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Currently buying/selling a house? How is it going? READ MOD NOTE POST #1

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    #1052
    PommieBast
    Registered Users Posts: 2,578 ✭✭✭PommieBast


    Looks like the 2-bed Dublin city centre apartment I won the bidding on has made progress. Cash sale for which I already priced in a 10% drop so don't see any reason not to go ahead.


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    #1053
    Spencer Brown
    Closed Accounts Posts: 268 ✭✭Spencer Brown


    Completed the sale of our house today exactly 9 weeks after going sale agreed. Very happy to have gotten such a good price for it when we did before all of this kicked off. Now the wait for our new build to be finished begins, aiming for July/August.


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    #1054
    podgeandrodge
    Registered Users Posts: 5,753 ✭✭✭podgeandrodge


    SpencerJC wrote: »
    There was an article in the Sunday Independent yesterday saying brokers are reporting those bank valuations is some cases are factoring in a 10pc drop-in prices to protect themselves.

    https://www.independent.ie/business/personal-finance/property-mortgages/house-valuations-are-being-reduced-by-10pc-during-the-mortgage-process-due-to-covid-19-according-to-brokers-39136972.html

    What are thoughts on banks giving mortgages if a valuer says house worth 10% less than purchase price if the LTV is low enough that it doesn't matter?

    e.g. House agreed price €400k. Valuer per above article €360k. Mortgage application €200k.

    Would the mortgage provide refuse to allow a purchaser pay "more than a house is worth", once their position is still safe?


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    #1055
    0gac3yjefb5sv7
    Closed Accounts Posts: 3,948 ✭✭✭0gac3yjefb5sv7


    PommieBast wrote: »
    Looks like the 2-bed Dublin city centre apartment I won the bidding on has made progress. Cash sale for which I already priced in a 10% drop so don't see any reason not to go ahead.

    Can I ask which area of Dublin this is. In a similar boat but the EA is saying the other bidder that is 1k behind me is still keen so fat chance of any discount for me. Nevermind 10pc!


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    #1056
    awec
    Administrators Posts: 53,372 Admin ✭✭✭✭✭awec


    podgeandrodge wrote: »
    https://www.independent.ie/business/personal-finance/property-mortgages/house-valuations-are-being-reduced-by-10pc-during-the-mortgage-process-due-to-covid-19-according-to-brokers-39136972.html

    What are thoughts on banks giving mortgages if a valuer says house worth 10% less than purchase price if the LTV is low enough that it doesn't matter?

    e.g. House agreed price €400k. Valuer per above article €360k. Mortgage application €200k.

    Would the mortgage provide refuse to allow a purchaser pay "more than a house is worth", once their position is still safe?

    The bank's concern is that the asset is worth at least the amount of money they are lending you, so they can get their money back in the extreme scenario.

    In your scenario they won't care if it's worth less, it's still worth 180% of the mortgage.

    The bank don't care if you're paying more than they think it's worth, once it's you taking the risk with your money and not theirs.


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    #1057
    Maitguel
    Registered Users Posts: 42 ✭Maitguel


    What are people choosing for interest rates? I’m fixing for 3 years but was wondering if it’s better to fix for longer?


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    #1058
    Experience_day
    Registered Users Posts: 359 ✭✭Experience_day


    ebayissues wrote: »
    Got an email from PTSB aa couple of minutes ago - PTSB are no longer doiing exemptions.


    Another bank will be announcing it soon apparently....


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    #1059
    SpencerJC
    Registered Users Posts: 56 ✭✭SpencerJC


    podgeandrodge wrote: »
    https://www.independent.ie/business/personal-finance/property-mortgages/house-valuations-are-being-reduced-by-10pc-during-the-mortgage-process-due-to-covid-19-according-to-brokers-39136972.html

    What are thoughts on banks giving mortgages if a valuer says house worth 10% less than purchase price if the LTV is low enough that it doesn't matter?

    e.g. House agreed price €400k. Valuer per above article €360k. Mortgage application €200k.

    Would the mortgage provide refuse to allow a purchaser pay "more than a house is worth", once their position is still safe?


    I am pretty sure you'd be ok in this case. But I would assume if you were a first-time buyer, in this case, they would only give 90% of their evaluation meaning you'd need to make up the difference.


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    #1060
    SpencerJC
    Registered Users Posts: 56 ✭✭SpencerJC


    Maitguel wrote: »
    What are people choosing for interest rates? I’m fixing for 3 years but was wondering if it’s better to fix for longer?

    I was going to do 5 years because I was thinking about the inflation that might come with the ECB putting all this money into the economy, but then I was reading one of David Mc Williams articles and he was saying that he expects interest rates to continue to fall, even to negative interest rates and that inflation is not something that we will see for quite a while. This has me thinking of taking 2-years initially, but who knows.


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    #1061
    PommieBast
    Registered Users Posts: 2,578 ✭✭✭PommieBast


    Lorelai Thoughtless Purple wrote: »
    Can I ask which area of Dublin this is. In a similar boat but the EA is saying the other bidder that is 1k behind me is still keen so fat chance of any discount for me. Nevermind 10pc!
    Dublin 1


    I doubt the next-highest bidder is still interested so could safely get 5% or so knocked off, but given my circumstances €10-20k is not really worth haggling over.


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    #1062
    0gac3yjefb5sv7
    Closed Accounts Posts: 3,948 ✭✭✭0gac3yjefb5sv7


    PommieBast wrote: »
    Dublin 1


    I doubt the next-highest bidder is still interested so could safely get 5% or so knocked off, but given my circumstances €10-20k is not really worth haggling over.

    I suppose but there's no way I can be sure, unless I'm willing to take a risk and lose the place....so you got 10pc off asking yep?


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    #1063
    notcarlos
    Registered Users Posts: 77 ✭✭notcarlos


    For those buying/bought a house a quick question. We received copy of contracts already and some additional documents. One document I'm interested in is the land registration. Question, what is the difference between Deed of Transfer and Deed of Charge, one figure is significantly higher than the other. I'm interested to know how much the previous owners paid for the house. Thanks for those who will answer.


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    #1064
    PommieBast
    Registered Users Posts: 2,578 ✭✭✭PommieBast


    Lorelai Thoughtless Purple wrote: »
    I suppose but there's no way I can be sure, unless I'm willing to take a risk and lose the place....so you got 10pc off asking yep?
    Can't remember what original asking price was as I was bidding on multiple places at once. Set myself a budget of €300k on the basis that having to sell for €250k in the future would not be a disaster, and my bid was below this budget.


    My working assumption is that EAs are borderline fraudsters, but that is something for a different thread.


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    #1065
    Mariomaker
    Registered Users Posts: 41 ✭Mariomaker


    My place has been been sale agreed for the past 6 weeks. The purchasers are asking for a 22% haircut. Think i might as well take my place off the market. I think people will just be offering crazy low ball offers. Pitty


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    #1066
    SteelyDanJalapeno
    Registered Users Posts: 14,240 ✭✭✭✭SteelyDanJalapeno


    Mariomaker wrote: »
    My place has been been sale agreed for the past 6 weeks. The purchasers are asking for a 22% haircut. Think i might as well take my place off the market. I think people will just be offering crazy low ball offers. Pitty

    Yep for sure if you take it off the market and wait another few years you'd be in a better position.
    Possibly.


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    #1067
    IvoryTower
    Registered Users Posts: 3,825 ✭✭✭IvoryTower


    Does it cost much to have a house on the market? Can you not just leave it there in hope of a decent offer?


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    #1068
    busylady
    Registered Users Posts: 82 ✭✭busylady


    notcarlos wrote: »
    For those buying/bought a house a quick question. We received copy of contracts already and some additional documents. One document I'm interested in is the land registration. Question, what is the difference between Deed of Transfer and Deed of Charge, one figure is significantly higher than the other. I'm interested to know how much the previous owners paid for the house. Thanks for those who will answer.

    The Deed of Transfer is the document transferring title so it would set out the purchase price. The Deed of Charge is a mortgage deed.


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    #1069
    Ogie007
    Registered Users Posts: 3 ✭Ogie007


    Mariomaker wrote: »
    My place has been been sale agreed for the past 6 weeks. The purchasers are asking for a 22% haircut. Think i might as well take my place off the market. I think people will just be offering crazy low ball offers. Pitty

    Is it ok for the purchaser to renegotiate on the agreed price before contracts are signed? With all that is going on, would this not be expected by vendor? A lot has changed in 6 weeks! Any opinions on this?


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    #1070
    Vaso_81
    Registered Users Posts: 7 ✭Vaso_81


    Quick question for anyone who may be in the know. We went sale agreed on a new build back in February, before thinks kicked off with covid-19. Full loan offer was recieved from BOI, contracts were signed, 10% deposit was fully paid. The loan offer was based on a 4.3x salary exemption. The house was due to be finished around April, but with the restrictions, that's obviously delayed an indefinite amount of time.

    My question is about the loan offer, which is valid until August. Is it possible that the bank could pull the loan offer even though everything is signed? We are in the very lucky situation that neither of our salaries have changed despite the current economic crisis, but I've read that banks are stopping exemptions. Does anyone know if this includes cases where the loan offer with exemption has already been issued?
    It's our dream home in a location that we never thought would be possible for us so we still really want to proceed but really worried about something scuppering things before we can drawdown in the next few months.


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    #1071
    Mariomaker
    Registered Users Posts: 41 ✭Mariomaker


    Ogie007 wrote: »
    Is it ok for the purchaser to renegotiate on the agreed price before contracts are signed? With all that is going on, would this not be expected by vendor? A lot has changed in 6 weeks! Any opinions on this?

    Yes they can renegotiate. Im gonna have to chat to my estate agent to see my next moves but I honestly think I have missed out.


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    #1072
    Ogie007
    Registered Users Posts: 3 ✭Ogie007


    Mariomaker wrote: »
    Yes they can renegotiate. Im gonna have to chat to my estate agent to see my next moves but I honestly think I have missed out.

    22% does sound like a large chunk. Best of luck anyway. Hope it works out!


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    #1073
    notcarlos
    Registered Users Posts: 77 ✭✭notcarlos


    busylady wrote: »
    The Deed of Transfer is the document transferring title so it would set out the purchase price. The Deed of Charge is a mortgage deed.

    Hi thanks for the reply! I'm still confused though. Deed of transfer says it is 100K and Deed of Charge is 500K. Would that mean the previous total value was 600K and they had to mortgage 500K from the bank?


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    #1074
    Housebuying
    Registered Users Posts: 54 ✭✭Housebuying


    Mariomaker wrote: »
    My place has been been sale agreed for the past 6 weeks. The purchasers are asking for a 22% haircut. Think i might as well take my place off the market. I think people will just be offering crazy low ball offers. Pitty


    I guess it depends on whether the houses you are looking to buy are also 22% down. I'm not seeing it myself. I wouldn't rush into a quick sell like this.

    I'm sale agreed since the start of the March. I haven't heard anything from the vendors. I'm waiting to see when the restrictions are lifted and then I hopefully have a better idea what the economy and house prices will look like then.


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    #1075
    PommieBast
    Registered Users Posts: 2,578 ✭✭✭PommieBast


    Mariomaker wrote: »
    My place has been been sale agreed for the past 6 weeks. The purchasers are asking for a 22% haircut. Think i might as well take my place off the market. I think people will just be offering crazy low ball offers. Pitty
    I'd tell them to take a hike. Asking straight up for that sort of discount looks like someone who is simply not worth dealing with.


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    #1076
    fago
    Registered Users Posts: 318 ✭✭fago


    Mariomaker wrote: »
    My place has been been sale agreed for the past 6 weeks. The purchasers are asking for a 22% haircut. Think i might as well take my place off the market. I think people will just be offering crazy low ball offers. Pitty

    I imagine it's frustrating but there are so many variables, each situation is different

    - If you have an underbidder above the 22% that would indicate the level of cheekiness in the offer, and you would be going to them. If you don't have an underbidder then maybe 22% isn't realistic but is 15%, 10%?
    - Perhaps the purchaser is having the same issues as others with mortgage exceptions gone, work issues etc

    We sold 5% below asking about a year ago, without even trying to negotiate. Because we had lots of viewers, but only one realistic bid over 3 months.

    Depends on the necessity to sell.


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    #1077
    Pablo_Flox
    Registered Users Posts: 585 ✭✭✭Pablo_Flox


    Mariomaker wrote: »
    My place has been been sale agreed for the past 6 weeks. The purchasers are asking for a 22% haircut. Think i might as well take my place off the market. I think people will just be offering crazy low ball offers. Pitty

    That would be a firm no from me. I dont think its unreasonable to renogiate (I did it myself a few weeks ago as a buyer), but 22% is taking the Micky. They have all the hallmarks of people who will mess you around and pull out at the last minute in my opinion.

    If it was me I would offer 4-5k off and tell them that is the offer and if they don't take it you will be relisiting the house tomorrow. This lockdown won't last for ever... a couple more weeks and you will be able to start organising viewings etc. again.


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    #1078
    fliball123
    Registered Users Posts: 7,445 ✭✭✭fliball123


    Mariomaker wrote: »
    My place has been been sale agreed for the past 6 weeks. The purchasers are asking for a 22% haircut. Think i might as well take my place off the market. I think people will just be offering crazy low ball offers. Pitty

    If I was you I would pull it or go back and say no and that they have a week to say yes or your pulling. Then depending on your situation. If this is a buy to let, drop the rent a bit and rent it until the economy has bounced back. If you were buying and selling as part of a chain. I would put both on pause until after the virus and until there is a bit more certainty. The best way to deal with people is to give them a time limit that way you will know if they are serious or not. If it was a situation where you think you have to sell as you cant afford it any more..Sit tight tell the bank you cant afford to pay the mortgage, stop paying it and you could get 10 years plus rent free..You have more leverage then you or the buyers think


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    #1079
    annatar91
    Registered Users Posts: 10 ✭annatar91


    I'm sale agreed since the end of February.
    It's a new property and was due to be finished around now but obviously on hold indefinitely.

    I have all contracts signed, deposit paid , HTB claimed and essentially all that's left is the final valuation to happen. Sale price is €210k but I'm not worried now with valuers allegedly valuing at 10% lower, what position does this leave me in. I'm am stretched to buy this property as it is and I'm concerned that I may miss out on the sale and potentially have to forgo my deposit.

    Is anyone else in this situation ?


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    #1080
    Claw Hammer
    Registered Users Posts: 6,163 ✭✭✭Claw Hammer


    IvoryTower wrote: »
    Does it cost much to have a house on the market? Can you not just leave it there in hope of a decent offer?

    If a house is on the market for a long time potential purchasers start to wonder what is wrong with it and are most unlikely to make a decent offer.


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    #1081
    mcbert
    Registered Users Posts: 460 ✭✭mcbert


    So in last 4 weeks, we cancelled buying one house (various ongoing concerns & taking too long), went sale agreed on another larger nicer one for nearly 10% under, then discovered we have to reapply for mortgage from scratch, but bank has just done the valuation & have just got word our new AIP is in, with full loan offer on its way. Given how limited the stock has been for what we want (5bed detached, Galway city), over last two years, and given we expect to live there for years, if average prices dropped by a further 10% (20% total) over next months or couple of years, we are not too concerned: buying an actual house now is better then a theoretical price drop on stock that might not be there in the future, at least has barely existed over last over last few years at price we can pay.


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