Is this the desperation or capitulation stage then?
I wonder would he consider an apartment in the Liberties as a fair swap? Massive rental potential, 10 minutes from Temple Bar and all the amenities of city life etc etc
The only reason why his property isnt selling is because it is over priced.
This man personifies complete denial !
This man thinks his property is worth what he is asking.
It is irrelevant what he thinks.
It is the market that makes the price, and the lack of offers are screaming out that he is asking too much.
He has reduced the price by €200,000. So what ? It was obviously not enough and he needs to reduce it further.
With regards to his ‘trade-in’ offer, I wonder if he would accept an above market valuation on that property based on the fact that his own is so evidently over-valued ?
I wonder how many more gimmicks we will have to endure before people finally wake up to the fact that the markets down 15% - 20% and they have to adjust their prices and expectations.
You sound a little frustrated there Mr. Anderson. You must be coming across this quite a bit? Do you envisage any change in the mindset of vendors anytime soon or do you see mass denial persisting indefinitely?
To be honest I really only try to take on properties where the owner is wide open to price reductions. Most are aware of the current market conditions and accept that their price may have to be dropped. Nonetheless, when the time does come to reduce it many get all nervous and try to look for 101 reasons/excuses not to do it.
The most frustrating are the ones who have seen a property they like come down in price and decide they want to buy it. Then they still refuse to reduce the price of their own in order to secure a sale.
They convince themselves that the price has reduced in the area they want to buy in … but miraculously remains high in their own area !
Sounds stupid, but it happens time and time again.
Meanwhile as each day passes, prices go down, and the sale becomes more and more difficult to put together.
De Nile is a river between *Country Tom *and his office in Dublin !
So how is the trade in supposed to work then? Developer ends up taking a stamp duty hit on the trade in as well as the carrying costs and risk of not being able to offload it at a later stage? It’s not quite the same as bringing in your 2001 Micra in part exchange. (In fairness, it does look like a fantastic house.)
It’ll get worse aswell, if it’s anything like the UK in the early nineties.
New houses will still sell, as why would you buy an old place when you can get a new one with lots of stuff genuinely thrown in for free (the price of newbuilds will collapse to cost to shift them - they are a long way from that).
The second-hand houses will be dragged down in price by the new house prices. You will think you have a buyer when you are selling, but they will see a house down the road for 5k cheaper, so they will withdraw that and offer on the other one. Or buyers will make low offers on multiple houses waiting to see who is distressed enough to bite. A few rounds of this and a house can go down in price by 25% in six months (as I found out when I didn’t quite buy at the bottom of the market!).