this country. People can talk all they want but we aint Germany and as I jaywalker I’m happier for it. Rent for a hole of a house in Marino is higher than rent for a run down house in Clontarf. If I had the mullah I know which one I’d buy.

I know that has been true in the past.

But I think after this bubble has completely burst we will return to a world where houses all over the country are valued much nearer to what they are economically worth.

You mean as rental investment properties? I’m not so sure. Unless renting becomes a long term option for a lot of people I don’t rental value remains a rough guide.

Yes. Once the myth that property price can only go has been well and truly smashed to pieces, renting will become a much more popular option.

Why pay twice as much to own something when you can rent in the same area. As more and more people become unemployed the “luxury” of owning may not be as important as the luxury of paying all the other bills on 1 rather than 2 incomes.

The remaining landlords might be glad to get a 5 guaranteed lease rather than being subjected to long void periods at a time of falling rents. This country’s feelings towards property is not going to be the same after the pain this bubble will cause.

In 1986 I was offered a site on the Ballyloughan road with a view of the sea for under 15k punts iirc.
You can extrapolate from that what the price should be in todays money and terms. Just add the cost of construction. (approx 125k euro?)

A friend purchased a 3 bed semi detached for approx 55k punts on beach drive in circa '84.

When/if long term leases become the norm then it will be more relevant, absolutely. At the moment it’s impossible to even get something unfurnished.
As for people burned by the property market changing their feelings on property I dunno. If that was the case people burned by FF would stop voting them in. Don’t depend on folks to be rational.

Hi Thanks for all the advice and feedback you all have giving me regarding the house price in Renmore/Oranmore query. The last point was interesting and made me think. I actually sold my house in the last week and at about 75,000 lower than asking price after a year on the market. I am thinking now I was lucky to sell while I could. Yet… I didn’t feel lucky at the time. I wasn’t a developer or speculator, it was the only home I ever owned. Still, it hasn’t put me off buying. For some reason I feel more comfortable owning my own home than renting. Though when I buy I will be a cash buyer - no mortgage so it is different for me. I think this culture of owning/buying must so ingrained that it is hard to shift and maybe it defeats logic at this stage.
As regards offering 150,000 on a 395,000 house I can’t imagine them selling for that. As a very recent vendor I certainly wouldn’t have and nobody came in that low when I recently sold my own 385,000 house for 310,000. I do believe prices are going lower and will go lower which is why I accepted the low offer on my house. My feeling is that those who have to sell or are forced to, will have to come down eventually but am not entirely convinced they will come down by over 200,000. They might give up and hand keys back if in NE or difficulty with payments etc.
I think part of the current problem is that we don’t know what houses are really selling for and seem to be only able to find out the last price they advertised at. I have revealed selling a 395,000 home for 310,000. I think the more of us that do that the better, as the speculation on actually selling prices seems to swing wider every day. The few people I know who sold lately seem to have come down between 80-100,000 don’t know of anyone coming down 200,000 or maybe I am wrong?

Not attacking but:

…then wasn’t it a 310,000 euro house? You might have paid 385,000 for it at one point, but, well…that’s not what it was worth when you sold.

…but they can’t hand the keys back here in Ireland. They’re still on the hook for the debt.

This is true. Among other reasons, this is done to protect estate agents. Knowledge of the market is part of their stock in trade. If they lose that, then they slip further towards redundancy. Estate Agents don’t deal in housing. They deal in information.

Not true.
Here in the states Joe public has acess to the information regarding property price history and the EA’ s still do quiet well. Infact the standard comission here in the Chicago area seems to be 5% of sold price.

You can of course hand the keys back in Ireland; but don’t make the mistake of thinking this is going to make things better. In fact it will make things about ten times worse. This has been discussed extensively on this site; you can’t walk away from your personal debts in Ireland !!!

The two areas you mentioned in Galway aren’t by any stretch of the imagination exclusive, nor are they even posh. Galway is second only to Dublin in its property delusions. Look at it objectively, there is nothing particularly special about Oranmore or Renmore, if you were to draw a radius centered at where you are going to work out to Oranmore or Renmore, I’m sure you will find places just as desirable for considerably less.

I’ll be amazed if these houses are selling for more than 250k in two years time !

Granted. But the black art of figuring out how much you can get for your house (if selling), or how much you should be paying for a house (if buying) is part of an EA’s toolbox. If the market is more transparent, then it becomes easier to make the case for self-sale.

I’m not saying market knowledge is the only weapon that EAs possess, and it’s certainly not the only service they provide. But it’s definitely part of it. Hidden information almost always translates into power for someone. I’m arguing that here in Ireland, hidden sales price information adds to the power of an EA.

Gronlander,
The fact that the info is hidden is a large part of the problem in Ireland.
Without reform of this and standardization of realestate contracts this type situation will repeat itself.
At some stage in the future I may post a copy of a standard realestate contract from Illinois OBRE (office of banks and realestate). This would show how screwed the home buyer in Ireland really is. They ( home buyers in Illinois) are protected from most of the pitfalls of the Irish method. Also an attorneys fees are usually a flat rate and approximately $300-$500.

Renmore is not posh alright, but it is a desirable place to live.
Its within walking distance to the town centre and the beach. Personally, I love Ballyloughane Beach.

Last week the Renmore Residents’ Association won a national “Pride of Place” award, which implies that they are doing a good job.

I don’t live in Renmore btw, and I’ve nothing to gain by talking it up.

Real Estate Developer says areas near Oranmore and Renmore are just as nice. I have been living/renting in Renmore for the past year and I am not so sure that is the case. It is a nice area, very handy for city centre, swimming pool, beach, shops, cinema etc. Oranmore has a small town centre which has all of the above and more.

Real Estate Developer is right when he says there are cheaper houses in the surrounding area and that is true, houses are much cheaper in say Ballybane and Doughiska but there is a difference in the areas and looking these areas up on forums gathered some very off-putting information. .
Anyway my original query was really about the idea of offering well below the house price and how realistic it is go 200,000 under advertised price etc.