Hoping to sell

namurt

Thanks for all the advice. Unfortunately I didn't get to speak to the EA today to clarify things. My reasoning behind wanting to advertise at 220 was to allow for a drop of about 20K. I'm assuming buyers expect to haggle so if I price it at 200 it really doesn't leave me much room to drop.
If I price it too low then I'm relying on getting more than one person interested enough for it to go up.

Senna

namurt wrote: »

Thanks for all the advice. Unfortunately I didn't get to speak to the EA today to clarify things. My reasoning behind wanting to advertise at 220 was to allow for a drop of about 20K. I'm assuming buyers expect to haggle so if I price it at 200 it really doesn't leave me much room to drop.
If I price it too low then I'm relying on getting more than one person interested enough for it to go up.

Buyer's aren't stupid, they wont look at different priced houses and offer 15% off no mater what the price. If your price is realistic buyers will see this and a good EA will push this point home. As long as you have 10k to drop, then you have a barrier.
Pricing it at 220k when an EA is saying 185k max, is just a waste of time. You should be able to discuss this with the EA also, possibly price it at 205k for 2 week, if you dont have more than X amount of viewing, drop the price to 195k. You (and a good EA) can come up with a plan, but you have to be realistic. Selling it for 10k less than you had hoped now is much better than sitting with it advertised at 50k less next year and still no interest.

Balmed Out

I dont understand you at all, house prices are dropping selling quickly will get you more money. The house you will eventually buy is also dropping in value each day so at the end of the day like....

Duckjob

Agree with most of the other posters.

Sounds like the EAs you've talked you are actually being vaguely realistic about the market.

As for the post advising you to lay down the law with the EAs - Terrible, terrible advice.. if you follow this path it will lose you money.

Any house or apt on Daft or MyHome could be sold in 2-3 weeks, if the seller were committed to
a) finding the market clearing price point for the property. ( aggressively cut the price, and keep on cutting, until they start getting a decent level of interest from buyers)
and
b) agreeing to sell at the price at which they get offers.

Don't join in the seller mass delusion that "nothing is selling at the moment". What they really mean is "Nothing is selling for the prices we still think we should get for our properties...."

That very mentality is the only reason the market is so depressed right now. There are always buyers at the right price.

namurt

Balmed Out wrote: »

I dont understand you at all, house prices are dropping selling quickly will get you more money. The house you will eventually buy is also dropping in value each day so at the end of the day like....

How will selling quickly (assuming by that you mean for a low price) get me more money if I end up using the savings I have for a deposit on a new house to pay off the negative equity on the current one!!!

lainey316

namurt wrote: »

How will selling quickly (assuming by that you mean for a low price) get me more money if I end up using the savings I have for a deposit on a new house to pay off the negative equity on the current one!!!

Because in 6 months you'll probably only get 150k for it, if agent is suggesting max 185k now.

Snakeblood

namurt wrote: »

How will selling quickly (assuming by that you mean for a low price) get me more money if I end up using the savings I have for a deposit on a new house to pay off the negative equity on the current one!!!

If the price you *eventually* have to sell at is lower than the current price you *could* sell for, then you lose your deposit, and you are become in debt from the loss you take on selling anyway.

You don't get to sell a house for the price you want, you sell the house for the price you can sell it for, or you keep the house. The way the market is going, prices are going to keep dropping. If you want to sell your house, you have to price aggressively, and the estate agents (a pox upon them) are I think trying to help you understand this.

littleredspot

namurt wrote: »

How will selling quickly (assuming by that you mean for a low price) get me more money if I end up using the savings I have for a deposit on a new house to pay off the negative equity on the current one!!!

This is a common mistake. The price you paid for it, or the fact that you may go into negative equity, or the fact that you may have to use your savings to make up a difference, has nothing to do with how much your house is worth on the market.
I would agree with other posters. If building an extension doesn't help, you absolutely cannot live there anymore, and renting it out wouldn't be economical, then all you can do is sell it for whatever you can get.

Balmed Out

namurt wrote: »

How will selling quickly (assuming by that you mean for a low price) get me more money if I end up using the savings I have for a deposit on a new house to pay off the negative equity on the current one!!!

What they all said!

Id seriously recomend getting the quick sale now and renting. Even the most optomistic will tell you prices will fall for at least another year.

namurt

I know how much I paid for it or if it's in negative equity has nothing to do with what it's worth. My point is that if I can only afford to sell for a certain amount saying that it will be worth less in 6 months is of no benefit. I know house prices are dropping. I know if I can't sell for the amount I need to get I'll just have to put up with staying here.

quozl

That is a very different and very valid point, Namurt.

If you really want to sell and are able to borrow the difference then that is a route you can consider. I know it's un-palatable and I wish you the best of luck whatever route you take.

DonkyDonk

namurt wrote: »

I know how much I paid for it or if it's in negative equity has nothing to do with what it's worth. My point is that if I can only afford to sell for a certain amount saying that it will be worth less in 6 months is of no benefit. I know house prices are dropping. I know if I can't sell for the amount I need to get I'll just have to put up with staying here.

A lot of people have this problem. It's one of the major causes of the stagnation in the property market. On that basis I think you're better off staying put as you're sure to be disappointed in the current climate.

Even if you are able to find people who are willing to pay "over the odds" (and it is over the odds according to your EA) for your property, they will probably need to go to a bank for a mortgage. And as we are all aware, the banks are a lot more cautious about lending nowadays and will probably take the decision that the property is overpriced and refuse credit on that basis. But if your buyer has cash (and wants to pay over the odds) you'll be fine.

That's just another scenario for you.

Whatever you decide to do, I for one would love to hear how it unfolds if you're willing to keep us updated.

iguana

namurt wrote: »

I know how much I paid for it or if it's in negative equity has nothing to do with what it's worth. My point is that if I can only afford to sell for a certain amount saying that it will be worth less in 6 months is of no benefit. I know house prices are dropping. I know if I can't sell for the amount I need to get I'll just have to put up with staying here.

The thing is though, that the sooner you sell it the better your chance of getting the price you need. We're pretty much at a point where each day you wait lessens the sale price just a little bit more. (And unfortunately for you today was a day that dropped sales prices by more than just a bit.)

I'd be loath to dick about with chancing a higher price and then dropping after a few weeks. Those weeks could make the difference between achieving the price you need and only getting offers that you can't sell at. Being stuck in an unsuitable house indefinitely is horrible. If you need to achieve that €185k then you should get the house on the market ASAP.

The only thing I'd be demanding of the agent is that their service includes doing everything within reason to accommodate all viewers. That they are willing to hold viewings until at least 8pm on week nights and until at least 2pm on Saturdays. And that they don't try phantom bidder tactics because an awful lot of potential buyers walk at any hint of a bidding war (or clear bullshít from the EA).

Snakeblood

namurt wrote: »

I know how much I paid for it or if it's in negative equity has nothing to do with what it's worth. My point is that if I can only afford to sell for a certain amount saying that it will be worth less in 6 months is of no benefit. I know house prices are dropping. I know if I can't sell for the amount I need to get I'll just have to put up with staying here.

I think the general sentiment was 'Sell for as little as you are able to, if you can' not 'sell to put yourself in debt'. Best of luck with it.

Falconhoof

namurt wrote: »

How will selling quickly (assuming by that you mean for a low price) get me more money if I end up using the savings I have for a deposit on a new house to pay off the negative equity on the current one!!!

See that interest rate rise today? In the coming days that .25% will turn into 0.5%+ on new variable rate mortgages. Your house has just dropped in value by €2-3K in the space of a week. That is why a quick sale is important.

namurt

Iguana, thanks for mentioning about the viewings. I hadn't thought to ask the EA about that.

iguana

namurt wrote: »

Iguana, thanks for mentioning about the viewings. I hadn't thought to ask the EA about that.

Definitely check up on this. I've seen quite a few threads here, on thepropertypin and on askaboutmoney where potential viewers couldn't get the agent to agree to an out of office hours viewing and they got so annoyed they decided to not bother. I sold my house (in London) a few years ago and at least 85% of the viewings happened in the evenings and on Saturday morning/early afternoon. If my agents had insisted on 9-5 I'd probably still be on the market.

lainey316

+1 to iguana's post. I will ONLY view after 6 weekdays or Saturday morning/early afternoon. 4pm Monday? I say let me know if you have another viewing. I have a job after all.

chillywilly

Senna wrote: »

Buyer's aren't stupid

heh, that gave me a chuckle!

Dades

Reading this thread with interest.

I'm in the process of getting my house on the market and and have had two EAs suggest asking prices with €60K in the difference. (House will probably sell somewhere between 300-350K - closer to 300 no doubt).

Savills opted for a higher asking price to allow for haggling space on the price, whereas Sherry Fitz opted for a much lower asking price with almost no wiggle room from their (lower) valuation of the property. Have made an appointment with a third EA to see if that makes the decision any clearer.

While I don't want to end up chasing the market, I don't want the house priced just to be shifted off Sherry Fitz's books. (They were also more expensive and I've always been suspicious about their attitude, tbh).

(Mods if you think this is hijacking the OPs thread move at will )

spockety

As a potential buyer, I would generally only take note of new entries on Daft/MyHome which have an asking of at least 10% less than the lowest existing asking price in an area.

Anything else I just describe as "a languisher".

If you pitch your asking too high, there is a chance a potential market price buyer will be put off.

If you pitch low, you will interest those who are willing to pay the market price. It is the market that will decide what your house sells for, not the EA, and not you.

If you are not happy with what the market is willing to pay for your house, then your choice is quite simple, do not sell.

You are not in a position to determine what the market will pay for your house. The only thing you are in a position to do is to create interest in your house. This means setting an asking price which reflects the market as closely as possible, presenting your property very well in your ads (Good photos, I cannot stress this enough), and using an EA who will be responsive to market buyers to help your sale get over the line.

The only tactic you should use when setting your asking price is to make sure it is a price which will generate interest. Do not second guess the market by making an assumption that "nobody pays more than 10% less than the asking". This isn't necessarily true. The market will pay what the market deems the value of your property to be.

Idbatterim

i posted a few posts back about choosing the wrong estate agent initially cost my mum tens of thousands. If you are going to chance your arm at a higher price, if you dont get it, I would be dropping it down incrementally very quickly, monthly at most... Thats if you decide with the higher price with haggle space, as opposed to more realistic price with less room for haggling, the other good thing about pricing lower, is the fact you may get more interest and hence more bidders...

lainey316

Dades wrote: »

Reading this thread with interest.

I'm in the process of getting my house on the market and and have had two EAs suggest asking prices with €60K in the difference. (House will probably sell somewhere between 300-350K - closer to 300 no doubt).

Savills opted for a higher asking price to allow for haggling space on the price, whereas Sherry Fitz opted for a much lower asking price with almost no wiggle room from their (lower) valuation of the property. Have made an appointment with a third EA to see if that makes the decision any clearer.

While I don't want to end up chasing the market, I don't want the house priced just to be shifted off Sherry Fitz's books. (They were also more expensive and I've always been suspicious about their attitude, tbh).

(Mods if you think this is hijacking the OPs thread move at will )

Just FYI - Savills were very unresponsive on the phone - left three unreturned messages, eventually got the guy on email. However it's good to know they deliberately overprice. I might have a look at a house I'd considered nonsensically overpriced with them now.

Idbatterim

after reading the above post, im going to reiterate that sherry fitz gerald were a hell of alot more professional than the other agencies! not returning calls on possible several hundred thousand euro sales, it beggars belief!

Dades

lainey316 wrote: »

Just FYI - Savills were very unresponsive on the phone - left three unreturned messages, eventually got the guy on email.

They were the complete opposite with me. Phoned in the afternoon, I had the guy on the phone and his colleague knocking on my door at 9am the following morning (after also offering to come on a Saturday). Sherry Fitz forced me to take time off work to have them call.

lainey316

Dades wrote: »

They were the complete opposite with me. Phoned in the afternoon, I had the guy on the phone and his colleague knocking on my door at 9am the following morning (after also offering to come on a Saturday). Sherry Fitz forced me to take time off work to have them call.

I was "buying", not selling. It's not much use having them put up the board if interested parties can't arrange a viewing

If your gut says no, then don't go with Sherry Fitz. I suspect you'll feel they 'done you wrong' if you go with them. They have shifted a lot of properties near me quite quickly in the last month or so.

iguana

Maybe it would be an idea to have a friend/relative call up the different agents you are considering as if they are interested in finding out a bit more about a couple of similar properties. They can tell you how quickly they were responded to and how amenable the agents were about arranging potential viewings.

Also be sure to get them to call about similar price bracket properties because an agent with a €200k property and a €800k property on their books could give very different services, depending on the amount of the potential commission.

Dades

lainey316 wrote: »

I was "buying", not selling. It's not much use having them put up the board if interested parties can't arrange a viewing

Which branch were you dealing with? I've been dealing with Blackrock (Dublin).

There's no doubt they all talk-the-talk.

lainey316

Dades wrote: »

Which branch were you dealing with? I've been dealing with Blackrock (Dublin).

There's no doubt they all talk-the-talk.

Molesworth St, I guess.