yes, i believe so........i did not say offer that much....
people sometimes do not know the real value........
Just a question, but why would you consider buying this house @265k when you could rent a 5 bed property for €750 a month? Seems more value on the rental market no?
have done a google search and you can rent a fine 5 bedroom houses in denegal for a lot less than 750 a month. There are a lot of empty houses, and people glad to get someone to keep them heated / aired / maintained.
The banks in certain border counties are selling houses off @ well less than 100 k, so you would be mad to offer more.
Well because I would rather own the property and the end of 30yrs rather than pay €750 a month for 30yrs which equates to €270,000 and not own it. Dead money really!
Do people still believe that even after the property crash? The real dead money is the €250+ extra a month you will pay in mortgage payments + stamp duty + fees + insurance + life insurance + maintenance of the property + whatever property taxes get brought in.
If there is better value to be had renting, rent!
But it is your money...
Rent is dead money, i'll go live under a bridge or something.
30 years is a hell of a chunk of your life to be paying a loan, that's the part I don't get with people.
By reasonable offer- I assume you're wondering how low an offer you can make that stands a chance of being accepted? If so- it all depends on how desperate the seller is to sell- if the property has been on the market for a considerable amount of time (like the 2 year time frame you've mentioned for example)- then its probable that the current asking price (regardless of how much its fallen) is too high to elicit interest from a small pool of possibly interested buyers- with an even smaller pool of those capable of sourcing the finances.
I don't know what the peak price of a property like this would have been- given the location I imagine around the 400k mark- allowing for a 50% depreciation from peak prices (which is a reasonable rule of thumb for a house- and possibly 70 to 80% for an apartment depending on location)- would indicate that somewhere in the 200k region might be considered reasonable value.
There are different ways of trying to value property- in the current market- possibly using an ROI model (where the price paid for a property would have to generate a net return on investment of say 7 to 8% per annum would be normal). So- assuming this house could rent for 1,000 a month (perhaps not valid given the location)- the annual rent would be 12k, which would indicate a fair market price of about 170k (at 7% ROI) or 150k (at 8% ROI). Investors wouldn't buy at under 7%- as it wouldn't cover the cost of the investment, plus a risk premia- so all things else being equal- if this property would cost 1,000 a month to rent- it might have a max realisable market value of about 170k........
Some people will always attach a higher value to a property (for whatever reason)- it could be close to family or friends, work or whatever........ So- the 170k price would probably be incremented by a premium that people are willing to attach to the property- in the current climate- this might be a 10 to 20% premium- possibly bringing you up to 200-210k..........
Personally- I think the asking price is purely aspirational at the moment- I'd offer possibly 180k, with a view to paying a max of 210- and if it went 1c over 210k- I'd walk, and not look back.
Once you become emotionally attached in a purchase or sale- you're screwed- and you will wrung for every penny a seller can extract from you.......
Because they want to buy!!
OP you should make an offer of €190k or that for a start which will let them know you have no intention of paying the asking price. When and if this gets rejected wait another couple of weeks before upping your offer and let them know that you have the finances in place and are ready to go straight away and also tell them that there are plenty of other options for you and you aren't prepared to look elsewhere if they are playing ball.
But really what you should offer, should be well under what you are prepared to ultimately pay.
its wait and watch game. Dont get emotionally attached to any house or else EA will try to squeeze money out of you! Just make an offer and thenleave it for a while before making a revised offer. I have always asked EA to tell me what is sellers expectation before making a revised offer and if EA doesnt give me a figure I just make a final offer and tell EA to come back anytime if interested in making a deal.
How are you calculating 190K? As smcarrick posted below;
I've already linked to 5 bed properties renting for €750 a month, which knocks 25% of those calculations. The house is probably worth €127,500 by that calculation.
190k is a mad first offer.
Here's a 5 bed for 125k
Surely the rental of €750 a month for those properties is linked to the mortgage/loan associated with those houses. Are they new houses? How much were they built and subsequently sold for....
Rent is anything but dead money when the market is falling. Renting for a few years could save you a small fortune. Also consider the interest you would pay on a mortgage and the additional interest you might earn on your deposit savings.
I imagine they are renting for what they can rent for on the rental market. What has the mortgage got to do with anything? If the market could bear €1000 a month surely they would rent at that.
This looks new, and why the F you would buy when you could rent this for only 800 a month is beyond me. Put the other 300 a month into a pension fund or investments.
Made me laugh :thumbup: