Vendor won't sell but very reasonable price - why?

mongolianyurt

Hi all just wondering if you could make me any the wiser on this.

We've been looking for about 2 years now for a farmhouse with a bit of character and a couple of acres of land in South tipp/waterford/sth kilkenny area. We found a place eventually a couple of months ago but the estate agent said the offer was too low.

It is a farmhouse in South tipperary in a relatively good location but it is in a very bad state. There are apparently 2.5 acres going with it but it doesnt look like it when you walk it.

Anyway the asking price is E250,000 for an unliveable farmhouse with barely 2.5 acres. We offerred E165,000 which was rejected. Estate agent said E200,000 would probably buy it....I think this is cccrrraaazzzy money and even the E165,000 we offered was too much.

So does anyone have any reason why the vendor is not selling it?? I think he bought it originally for massive money...we really love it...is there any way around this?!

Thanks!

who what when

They arent selling because you only offered a little over 60 percent of the asking price! The owner believes its worth more than that.
Quiet simply a difference of opinion.

blah

I don't think there is any way around it. A lot of sellers can't understand the difference between asking price (specifically what the asking price once was) and the actual value of property.

He'll probably give you a ring in 6 months or a year asking if you're still interested in offering 165 at which stage the market will have fallen further and you'll know better than to accept.

leeroybrown

It's the owner's property and it's sale is at their discretion, regardless of whether it makes good financial sense or not. There's nothing you can do and rightly so.

HardyEustace

The seller may not know.

I've heard of cases where estate agents have not informed people of offers as they(the estate agent) think they're too low.

Make sure that the seller knows of your offer.

kmick

Depending on your budget I'd make two more offers of 5k each with a week in between. When you make the last offer indicate its the last offer and its on the table for 5 working days. If that is rejected then fall in love with another property. With land values around 10k an acre and the house worth essentially nothing apart from the planning value of there being a house on the site you are essentially paying for a site with speculative planning.

Zamboni

1. Vendor puts house up for sale with asking price.

2. Buyer offers a price for the house.

3. Vendor and buyer negotiate and agree on a price - results in sale

4. Vendor and buyer negotiate and do not agree on price - results in no sale

Speculation on the motivations of either party is irrelevant and futile.

Dymo

Why are you even contemplating buying this house?

2.5 acres going with it but it doesnt look like it when you walk it

unliveable farmhouse

this is cccrrraaazzzy money

There's no law saying that a seller has to sell to you, from the original post my understanding is you think there should be?. If you can't afford to pay closer to the asking price just move on and find another house there's plenty out there.

The value of the property is the price someone is willing to pay for it, this property is marketed at €250,000 but who knows the real value.

Senna

Probably no mortgage attached to property, owner makes 100% profit on any price. Owner has a set price in mind, even if it sits on the market for years and eventually sells for 100k, owner hasn't really lost anything.
Sounds pretty stupid, but i've seen it with farmers selling sites and people selling inherit property. Its very different when property "owes" the seller money, they may look to "cut and run" with a loss.

tanyabond

E165 for an unlivable house in the middle of nowhere???
Be happy the EA didn't pass it on to the owner as he probably would take arms and legs.
Hold on to your money and look elsewhere for a better value.

ongarboy

You obviously have your eye on this one but just to let you know, there are loads of properties like that (uninhabitable with many more acres) that are going for asking prices of a lot less than what you even offered. I suggest you search elsewhere, particularly if these guys are non negotiable (ie living in denial).

The vendor's auctioneer is not doing a good job if he is allowing his client to sell at a price which is way above the current market trend/value. I have read that some vendors are in denial about the plummeting prices and only after 12 months plus of no sales that they are eventually forced to drop. However, there are some people particularly in cases where the vendors inherited the properties, are in no rush to sell so will not entertain what they see a low offer.

the_syco

If it's character you want, you'll need to put a bit of work into it. Everything else I found is modern day stuff.

http://www.daft.ie/1550141 €250,000 - photo 3 makes it looks nice and enclosed

www.daft.ie/1513536 €250,000 - looks odd.

www.daft.ie/1410993 €199,000 - listed 889 days ago
www.daft.ie/1471197 €149,000 - listed 554 days ago
Both are the same house. Looks like a bit of a sh|thole at the moment, but with a bit of work, it'd look excellent, maybe? As the price is falling, I'd say a decent bid would get it.

www.daft.ie/1292251 - €45,000 - This house was probably left to ruin before you were born :P

ztoical

Like others have said they don't have to have a reason for refusing the offer - they did either up your offer [which would be silly if it's in the condition you say] or move on.

If you want somewhere with character but needing a bucket load of work how about an old Mill....http://www.daft.ie/searchsale.daft?id=338072

Kilrush has had the for sale sign outside it for nearly 5 years now so you'd prob get it for next to nothing if your willing to spent the saving on doing the place up.

crossmolinalad

HardyEustace wrote: »

The seller may not know.

I've heard of cases where estate agents have not informed people of offers as they(the estate agent) think they're too low.

Make sure that the seller knows of your offer.

Had the same 5 years ago
Been gone to the neighbors next to the property and asked them if they knows who the owners were
It was family of them and told them what i offered for the house and did give them my phone number
two days later i got a call from the owner that the house was mine
Vendor was pissed off that i contacted the seller without telling him
I told him to (u know what i mean) because he didnt contact the seller so i did it myself

Grolschevik

the_syco wrote: »

If it's character you want, you'll need to put a bit of work into it.
www.daft.ie/1410993 €199,000 - listed 889 days ago

Jaysus! Character and work indeed! But €199,000? I mean, come on: http://www.daft.ie/searchsale.daft?id=541420&search=1


[Edit: Oops! Wrong county! But still...]

the_syco

Grolschevik wrote: »

Jaysus! Character and work indeed! But €199,000? I mean, come on: http://www.daft.ie/searchsale.daft?id=541420&search=1


[Edit: Oops! Wrong county! But still...]

Aye. If you look at the days

the_syco wrote: »

Iwww.daft.ie/1410993 €199,000 - listed 889 days ago
www.daft.ie/1471197 €149,000 - listed 554 days ago

€199,000 889 days (2.5 years) ago, and then €149,000 554 days (1.5 years) ago, so I'd say you could maybe get it for a lot less than €149,000 now. As for the bungalow, it doens't have much land. You can get a single story house on more land than that for less than €199,000 but they wouldn't really have much "character" as such.

ArraMusha

HardyEustace wrote: »

The seller may not know.

I've heard of cases where estate agents have not informed people of offers as they(the estate agent) think they're too low.

Make sure that the seller knows of your offer.

how does one do that ?

the_syco

ArraMusha wrote: »

how does one do that ?

Ask the next door neighbour if they have the sellers details...

mongolianyurt

Thanks everyone for the advice. I did a google, joined a social network site and have gotten an email address for the vendor so i've emailed him to enquire! Hope something good will come of it or else I'll get given out to by an estate agent :eek:

edanto

Well done on the research! Did you hear from the seller if the agent had told them about the offer? I would guess that they knew of the offer, and just weren't for moving.

Still, lots of suggestions of other places in the thread here

mongolianyurt

Hi ya, well he confirmed with me that he wasnt willing to go far off the E200,000 mark...so pretty much what estate agent said. So now we just have to put that house out of our minds Sometimes you just need to hear it from the horse's mouth!!

Hopefully something will come up....

Treehouse72

mongolianyurt wrote: »

Hopefully something will come up....

Or down...

Home values may fall 17.4 percent this year and 18.8 percent in 2012 under the scenario, the central bank in Dublin said in a report today.

http://www.bloomberg.com/news/2011-03-16/irish-central-bank-stress-tests-sees-house-prices-falling-55-.html


And fwiw, the Irish Cental Bank's stats have been wrong on the optimistic side with just about every single prediction in the last 10 years. It wouldn't surprise me if the same were the case here.

djmcr

Treehouse72 wrote: »

Or down...

Could be a case of a self fulfilling prophesy

Treehouse72

djmcr wrote: »

Could be a case of a self fulfilling prophesy

Talking down the market, is it?