First time buyer query - what to offer

johndaman66

Freddie59 wrote: »

1. Who would give this 'professional opinion'?:rolleyes:

2. The 'biased' opinions on here are probably the voices of reason, trying to prevent you from getting screwed.

Would be inclined to echo your sentiments Freedie59. There are extremes on both sides using the forum which one could assume is going to be the case when discussing such an emotive subject. I think to be fair though the very vast majority of posters maintain and provide a balanced and fair opinion and assessmet. You have to apply your own bit of common sence in certain cases and disregard certain comments as the case may be. Overall though I do find the forum to be highly informative and usefull:)

_aggie_

Rafa1977 wrote: »

Offer whatever you think the house is worth to you. We offered 200k for a house yesterday, where the asking price is 299k, the estate agent told me that the seller wont sell for something as low as that and that the house is worth a lot more than 200k, but he has to say that as low sale for him equals low commission. Most of the stuff that comes from their mouths is lies and such crap. Dont be scared to put in a really low offer, yes it maybe rejected but you can up your offer or go somewhere else, as it is very much a buyers market now.

Thanks for that! I'm about to do the same in next month- knocking around 80k of the asking price in the first offer. Let me know, when the ea/vendor comes back to you with the response.

Rafa1977

_aggie_ wrote: »

Thanks for that! I'm about to do the same in next month- knocking around 80k of the asking price in the first offer. Let me know, when the ea/vendor comes back to you with the response.

Hi Aggie, sorry I meant to post on this earlier, anyway EA came back to me on XMAS Eve regarding this, and said seller would do a deal if I could beat 260k, but I have stuck to my orginal offer. EA stated there is an offer of 260k by somebody else!!, there may be an offer by somebody else for the House in question, but no way for 260k, this house has been on the market for 11 months, and somebody is prepared to offer 260k, where ask is 300k. On Christmas Eve, I told EA I would think over things, and today rang him and told him I wont budge on 200k, he did his best to persuade me otherways, telling me how great and lovely the area is, that made me believe even more that I am the only one with an offer on the table. As much as I love this house I wont budge on the offer, its important that we all learn from the mistakes of people from the past.

Idbatterim

I was just checking around my local area and some houses up for sale are still very overpriced! its wrong to assume everything across the board has come down! there are some very good prices and there are some rip offs! One house, very similar to alot of the houses in my area for sale was priced at about 60k less than the rest, i only saw it the other day on daft and it is now gone i.e about 5 days later! Property in decent locations at a realistic price will sell!

stepbar

Let me tell you a story....

Back about 3 months ago I went out to have a look at a few apts in Waterville - http://www.waterville.ie/ - 1 beds specifically.

So in I go into a show apt with a few more interested people. Nice apt I thought, with furnishing it was well dolled out.

So I ask the estate agent the price -150k. Right I "thought" :rolleyes: .

So I go "... and that includes furniture?" (knowing full well it didn't, however appliances and the kitchen was part of the price).

"Ah No, that will be 7k extra". Now, I knew full well most places come for sale without furniture but I kept going.... "What??? 7k for a sofa, a coffee table, a roll of carpet and a bed? What???"

"O but it's good value..."

"Ok, what's the management fees?"

"€750"

".... Ok, and in your opinion what would it rent for?"

"I'd say you'd get €800...."

Then some guy piped up....

"There's places going for €700...."

So there and then I whipped out the calculator....

"Right, €700 by 12 months less management fee... I want a 6% yield.... comes to <pause>..... Ok, I'll make you an offer here and now....... €127,500 with furniture....."

"Thanks, for the offer but we have an offer for the full price on this apt (with furniture and it was refused, I'm afraid"

"Really, eh? Jeasus, do you know what?.... I'd grap that guy with both hands and shake the sh1te out of him..... My advise to you would be take that offer before he changes his mind....."

And there ended our conversation..... and the others filtered out shortly after me.

Guess what? Apartments are still for sale there so......


Point is.... If that's what you want to pay, stick to it and leave it sit. If after a while there's no progress, withdraw the offer and move on.

johndaman66

Rafa1977 wrote: »

Hi Aggie, sorry I meant to post on this earlier, anyway EA came back to me on XMAS Eve regarding this, and said seller would do a deal if I could beat 260k, but I have stuck to my orginal offer. EA stated there is an offer of 260k by somebody else!!, there may be an offer by somebody else for the House in question, but no way for 260k, this house has been on the market for 11 months, and somebody is prepared to offer 260k, where ask is 300k. On Christmas Eve, I told EA I would think over things, and today rang him and told him I wont budge on 200k, he did his best to persuade me otherways, telling me how great and lovely the area is, that made me believe even more that I am the only one with an offer on the table. As much as I love this house I wont budge on the offer, its important that we all learn from the mistakes of people from the past.

Which pretty much goes to show that the Estate Agent invented this phantom offer. If there was an offer of 260k in by somebody else why is he so eager to persuade you to up your offer to 260k when you are quite clearly not budging from 200k? Its one thing playing one bidder of against another but inventing phantom offers is just plain lousy in my book. I say name and shame the EA in question for that matter. I suppose the sad thing is so many would people fall for the bait. It just astonishes me how estate agents are so brazen, they name the price and almost make you feel guilty or even ashamed to put in an offer against this price:mad:

Duckjob

Straffan1979 wrote: »

I think just to get back to the point of this tread...I was merely throwing out an example of how EA's in my experience will try and push you towards a price where they want to seal the deal...with lines like 'now i've had an offer of x amount on this property that has been rejected outright' are commonplace in my experience...ie don't even think of offering less....bolloxology.

Yep, I've come across that one a lot and it definitely is a favorite EA line.

Best strategy I've found is to counter straightaway with a throwaway "well, we wouldn't be offering anything near that...", and just continue the viewing. Just completely ignore the implications of what EA is impress on you.

I actually make a point now of only asking EA questions about the property itself and never about whether there are offers on it. If I'm interested I'll make an offer based on what the property is worth to me. I don't need to hear a load of fantasy to "help" me decide what to offer.

SoupyNorman

I wonder is the FTB bug back in the air?


I and the GF are thinking of possibly buying in 9months, it will be the end of our 3rd lease...Ive shelled out about €18000 on rent in that time and although I do believe it was money well spent considering what I would have lost in negative equity I am sick to the teeth of not being able to put a nail in the wall, or not having a garden etc.

Notwithstanding my reasons, what is the best possible way to hedge against negative equity!!! Our max budget is about €300k (3bed semi) but ideally I'd like to buy at the €250k mark with some room left for furnishing/renovation.

Now I would consider myself to be pretty savvy, I've been watching DAFT like a hawk for the last couple of years, I'd have little or no time for EA's and I have no shame in putting in an offer of €195 for a house on at €300k. I have the property bee toolbar and there have been two houses that caught my eye. One of which is on at €310k, it was put up on DAFT in May 2009 and has no price drops recorded...I mean IMO all bets are off there?? Am I wrong.

The GF disagreed, saying there was an etiquette in putting in an offer...I said, there WAS back in the bubble but now it's a different game of shuttlecock.

Idbatterim

there is no etiquette when putting in an offer! who are you trying to impress, the eager bank manager or estate agent! fortunately they arent calling the shots anymore!

Sofiztikated

Just put in an offer today on a house valued at €120k, 3 bed semi in Cavan.

I offered €90k, and was refused flat out. I can let her sit for another while. I'm in no hurry, can wait for asking to drop more, and then I'll offer even less.

I understand EA's are sales people, but unfortunately for them, so am I, customer facing sales, and when I'm working, I get the best I can for what I'm selling. Works the other way. I'm not budging anywhere over €95K.

Am mortgage approved for €120k, but that was just to see if we could.

Quick question, does anyone know if an EA is operating on behalf of a Reciever's, does that have a bearing on what price they can go to?

bangersandmash

SoupyNorman wrote: »

The GF disagreed, saying there was an etiquette in putting in an offer...I said, there WAS back in the bubble but now it's a different game of shuttlecock.

If she means that low-ball offers are likely to be rejected, then that's quite possible. But if she means that it would somehow be rude, inappropriate or embarrassing to make an offer below the asking price, I'd be a little concerned! Even in the current market that kind of attitude strangely seems to persist.

It's a business transaction after all - and as many of the above posts illustrate, I wouldn't rely on an agent treating you with any form of etiquette or concern. More likely you'll be taken for an easy target, especially as an FTB.

stepbar

Sofiztikated wrote: »

Just put in an offer today on a house valued at €120k, 3 bed semi in Cavan.

I offered €90k, and was refused flat out. I can let her sit for another while. I'm in no hurry, can wait for asking to drop more, and then I'll offer even less.

I understand EA's are sales people, but unfortunately for them, so am I, customer facing sales, and when I'm working, I get the best I can for what I'm selling. Works the other way. I'm not budging anywhere over €95K.

Am mortgage approved for €120k, but that was just to see if we could.

Quick question, does anyone know if an EA is operating on behalf of a Reciever's, does that have a bearing on what price they can go to?

I think you're pretty much on the money there. Just make sure you stick to it!

Sofiztikated

stepbar wrote: »

I think you're pretty much on the money there. Just make sure you stick to it!

Thanks. But the EA threw me when she said that they're working undetermined instructions from the Receivers, and there's nothing that can be done on price, and it would be different if it was a private seller. Is that true?

seamus

Sofiztikated wrote: »

Thanks. But the EA threw me when she said that they're working undetermined instructions from the Receivers, and there's nothing that can be done on price, and it would be different if it was a private seller. Is that true?

Possibly. I imagine the receiver has specified a minimum return they want from the property and has priced it deliberately lower than local properties in order to have it shift ASAP, but they won't accept anything less than the minimum.
It probably depends on what the original mortgage on the house was and how much of a bad debt can be written off against their tax bill.

It's a different ball game with receivers because they can sit on it for longer, but they too will drop the price of any property that's not moving.

Freddie59

We sold in November 2008. A month later we viewed a house which was on at €235k (3 bed semi in the estate where we were renting). I got the whole 'the first one in with €200k gets this' and 'you'll be sorry if you don'y buy this now' finger-wagging from the EA.

Eight months later we bought a far bigger house (block-built) which was on at €110k less than others (executor sale) in the area. We ended up buying it - and getting a further €20k off the price.

So sit tight - and don't listen to the EA BS. Have to laugh at the 'we have an asking price offer already'. What a cock and bull story. The brass balls of these people.:mad:

Unpossible

Just a quick question (rather than start a new thread), would that 80% rule work on houses under 150k in the Tralee area? Or would it be scrapping the bottom of the barrel ? If we can get it for a certain amount we would not need a mortgage (she has some inheritance comming), so would it be helpful to mention to an EA that we already have the money?

Freddie59

Unpossible wrote: »

Just a quick question (rather than start a new thread), would that 80% rule work on houses under 150k in the Tralee area?

Why not? Nothing ventured etc. A house is only worth what someone is prepared to pay for it.:)