Advice on price

Himselfe

Just looking for opinions on this.

I intend to self build and I'm looking at buying a site 0.1 of an acre in the Kilcock, Maynooth, Celbridge area, not specifying where exactly for obvious reasons... its not on any websites either since I approached the owner privately.

It has planning for a 4 bed dormer, circa 1900 sq ft. Initial asking price for the site was 220K but I have negotiated down to 160K. The owner didn't take much persuading to get to that price (somewhat worryingly!!). Is this a good price? Or would I be mad to even consider paying as much in a seemingly falling market?

This is not an affordability issue, just one of value for money.

My own opinion is that it might have been a good price maybe 2 years ago but it may not be now.

Any thoughts?

Gurgle

Himselfe wrote: »

0.1 of an acre in the Kilcock, Maynooth, Celbridge area...asking price for the site was 220K but I have negotiated down to 160K.

Is this a typo?
0.1 acres?

Doesn't matter actually, even if its 1 acre with full planning permission it was never worth €160k.

crocro

.1 acres is about 400m squared which is enough to build in a suburban area. I know a guy tring to sell a site of this size for 160K in Blackrock, Co Dublin. So I would say your site is overpriced.

The owner may not be willing to sell at market price. You should really be shopping around so that you get an idea of price and choice. Also you could buy a site 'subject to planning permission' - you only pay once you obtain planning, otherwise the site reverts.

Himselfe

Thanks for the opinions. The site has planning permission already for a 4 bed dormer, circa 1900 sq ft. So what do you think would be a reasonable price for such a site in this location?

Gurgle

You're sure its 0.1 acres?
Thats a pathetic site for a one-off in the commuter belt.
€40k to €50k max

Himselfe

Thats about 2 thirds less than the average asking price for other such sites in the area. Do you really think they are overpriced by that much? It is pretty much right in the middle of the town too. I'm beginning to think that 160 may be too much, but I just don't see how 50 would be reasonable. There are no sites in that price range anywhere near Dublin.

Gurgle

I was reading 'Kilcock, Maynooth, Celbridge area' as countryside.
I haven't a clue what a site in the middle of a town should cost - I guess it will be inflated by the last decade's tendency towards building apartment blocks on every spare urban postage stamp.

dlambirl

you didnt give very much information OP.

a 0.1 acre site in the countryside is very small and thats why other posters thought it was only worth €50k.

you didnt mention it was in the centre of a town.....

I still think €160k is alot of money, even for in a town.

Chance your arm again OP and try and knock the vendor down a wee bit more

crocro

You need a comparison to judge the value. Then you can truthfully say to the site owner, 'Well, I have been offered another similar site for X, can you match that?' If you don't have an alternative you are negotiating in the dark, just blindly asking for price reductions with no idea if a fair value is reached.

If there are no other sites, then you might consider adding your build costs to the site cost and comparing the total with a completed 4-bed house in the town. eg if your total build costs would be 250K then what kind of already built house would you get for 410K?

Land costs move at a faster rate than house prices in both directions. And, of course, build costs are coming down all the time.

Himselfe

Thats true, maybe some more detail may have helped a bit

There are a number of other sites in the area, similar size and location and all with FPP but the owners won't accept an offer anywhere near what this guy accepted, they all want 220 or thereabouts. So I can't use that as an argument to reduce the asking price on the one for 160. All of the sites have been on the market for between a year and 2 years.

A build on such a site would cost between 200 and 250, and as Croco mentions build prices are coming down all the time so could be even less. Similar finished and established properties in the area are going (or rather asking) for upwards of 500k depending on the condition and sanity of the owner. I don't know if thats enough benefit to gain for the hassle of a self build as well as the possibility of further reductions in price.

I think I might chance the oul arm and try to knock his price down a bit more anyway. I'll keep yiz posted as to any developments.

Thanks for the insights!!