How much would you bid?

beertons · 17-09-2008 1:05pm #1

Viewing three houses today, first one at 3:30. It's on the market for €389,500. Nice estate, 3 bed house, 1500sq.ft. Not worth what they're asking for it. How much would you bid?

El Stuntman · 17-09-2008 1:15pm

270k

AARRRGH · 17-09-2008 1:17pm

I would bid nothing. It's a bad time to buy.

niceirishfella · 17-09-2008 1:17pm

Nothing............it'll be worth 11 - 12% less in the next 8 to 12 months.

beertons · 17-09-2008 1:18pm

Wow. That's less than the 300 we would have. I know a little about the guy who owns the house, approached a neighbour. Owner is retiring and moving to his homeland. He might be able to hold on until he gets closer to the price he wants. Not sure if he's in a rush to move or not. We hope he is anyway.

ZYX · 17-09-2008 1:20pm

beertons wrote: »

Viewing three houses today, first one at 3:30. It's on the market for €389,500. Nice estate, 3 bed house, 1500sq.ft. Not worth what they're asking for it. How much would you bid?

Well the big question is if it is not worth what they are asking then what is it worth to you? Then bid a bit below that figure.

beertons · 17-09-2008 1:21pm

AARRRGH wrote: »

I would bid nothing. It's a bad time to buy.

Why so?

ZYX · 17-09-2008 1:23pm

niceirishfella wrote: »

Nothing............it'll be worth 11 - 12% less in the next 8 to 12 months.

You cannot say that, unless you know the house. Average house may drop 12%, but unless you know house how can you say. It may drop 60% in 12 months, it may be way undervalued and be worth 60% more in 12 months.

beertons · 17-09-2008 1:23pm

ZYX wrote: »

Well the big question is if it is not worth what they are asking then what is it worth to you? Then bid a bit below that figure.

Worth about 320. We'll bid 300. The vendors bought the house 12 years ago for £60,000. So they're not going to lose anything on it. Gotta go get changed now for the viewings. Will let you know later what happened.

ZYX · 17-09-2008 1:25pm

beertons wrote: »

Worth about 320. We'll bid 300. The vendors bought the house 12 years ago for £60,000. So they're not going to lose anything on it. Gotta go get changed now for the viewings. Will let you know later what happened.

Makes sense. Bid about 7-10% below current market value.

ionapaul · 17-09-2008 1:34pm

ZYX wrote: »

Makes sense. Bid about 7-10% below current market value.

I'd bid AT LEAST 30% below what I felt it was worth (which would be lower than €300k probably); if you are not embarrassed by your 1st bid, you are making a mistake IMHO. Let the EA pretend to get angry at you and just smile on the inside at his guff...

thetyreman · 17-09-2008 1:39pm

The rule of any bid (my rule)is bid low you can always go up.
If you bid high you cant go down as easy.

AARRRGH · 17-09-2008 1:44pm

AARRRGH wrote: »

I would bid nothing. It's a bad time to buy.

beertons wrote: »

Why so?

Do you read the newspapers? House prices are dropping, the economy is falling to pieces, and there are no signs whatsoever of any kind of recovery for years.

ZYX · 17-09-2008 2:23pm

ionapaul wrote: »

I'd bid AT LEAST 30% below what I felt it was worth (which would be lower than €300k probably); if you are not embarrassed by your 1st bid, you are making a mistake IMHO. Let the EA pretend to get angry at you and just smile on the inside at his guff...

You are talking about making a bid 50% below asking price. I doubt EA would pretend to get angry. If OP feels prices are going to fall this much there is little point viewing. Just wait another couple of years until the price actually falls.

beertons · 17-09-2008 2:42pm

Got the time wrong, not viewing till 430. I rang the EA and said I was someone else. Asked what bid would secure the property, and get the vendor to sell it to me. She said as close to the asking price. I told her she was nuts, and said no more than 340 given todays climate. She said not a chance.

I wouldn't mind if the house dropped 20% in the next 12 months. What happened for the last 10 years isn't going to happen anymore. Buying a place, it's worth double what you paid after 5 years. Remortgage, and buy 2 more places, and rent them out.

Ok, so the only ones buying property at the moment are first time buyers. We could go down the affordable home route, or go with one of the builders who are offering the same deals(they still haven't dropped the crazy prices of their property either).

Thanks for all the commenst and idea's. I'm fairly stubborn when it comes to getting advice and points of views.

DublinDilbert · 17-09-2008 3:18pm

beertons wrote: »

go with one of the builders who are offering the same deals(they still haven't dropped the crazy prices of their property either).

Ummm how do you know they haven't dropped their crazy prices? cause the sign at the gate or on DAFT says they haven't? How many have you approached and put offers in?

You'd be surprised the deals people will do when they have a cash buyer standing in-front of them.

Say your a builder, who has a massive load to the bank, wages costs etc.. if you could even sell one house it would keep the bank happy for a good few months...

If you go up to a BMW dealer ship, they will also say they haven't reduced their second hand prices either, and in general the sticker prices are still the same hoping someone will come in and pay it. But if someone comes up and makes them an offer for cash they'd jump.

Tigger · 17-09-2008 3:43pm

hi op

i'm buying this week and i went in with a low bid of 75% of asking

it was accepted after 2 days of guff from the ea

i told him that i was looking for a bargin and that i had valued the house based on build costs + the price of the land (2 acres) and that that was what i was prepared to pay

i think i could have squeezed harder my advice is look t the cost to build it and offer that then stick to it
no haggling just state your price

Boggle · 17-09-2008 3:50pm

If its of any interest, I met an auctioneer today who had been asked by a major bank to do a worst-case valuation of all the estates in the town. I asked him what this value was and he basically said that the worst case drop would be to 1990 levels. It'll probably never reach anywhere near those levels but still, its scary to think that the market has gone so bad that 1990 levels are even mentioned!

CiaranC · 17-09-2008 3:51pm

beertons wrote: »

I wouldn't mind if the house dropped 20% in the next 12 months.

Sweet mother of god.

ntlbell · 17-09-2008 4:17pm

if you really want to buy

put in a bid in based on what you think the house is worth yourself and what you can afford.

ignore the EA put in the bid and tell them to only get back you if it's successful or if they have a counter bid very close to your original offer that YOU don't want any time wasters

ignore the EA's bullsh|t at all costs..

you won't go far wrong..

ntlbell · 17-09-2008 4:18pm

CiaranC wrote: »

Sweet mother of god.

well if he gets 20% of today and it drops 20% if he's no plans on selling it in the next few years what difference does it make?

kazzer · 17-09-2008 7:54pm

ntlbell wrote: »

well if he gets 20% of today and it drops 20% if he's no plans on selling it in the next few years what difference does it make?

Exactly. It doesnt matter what the value drops to as long as you are still living there and have no plans of selling. The same can be said of houses that are valued far in excess of what the owner paid for it. It doesnt mean anything unless you want to sell the house, as this is the only way you can realise that money.

The_Conductor · 17-09-2008 8:14pm

Boggle wrote: »

If its of any interest, I met an auctioneer today who had been asked by a major bank to do a worst-case valuation of all the estates in the town. I asked him what this value was and he basically said that the worst case drop would be to 1990 levels. It'll probably never reach anywhere near those levels but still, its scary to think that the market has gone so bad that 1990 levels are even mentioned!

Well- the understanding is that prices were overvalued by 10-15% in 2000 (when the government commissioned the IMF report on the housing sector)- which means a potential drop of over 70% on Q4 2006 prices (everything else being equal). Everything else is not equal- particularly when you look at the statement from BOI today about major reductions in its 2008/09 lending and a halving of their dividends- which is understood to be sympthomatic of the entire sector.......

Personally I don't think prices will reach 1990 levels by a long shot- but talk of 1990 levels should not shock people, 1997-1998 levels would be more realistic in my mind.

thetyreman · 17-09-2008 8:51pm

kazzer wrote: »

Exactly. It doesnt matter what the value drops to as long as you are still living there and have no plans of selling. The same can be said of houses that are valued far in excess of what the owner paid for it. It doesnt mean anything unless you want to sell the house, as this is the only way you can realise that money.

Thats exactly the reason why people are in this predicement in the first place,because they are so keen or needey whatever to get on the property ladder,they will buy a property that they know is overvalued just because they want it.Its a false economy.When you want something its easy to justify it to yourself,but what happens when you have to sell it for whatever reason(you might not have any intentions of selling it bt you never know,sickness,seperation whatever)the basic rules of buying and selling apply,the idea is you buy cheap and sell dear,if you pay over the odds you will never get on top and get ahead.So yes it is all the banks fault entertaining this false economy by loaning people money to buy property that they know was overvalued in the first place,if the banks hadnt given 100percent mortgages plus people wouldnt had the money to pay these mad unrealistic prices so the builders wouldnt have been asking these prices in the first place.....IMO

Firetrap · 17-09-2008 9:05pm

ntlbell wrote: »

well if he gets 20% of today and it drops 20% if he's no plans on selling it in the next few years what difference does it make?

Mortgage repayments

Oshare Bones · 17-09-2008 11:20pm

I think a previous figure mentioned of €270k is a good offer to make. Reason being I have seen houses around my own area with asking of €390k , slowly falling because they can't sell which are now at €300k-€320k and still not selling. If the bank has approved a mortgage of €270k they will take you even more seriously.

For example this property http://www.daft.ie/searchsale.daft?id=329890 (not my area) was on sale for €380k in March of this year, asking is now €300k which probably means they would accept an offer of around €285k.

There's the graph for the history http://www.irishpropertywatch.com/viewSalesPropertyHistory.php?Ext_ID=329890&Site=daft

Don't be afraid of EAs or sellers and most of all don't let them bully you. It is finally a buyers market. (after years of being a sellers market

)

beertons · 18-09-2008 7:07am

Saw three houses, the last two were a waste of time. The first one ain't perfect though. Needs to be painted inside, and tiled. Still sleeping on the idea about living there. Reckon it's still only worth €300k. Needs some spent on it, and has potential for an extension down the road. We'll wait a week and see if they get any other viewers.

The_Conductor · 18-09-2008 7:24am

beertons wrote: »

Saw three houses, the last two were a waste of time. The first one ain't perfect though. Needs to be painted inside, and tiled. Still sleeping on the idea about living there. Reckon it's still only worth €300k. Needs some spent on it, and has potential for an extension down the road. We'll wait a week and see if they get any other viewers.

Do not believe a word they say about other viewers.
I was (and still am) looking at a property that I was told the sellers urgently needed to move from (as they were building a new house on a site that they were given by one of their parents and were unable to release the capital necessary to complete the project (this is last February). I was told at the time that 400k was a lowball offer- that would however be considered. 8 months later its there at the exact same price on Sherry Fitzgeralds website- and they are as implacable as ever...... This is despite 2 phone calls about other bidders bettering my offer and subsequently withdrawing etc.

beertons · 18-09-2008 7:44am

smccarrick wrote: »

Do not believe a word they say about other viewers.
I was (and still am) looking at a property that I was told the sellers urgently needed to move from (as they were building a new house on a site that they were given by one of their parents and were unable to release the capital necessary to complete the project (this is last February). I was told at the time that 400k was a lowball offer- that would however be considered. 8 months later its there at the exact same price on Sherry Fitzgeralds website- and they are as implacable as ever...... This is despite 2 phone calls about other bidders bettering my offer and subsequently withdrawing etc.

That's bad luck man, sorry to hear. These people still expect to get whet their neighbours got two years ago. Let them wait. There'll be no building on a free site in six months. The EA will be the one calling you, to remind you about the property soon. I had a guy call me twice yesterday about different houses around Naas. I don't think any other people had been to the first house, EA was a young one and my partner was talking to her. First viewing and only one for yesterday. I'll pass the house on my way home from work later, and see if there's any sign of her car outside it.

How much would you bid?

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