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

masterboy123

Closing our deal and finalising payments now.

A quick question on stamp duty of property. Is it 1% of total house price with VAT included?

Thank you

awec

masterboy123 wrote: »

Closing our deal and finalising payments now.

A quick question on stamp duty of property. Is it 1% of total house price with VAT included?

Thank you

No, 1% of the price excluding VAT.

Otherwise you'd be getting taxed on your tax.

brisan

masterboy123 wrote: »

Closing our deal and finalising payments now.

A quick question on stamp duty of property. Is it 1% of total house price with VAT included?

Thank you

https://www.citizensinformation.ie/en/housing/owning_a_home/buying_a_home/stamp_duty.html#:~:text=Budget%202020,from%206%25%20to%207.5%25.
Relevant section below

If you paid VAT on your house, you only have to pay stamp duty on the base price of the house – before the VAT was added. So, for example, if you paid €454,000 (including VAT) for your new house, this is made up of the base price of €400,000 plus 13.5% VAT (€54,000) and you only pay stamp duty on the base price of €400,000. Read more in our document on Value Added Tax.

Leozord

loads of gold information here

I found a place which was advertised like 3 months ago. The ask price was 385k.

Right after the announcement, I decided to visit it. I loved the place. I was thinking to offer 355k but because I already had booked flights for a long holiday, I've decided to not bit until I return to Ireland.

Now in august I called the EA to know if the house was sold and he said it was sale agreed for the asking price. Fair enough, I walked away.

Three weeks later, EA calls me back saying that the buyer pulled out. He said there was an offer for 375k but if I offer 380k the owner would sell it to me

I think this is a bit strange situation. Probably what will happen is that I will offer 380 and he will be back to the other bidder and there it goes another bid war. Or he is just bluffing.

What do ye reckon?

Mslenny

We are selling our house and buying a new build. We have a buyer and want that contract signed before signing for our own.
However is it not standard that in our contract with new build there would be the condition- ‘subject to sale of purchasers house’?
I would have assumed any second time buyer would look for this protection? If our buyer did not go through with sale after contracts we could recoup the deposit however there is a €20k difference between the deposit on our house and the the deposit we will be putting on the new build.
Appreciate any insights

masterboy123

Thanks a million.

awec wrote: »

No, 1% of the price excluding VAT.

Otherwise you'd be getting taxed on your tax.

brisan

Leozord wrote: »

loads of gold information here

I found a place which was advertised like 3 months ago. The ask price was 385k.

Right after the announcement, I decided to visit it. I loved the place. I was thinking to offer 355k but because I already had booked flights for a long holiday, I've decided to not bit until I return to Ireland.

Now in august I called the EA to know if the house was sold and he said it was sale agreed for the asking price. Fair enough, I walked away.

Three weeks later, EA calls me back saying that the buyer pulled out. He said there was an offer for 375k but if I offer 380k the owner would sell it to me

I think this is a bit strange situation. Probably what will happen is that I will offer 380 and he will be back to the other bidder and there it goes another bid war. Or he is just bluffing.

What do ye reckon?

The one rule of buying property is to be prepared to walk away
Offer what you think the property is worth and tell the EA that's your top offer.
if he comes back with a higher bid tell him you are out.
If you are a cash buyer or can prove you have AIP and are not affected by PUP or EWSS payments that will put you in a stronger position.
The buyer may have pulled out because even though he had AIP he may not have been able to drawdown
This has happened to a lot of people and there is a whole thread on here dedicated to it
You are right to be suspicious of Estate agents

brisan

Mslenny wrote: »

We are selling our house and buying a new build. We have a buyer and want that contract signed before signing for our own.
However is it not standard that in our contract with new build there would be the condition- ‘subject to sale of purchasers house’?
I would have assumed any second time buyer would look for this protection? If our buyer did not go through with sale after contracts we could recoup the deposit however there is a €20k difference between the deposit on our house and the the deposit we will be putting on the new build.
Appreciate any insights

I would assume there would be a subject to finance clause in your contract with the seller of the new house.
However your solicitor would be the best person to ask .

Leozord

brisan wrote: »

The one rule of buying property is to be prepared to walk away
Offer what you think the property is worth and tell the EA that's your top offer.
if he comes back with a higher bid tell him you are out.
If you are a cash buyer or can prove you have AIP and are not affected by PUP or EWSS payments that will put you in a stronger position.
The buyer may have pulled out because even though he had AIP he may not have been able to drawdown
This has happened to a lot of people and there is a whole thread on here dedicated to it
You are right to be suspicious of Estate agents

Thanks for the reply

No, I'm not on EWSS - am still working from home, didn't get pay cut or anything (working in IT). I'm assuming AIP is an income stream from my employer?

brisan

Leozord wrote: »

Thanks for the reply

No, I'm not on EWSS - am still working from home, didn't get pay cut or anything (working in IT). I'm assuming AIP is an income stream from my employer?

AIP is approval in principle from your bank or building society
Basically it says that they are prepared to lend you a certain amount of money by way of a mortgage so you can buy a qualifying property ie a property on which you have at least a 10% deposit and is valued at a price they find acceptable.
Have you applied for a mortgage or are you a cash buyer ???

Leozord

brisan wrote: »

AIP is approval in principle from your bank or building society
Basically it says that they are prepared to lend you a certain amount of money by way of a mortgage so you can buy a qualifying property ie a property on which you have at least a 10% deposit and is valued at a price they find acceptable.
Have you applied for a mortgage or are you a cash buyer ???

Oh yes, I already got the Approval in Principle, with a higher amount than the asking price. One of the another reasons that I was waiting for bidding was because of the bank - it took a bit longer from Bank of Ireland to get it approved. According to them, there were loads of mortgage applications in July.

brisan

Leozord wrote: »

Oh yes, I already got the Approval in Principle, with a higher amount than the asking price. One of the another reasons that I was waiting for bidding was because of the bank - it took a bit longer from Bank of Ireland to get it approved. According to them, there were loads of mortgage applications in July.

If the EA asks to see your AIP redact the amount you are approved for so he/she does not know how much you have to spend .
no point in showing your full hand too early

Pivot Eoin

Went Sale Agreed today. Very happy but still lots of work to be done to get over the line... Not to even the mention the renovations needed after that!!! Baby steps anyhow. Stick at it, the right place comes up eventually.

Mslenny

brisan wrote: »

I would assume there would be a subject to finance clause in your contract with the seller of the new house.
However your solicitor would be the best person to ask .

We requested the clause .... the sellers solicitor said they won’t amend the contract. I’m surprised I thought it was a standard enough condition for a second time buyer.
As a result our solicitor has said not to buy the house ....

brisan

Mslenny wrote: »

We requested the clause .... the sellers solicitor said they won’t amend the contract. I’m surprised I thought it was a standard enough condition for a second time buyer.
As a result our solicitor has said not to buy the house ....

Well I would say you were well advised .
When your house is sold the new build may still be available and subject to finance will not be an issue.
I am surprised though as most solicitors will insist on this clause especially given the uncertain times we live in

awec

Leozord wrote: »

loads of gold information here

I found a place which was advertised like 3 months ago. The ask price was 385k.

Right after the announcement, I decided to visit it. I loved the place. I was thinking to offer 355k but because I already had booked flights for a long holiday, I've decided to not bit until I return to Ireland.

Now in august I called the EA to know if the house was sold and he said it was sale agreed for the asking price. Fair enough, I walked away.

Three weeks later, EA calls me back saying that the buyer pulled out. He said there was an offer for 375k but if I offer 380k the owner would sell it to me

I think this is a bit strange situation. Probably what will happen is that I will offer 380 and he will be back to the other bidder and there it goes another bid war. Or he is just bluffing.

What do ye reckon?

If you are happy to buy it for 380 then you have nothing to lose putting a bid in. Either you'll go sale agreed, and you get the house you wanted, or someone else will bid, and you can either bid again or walk away.

awec

brisan wrote: »

Well I would say you were well advised .
When your house is sold the new build may still be available and subject to finance will not be an issue.
I am surprised though as most solicitors will insist on this clause especially given the uncertain times we live in

I am not remotely surprised, since solicitors for one party cannot insist on anything.

Given the uncertain times we live in it is not surprising that the vendors do not want this clause added, as it increases the chances that they will be left out of pocket through no fault of their own.

Smouse156

Leozord wrote: »

loads of gold information here

I found a place which was advertised like 3 months ago. The ask price was 385k.

Right after the announcement, I decided to visit it. I loved the place. I was thinking to offer 355k but because I already had booked flights for a long holiday, I've decided to not bit until I return to Ireland.

Now in august I called the EA to know if the house was sold and he said it was sale agreed for the asking price. Fair enough, I walked away.

Three weeks later, EA calls me back saying that the buyer pulled out. He said there was an offer for 375k but if I offer 380k the owner would sell it to me

I think this is a bit strange situation. Probably what will happen is that I will offer 380 and he will be back to the other bidder and there it goes another bid war. Or he is just bluffing.

What do ye reckon?

As many here have stated, offer only what you think it’s worth to you and leave it at that

Queenio

awec wrote: »

I am not remotely surprised, since solicitors for one party cannot insist on anything.

Given the uncertain times we live in it is not surprising that the vendors do not want this clause added, as it increases the chances that they will be left out of pocket through no fault of their own.

I understand the vendors position on this but the idea of having to walk away from a very significant deposit that takes years to save us untenable to me. Especially as by withdrawing your offer they are going to be down solicitor fees anyway. I'd rather lose 2k in solicitors fees than 70k deposit. Easy choice for us should vendors decline a subject to finance clause

brisan

awec wrote: »

I am not remotely surprised, since solicitors for one party cannot insist on anything.

Given the uncertain times we live in it is not surprising that the vendors do not want this clause added, as it increases the chances that they will be left out of pocket through no fault of their own.

Given the uncertain times we live in it is not surprising that the buyers want this clause added.
The sale of their own house is not in their hands but at the mercy of the buyers and the buyers bank

cubatahavana

Mslenny wrote: »

We requested the clause .... the sellers solicitor said they won’t amend the contract. I’m surprised I thought it was a standard enough condition for a second time buyer.
As a result our solicitor has said not to buy the house ....

If there is no clause subject to finance, I’d walk away. Your solicitor should strongly advise you against signing a contract without a subject to finance clause. Mine did

ebayissues

Experienced smething similar s I was buying from a chain...Point blank refused not to sign it..

LoonyLovegood

Does anyone have an idea of how fast things can go to closing after contracts are signed? Signing next week, vendor's already moved out, from what I can tell we just need drawdown to happen and we'll be good to go, but I've no clue how long it'll take.

Canyon86

LoonyLovegood wrote: »

Does anyone have an idea of how fast things can go to closing after contracts are signed? Signing next week, vendor's already moved out, from what I can tell we just need drawdown to happen and we'll be good to go, but I've no clue how long it'll take.

I was told 3 weeks all going well

mousblaster17

brisan wrote: »

https://www.citizensinformation.ie/en/housing/owning_a_home/buying_a_home/stamp_duty.html#:~:text=Budget%202020,from%206%25%20to%207.5%25.
Relevant section below

If you paid VAT on your house, you only have to pay stamp duty on the base price of the house – before the VAT was added. So, for example, if you paid €454,000 (including VAT) for your new house, this is made up of the base price of €400,000 plus 13.5% VAT (€54,000) and you only pay stamp duty on the base price of €400,000. Read more in our document on Value Added Tax.

Would the asking price as advertised by the EA include VAT in the figure?

awec

mousblaster17 wrote: »

Would the asking price as advertised by the EA include VAT in the figure?

No VAT due on second hand homes. New build prices are always advertised as the price you pay, inclusive of VAT.

mousblaster17

Leozord wrote: »

I think this is a bit strange situation. Probably what will happen is that I will offer 380 and he will be back to the other bidder and there it goes another bid war. Or he is just bluffing.

What do ye reckon?

Nope. The EA is obliged to tell the other bidder about your bid regardless. They keep a log of bids for audit purposes. So you offer 380 and the other bidder will be informed of it, at which point they can counter-bid. Or... like the EA says, the vendor could go sale agreed with you straight after you offer the 380.

I lost a house a month ago, calling the EA's bluff that the vendor would go sale agreed. Long story.

fliball123

Leozord wrote: »

loads of gold information here

I found a place which was advertised like 3 months ago. The ask price was 385k.

Right after the announcement, I decided to visit it. I loved the place. I was thinking to offer 355k but because I already had booked flights for a long holiday, I've decided to not bit until I return to Ireland.

Now in august I called the EA to know if the house was sold and he said it was sale agreed for the asking price. Fair enough, I walked away.

Three weeks later, EA calls me back saying that the buyer pulled out. He said there was an offer for 375k but if I offer 380k the owner would sell it to me

I think this is a bit strange situation. Probably what will happen is that I will offer 380 and he will be back to the other bidder and there it goes another bid war. Or he is just bluffing.

What do ye reckon?

Well if I was the seller of course I would want the EA to go back and ask its their job to get you the highest price

fliball123

Mslenny wrote: »

We are selling our house and buying a new build. We have a buyer and want that contract signed before signing for our own.
However is it not standard that in our contract with new build there would be the condition- ‘subject to sale of purchasers house’?
I would have assumed any second time buyer would look for this protection? If our buyer did not go through with sale after contracts we could recoup the deposit however there is a €20k difference between the deposit on our house and the the deposit we will be putting on the new build.
Appreciate any insights

I think you can get your solicitor to word your signing that you are only going through with the purchase on the basis your own property sells as well. So if your buyer pulls out you can pull out too and your only cost will be your solicitor

LoonyLovegood

Canyon86 wrote: »

I was told 3 weeks all going well

Fingers crossed, it'd be lovely to be in before October and get settled before winter's fully set in.