Question about price drop in house

leahyl

Hi, so I'm going to view a house on Thursday which has dropped from it's original price of 275k to 249k. From speaking to the estate agent they seem to be eager to get it sold and so could this be the reason the price dropped? It seems a pretty big drop, especially with the house prices at the moment. I'm a bit suspicious.

Generally, what are the reasons a house would suddenly drop in price by 25k?

I've seen pictures and it looks to be in very good conditon.

banie01

To drive interest
Drop the price below similar properties in the locale, get a few punters interested and emotionally invested in the "bargain".
Then they hopefully bid each other up past the original asking price.

Graham

It's usually an indication of low interest at the previous higher price and/or the vendor is trying to get things moving along.

duffman13

Seen a house price drop from 329 to 299 yesterday, sometimes it's overvalued, other times no offers and they do a big drop go get one or two bidding

leahyl

Cheers everyone, yeah I was thinking overpriced a bit too although saw a few houses in the same area for sale around the same price - 270/275 and they sold for around that.

Auctioneer said to me that they are looking to wrap up soon and they have an offer of 252 and the client has said to go ahead with viewings on Thursday but that they want to wrap it up around Friday :rolleyes:

I said "but ye're still having viewings so presumably open to higher offers??" and he says "oh yes!" :pac:

Graham

It's not unusual, particularly if the vendors have an offer on another property for themselves. At least it's a good indication the offer process won't drag on for weeks.

we seen a place for 350k last year and felt was overpriced and it went off the market.
came back early this year at 290 and we ended up buying it for a touch over 300k.
Optimistic vendors

leahyl

Thanks all, I've not been successful when it comes to buying a house yet (obviously!) so I'm always a bit wary and negative and thinking it might be too good to be true if I come across a property I like....hopefully this one might work out if I decide to make an offer!

Edgware

Some people will just not accept the advice of estate agents as to the possible price they would get. I have seen a couple holding out for a high price while all around them similar properties are goung sale agreed for 10/15 % less. The property is still there and they will have to wait sometime for prices to rise.

bri007

We were bidding on a house last year, advertised for €350k, on the market for ages and no offers so we decided to bid on it.

We went in at €325k, vendor rejected then we went in final offer of €340k again rejected.

They then changed estate agents and went up again. We moved onto something else at that stage and didn’t bother.

I just checked property price register over the weekend and the house sold for €320k madness we originally offered €340k.

Either the estate agent never put the offer to them in first place or vendor was greedy, either way missed out on 20k!

There are lots of properties around Dublin 7 dropping asking prices.
I've been watching since last summer, a lot were obviously over priced.

thepropertyguy

Its common for Estate Agents to suggest a price to the vendors and for the vendors to feel its too low and list it at a higher price only to see interest wane. Therefore, prices are dropped to get new interest in the property and hopefully drive the price back up through negotiation.

It is always advisable to have a structual survey done of the property prior to buying. This is usually done between sale agreed and contract signing. A good surveyor will also check the local development plan to understand what the area will look like in 5-10 years time.