When & Where do You Draw The Line

fergiesfolly

Previous purchase fell through and we were really cut up about it. We went straight back in and viewed several houses just to get the other place out of our system. We've since seen a house that's below our budget, but in our opinion, overpriced. Its a nice house but doesn't tick all the boxes that the other place did(do they ever?). Its already above the average price in the area and there's nothing to justify this in our minds.

So, do you go over your own estimate? Go over your budget? Or do you adhere strictly to your own gut feeling or comfort zone?

herbalplants

https://www.boards.ie/discussion/2058306252/when-where-do-you-draw-the-line

I feel for you, it is hard when you have your heart set on one house.

I would advise go with your gut instinct, you already feel it is overpriced because it definitely is. This is the biggest purchase you will make so don't settle for less.

I advised not to get emotional attached to any house you want to buy, be prepared to be able to walk away from it.

C3PO

If it is overpriced then it won’t sell but if it does sell then is is correctly priced! Offer what you think it is worth and go from there!

riclad

The problem is if you want a certain type of house in an area

Eg or house with a garden bigger than average your choice is limited ,look in other areas ,go to daft.ie type in what you can afford , a house is worth what someone will pay for it . Look for the best house you can afford if you have to live in a certain area.

You try and get the best house you can afford to buy

fergiesfolly

https://www.boards.ie/discussion/comment/120895689#Comment_120895689

We're the most open buyers you've ever seen. We have no particular area, or size or type of house. Ready to walk into or working project. It's all about getting value for money. We've seen houses below our budget, but in our heads couldn't justify the price.

We've been having long conversations about this the last couple of days and are coming around to the idea that we'll have to swallow it if we find a house we like.

What gets me, is that I remember the boom and the bubble that was created in property prices and thought at the time that people were mad paying the prices they were. Yet here I am, more than a decade later, contemplating the same dilemma.

tjhook

I've always felt that once I had bought a home and was paying a mortgage, the increases and decreases of the property market no longer affected me either way; an increase didn't make me feel more wealthy as I wasn't going to be selling, and likewise a decrease wasn't going to make me feel poorer.

In your situation I'd have similar thoughts. Are you buying a "forever" home, or do you think you'll be moving in a few years (i.e. trying to sell and recoup what you paid)?

If I didn't intend to move again, I wouldn't feel so bad about having to pay a bit more than the a average. But I'd be more reluctant to buy a place if I wasn't very happy with it for other reasons and was going to be looking it in disappointment forever after.

spaceHopper

Go see the house, talk to the EA. Have solid reasons why it's a great house. Don't find fault with the house, simply say the asking price is to high. Maybe go as far as saying we'd need to do xyz work and that's not reflected in the price. Tell the EA the market is cooling and at their asking price there is a risk the bank won't lend or will look for to much of a deposit leaving noting for work needed.

It helps to know why it's on the market, is it a probate sale, (they have room to move and tax to pay). Are they in a chain.... less room to drop price but need to sell for next sale....

aho125

https://www.boards.ie/discussion/2058306252/when-where-do-you-draw-the-line

We're in the exact same position - have seen a house we like, its asking price is below our maximum budget, but it's definitely overpriced. We researched average cost/m^2, did the math, added on the extra for the decent amount of land that comes with it, added on some more for the lovely location with views - it came up 15% below asking, so that's what we offered. The estate agent said we had sound logic for what we offered, i.e. it's a fair offer, but the vendors rejected it because they're emotionally attached to the property & basically hoping someone will be swept away by the views & just throw money at it.

Made me wonder - who actually sets the asking price?!

C3PO

https://www.boards.ie/discussion/comment/120899976#Comment_120899976

The asking price is set by the vendor in consultation with the EA

fergiesfolly

https://www.boards.ie/discussion/comment/120899543#Comment_120899543

Seen the house twice now. We can't fault it. It's been kept immaculately, updated heating system, modernised bathrooms etc. It's a lovely house in its own right. The owner has a valid reason for selling and has already turned down an offer higher than we think the house is worth.

We've seen quite a few houses recently and this is definitely the best of them. If there was a wow factor we'd probably suck it up and offer the asking. But there isn't. It's a fine, functional, well maintained house that we could walk straight into. But I haven't once felt a stir when seeing it. I'm seeing it again tomorrow and if I can't convince myself there's something there, I'm going to walk away. And even as I type this, I don't know why. So much for buying with your head😄

spaceHopper

https://www.boards.ie/discussion/comment/120900626#Comment_120900626

It's not like renting where (normally) you can always move in year if you don't feel the love for a place. When you know, you know.

ELM327

You'll never get the ideal house because it exists only in your mind.

Buying a house isnt about meeting every criteria on your list, it's about you finding out (collectively as a couple if buying together or single purchaser otherwise) what on your list is really important and what doesnt actually matter when it comes down to it

C3PO

https://www.boards.ie/discussion/comment/120902668#Comment_120902668

This! For all but the very rich every house purchase is going to involve compromise. Decide what your priorities are and buy the house that best matches these.

fergiesfolly

Without getting too defensive, we've made compromises with just about every house we've seen.

It's more about swallowing my own sense of value for money. I wouldn't overpay for a car, a piece of furniture, a meal in a restaurant, or anything else. But I'm either going to accept I'm paying more than somethings worth( to me, I know it's subjective) or I'm not buying at all.

DubCount

The market determines market value. An individual view of what is "expensive" or "cheap" is irrelevant. The only guide to market value is previous similar transactions, and existing bids on an individual property.

I would base my upper level base only on the range of recent transactions in an area, and the state of the individual property. That should determine bidding limits.