What would you do? - Update

I know, having been a lurker here for a long time, that it’s a crazy time to buy, but a house has just come to the market that I wouldn’t like to miss out on. (only a handful of these, and the last one to come to the market was a few years ago) It’s asking price is at least 25% less than the achieved price of the last one to sell, and it seems too good to be true. (a lot of house for the money)

If you feel that the asking price is good value, would you still offer 15 - 20% less? Or would you offer at all? This would be my family home, not just bricks and mortar.

Any advice welcome.

i bought my house in 2002 with exactly the same thoughts.

My decision to buy was based on:

House=3 times salary excluding bonus, overtime and all the other bull
Monthly mortgage was same as rent
I needed some form of permanence.
I also had the deposit.

I ignored the market trends on price, i treated it as a home not an investment, Today, if the value had dropped, i wouldn’t care, i still live there and intend to for a while.

However, in 2002, the potential for the AMOUNT of negative equity was not was it was today, the market was fairly stable(ish)

Your call,

Yes. personally I would immediately offer less.

Just as a few years ago a price was there as the starter point for a bidding war it is now there as an aspiration.

Depends what price bracket you are talking about as well.

If you are talking about something in the 300-400k range the potential exposure in the event of a further 20% drop is 60-80k and I believe this type of house has most resiliance.

If you are talking about a more expensive gaff 500k- 1 million

your exposure is much higher and I believe it’s these gaffs which will plummet most.

I am not even considering buying this year

The pain is only starting

Thanks for your replies.

The gaff is 1 million plus.

I hear what you’re saying, and hadn’t considered buying this year until this one came up. Problem is I can’t see any more of these up in the next few years and it’s ideal. I reckon if I let it go it’ll go very fast at the current asking price.

That does’nt make it good value or a bargain. It may mean some other sucker has bought into negative equity (or they have bought a good value home)

no easy answer, although it sounds like you like the gaff, so maybe go for it. Buying a house is such large financial outlay that at the end of the day, it becomes an emotionally driven purchase and you go on your gut feeling.

Only (GOOD) investors see a house as a purely mechanical transaction

If you can rent it for cheaper then I’d say no.

This is the price range at which “region” really makes a big difference. It’s quite possible that they might end up accepting 100k under, but of course it entirely depends on the vendor, and without the proper provision of price information by EAs we’ll probably never know.

If it really is an unique house, then perhaps it will make or even exceed the asking - I’ve seen this happen on two occasions in the last few months. On the other hand, it might not be as unique as you think. I’ve seen a house go on sale on roads “where houses do not come to the market often” (quoting the agent), only for a few of the neighbours to do the same shortly afterwards - either because they hope to get the same price, or they become worried that now is the time to sell up.

Obviously if you are intent on buying now and are in a position to do so, at least bargain aggressively as others have suggested. It’s possible that the vendor won’t want to drag the sale out over the quiet summer months, particularly if there is a “quiet” autumn to follow. Best of luck with whatever you decide.

If you can afford it.
If you don’t/won’t care if the price drops by 100K or more in the next year.
If you know you won’t need to sell up any time soon.
If you can handle interest rates going up by a percent or two.

Then buy it. Use whatever negotiating strategy you like.

Personally, if I could rent it for less in the current market I would, but everyone has different priorities. I’d encourage anyone to buy if they find the house they want, at a price they can live and have fully thought things through.

-Rd

Thank you all for your replies, food for thought.

Will wait until the agent contacts me to say there’s an offer on it, and then have a rethink. Other than that, as long as there’s no other offer I can wait.

Remeber the word “region” as applied by EAs is highly context specific, vis:

3 bedroom house sold region €1m [translation: 3 bed house sold €800k]

3 bedroom house asking region €1m [translation: 3 bed house asking €985k or more]

Called the EA for another viewing today, and the gaff is SALE AGREED! I viewed it last week, having gone to view another house and was told by the EA that this was coming to the market and would I like a look. Had a look, told him on leaving that I wanted a brochure, and assumed he would be in touch if there was any movement.

Apparently the next day another party viewed, offered over the ask with a 7 day turnaround on contracts, paid a deposit and hey presto, gaff sold!!
I expressed my disappointment at the lack of opportunity to jump in, but the client apparently liked the terms and accepted the offer.

So, dilemma over, thanks for the advice. Seems the crash hasn’t reached some parts!

Unfortunate that this one didn’t work out for you, although you may look back with relief in a few years. If you’re still interested you could tell the EA to contact you if the sale falls through, which happens quite frequently in the current market. Also don’t be surprised if a quick sale prompts a neighbour to put their house on the market.

Can I ask where (roughly) you have been looking?

I’m hearing similar noises from some EA’s in South County Dublin.

Went to see one place on Saturday and was told there was 3 offers, but for 1.1m “it could be mine” - no thanks, over a million for a fixer upper!

WOW!!!

The market must be fine after all.

Lets close the Pin and start buying!!!

:wink:

South County Dublin also.

Amazing thing is wasn’t given a chance to offer! Wouldn’t like that agent to be representing me, all it would have taken was a phone call to discover my interest, and my ability to move equally as fast.

Vendor lost out on a few quid.

From what I have seen of agents in the same general area, there are plenty of arrogant individuals in the business who still operate as though it was 2006 and are pretty flippant with prospective buyers. I suppose in certain areas the reality is just taking a little longer to sink in.

I agree, he said the client was happy, but he should have called all parties before putting the offer to the vendor. 20 mins of his time perhaps…?

When I sold, that is exactly what my agent did, and achieved well over the ask for me, through a couple of days of phone calls. Sale agreed was achieved in a week from going to market, and not at the height of the bubble.

That’s what I call earning your commission. IMHO EA’s today just want to achieve sales, they don’t care what their commission is.

Hey Jost,

Did your last post just disappear?

Sorry, was going to edit it to add something else, but got distracted :slight_smile:

You’ll probably hear from the agent during the summer, trying to offer you a property that’s been on the market and nothing remotely like what you’re looking for. I’m afraid that’s the kind of service you come to expect from some agents who have become complacent over the last few years, even after the dramatic change in the market.