False Economy...

quinnie123ie

Hi all,

I don’t mean to have (another) poke at estate agents, but has anyone noticed that even though there is a lot of talk about property prices falling, that not many (on daft.ie or myhome.ie) actually are???

I have been watching a number of area's (D14, D16 & D18 mostly) for the past 12 - 18 months, and i have noticed properties in the nutgrove & sandyford area being presented to the public on the sites mentioned above for more then houses of the exact same spec, from the exact same area's were last year... this has been going on for at least 6 months now...

Has anyone else noticed anything similar?

Thanks
Q

D3PO

quinnie123ie wrote: »

Hi all,

I don’t mean to have (another) poke at estate agents, but has anyone noticed that even though there is a lot of talk about property prices falling, that not many (on daft.ie or myhome.ie) actually are???

I have been watching a number of area's (D14, D16 & D18 mostly) for the past 12 - 18 months, and i have noticed properties in the nutgrove & sandyford area being presented to the public on the sites mentioned above for more then houses of the exact same spec, from the exact same area's were last year... this has been going on for at least 6 months now...

Has anyone else noticed anything similar?

Thanks
Q

They are falling. Your either not looking hard enough or not using the tracking tools out there that record the asking price drops.

Besides which asking prices and selling prcis have absolutly no relation to each other.

quinnie123ie

How comes this has gone up by around 30k in the past 4 months...

http://www.myhome.ie/residential/brochure/13a-moreen-park-sandyford-dublin-18/1610405

Zamboni

D14 and D16 are in my search areas but I haven't seen the anomoly you speak of?

Cuddlesworth

quinnie123ie wrote: »

How comes this has gone up by around 30k in the past 4 months...

http://www.myhome.ie/residential/brochure/13a-moreen-park-sandyford-dublin-18/1610405

Because it didn't sell at the lower price. Maybe they are hoping somebody will try low ball them on the advertised price, coming close to what they are actually looking for.

Ritchi

quinnie123ie wrote: »

How comes this has gone up by around 30k in the past 4 months...

http://www.myhome.ie/residential/brochure/13a-moreen-park-sandyford-dublin-18/1610405

The asking price has gone up, that doesn't mean they'll get that. They have obviously gotten offers too low that they're not happy with, or can't accept.

I'd be more interested in sell prices.

L1011

Asking prices have become utter works of fiction. Land registry figures like exist in the UK would show the real picture.

I'm probably able to get a mortgage fairly easily but even with 20% of 150k as a deposit I'm not sure whether the houses advertised at ~160 - ~180 in my area could be hammered down to that (and whether the bank would agree on the valuation!); knowing what others are taking would be a massive help and would likely get me, and others, in to the market sooner.

The ~160's are generally tiny or need a lot of work and the ~180's are what I'd want, mores the pity.

quinnie123ie

my suggestion is that you ask a friend to go and view the property too and disply a bit of interest... i made an offer on one house and it was declined, and 3 months later the EA called me and told me they were reducing the price to what i offered, i said in that case i am reducing my offer... he didnt seem to like it, but i think if you play the waiting game you will root out the best bargain...

Giblet

quinnie123ie wrote: »

How comes this has gone up by around 30k in the past 4 months...

http://www.myhome.ie/residential/brochure/13a-moreen-park-sandyford-dublin-18/1610405

Ah Moreen, nice views of the burned out house up the road.

The_Conductor

Sellers are making a working assumption that any asking price they advertise is going to attract offers at significantly below what they are advertising- and they are building this margin into their advertised price.

Headline prices on websites such as DAFT for both sales and rentals- have far lower correlation to actual selling (or rental) prices than they did in the past- given an expectation on the part of both buyers and renters that they can knock a chunk off any asking price (the chunk being a game of who blinks first........)

We really need a proper register of prices like they have in the UK- however even something like that would only have limited impact here, given our current illiquid market........

hibby

Speaking as a seller, our estate agent took a different strategy. He advised us to set the asking price very close to the price we would be willing to accept. In other words, not to price in an assumption of a 20% discount.

I was a bit worried about this because it went against everything I was hearing, and I questioned it, but he explained that the idea is to generate as much interest as possible among people with approvals in the right price range, and get offers. On this basis we went with the price he advised.

This turned out to be very effective. We advertised on Tuesday, had 9 viewers at the first viewing on Saturday, 6 the following Wednesday, an offer and a counter-offer. After less than 2 weeks we are now "sale agreed in principle" (touch wood!) having agreed to accept a cash offer close to our asking price.

Meanwhile houses in the same estate priced at 40k more have been on the market for weeks and months.

So, my point is that not every price you see has a margin built in. It probably depends on the estate agent.

The_Conductor

hibby- sounds like you have an intelligent estate agent, who actually knows how to sell a house. Unfortunately we don't have very many of them!

hibby

D3PO wrote: »

They are falling. Your either not looking hard enough or not using the tracking tools out there that record the asking price drops.

Besides which asking prices and selling prcis have absolutly no relation to each other.

But there is something going on. I'm not saying the market has hit bottom (it will be a bit of a sickener for me if it has, because we're selling our house and will want to buy another one when we come back to Ireland in 2013). But my colleagues who are buyers are telling me it's not really a buyer's market (people who have been outbid on several houses, often by €1000 above their approval), and in some segments of the market, in some parts of the city, houses are being bid up above the asking price.

It just looks to me as if prices have hit a level where there is a good bit of activity, with good demand for houses in (say) the €175k to €200k range.

That's not at all to say that they won't continue falling, and from a purely selfish point of view I hope that they do. But on the other hand it could be the first signs of something.

I brought my house last August and I found that estate agents had two ways of doing it.

(1) put the house on at a high ( but not realistic price ) and NEVER reduce the asking price, but the house sells for a significant discount, smaller estate agents tend to do this because it gives the illusion that they are getting a good price for the house thus getting silly people who are selling their houses to go with them because of the illusion that they get a better price.

(2) The larger estate agents tend to be prepared to lower the advertised price quicker if there is no interest ( with the vendors consent )
thus selling the house quicker and getting more clients by that method.

Spiritofthekop

hibby wrote: »

But there is something going on. I'm not saying the market has hit bottom (it will be a bit of a sickener for me if it has, because we're selling our house and will want to buy another one when we come back to Ireland in 2013). But my colleagues who are buyers are telling me it's not really a buyer's market (people who have been outbid on several houses, often by €1000 above their approval), and in some segments of the market, in some parts of the city, houses are being bid up above the asking price.

It just looks to me as if prices have hit a level where there is a good bit of activity, with good demand for houses in (say) the €175k to €200k range.

That's not at all to say that they won't continue falling, and from a purely selfish point of view I hope that they do. But on the other hand it could be the first signs of something.

Its only because there is very little good houses for sale and any good ones that come up you will get a lot of interest from cash buyers early in the year.

The banks are not allowing people in NE to sell their houses so its a catch 22 situation. There is very little good value out there right now.

Any decent house in a good area will get a lot interest early in the year & will probably sell when it hits the right price.

I know of a lovely 4 bedroom house with no work/money required on it in leopardtown that sold for 375,000 recenlty that would be ok value at the moment imo.

House prices will slowly continue to fall for years yet imo.