Asking price vs Property Price Register

Ziggy_Stardust

Hello Guys,


I don't post around here much but i'm a big silent reader of this forum so thanks for all the helpful advice.


So I've been looking to buy (FTB) for a while and have finally stumbled on a place I'd be willing to buy, I'm currently bidding and think we're close to sale agreed. So I've been doing a bit of research to make sure i'm not making a huge mistake and that the property is actually worth what I'm offering. 


The property is a 3 bed apartment with an initial asking price on the property was 300k which after 6 weeks or so dropped to €285k and we offered €280k. The EA told me that there were a few offers up to the mid €270's. These prices are in the range of asking prices for similar properties in the area on daft/myhome over the past few weeks.


Based on all of this i would have though that i was pretty close to the mark however when i check against the property price register I find that these prices seem way to high. According to the register there was a 2 bed sold in the same complex for €180k and a single bed sold for €160k 2 months ago .


Is there something about that property price register that i'm missing? Could they be cash deals or something that would throw the prices off?

Lucy B

I think the property price register can be a bit random. Where we are renting it's a new estate, and in the years we have lived here, we have watched the houses fill up, and recently I checked the register as we want to buy this house, just to see what went for what, and one example of the randomness is; people we would be very friendly with, bought few years ago, paid about 400k and on register it says they paid less than half that and it has last years date. They definitely paid the higher amount because the house next to them went recently and they got it at half the price, our friend was pulling his hair out with the bargain that these people got, and if you check the register there is different date again down for that sale.
I'm sure some of them are right, but I think it can be very very random.

ted1

Lucy B wrote: »

I think the property price register can be a bit random. Where we are renting it's a new estate, and in the years we have lived here, we have watched the houses fill up, and recently I checked the register as we want to buy this house, just to see what went for what, and one example of the randomness is; people we would be very friendly with, bought few years ago, paid about 400k and on register it says they paid less than half that and it has last years date. They definitely paid the higher amount because the house next to them went recently and they got it at half the price, our friend was pulling his hair out with the bargain that these people got, and if you check the register there is different date again down for that sale.
I'm sure some of them are right, but I think it can be very very random.

Are they new builds? If they are You need to add VAT to the displayed price. Also there is a delay in properties appearing, that price could be 12 months old, there could have been a delay in closing, a delay in registering the property etc.
Finally your buying in today's market not a few months back

Lucy B

How much is vat out of interest actually on a house?

God not sure about market changes etc but I know that the price my friend paid was not what is displayed on register and date is out by years. They had no problems at closing or anything. All straight forward.

Eldarion

Huge difference between a 2 bed and a 3 bed apartment OP. Vast majority of apartments are purchased as investments, the difference between renting a 2-bed for €1k/pm and a 3-bed for €1.5k/pm will be reflected proportionately in the price difference.

Also the 3-beds tend to be placed on the top floors of the apartment complexes which makes them ideal for sunlight, security, generally more privacy, more luxurious etc. This would be priced in as well.

On the PPR you just need to watch for the 2 yes/no questions:

Not Full Market Value: Yes/No
VAT Exclusive: Yes/No

If these are both No then the price you see is the price that was paid and is indicative of the true market value.

cpoh1

Remember also a price up on the property price register in as sold in July will likely have gone sale agreed in early spring. Thats a full 8 months ago in a heated market. The property price register sales are a lagging indicator of prices.

TheDriver

cpoh1 wrote: »

a heated market. The property price register sales are a lagging indicator of prices.

in Dublin and parts of other urban centres. Houses are static in most parts of the country.

cpoh1

TheDriver wrote: »

in Dublin and parts of other urban centres. Houses are static in most parts of the country.

The price register is still a lagging indicator of the market regardless. Prices agreed for a house mightn't show up on the price register for over 6 months from when it was sale agreed.

Regarding your quote above, would it be fair to say that in all the major cities in the country prices have increased significantly? I know there is a lot of heat here in Cork and in Galway too. If you include the major cities in Ireland that have witnessed price increases you are talking about catchment areas where over half the countries population live. Thats a heated market for me.

L1011

Lucy B wrote: »

How much is vat out of interest actually on a house?

God not sure about market changes etc but I know that the price my friend paid was not what is displayed on register and date is out by years. They had no problems at closing or anything. All straight forward.

13.5%

shuffle65

People still looking for crazy money for houses in West Donegal, looking to move there, own a house in Letterkenny town, but the price difference between what I would get for it and what's been asked in WD is massive, I'm scratching my head here!