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What would be reasonable starting offer?

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    #2
    chillywilly
    Registered Users Posts: 2,793 ✭✭✭chillywilly


    I don't mean to be smart but offer them what you are willing to pay for it. From what I understand property prices are still to come down a lot so you don't want to pay over what it will be worth in 2/3 years time. If the house has been on the market for 3 years then I'm sure they would be glad to get rid of it so don't be afraid of putting in a low offer. :)


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    #3
    Treehouse72
    Registered Users Posts: 1,003 ✭✭✭Treehouse72


    Housing should cost about 1/3 of your disposable (post tax) income. You could work out an offer on that basis, stress tested for higher interest rates. I'm assuming here that you do not have an income that is ridiculously out-of-line on the upside for this type of house.

    Alternatively, find out the rental price of an equivalent property and base an offer on a 6% yield (6% = Annual rent/House price). So if it rents for €1,000 pm, that would be [.06 = 12,000/x]. That's €200,000. If it rents for less pa, adjust equation appropriately.

    You can also base a valuation on price per sqaure foot. But to be honest I don't know how much that should be in rural Ireland. Here's a long list of prices per sq. ft. for the UK:

    http://property.timesonline.co.uk/tol/life_and_style/property/article7033505.ece

    That would suggest to me you should be looking at significantly sub-€200 per sq. ft. Here's another article from the US in 2010 that suggests the US average is below $100 (although I don't know if that is for build cost only or build cost + land):

    http://www.ehow.com/facts_7438100_average-home-per-square-feet.html

    Another thing to try is to look at what this house would have costed in 1998, adjust for inflation, and make that the target price.


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    #4
    gigino
    Closed Accounts Posts: 2,350 ✭✭✭gigino


    some new semi-detatched elsewhere in the country are going for 110k.

    its a buyers market now

    wait until the banks start selling reposessed houses


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    #5
    doggy Bear
    Registered Users Posts: 25 ✭doggy Bear


    gigino wrote: »
    some new semi-detatched elsewhere in the country are going for 110k.

    its a buyers market now

    wait until the banks start selling reposessed houses

    For your information: The first-ever auction of repossessed homes is to take place in April in Dublin. These homes are nation-wide, so if you can wait a month or so, I suggest checking it out. Here's an article about it:
    http://www.ongo.com/v/449748/-1/D15ABADC1964D38F/hundreds-of-repossessed-homes-in-ireland-to-be-sold-by-auction


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    #6
    birdie31
    Registered Users Posts: 23 ✭birdie31


    just saw online these houses are sitting there since 15th january 2007!!!!!!the developer should be snapping my hand off


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    #7
    dory
    Moderators, Recreation & Hobbies Moderators Posts: 4,494 Mod ✭✭✭✭dory


    Treehouse72 wrote: »
    But to be honest I don't know how much that should be in rural Ireland.

    Rural Ireland?! That house is about 2 miles from the centre of Cork city. It may not be in the pale but it is no way in 'rural Ireland'. :cool:

    I know those houses, built in the boom, a lot lay empty and those that are full are in massive negative equity and many are hoping to leave soon (they would if they could). And judging by that price you'd soon be in about €100k ned equity yourself.

    So, as others have said, it's whatever it's worth to you.


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    #8
    birdie31
    Registered Users Posts: 23 ✭birdie31


    thank you for your reply dory...do u mean people are wanting to sell up from here???

    im going to go in with one low offer and one offer only


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    #9
    dory
    Moderators, Recreation & Hobbies Moderators Posts: 4,494 Mod ✭✭✭✭dory


    birdie31 wrote: »
    thank you for your reply dory...do u mean people are wanting to sell up from here???

    im going to go in with one low offer and one offer only

    I meant they owe €350k and their houses are worth €200k, so they can't sell or they'd owe €150k. The bank wouldn't even allow them sell for that low. So if you move there, these unhappy people will be your neighbours!

    You might as well try a low offer and see what happens.


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    #10
    birdie31
    Registered Users Posts: 23 ✭birdie31


    oh ok thanks....well im going to call EA tomorrow...was thinking of offering around 130k


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    #11
    kevin101
    Registered Users Posts: 162 ✭✭kevin101


    Let us know how you get on, we are currently in a position to buy but have deceided to rent for another year to see what way things go. Best of luck but if the houses are sitting there since 2007 then an offer of €150k - €160 would be reasonable.


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    #12
    magneticimpulse
    Registered Users Posts: 1,952 ✭✭✭magneticimpulse


    Nothing more then 120K. Advertised prices are still 2008 cuckoo land prices. I would knock at least 50% off. I think 120K is reasonible and this is based on 4 bedroom detached houses on daft.ie advertised at 60k outside of Dublin. Thats a good indication that 120k is already top market price....reasonable for a 3 bed new house imo.


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    #13
    liger
    Registered Users Posts: 756 ✭✭✭liger


    Heres the list of Properties going for grabs in that auction

    http://www.auction.co.uk/irish/onlineCatalogue.asp


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    #14
    birdie31
    Registered Users Posts: 23 ✭birdie31


    they turned down offer of 137k.


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    #15
    magneticimpulse
    Registered Users Posts: 1,952 ✭✭✭magneticimpulse


    birdie31 wrote: »
    they turned down offer of 137k.

    Well thats their loss. Plenty of houses on the market, and the market will be flooded over the next few months with people leaving the country, banks taking houses back etc etc.

    Dont feel pressure by any silly hype or sales gimmicks! It pays to hold out for a bit longer.


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    #16
    birdie31
    Registered Users Posts: 23 ✭birdie31


    i can wait it out for another few months...


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    #17
    Diddler1977
    Registered Users Posts: 3,765 ✭✭✭Diddler1977


    birdie31 wrote: »
    i can wait it out for another few months...


    Well worth waiting some time to save a few (a good few) grand! ;)


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    #18
    birdie31
    Registered Users Posts: 23 ✭birdie31


    sounds good to me!!!there are about 8 of these houses empty anyways as far as i know...so maybe the developer and EA will come back to me in few months with tails between their legs!!!!


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    #19
    The_Conductor
    Moderators, Society & Culture Moderators Posts: 32,285 Mod ✭✭✭✭The_Conductor


    Ye gods!
    For a pleasant, reasonably rural area- they sure put up a whole lot of houses there....... Last time I was in Glanmire- it was nothing like this...... For what its worth- the area appears to be horribly over developed, and I think your offer was reasonable. If I owned one- I might not be thrilled with the offer, but its the way things are going to go.........


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    #20
    birdie31
    Registered Users Posts: 23 ✭birdie31


    not sure whether to increase my offer or not...or just wait it out and see if they get back to me in a few months etc


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    #21
    tanyabond
    Registered Users Posts: 154 ✭✭tanyabond


    Maybe look elsewhere in the meantime?


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    #22
    magneticimpulse
    Registered Users Posts: 1,952 ✭✭✭magneticimpulse


    birdie31 wrote: »
    not sure whether to increase my offer or not...or just wait it out and see if they get back to me in a few months etc

    I would strongly advice not increasing your offer!!! Are you not listening to the news everyday and keeping track of the economy? Do you think there is going to be a mad rush for people to buy these houses?

    Just take a look at daft.ie and the length of time houses have been there. Ive been looking at Ballinteer area on daft.ie for the past 3 years and Ive seen the same 41 houses on there which have not moved from the site in 3 years. Your telling me that there is a rush for houses in Cork, when there hasnt been a move on ones in Dublin for the past 3 years? My friend bought a house there for 750k euro in 2008. I said to wait out that the prices were going down...but didnt listen. Now the same houses have been advertised at 450k on daft.ie (since June 2009 at that price) and are not moving anywhere fast....there is no way they will even get 300k for the house which sold at 750k in 2008!!!

    If you want to blow money away, just burn it...because if you increase your offer you might as well burn your money.

    People are leaving the country in their masses. I dont know anyone in Ireland under the age of 30 who is employed!!! That is shocking! Even the few graduates who got employed last September are now being let go....jobs are not secure....Ireland is still going down down down the drain.

    See reality.


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    #23
    birdie31
    Registered Users Posts: 23 ✭birdie31


    your right...i temporarily lost the run of things for a minute..i have also been following these houses for over 3yrs..i am in no rush...it would go against everything and all the waiting i have done if i jumped in with another offer...thanks for that!!!


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    #24
    Straffan1979
    Registered Users Posts: 214 ✭✭Straffan1979


    If they come back and offer it to you for 137 walk away and offer under 100k a few weeks later. I know several people who've been in this situation and are now living in houses bought for under half the guide prices. You have to realise the banks won't give anyone money-and few have cash.You're in a strong position if you've got 130k in your pocket. I think a house like this one is worth 70-80k max the way things are going in this country. I'm still gobsmacked when I see people thinking of offering 285k for a house thats guide price is around 300k. Absolute madness.

    In reality if there are 7-8 of these houses idle since 2007 for 140,000 I firmly believe you should be able to buy 2 for this price. Thats reality.


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