Selling a distressed house in Dublin

Viscount Aggro

I am about to put a house on the market, its in a good area of south Dublin.

Problem is, the house is a cave, no electricity, no water, looks grim.

Whats the best way to pitch it? I am in no hurry to sell, and I dont need the money.

I had it valued a few months ago at 600K.

I was thinking of instructing the estate agent... no offers below that figure, view it only appointment with carefully screened punters.

It would put off a lot of people, but it has potential.. houses on same road have gone for 800 - 850K.

Bluefoam

https://www.boards.ie/discussion/2058258268/selling-a-distressed-house-in-dublin

Just put it up for sale and see what interest you get. Stop trying to know whjat you're doing, you don't... no one knows what way the market is or how it will react to your house. The only way to find out is to put it up for sale and let the estate agent do their job... They'll screen offers and present you with the information you need, thats why you pay them.

Why are you being all pretentious about stopping people from seeing the house and being free to make offers? If you don't want to accept an offer, just don't accept it!

SortingYouOut

Lick of paint and you'll be a millionaire.

Leg End Reject

You can't get a mortgage on an uninhabitable property, which yours is without basic services. So you're relying on a cash buyer who's willing to renovate the property. Put it up and see what you're offered, but don't insist on a minimum bid.

If you're not happy with the highest bid don't sell, but consider what you're going to do long-term with a derelict property.

3DataModem

Market is crazy at the moment.

You get 3 buyers who want that location, you could get a million.

You get 1 buyer, you might barely get 500k.

There are no experts. Your biggest advantage is not requiring the money. You can have it sit on the market until YOU are ready.

Viscount Aggro

I dont think a lick of paint is going to add much value.

awec

https://www.boards.ie/discussion/comment/119454741#Comment_119454741

Don't do a single thing to it. This property is only going to appeal to someone with deep pockets to do the renovations as it's unmortgeageable.

Just put it up for sale and see what happens.

Pomodoro

You can't stop someone offering an amount below a threshold. Beyond having the house tidy + empty, and the front/back garden not overgrown, there's not much you can do to stage that house that will get you more interest. Get a good estate agent and let them do the work for you.

The 600k valuation is next to meaningless as a guide to what someone will actually pay for the house - that kind of valuation is only useful for borrowing against the house or property taxes.

Shauna677

Poster was only kidding

GreeBo

https://www.boards.ie/discussion/comment/119454802#Comment_119454802

There is no point in making the house or garden "look tidy" if its a uninhabitable shell.

OP, when you say "no electricity, no water" do you mean it has no supply of either or just that its been cutoff due to not being used/paid for?

I would spend the money to get power and water and potentially significantly increase your pool of people who can purchase it (i.e. to include those who need a mortgage)

Viscount Aggro

Its been shut off, house not lived in for 10 years.

I have been maintaining the garden, but neighbours either side are ready to kill me, keep asking what my plans are. Ive been giving a vague answer.

I can control what offers I receive, because I will make it clear to the agent.. dont accept any offers lower than 600K.

cuttingtimber22

Go to a good agent and they will advise you - you are always within rights to out a reserve price on it. If there is a bit of a site you can always look to get planning permission which may add to the value and potential. A caveat at the moment is the high cost of building which may affect value, but you will not know until you put it on the market.

drogon.

Honestly if you don't need the money and are not in a hurry to sell. Just put it up for sale well above the the suggested prices by the EA. Just cause he tells you it is worth X doesn't mean you have to go with.

Former Former Former

https://www.boards.ie/discussion/comment/119455171#Comment_119455171

 neighbours either side are ready to kill me

I can absolutely see where they're coming from.

kippy

https://www.boards.ie/discussion/comment/119455171#Comment_119455171

You can't 'control what offers you'll receive' - you can control whether to accept or not.

Simple process really. Whomever you engage to sell it, and how and where it is publicised as well as a bit of luck will determine the price.

Furze99

Distressed, no electricity, no water .... sounds like a repo that you bought after the Celtic Tiger crash and the people kicked out, stripped the place before they departed. Could be wrong, but that's how it reads. If it is, well you have to sell it with that history.

https://www.boards.ie/discussion/comment/119456184#Comment_119456184

Why would a buyer care?

Furze99

https://www.boards.ie/discussion/comment/119456218#Comment_119456218

Bad vibes.

Marcusm

https://www.boards.ie/discussion/comment/119455171#Comment_119455171

If I’m a good condition it would be worth 800k then I suspect it need very substantial refurbishment, bringing it up to a high BER etc and the prospect of that being achieved is do slight that you won’t get 600k. You need a cash buyer with good access to tradesmen etc which is likely to be a small pool.

Viscount Aggro

Its an inheritance, a relation lived like a hermit, been stuck in probate until now.

Ive had 3 estate agents value it, all gave me a range of 575 - 625K.

Furze99

https://www.boards.ie/discussion/comment/119457079#Comment_119457079

Ah that's understandable so. Has to be pretty old if no plumbed water etc. I knew an old lad lived in a cottage to a few years ago and got water from a well and used a rabbit lantern for light. But he was well up a country lane.

JohnnyChimpo

https://www.boards.ie/discussion/comment/119457463#Comment_119457463

OP already said water has just been shut off

Furze99

https://www.boards.ie/discussion/comment/119457795#Comment_119457795

Electricity cut off I thought was implied? But could be water as well, though unusual unless there were leaks inside. But may just be at simply the stopcock coming into the property?

GreeBo

OP is it actually unliveable or just you wouldnt like to live there (assuming water and power are restored)?

i.e. is it weather tight, dangerous, etc?

Viscount Aggro

With the cost of materials and labour, it would be too much for me to renovate.

Example - theres woodworm, including in the floor and roof beams.

I reckon it would deter most purchasers, as said above, unless they have deep pockets, or maybe a builder, who could see a way to add value.

godtabh

https://www.boards.ie/discussion/2058258268/selling-a-distressed-house-in-dublin

The last house I bought (not the current one I am living in) had no electicty, heating or water. Bidding war on it atr the time in 2018. Worst house in a great area.

Viscount Aggro

Sounds similar.

One next door neighbour, shes an agoraphobic. Never goes out.

All you see is an eyeball peaking through the curtain.

9320

struggling to see the OPs logic - with potential site levies, compulsory rental orders etc coming down the line, and just being neighbourly why not just accept whatever offers you get? whether it's 400k/500k/600k it's better than what you have at the minute which is just a cost - has the LPT been paid?

https://www.boards.ie/discussion/comment/119459848#Comment_119459848

I think most would appreciate the difference between getting 400 and 600, even after inheritance tax. I like my neighbours, but not to the tune of 200k difference in selling price.

It used to be that LPT did not apply to uninhabitable houses, not sure if that is still the case. If there isn’t, then it is costing nothing

Viscount Aggro

No LPT has been paid.

What logic are you talking about?

I want the maximum amount I can get, have to pay CAT.

https://www.boards.ie/discussion/comment/119460127#Comment_119460127

You don’t have to pay LPT.

https://www.revenue.ie/en/property/local-property-tax/properties-liable-lpt/properties-unsuitable-for-use-as-dwelling.aspx

https://www.boards.ie/discussion/comment/119460127#Comment_119460127

So set a reserve, put it on the market and stop all the dithering.

9320

https://www.boards.ie/discussion/comment/119460127#Comment_119460127

So you're trying to time the market - that's worked out well for so many people in the past. As stated previously you can only control what offers you accept.

At present it's nearly impossible to get builders to carry out substantial renovations - I would think anyone buying your property would be looking at 250k to do it up and that's if they can get a builder. Plus they'll still have, presumably, another property to live in and the cost of rent/mortgage there whilst waiting for a 9 month job to be completed. So every decision you make is massively lowering the potential market of buyers ie must be over 600k, must have another 250k to spend on refurb, must have access to another property to live in whilst refurb is completed.

So your position is essentially not to sell, leaving a property as a dump and annoying your neighbours.

9320

Home prices equal 2007 peak for first time in June (rte.ie)

Reached peak of 2007 so selling now, for what you can get, makes sense to me. A lot of those who tried to time the market in 2007 ended up selling for a lot less in 2008/9/10 - I bought in 2010.

But I'm weird, I'd rather 400k in my pocket now rather than an uncertain potential 500/600k that could end up being 200k in 2024 plus having the potential of substantial levies being introduced for unused property.

tinytobe

https://www.boards.ie/discussion/comment/119462899#Comment_119462899

I'd also take the 400 k now rather than wait. I'd say the Dublin market, is at a point where you might say, sell as long as you can. The market is unlikely to go further than in 2007, there just isn't any economic justification for that.

Also Canada's housing market is going down and it's expected to be a the biggest correction in the last 50 years.

Bubbles simply do burst at some point. Whether it's economic recession, or interest rates going up or banks in crisis, doesn't matter.

spaceHopper

You say you don't need the money so why are you worrying about it. Sell it take what you can get and move on.

If you want an easy sale, get it cleared out. Get a survey done so that buyers see exactly what could be wrong with it, any closing bid is final it won't be revised when their own survey comes back.

You might not get 600k it could be less the pool of buyers is smaller. Realistically its a cash buyer or somebody selling their own house and is mortgage free. If you put it on now people will view it in daylight, if you wait till September you are looking at limited viewing times, and viewing in poor light that affects peoples perception of it and will affect the price

xeresod

And because you inherited it prior to 31 August, your CAT is due by 31 October, so why are you willing to sit on it indefinitely until you get the price you want?

Viscount Aggro

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Ray Palmer

https://www.boards.ie/discussion/comment/119462899#Comment_119462899

Where are you coming with €200k? Peak match to 2007 still means the house is cheaper now than then due to inflation rates alone. If you think the market will crash by 2 thirds I am assuming you have a bomb shelter you plan to live in. You would be worrying about food and water if a crash like that happens not house prices

Ray Palmer

OP

At least reconnect the water and electricity and get a proper full survey done. Know where you stand because any surprises found by the seller causes major hassle and delays. You would also be surprised at how much you can do cheaply to bring a house up to at least indicate it is habitable. Second hand kitchen and a few hours of piping could really help a lot in a sale.

Viscount Aggro

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