What do we offer???

clanard

Ok here it is.
We have found our ideal house, it ticks all our boxes.
In July 2010 it was 200k and now its 156k.
We all know the current climate all that, we where refused a mortgage in 2 places but only yesterday we got approval from another one.
So what do we offer, what would u offer?
Appreciate any advice.

accensi0n

clanard wrote: »

Ok here it is.
We have found our ideal house, it ticks all our boxes.
In July 2010 it was 200k and now its 156k.
We all know the current climate all that, we where refused a mortgage in 2 places but only yesterday we got approval from another one.
So what do we offer, what would u offer?
Appreciate any advice.

A bit of information would be useful. People can't offer proper advice otherwise.

clanard

Just dont wanna say where it is, dont think it matters as we are just looking to see what other people would offer.
Its a nice 3 bed semi detached house in good condition.

Wile E. Coyote

Has there been any other offers? Has it been on the market a long time?

I'd probably start with an offer €20k below and see what happens. The worst they can say is no but at least it gives you a starting point for negotiating.

The_Conductor

Without knowing anything about the property- its difficult to offer advice. However- as a broad generalisation- it would be valued at 50%~ (ish) of its peak value, and continuing to fall in price (contrary to predictions the rate of fall is actually increasing again).

I would use a list valuer from your lending institution (not associated with the seller or their estate agent), to do a tour of the property with you- and come up with an independent valuation based on the seller wanting a reasonably quick sale- providing you fully intend on going ahead with the purchase. It'll cost you perhaps EUR100-150- however I imagine it would be money well spent. I would then offer 10% less than their valuation- on the basis that prices are still falling- and if its on the market for any protracted period of time- it'll fall the 10% and more........

fred252

if the vendors have put a realistic price on it then i'd offer maybe €140. if they're not being realistic then offer them what you think is a fair price for it.

clanard

Thanks for the advice and opinions everyone.
Just hard to know what to do the way house prices are falling at the mn.

The_Conductor

clanard wrote: »

Thanks for the advice and opinions everyone.
Just hard to know what to do the way house prices are falling at the mn.

To be honest- unless you really need to buy- I'd seriously advise saving, and saving to the best of your ability. Prices have not 'bottomed out' as the media would have you believe- they are taking a bit of breather perhaps- however there are further interest rate increases on the immediate horizon- and the new government hasn't explained how they are going to plug the deficit (i.e. take another 19 billion a year out of the economy- between cuts in expenditure and tax increases)- so buying, unless you really need to- is something you need to have a good long hard thought about. Sure- there are dream houses out there that tick all your boxes- but as sure as day is day- another one will come up sooner or later. I'm so damn relieved I didn't take that 600k that BOI were offering me in 2007- to buy that house in Portlaoise, it would be a millstone I'd never get rid of- our current home, while small and not really suitable for our small family- is manageable, is in a good location- and we can and will be able to afford the mortgage on it. The light at the end of the tunnel for us- is that we didn't loose the run of ourselves with borrowings- so while we may not have a lot- we also don't owe as much as many people do. Swings and roundabouts.