house price what should starting bid be?

gin soaked

Hi,
So I'm hoping to buy a house in Co.Cavan,
(I know not the perfect place but we all have a cross to bare!):D
Right its detail as follows

Newly constructed 4 bedroom detached property situated on a large site.

Accommodation

Sitting Room| 17'10 x 13'5
Kitchen / Diner| 28'3 x 13'9
Sunroom| 13'3 x 14'1
Utility| 11' x 12'

W.C




Accommodation 2 Bathroom|
Bedroom 1| 12'2 x 11'6

Bedroom 2| 12'1 x 11'4

Bedroom 3| 11'6 x 10'

Master Bedroom| 13'6 x 12'1
Ensuite| 7'6 x 5'

First floor area | 36'3 x 18' Suitable for conversion to additional bedroom space, velux windows installed

So thats it really it comes with a builder finish, painted, doors & stairs fitted. boiler installed. lawns seeded and kerbs in gravel drive post and rail fence.
they are looking for 185K
I like this house its very well finished but what would a good starting bid? I do not want to pay the asking price?

drunkmonkey

What would it cost you to rent per month, multiply the rent by 12mts them by 14 years (168)

So if it costs 600pm to rent, i'd be offering in or around 110,00, remember were not at the bottom yet, don't be afraid to low ball someone.

100k max

I'd imagine you would only get 400 per month rental in Cavan tbh so that would be 67k over 14 years.

Actually I wouldnt pay more than 80k tbh.

Head The Wall

If you're not embarrassed with the offer you're making then it's too high

nesf

Thread moved from Irish Economy.

ei.sdraob

are you from Cavan?

how many square meters in total??

gin soaked

No I'm not from Cavan but I am renting here for the last 2 years.
house is 210m² approx

bloo

When youre looking at the rental value (to work out a starting bid), does it matter the condition of the house?

Im looking at a house in co.galway that is in need of a fair bit of work, and you wouldnt be able to live in it yet so its obviously un-rentable. But the rental price of similar houses in good condition in that area would be around 500, 600 month.

Would i still be looking at offering say 110,000 (based on the above equation) even though the place needs a lot of work?

link: http://www.daft.ie/searchsale.daft?id=541598

johndaman66

bloo wrote: »

When youre looking at the rental value (to work out a starting bid), does it matter the condition of the house?

Im looking at a house in co.galway that is in need of a fair bit of work, and you wouldnt be able to live in it yet so its obviously un-rentable. But the rental price of similar houses in good condition in that area would be around 500, 600 month.

Would i still be looking at offering say 110,000 (based on the above equation) even though the place needs a lot of work?

link: http://www.daft.ie/searchsale.daft?id=541598

I'm by no means an expert in residential property. I do see the advantages of setting your emotions aside and applying a cold hard universally recognised formula such as the rent multiplier. But I can also see that such a formula does have certain shortcomings. The property you have linked to is a very good example of what would appear to be such a shortcoming. Aside from the fact that it would appear that the property would require considerable work before you could realistically put it on the rental market I would be very surprised if its actually in a location where there is a viable and any way vibrant rental market to draw comparisons from.

You mention that the rental prices for similar houses in the area is around 500-600 per month but is there actually a vibrant rental market in the area or are you drawing comparisons from one or two houses. I'm just thinking of my own attempts to apply the rental multiplier formula to where I'd be house hunting in County Limerick. Anywhere outside of Limerick city and the 3/4 sizeable towns in County Limerick there is only a very miniscule rental market. Then again I could be wrong and there could be a large factory in Rosscahill or something else I'm overlooking. There are of course other formula that can be applied such as income multiplier for example. I'm not suggesting you ignore the application of well trusted economics either.

As an aside though I think one would certainly need to factor in any work that needs to be done to the house to bring it up to standard if applying the rent multiplier formula. Having said that I cant realistically see the vendor accepting 70k - 80k if the house needs 30k - 40k spent on renovations and furnishing. It would be less than half the 175k asking price.

If you were to pursue the house I would strongly suggest any offers you make are subject to a thorough survey by a qualified engineer. Do bear in mind that such a cost would more than likely cost a small fortune to heat during the colder months. I doubt there would be any cavity to pump in house of this age so you may need to go with an external insulation such as stopter or hoter systems which is by no means cheap and given the large dimensions of the house.

gin soaked

okay I don't really know too much about rental rates. I can only go on whats on the likes of daft or my home to let etc, but It would seem that around the €500 mark is the going rate.
having said that I'm not sure about that as I'm not buying a house as investment it will be our home.
it is energy rate to B1 so its worth now what ever its worth! the work only requires finishing and furniture. some tile and paint, carpets for example.
I just wonder if 125,000 is a good place to start.

ei.sdraob

gin soaked wrote: »

No I'm not from Cavan but I am renting here for the last 2 years.
house is 210m² approx

210m2 is about 2000 square foot
so that 95€ a square foot for a builders finish only

seems a bit high for Cavan, especially in this day and age (see the selfbuild/construction subforum here on boards to get better feel of build costs)

you would then have to spend quite a bit on flooring and tiling, kitchen, painting
and of course furniture etc, probably more but its hard to tell from description


how is the groundworks around the site? in some cases that could endup a major cost


tbh more than 150K would be madness considering you could build for cheaper and land values collapsed especially in the border areas



@bloo run away its a trap

gin soaked

ei.sdraob wrote: »

210m2 is about 2000 square foot
so that 95€ a square foot for a builders finish only

seems a bit high for Cavan, especially in this day and age (see the selfbuild/construction subforum here on boards to get better feel of build costs)

you would then have to spend quite a bit on flooring and tiling, kitchen, painting
and of course furniture etc, probably more but its hard to tell from description


how is the groundworks around the site? in some cases that could endup a major cost


tbh more than 150K would be madness considering you could build for cheaper and land values collapsed especially in the border areas



@bloo run away its a trap

sorry I have not been clear on this, interior and exterior of house painted, boundary fenced,
lawns levelled and seeded.
gates hung at entrance,
gravelled drives.
foot paths in.
Pine doors throughout,
Red deal stairs and skirting,
boiler and oil tank,

well if its quite dear for cavan good god most other house in the cavan area are priced between 200K to 250K for the size and finish. what drugs are these people taking?.
however it does have the best electrical specs I've seen in Cavan. but that is not going to justify the extra thirthy thousand in the asking price.
but I just would like an Idea of what is a good bid for such a property. I don't want to get my first bid excepted as then I know I paid too much for it.
Any advice would be great,
Thanks Gin Soaked

snubbleste

gin soaked wrote: »

Hi,
So I'm hoping to buy a house in Co.Cavan, ...

It's not your own house that you are trying to get a value on, is it?

gin soaked

Nope, I'm first time buyer.

The_Conductor

A number of NAMA and related developments have been put on the market recently- including 2 developments in Cavan.

In the recent 'firesales' the asking price has been exactly 50% of their peak asking prices. This has been viewed as good value by house hunters and people have been actively competing against each other for properties at this level.

There are numerous other developments in the county (and elsewhere) likely to fall to receivers in the near future that will be disposed of in a similar manner (think of the apartment development in Carrickmines for example).

Do not pay more than 50% of peak- is a reasonable rule of thumb.....?

gin soaked

smccarrick wrote: »

A number of NAMA and related developments have been put on the market recently- including 2 developments in Cavan.

In the recent 'firesales' the asking price has been exactly 50% of their peak asking prices. This has been viewed as good value by house hunters and people have been actively competing against each other for properties at this level.

There are numerous other developments in the county (and elsewhere) likely to fall to receivers in the near future that will be disposed of in a similar manner (think of the apartment development in Carrickmines for example).

Do not pay more than 50% of peak- is a reasonable rule of thumb.....?

Okay I'm being a snob I know but I would prefer not to live in a estate/ development. this mainly due to bad experience in the past. one was connect to the people next door. the other was due to some lovely people who moved to the estate and well robbed they place blind and cause lots of problem Gardai calling around, parties, fights and fires!!! that said it was not in cavan , But I grew up the country. so if I am ever blessed with Childern I would like them to grow up in the country side too!

yes I know of one the firesales that you speak off, it was good valve and the houses were well finished and by all accounts well built. but they were a bit far away from work for me.

As for a fire sale of a one of development in the country/ the sticks is not very likely as there is a smaller housing pool to select from. this I think is keep the price higher in this area than in many of the towns and villages around the county.

The_Conductor

gin soaked wrote: »

As for a fire sale of a one of development in the country/ the sticks is not very likely as there is a smaller housing pool to select from. this I think is keep the price higher in this area than in many of the towns and villages around the county.

You have similar firesales occuring in Dublin and Wicklow at present- and the current statements from NAMA infer that it is going to offload all its property over a 10 year period- bringing the residential element of it to the market- as soon as the units can be made saleable/habitable.

You are going to get these firesales all over the country- and they are going to establish the going market rate for residential property. Keep in mind- for the most part prices falls are already in the 40% range- so a 50% discount on peak prices is not even a large cut on what are now current market prices.

As for anyone expecting prices to recover at some stage- there is an elephant in the corner- interest rates...... While they are now not expected to be increased until Q2-Q3 2011- they could very well return to normality (which is an ECB overnight rate of 4.5% and a retail lending rate of 6-6.5%) within a 3-4 year window. If we really expect any sort of a recovery in house prices- we may be sorely disappointed......

Stig31

gin soaked wrote: »

okay I don't really know too much about rental rates. I can only go on whats on the likes of daft or my home to let etc, but It would seem that around the €500 mark is the going rate.
having said that I'm not sure about that as I'm not buying a house as investment it will be our home.
it is energy rate to B1 so its worth now what ever its worth! the work only requires finishing and furniture. some tile and paint, carpets for example.
I just wonder if 125,000 is a good place to start.

just wondering what type of heating is in the house to achieve a B1 rating. also is there solar pannels. from my experiance rating does not affect price greatly but you will notice it in your pocket over time.

Head The Wall

bloo wrote: »

When youre looking at the rental value (to work out a starting bid), does it matter the condition of the house?

Im looking at a house in co.galway that is in need of a fair bit of work, and you wouldnt be able to live in it yet so its obviously un-rentable. But the rental price of similar houses in good condition in that area would be around 500, 600 month.

Would i still be looking at offering say 110,000 (based on the above equation) even though the place needs a lot of work?

link: http://www.daft.ie/searchsale.daft?id=541598

Price was increased on 17 July from 140k to 175K

gin soaked

Stig31 wrote: »

just wondering what type of heating is in the house to achieve a B1 rating. also is there solar pannels. from my experiance rating does not affect price greatly but you will notice it in your pocket over time.

The house has solar panels, and pellet boiler and storage hopper,