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What to do next 😣

  • 23-01-2023 11:22pm
    #1
    Registered Users Posts: 22


    We have been looking for a family home for ages. One came up in the estate we like before Christmas and is in walk in condition but needs money spent to suit a family, more bedrooms needed, attic conversion Etc. It is being advertised as 4 bed when it’s in fact 3. (Two rooms configured to one when vendor bought from builder). Nobody bid before Christmas so we put on a lower offer 50k below asking. Asking was high given the false advertising and need for further work. None of our offers were entertained. After Christmas we upped to 25k below asking. All we got each time was an email from the EA saying the offer is too low, can you go higher. Suddenly another bidder enters the ring and all week there has been a war between the two of us. Others interested in viewing this week decided not to when they heard where the price was at. We eventually shook off the other bidder at 6k above asking. We waited all weekend for a decision from the vendor to hear they won’t accept. They now feel given the scarcity in the area that they can get more money. The EA couldn’t give any info as to how much they were expecting but it all sounds very strange to me. She indicated before Christmas that they may take less than asking now we are 6k above. Friends in the estate feel it’s priced too high as it is. What to do next. 😫. We do actually really like the house. Nothing we like more has come up in the last few months. I’ve checked with lots of EA and nothing coming either. I strongly feel the house isn’t worth more. What to do …



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Comments

  • Registered Users Posts: 2,696 ✭✭✭ec18


    The only thing you can do is either put a time limit on the offer or see if you want to pay what the vendor wants. That's it really



  • Moderators, Entertainment Moderators, Society & Culture Moderators Posts: 13,888 Mod ✭✭✭✭pc7


    Also easier said but use the head not the heart, plot it down on paper the pros/cons, what needs to be done in the house to make it livable and go with a price you feel its worth. Don't go over that value you feel its worth, be prepared to walk from it (it may come back to you). Best of luck its not easy.



  • Registered Users Posts: 22 psych77


    Thanks. The problem is the EA said she has no idea even what they want. She felt my offer was strong and fair. It seems very disrespectful to continuously say no without any effort at negotiation.



  • Moderators, Entertainment Moderators, Society & Culture Moderators Posts: 13,888 Mod ✭✭✭✭pc7


    Then leave offer as is and say you will be pulling it in a weeks time, keep looking round.



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  • Registered Users Posts: 8,305 ✭✭✭Ray Palmer


    The agent works for the seller to get the best price. It sounds like your offers were insulting and you have now upped your original offer by €56k which makes you sound like the unreasonable one that as a seller people would want to avoid



  • Registered Users Posts: 3,098 ✭✭✭Browney7


    If you're unhappy walk away. That's the only card you can play and it seems like you want the house so pay the freight or move on really are your two choices.



  • Registered Users Posts: 1,035 ✭✭✭herbalplants


    You played your cards, leave it on the table and walk away.

    You need to understand that you don't get attached emotionally of a house you see. You will lose every bid you put out there if you get so emotional.

    You felt it was over priced by 50k then you played right in their hands by upping it by 56k! Even so I am sure you were right about being overpriced as you need to spend more money on it.

    How do you even know you are bidding against someone else. Don't forget the seller has much to lose as well by you walking off from his house, he lost a solid bidder.

    Living the life



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  • Registered Users Posts: 22 psych77


    To make it worse BOI just contacted to say fixed rates rising by 0.75 if no drawdown by 21feb.



  • Registered Users Posts: 22 psych77


    I’m wondering the same. There was no interest in the house and nobody bidding against us and no direction as to what the seller wanted so we were very much in the dark. Took our lead from other house sales in the area.



  • Registered Users Posts: 2,307 ✭✭✭SAMTALK


    To be honest if you felt it was over priced before you will always feel you overpaid

    EA cannot know for sure if anything will be coming up soon . People make decisions to sell for various reasons that the EA wont know about until they are contacted

    there was nothing in my area for a long time and in the space of 2 days 2 houses have just gone up



  • Registered Users Posts: 5,200 ✭✭✭Former Former Former


    it may be the time of year. If the other bidders are in fact real but were relying on exemptions from the restrictions on deposit or income multiples, sometimes the banks exhaust their quota of exemptions for the year but these reset on January 1st.

    Or maybe people just aren't interested in looking at houses in the lead-up to Christmas?

    So it may well be that the EA was advising the seller to hold off until the new year to see if more buyers entered the fray, which then happened?

    As noted above, there isn't much else you can do except set your own ceiling, communicate that to the vendor and see what happens.



  • Registered Users Posts: 2,086 ✭✭✭Liamario


    They might have an inkling that you are desperate for the house. Don't spend more than what you think the house is worth. Your heart makes you do silly things and ignores all logic.



  • Registered Users Posts: 2,066 ✭✭✭HerrKuehn


    Great idea to write a letter about how much you love the house. When we were buying we wrote a Shakespearean style sonnet about how lovely the was and sent it to the sellers. "Thy fascias are as fair as ..."



  • Registered Users Posts: 491 ✭✭SwimClub




  • Registered Users Posts: 77 ✭✭covidcustomer


    A couple of years ago I was dealing with a similar situation, except that we offered the asking price, we were messed around by the vendor and we walked away because while we "liked" the house and certain elements of it, there were issues with it and work to be done so we walked away. Out of curiosity I checked it on the PPR, vendor held out for 10 months and got 100k over what was a hefty asking price.....



  • Registered Users Posts: 1,273 ✭✭✭The Spider




  • Registered Users Posts: 12,060 ✭✭✭✭Calahonda52


    from opening post

    I strongly feel the house isn’t worth more


    walk

    “I can’t pay my staff or mortgage with instagram likes”.



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  • Registered Users Posts: 77 ✭✭covidcustomer


    Yep, in this market they were right to do so, although I wonder where they went to live and if that property also increased? (Assuming that they were buying again of course).



  • Registered Users Posts: 491 ✭✭SwimClub




  • Registered Users Posts: 3,627 ✭✭✭RichardAnd


    I second this. The house that I eventually bought was sold to me for 25k under the asking (town house in Wexford). It needs a bit of work, and I paid the price that the house next door sold for in early 2020. This came after many months of pulling out of sales that went 10-15% over the asking price. Unless it's some sort of dream home, do not let an EA pull you into a bidding war for inflated goods.



  • Registered Users Posts: 4,138 ✭✭✭realitykeeper


    The sellers have done you a service by upping the price. Had you bought the house, even at your original 50K below the initial asking price, you would have been making a terrible mistake. Don`t you realize the government borrowed 200 billion since 2008 for the express purpose of re inflating house prices. Had you bought the house, you would be paying an inflated price and still be on the hook for the 200 billion the country borrowed. If you can afford to buy a house in this country, you really shouldn`t. I would rather emigrate. Also, don`t forget, as consumer inflation rises but house prices fall (as happened in December) you will lose and lose again. In fact, the government is relying on inflation continuing in order to bring down it`s liability.

    Back around 2009, the government pulled all kinds of shenanigans to re-bloat house prices just so their precious NAMA could claim it was making a profit. First the government put up all kinds of impediments to prevent banks from repossessing houses because only by keeping houses off the market could they force house prices higher. They also put a false floor under house prices back in 2009 by insuring a traunche of about a thousand houses against negative equity which resulting in buyers entering the market before it had a chance to bottom out naturally.

    As I see it, two things are preventing a faster fall in house prices, the first is the multinationals. If they were to get into difficulty, there would be far fewer eligable buyers. A weakening US dollar and precarious global economy would do that and we will see if those conditions are met in 2023.

    The second factor that could undercut house prices in this country is persistant CPI inflation which impacts mortgage holders like everyone else. After all, everyone has to eat. And of course there are the higher interest rates, although it should be said the ECB is not really serious about fighting inflation (which is why it will stay high) because the higher interest rates that would require would probably put rapid downward pressure on house prices. But, they are playing with fire, raising interest rates slowly is like stretching an elastic band. It could snap.

    It is not surprising that countries like Italy are urging the ECB to go slower with it`s interest rate hikes. Italy has a lot of debt so the cracks in EU cohesion are beginning to appear. We will see more of that as the year progresses.

    Final point, if house prices do start to fall and people go into negative equity, they will default which will cause house prices to fall more rapidly.

    The government spent 200 billion making house prices high. Given the ECB`s mandate to protect the Euro, it will be difficult for the Irish government to explain away the loss of that 200 billion in home equity prices to the Irish taxpayer when houses crash next time. This time there can be no bailout and the Irish government may well have to pay that negative equity compensation to those who bought the insured tranche of houses back in 2009.



  • Registered Users Posts: 1,273 ✭✭✭The Spider


    H,mmm interesting 🤔 except for the fact that there’s no housing supply, government t doesn’t have to do anything to prevent repossession, the constitution does that, that’s why mortgage rates are so high in Ireland, oh also jingle mail doesn’t exist like the states where you give the banks the keys and that’s the end of it, for the simple the reason they’re two separate things, you owe the bank money but you own the house, obviously the bank can go after thre house but it’s very difficult because of the constitution, especially the family home.



  • Registered Users Posts: 3,627 ✭✭✭RichardAnd


    Without getting myself into trouble, I'll just add that the state also ensured that there is effectively a never-ending supply demand for what housing exists. In fact, I'd opine that that has been more effective than any amount of financial jiggery-pokery.



  • Registered Users Posts: 22 psych77


    Interesting read Thankyou!



  • Registered Users Posts: 8,305 ✭✭✭Ray Palmer


    You massively underbid and then came up by a large amount. That makes you appear unreasonable to any seller. What percentages are we talking about on value because that might clarify why you would so much in value but it is different if we are talking about a small percentage but that is doubtful given the amount you are complaining about. In a seller market many properties have an offer price at least 10% below what they really expect.



  • Registered Users Posts: 1,419 ✭✭✭thinkabouit


    remember They want to get as much money from you as they possibly can.

    submit your final offer on paper & if they don’t accept walk away.

    You’d be surprised how fast sellers (people selling anything really) will do a deal if your prepared to leave it.



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  • Registered Users Posts: 22 psych77


    Ray, we originally bid 14% lower or so as other people we knew in the estate advised house was overpriced and no other houses had sold at that level except one which had the attic mostly converted. We weren’t sure how to proceed as nobody else was bidding and we could never get any feedback from the EA except that offer is too low, can you go higher so we would sit on it a while when gradually went higher and in January got so fed up where we are living we decided it’s worth the money to us to get space for the kids as we are all stressed in too small a property where we are currently. We bid 325 in the Hope we would get a negotiation going even and it was only then we were asked for proof of funds. 10 mins later I got an email that another bidder had entered the fray and it went from there. We had decided we wanted the house and didn’t want to let it go but 355 was our max and that’s where we are at now. Asking 349k. The other viewers from last week didn’t proceed With viewing when they heard 2 people were bidding and it was at €340 at that stage. I haven’t heard anything now since Monday. It was just left in the air so I’m not sure what we will do next.



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