€210,000 house in North Dublin - is a bid of €190,000 too low?

Koala14

Just seen a property in North Dublin valued at 210k-estate agent mentioned they were 'open to offers'. We have 22k saved-thinking of putting in bid of 190k.
We have been pre-approved for mortgage of 200k by bank. A few questions:
Is our bid of 190k too low in current market?
Will bank still give us mortgage based on 22k savings?
Many thanks in advance for any advice (from a v green FTB)!

pm1977x

If anything I'd say that's too high for an opening bid, depending on the area and what price similar houses are going for.

Ando's Saggy Bottom

Try and get mortgage approval before bidding it strengthens your hand plus you're wasting your time bidding a certain amount when youre not sure the bank will definitely give it to you.

Otherwise I'd start lower, you've nowt to lose by making a cheeky low opening bid if around 150k - especially if the house has been on for a while. All they can say is no and if its not an immediate no you might be closer to what they will accept than you first thought.

corkgsxr

id go 170 first

tigershould

In a similar vain....

I've seen a house in N Dublin which was on sale for €400k last year, then it dropped to €350k, it went sale agreed in October and then was removed from daft. So i thought it was sold.

It's now come back on the market with a new EA at €350k and I'm thinking about chancing my arm. Edit:(with a cheeky bid of €280k))

any advice on what to bid?

I haven't viewed it but it ticks all the boxes from what I can see. Cheers

killers1

tigershould wrote: »

In a similar vain....

I've seen a house in N Dublin which was on sale for €400k last year, then it dropped to €350k, it went sale agreed in October and then was removed from daft. So i thought it was sold.

It's now come back on the market with a new EA at €350k and I'm thinking about chancing my arm. Edit:(with a cheeky bid of €280k))

any advice on what to bid?

I haven't viewed it but it ticks all the boxes from what I can see. Cheers

There's no harm in putting in a bid of €280k but expect it to be refused. What you're hoping for is that the EA will say something along the lines of 'vendor was hoping to get closer to €330k' or something like that, which then becomes the 'new' asking price and you go from there...

Ando's Saggy Bottom

tigershould wrote: »

In a similar vain....

I've seen a house in N Dublin which was on sale for €400k last year, then it dropped to €350k, it went sale agreed in October and then was removed from daft. So i thought it was sold.

It's now come back on the market with a new EA at €350k and I'm thinking about chancing my arm. Edit:(with a cheeky bid of €280k))

any advice on what to bid?

I haven't viewed it but it ticks all the boxes from what I can see. Cheers

No harm in changing it but if they already went sale agreed before at 350k then they're probably hoping to hold out for the same again.

Would also be worth asking exactly why the house sale fell through last time....

flutered

with a refused sale at €350 the vendors are a sitting duck, with prices falling they are at the mercy of the buyers, i would try the €285 adding a request for the reason for the sale falling thro, also i would ask for the failed buyers details.

tigershould

flutered wrote: »

with a refused sale at €350 the vendors are a sitting duck, with prices falling they are at the mercy of the buyers, i would try the €285 adding a request for the reason for the sale falling thro, also i would ask for the failed buyers details.

Yeh this is kinda what I'm thinking. Altho I am also worried that there could be a bigger reason why the house hasn't sold and why the last sale agreed fell through. I'll see what the EA says. Thanks all.

flutered

which is why i said get the detials of the guy who failed to buy, he will answer your questions the e.a.s will not.

tigershould

flutered wrote: »

which is why i said get the detials of the guy who failed to buy, he will answer your questions the e.a.s will not.

How would I get his details? I know the previous sale was organised by a different EA. should I approach EA1 and ask them? In fact I'm interested to see what spin EA2 puts on the property. I think in the first instance I will go and ask them about the properties history without showing my knowledge. See how honest they are.

flutered

ask ask ask, keep asking its your dosh, i know that when one gets interested in anything new, common sense flys out the window, so ask ask ask, there has to be a legitimate reason the deal fell thro, when you get an answer it may not be a straight answer, so disect it, they want, more than likely need, your money, so they may be economocial with the truth.

Koala14

Just an update on this-house went in 3 weeks for 205k-Dub property market defineitely on the up!

lima

Koala14 wrote: »

Just an update on this-house went in 3 weeks for 205k-Dub property market defineitely on the up!

But 205 is lower than the asking price

Ray Palmer

lima wrote: »

But 205 is lower than the asking price

Does it not show that people are way off on what offers to make?

It illustrates to me the advice here on bidding is fantasy.

flintash

How do you expect price crash, if buyers gives what the seller wants?
I did my homework, and 30% 'discount' is not so uncommon, so ....
Prices are rising at the moment, so not surprised by this development.

Sarn

It depends entirely on the property. You have to consider if the asking price is vaguely realistic, or if the vendor is delusional, and bid accordingly.

Someone looking for half a million when all the houses around it are going for €300k will be receiving offers below €300k. Similarly, a house priced below other asking prices might go for the asking or above.

coolemon

It depends, mainly, on the timing.

We bought in 2010 30% below the asking price. Today however it seems, for the most part, bidding significantly below the asking price does not work, and that people in many cases are out bidding each other above the asking price.

The notion of a 'buyers market' is rapidly changing. I can say that it certainly was a buyers market in 2010, but with such limited supply of suitable housing in Dublin at present the advantage of being a buyer over a seller is even, if not in the sellers favour.

lima

Ray Palmer wrote: »

Does it not show that people are way off on what offers to make?

It illustrates to me the advice here on bidding is fantasy.

Maybe people are now being realistic about what price to sell their property for, because of the property price register. hmm?

Ray Palmer

lima wrote: »

Maybe people are now being realistic about what price to sell their property for, because of the property price register. hmm?

What ever the reason for asking prices the advice here proved inaccurate. I doubt many of the advice people have bought many houses or know anything and are just guessing

micar

I bought a house just before x-mas.
It was on the market for €225k and I got it for €194,500.

Put in the bid, wait for someone else to better it. Go back a week later and if your bid has not been bettered then give vendors a 3 days to accept or reject your offer.

who_ru

coolemon wrote: »

It depends, mainly, on the timing.



The notion of a 'buyers market' is rapidly changing. I can say that it certainly was a buyers market in 2010, but with such limited supply of suitable housing in Dublin at present the advantage of being a buyer over a seller is even, if not in the sellers favour.

failure by the banks to reposes (not allowed by the law) has resulted in 1000s of houses being kept off the market that in any other society would be on the market and have the effect of keeping supply steady instead of stifled.

the refusal to reposes or inability in law to do so has restricted supply so much, that the main beneficiaries are........yes you guessed it........the banks........who get people to borrow more than they would otherwise need to in a functioning market.

biggest loser is the buyer.

but the repos will start this year........and if bailout 2.0 happens then perhaps the market may be allowed to function in the name of free market economics and not rigged by govt, nama, banks to the detriment of buyers.

The_Conductor

Totally aside from what to offer- make sure you have mortgage approval before making offers. Its a hell of a lot more difficult to get mortgage approval these days- and wasting your time and everyone elses' time, is annoying.