Huge question for me!! What you think?

Karlrove

Hi,i made a post about this but am looking for advice and will give more info!theres a house I like and they listed it at 435k a few months back. It's brand new build. 3 bed. the builders have accepted 375k last week from us.
However,while I really like it,should I wait? This house is in a cul de sac and the other houses around are semi detatched--this house is detached, has red brick on front,dashing,cobbled drive,ensuite bdroom,downstairs toilet with great finish in kitchen and includes wash machine,hob,cooker,m.wave,tiled,electric shower(all icluded) ect...it looks like a great house too with over 1000sq feet. It's near shops,school etc. Anyway,if a normal 3 bed house in the area was selling ,I'd wait for few months but this house may be bought by some else if I pull out because it's kinda unique....but I might get another house down the line at much cheaper price. Sometimes Im like yes:buy and others no: wait!!Thanks for views!

Thoie

Do you really like it, or do you love it?

Do you walk in the door and think "I'm going to put my books there, and my spoons there, and that corner there will be perfect for my elephant..." etc?

There is never going to be a "right" time to buy in the next 5-6 years. If you really love this one, and can afford it regardless of what happens (can you still afford it if you lose your job?), then go for it.

If you're thinking "this would do me", then leave it and look for somewhere you fall in love with.

None of this advice comes from a legal or economist viewpoint

Jesus Wept

Karlrove wrote: »

Hi,i made a post about this but am looking for advice and will give more info!theres a house I like and they listed it at 435k a few months back. It's brand new build. 3 bed. the builders have accepted 375k last week from us.
However,while I really like it,should I wait? This house is in a cul de sac and the other houses around are semi detatched--this house is detached, has red brick on front,dashing,cobbled drive,ensuite bdroom,downstairs toilet with great finish in kitchen and includes wash machine,hob,cooker,m.wave,tiled,electric shower(all icluded) ect...it looks like a great house too with over 1000sq feet. It's near shops,school etc. Anyway,if a normal 3 bed house in the area was selling ,I'd wait for few months but this house may be bought by some else if I pull out because it's kinda unique....but I might get another house down the line at much cheaper price. Sometimes Im like yes:buy and others no: wait!!Thanks for views!

I know little about property... however, I imagine it's essential to know where it is before anyone can say if it's a fair price.

latenia

Why did you offer 375k? IMO this was way too high to start the bargaining process. Is this what the bank will loan you or what you think it's worth? Withdraw then go back again with an offer of 250k; somewhere between there and 375 yourselves and the vendor will reach equilibrium.

Tom123

Why don't you try and get more of a reduction?

If you buy this place at €375k you are almost certainly going to lose quite a bit of money.

Karlrove

Well,it was 435 list price a cupla months ago and I thought it was worth 375k. I really dont think they'd sell for less than 375k....I feel bad now I started with 375k...if I back out now and make excuse about bank approval or something and come back with a new bid in few days,will they entertain me? Any advice greatly appreciated...Karl

Shaunababe

I think you need to go to this house and use the bathroom
if you can comfortabley take a no.2 in it the house was made for you !

Karlrove

great reply...thanks

Thoie

For the love of all that's holy, check the plumbing is fully connected first!

blast05

if I back out now and make excuse about bank approval or something and come back with a new bid in few days,will they entertain me? Any advice greatly appreciated...Karl

And sure if they don't entertain you at all at all then you could go back again the follwing day with an offer of 10 grand higher than your new starting position. If i were you i would try and find out as much as possible about the builder and what sort of position he is in etc. In any case, based on what you have said, if it was me i would go back and say "i will give you 325K - the offer is on the table until 9am tomorrow morning. If i don't hear from you by then then i'll take it you are not interested." ..... i would be shocked if you did not get a call back the following morning from the estate agent trying to start negotiating. Presuming they ring back then i would repeat to them " look i told you the bid is 325K - you are obviously interested so i will give you until 6pm this evening" ................ you have by a country mile the upper hand in this negotiation so don't give them an inch

Tom123

Karlrove wrote: »

Well,it was 435 list price a cupla months ago and I thought it was worth 375k. I really dont think they'd sell for less than 375k....I feel bad now I started with 375k...if I back out now and make excuse about bank approval or something and come back with a new bid in few days,will they entertain me? Any advice greatly appreciated...Karl

You need to calm down very few houses are selling at any price. This may be bought by someone else but it is much more likely to stay on the market for months to come.

From a purely financial perspective you will almost certainly lose buying this house. If you can accept that then go ahead and buy because you love the house.

But I don't think you will find many people who will think it is a good idea to buy right now.

Karlrove

anyone else got ant thoughts? any advice appreciated

XJR

YOU know a house is pretty much like most other things in that it's only worth what someone is willing to pay for it. Are you happy to pay the money? if so buy if not don't - though I have to say it sound to me like you're interested in a house though not necessarily this house.

rockbeer

I would say don't listen to anyone who tells you it's a good time or a bad time to buy. The right time to buy a house is when you need one to live in and can afford the one you want. If you think of it as a home rather than an investment, and if you think about whether you can afford it and expect to be able to continue to afford it, then variations in the market will be less likely to affect you.

What does it really matter if your house is 'worth' less than you paid for it if you aren't trying to sell it? It's your house, your home. Forget everything else, the market, other people and their opinions, pessimistic (and probably accurate) forecasts everywhere you look. The only question that really matters is: What's it worth to you?

If you can get something similar you'd be just as happy in for less money you'd be mad not to. There's lots of choice out there right now and everything is negotiable. But if it's a one off and you really love it... well, in the end only you can answer that question.

As for your concerns about them not entertaining you - look, in this market no-one can afford not to entertain you. Buyers are like rocking horse sh!t right now.

dan_d

Drop your price a bit, as was said above.But if you need/want a house and you're buying for the long term then it's never a bad time to buy.Sounds like you've got a reasonable enough deal, but see if they'll go a bit lower.

jetski

Hay... i was in an identical situation myself only 2 months ago.... i decided to buy the house. you could loose money shot term but think long term. a nice house will allways sell. best of luck what ever you decide.

Karlrove

thanks for reply..what do you think is longterm...maybe 5-10 years was what I was thinking???what do you think

jetski

They say the current housing supply is going to run out in 2 years. id give it 2 years and things should be picking up, its alot to do with fear. The fact that prices are now quite reasonable in comparrision, intrest rates are dropping and the extra 5% mortgage interest relief all should have an impact.

Tom123

Karlrove wrote: »

thanks for reply..what do you think is longterm...maybe 5-10 years was what I was thinking???what do you think

5 years you are guaranteed to lose money but you might break even after 10 years.

jetski

tom do us all a favour and give a little insight into what your saying..... would i be right in saying you dont own a house?

spockety

jetski wrote: »

tom do us all a favour and give a little insight into what your saying..... would i be right in saying you dont own a house?

Does owning a house bestow some other worldly knowledge that not owning one has when it comes to property market economics......?

jetski

kinda yea..... the vast majority of the people on hear and other sites makeup about 25-30 in total and dont own property and thats the reason they are nothing but negative about it

johnnyskeleton

jetski wrote: »

They say the current housing supply is going to run out in 2 years. id give it 2 years and things should be picking up, its alot to do with fear. The fact that prices are now quite reasonable in comparrision, intrest rates are dropping and the extra 5% mortgage interest relief all should have an impact.

He's a bull in bears clothing that kid. Not two months a member of the landed classes and his outlook has changed significantly.

jetski wrote: »

kinda yea..... the vast majority of the people on hear and other sites makeup about 25-30 in total and dont own property and thats the reason they are nothing but negative about it

Actually, most of the people who post on thepropertypin.com, which is the most negative (depending on how you look at things - I would say positive) about the property market, are older than that and own property. But they still think that prices are going to drop. They base this on the experience of other countries, statistics and a general understanding of economics.

You seem to be suggesting here that you gain knowledge about the property market when you buy and that knowledge is that the drops are not going to be as severe. To be honest, this is kinda like saying that someone who sells their house suddenly gets endowed with knowledge that property drops are going to get a lot worse. It seems that you are mixing up sentiment with genuine understanding.

SkepticOne

If you bought a house prior to mid-2006 the wisdom that came with it was as follows:

1. Property only goes up.
2. The fundamentals are sound.
3. There will be a soft landing.
4. Sure they've been saying there is going to be a crash for years!

johnnyskeleton

SkepticOne wrote: »

If you bought a house prior to mid-2006 the wisdom that came with it was as follows:

1. Property only goes up.
2. The fundamentals are sound.
3. There will be a soft landing.
4. Sure they've been saying there is going to be a crash for years!

5. My job is secure because I work in a bank/building site/solicitor's office.
6. This great introductory rate of 2.5% will last for the duration of my mortgage.
7. The ECB will never raise interest rates ever again
8. I'll keep getting TRS and other subsidies
9. The lodger in my spare room is only there temporarily.
10. Sure I'll sell this apartment and my BTL in 5 years time and have enough to put down a really good deposit.
11. Sure I'd like to have kids, just not right now.
12. I won't be commuting 50 miles each day forever.

The list goes on and on. The one that grinds my gears most of all is the soft landing one - that was never a possibility. Even if all other factors remained the same, once property prices stop going up they must go down, if only for a short while to reflect the absence of speculative demand.

Tom123

johnnyskeleton wrote: »

5. My job is secure because I work in a bank/building site/solicitor's office.
6. This great introductory rate of 2.5% will last for the duration of my mortgage.
7. The ECB will never raise interest rates ever again
8. I'll keep getting TRS and other subsidies
9. The lodger in my spare room is only there temporarily.
10. Sure I'll sell this apartment and my BTL in 5 years time and have enough to put down a really good deposit.
11. Sure I'd like to have kids, just not right now.
12. I won't be commuting 50 miles each day forever.

The list goes on and on. The one that grinds my gears most of all is the soft landing one - that was never a possibility. Even if all other factors remained the same, once property prices stop going up they must go down, if only for a short while to reflect the absence of speculative demand.

OR
13. I own a house but basic economics tells me they are vastly over valued.

Kinetic^

jetski wrote: »

tom do us all a favour and give a little insight into what your saying..... would i be right in saying you dont own a house?

Tom makes a fair point and is spot on imo........and I own a property.

Karlrove

Are there others like me? Ive been talking to good friends who work in property and banks(mortgages) and they tell me that this is the belly(coming to end) of the decrease in house prices and that with interest rates going down theres going to be a change come february(ie house prices will steary and first time buyers will beging buying and come off the fence). Some even said it has begun alreay after a completely dead 6 months.
However, according to some economists and tv programmes the property in Ireland willtumble 15 percent and more over the next few years. MY question is who to believe as so much info coming from different places. Also,if youve read my original post about buying,any advice appreciated!!!

SimpleSam06

Tom123 wrote: »

5 years you are guaranteed to lose money but you might break even after 10 years.

Are you factoring 10 years of inflation into that equation?

Tom123

No that was just nominal prices