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Buying a house looking for advice on offer

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  • 28-05-2010 11:09pm
    #1
    hedgehogmanor
    Closed Accounts Posts: 6 ✭


    Hi I am currently looking to buy a house in mullingar and the asking price is 170,000. I am not sure how low is too low to go in for first offer. Seeing as how house prices are still dropping. The house does not have pvc windows and needs some work, cosmetic. Really like house but dont want to overpay but just not sure what to offer any advice??


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    #2
    tommy21
    Closed Accounts Posts: 2,419 ✭✭✭tommy21


    hedgehogmanor wrote: »
    Hi I am currently looking to buy a house in mullingar and the asking price is 170,000. I am not sure how low is too low to go in for first offer. Seeing as how house prices are still dropping. The house does not have pvc windows and needs some work, cosmetic. Really like house but dont want to overpay but just not sure what to offer any advice??

    Play hard ball. I would offer them 40,000 and not a penny more:eek::eek::eek:


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    #3
    Piriz
    Registered Users Posts: 1,269 ✭✭✭Piriz


    considering the average house in dublin will reach 170,000 at some point in the next few years, i'd agree with the 40,000 above!
    no pvc windows? steer clear!
    seriously, take a read around some other articles in the accommodation and property section...you will learn alot over there.. infact start another thread over there and you'll get great help (mods, perhaps you could consider switching this thread over to accommodation and property) + read some economic reports on the housing market..i.e. morgan kelly..all the economic drivers such as restricted lending from the banks, unemployment, emigration, oversupply, negative equity, etc all lead to house prices to continue to decline...why by in a declining market? your house could be worth 1/2 in just 3 years.... be careful too as we expect interest rates to increase to ~6% could be higher who knows...when this happens our mortgage holders will be in many disastrous situations...much of house price value stems from availability of credit from the banks...when the banks are barely giving out mortgages to anyone these days this is forcing prices down, now when interest rates go up...peoples ability to pay will be restricted...more will be paid in interest and less will be paid for the actual house..
    also a multiple of annual rental income x~14years is also a guide for valuing a property...now, with the latest economic report from daft telling us that rents are still in decline this further supports the idea that now is not the best time to find value in the property market..
    whats going on in mullengar? is there much employment in this area? is the population in decline? what could you realistically expect to rent this property for? would anyone rent it? how low would you have to drop the rental price to ensure you had tenants? now multiply this annual figure x 14 and i bet its less then 75,000.. this formula is not even including the impending property tax which many expect in the next budget, neither is it including things like maintainence or other outgoings.. Mullengar will be not be even considered a commuter town as petrol prices are only going one way...
    my 3 cents :)


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    #4
    Jev/N
    Registered Users Posts: 3,456 ✭✭✭Jev/N


    Why the need to highlight the word house in red? :confused:


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    #5
    dudara
    Registered Users Posts: 33,518 ✭✭✭✭dudara


    Moved to Accomodation & Property

    dudara


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    #6
    AARRRGH
    Closed Accounts Posts: 12,382 ✭✭✭✭AARRRGH


    170k in Mullingar...?

    Please tell me it has acres of land and maybe 7 or 8 bedrooms.


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    #7
    MRBEAVER
    Closed Accounts Posts: 206 ✭✭MRBEAVER


    Jev/N wrote: »
    Why the need to highlight the word house in red? :confused:

    Maybe the OP is considering buying a red house


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    #8
    mandz
    Registered Users Posts: 526 ✭✭✭mandz


    I'm in a similar situation to the OP. I've found a house in a new estate I really like that's priced €150,000. I made an offer to the auctioneer of 120 once I had loan approval but got reply that they couldn't take offers and restated the price. I'm considering phoning up one of the other auctioneers who have the estate too and making a similar offer and looking for a quick sale from builder. Would this be advisable do you think?


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