Possible overpriced property

blindside88

Hey Guys,

I've been posting here before about a house I was thinking of building. We are now toying with the idea of buying a house instead and would like some advise.

Just to give a quick background we have found a very nice house that we like and the price seemed reasonable. It's been for sale since January 2013 at €169k (asking price in '08 was €360k). We were thinking of making an offer of €145k on it and decided to have a scout around online to see what other houses in the area were making. This house is number 45 in the estate, I've found that 46 and 47 were sold in the past year. I called the estate agent that sold these houses and she has told me that they sold for €81k :eek: last year.

The house is in a rural village in Co Carlow and house prices are stagnant at best in the county. Originally we were happy with the house and the price but I'm now wondering would I resent paying so much more than my neighbour had. We're planning on it being a family home and not selling anytime in the near future. What do you think boardsies? Would I resent the decision?

Thanks,

Blindside

TheDriver

1st, look up the PPR and get the truth because EAs don't always tell the truth (Shock)
Then its a decision if you think its worth it. There are factors such as fittings, land, finish etc that need to be factored in. E.g. buy a house that needs a new kitchen, boiler, maybe flooring and suddenly 20k is gone on cosmetic stuff........

ezra_pound

Step one Offer 80 k.

Step two wait

blindside88

TheDriver wrote: »

1st, look up the PPR and get the truth because EAs don't always tell the truth (Shock)
Then its a decision if you think its worth it. There are factors such as fittings, land, finish etc that need to be factored in. E.g. buy a house that needs a new kitchen, boiler, maybe flooring and suddenly 20k is gone on cosmetic stuff........

Thanks for that, not a bad ides. The house is in great condition. It seems like a lot of house for the money as well (4 double bedrooms, 3 bathrooms, 2 living rooms, kitchen/diner, large garden with decking)

blindside88

ezra_pound wrote: »

Step one Offer 80 k.

Step two wait

I imagine it's been for sale for so long because they're not moving too much on price. I can't see them accepting half the asking but the worst they can say is no

db

You have 3 options as I see it - you think the house is worth around €145K so offer that and you might be accepted, make a very low offer of €80K and wait or wait around until a similar house with an asking price of closer to €80K comes up and buy that. All depends on how much you want this house.

ezra_pound

blindside88 wrote: »

I imagine it's been for sale for so long because they're not moving too much on price. I can't see them accepting half the asking but the worst they can say is no

Exactly... And if they still say no after a slightly higher... Move on and look for a serious vendor.

keithiballs

Just buy number 53 for €59k

53 Ard Bhile, Rathvilly, Co. Carlow

draiochtanois

This post has been deleted.

blindside88

keithiballs wrote: »

Just buy number 53 for €59k

53 Ard Bhile, Rathvilly, Co. Carlow

That one is a shell of a house, needs to be finished inside. We've had a look at it

newbie2013

blindside88 wrote: »

That one is a shell of a house, needs to be finished inside. We've had a look at it

Give me the money and I'll finish it for you lol.

Wabbit Ears

if 46 went for 71 K You'd be mad offeing more then 70, I'd be offering 60


€71,366.00 46 Ard Bhile, Rathvilly

MB05

That price of €71,366.00 is ex Vat according to the property price register.

http://www.myhome.ie/priceregister/46-ard-bhile-rathvilly-co-carlow-298801

iguana

Was there much difference in the houses you like and the two which sold last year? Is the one you are interested in bigger? Does it have a better plot, better aspect, does it have a better finish? If so, what would it cost to make those improvements? A cheaper price doesn't always mean better value.

Wabbit Ears

there isnt 80k worth of fit and finish between 45 and 46, there the same house and from the pictures, comparable land.

odds_on

The house might be nice, but what about the estate?

blindside88

Just to give a quick update. We won't be proceeding any further with the property. Had a 2nd viewing today and discussed price with the owners. They weren't receptive to negotiations. I advised that if we were making an offer it would be it the 100k range. They said they wouldn't even consider anything near it. When pressed they said the lowest they would go was €160k. I thanked them for their time and wished them best of luck with the sale but told them I didn't believe the house was worth it considering the sale cost of similar houses. I left my number if they reconsider but I imagine it'll be for sale for a long time to come. Thanks everyone for your help, much appreciated.

Blindside

TheDriver

Sounds like you made the right decision in your course of action. I have found similar sellers whereby the house is never going to sell.

odds_on

So often sellers price their property on how much mortgage is left to be paid, not on the current value of the house. This is particularly so with properties in negative equity when they bought the property in an overpriced market. Also, there are still some people who don't seem to realise that house prices (including the price of their house) have plummeted in the last few years.

TheDriver

I have heard that line too- we cant see for less than that because of the mortgage.....reality unfortunately is that its not worth the price. Also notice price drops but people still expect same bottom line!! I even rang about house whose price dropped to an acceptable level, ea denied a,price drop yet all his ads for that house remained up with price drop of 20k. House sold for 10k less than that price drop. Frustrating.....

The_Honeybadger

So similar houses in the same estate are selling for €70k- €80k, but they won't consider offers less than €160k for their house, it will never ever sell at that price. Like said above that is most likely what is left on the mortgage, cases like this one must be really distorting the market.

draiochtanois

This post has been deleted.

blindside88

draiochtanois wrote: »

This post has been deleted.

I've called the estate agent since and registered my interest in the property, I've advised them of the market rate for the estate and that they can get in touch with me if the sellers decide to bring the house price closer to the 100k mark. It has been for sale for 18 months now but they still seem to think that they have it priced correctly

MouseTail

blindside88 wrote: »

I've called the estate agent since and registered my interest in the property, I've advised them of the market rate for the estate and that they can get in touch with me if the sellers decide to bring the house price closer to the 100k mark. It has been for sale for 18 months now but they still seem to think that they have it priced correctly

Move on, they have no interest or inclination to sell. The EA is well aware of the market value of the property, but he acts on behalf of the vendors.

Geuze

odds_on wrote: »

So often sellers price their property on how much mortgage is left to be paid, not on the current value of the house. This is particularly so with properties in negative equity when they bought the property in an overpriced market. Also, there are still some people who don't seem to realise that house prices (including the price of their house) have plummeted in the last few years.

Surely with the PPR register, and more price transparency, people shouldn't be in denial like this anymore?

Though obviously they are.

TheDriver

Sellers don't seem to look at ppr, only buyers. Sellers read crap about prices rising sharply and think their home is worth lots more. Move on OP, your play is made and think its not going to get anywhere...,