Property Prices-People deluded.

dabestman1

I was talking to a neighbour who believes that his house has not gone down in value in the last year,i told him otherwise. He's not an idiot but seems deluded in relation to the valuation of his property. A couple of other people are saying the same. Do these people not read newspapers, the news or are they simply deluded? Anyone else find this annoying?I assume there are other people living in denial.

JoeyJJ

You could show him the price index drops however I'm sure he'll say something like but this area is different ect.

If there are any houses for sale in the area of same stature you could look up collapso.net to see if there are any price drops over the last year.

Maybe he isn't for turning and pushing the fact could lead to bad feelings, why do you care? Is he putting the house up for sale?

lainey316

In denial. Unless he wants to sell, leave him off, what difference does it make? if he does want to sell, then he'll soon realise from the lack of viewings or what he'll consider 'derisory' offers.

John Mason

yeah, i work with a bloke who lives in a huge lego land housing estate the arse end of wicklow - he bought his 2 bed house there for 470k 4 years ago,

he thinks his house has only devalued by 50k but when he wants to sell it in 5 years time you should make around a 100k profit (and is on interest only mortgage repayments)

Treehouse72

dabestman1 wrote: »

He's not an idiot...

No, he's an idiot alright.

Theboinkmaster

irishbird wrote: »

yeah, i work with a bloke who lives in a huge lego land housing estate the arse end of wicklow - he bought his 2 bed house there for 470k 4 years ago,

he thinks his house has only devalued by 50k but when he wants to sell it in 5 years time you should make around a 100k profit (and is on interest only mortgage repayments)

Definitely an idiot.

Mr X11

irishbird wrote: »

yeah, i work with a bloke who lives in a huge lego land housing estate the arse end of wicklow - he bought his 2 bed house there for 470k 4 years ago,

he thinks his house has only devalued by 50k but when he wants to sell it in 5 years time you should make around a 100k profit (and is on interest only mortgage repayments)

The guy is a clown for buying a two bedroom house for anything near that kind of money. He deserves all that's coming to him. He'll be lucky if it reaches 200k on the open market now never mind in 5 years time.

robd

dabestman1 wrote: »

I was talking to a neighbour who believes that his house has not gone down in value in the last year,i told him otherwise. He's not an idiot but seems deluded in relation to the valuation of his property. A couple of other people are saying the same. Do these people not read newspapers, the news or are they simply deluded? Anyone else find this annoying?I assume there are other people living in denial.

He's in good company with 50,000 or so other people advertising their properties through Estate Agents on MyHome or Daft.

It's a rather un-unique phenomenon I'm afraid.

Mr. Loverman

The average human uses emotion rather than logic when making up their mind.

Scary.

ShadowHearth

irishbird wrote: »

yeah, i work with a bloke who lives in a huge lego land housing estate the arse end of wicklow - he bought his 2 bed house there for 470k 4 years ago,

he thinks his house has only devalued by 50k but when he wants to sell it in 5 years time you should make around a 100k profit (and is on interest only mortgage repayments)

holy mother of flying hotdogs... 470k for 2 bed house?! and he think it droped only by 50k...

btw what does it mean: legoland housing estate lol

lainey316

ShadowHearth wrote: »

btw what does it mean: legoland housing estate lol

hundreds of identical little boxy houses. practically every estate in ireland tbh

zyndacyclone

I think that estate agents are largely to blame for this delusion, some of them over price by an astonishing degree. I've even had agents showing me properties admit that it's worth about 20% less than what they have it listed for.

Perhaps they expect the Irish to barter? Idk, me I just don't view properties that are THAT over priced on the grounds that, like your friend, the owners probably haven't got realistic expectations.

Love the expression 'legoland housing'. Perfect, totally fits those housing estates.

mikemac

The agents should be trying to be realistic, after all they want a quick sale and not hanging on for months and months. An extra 50k is a lot to the seller but it's not a huge amount in commission, not worth waiting months for.

And I would think they try to do this with sellers and set a realistic price.

All the agent can do is follow the instructions given by the seller though and if the seller is in denial, you have to follow what your client instructs

irishbird wrote: »

yeah, i work with a bloke who lives in a huge lego land housing estate the arse end of wicklow - he bought his 2 bed house there for 470k 4 years ago,

Delgany?

Frank Black

zyndacyclone wrote: »

I think that estate agents are largely to blame for this delusion, some of them over price by an astonishing degree. I've even had agents showing me properties admit that it's worth about 20% less than what they have it listed for.

I think their pricing it higher than it's worth on the assumption that anyone making an offer for a house these days are unlikely to offer the full asking price.

zyndacyclone

Probably true but some of them go too far. There's a fine balance between assuming that people will just make a lower offer and putting them off because they assume that the owner will be deluded.

I recently viewed a house that was, imo, over estimated by nearly 30%. The agent kept repeating that he thought it 'very overpriced'. I didn't give him an offer because I didn't feel comfortable offering that much below list price. Maybe I should have but the degree of overpricing was just off-putting.

mikemac

I remember gazumping, we had lots of threads on it

Will we see gazundering in Ireland?
Seller desperate to sell, maybe in a chain with a bridging loan and right before the contracts are signed the buyer demands a lower price or they walk. The seller knows it might be months to get another buyer in place
High pressure tactics

Well it was done the other way around not so long ago

Not condoning it now, just interested

Callan57

dabestman1 wrote: »

I was talking to a neighbour who believes that his house has not gone down in value in the last year,i told him otherwise. He's not an idiot but seems deluded in relation to the valuation of his property. A couple of other people are saying the same. Do these people not read newspapers, the news or are they simply deluded? Anyone else find this annoying?I assume there are other people living in denial.

Surely it's only gone down in price if he is trying to sell .. if he likes his home & intends to continu living in it then it hasn't gone down in value to him

zyndacyclone

Only works in a sellers market, I'd walk long before it got to the contract stage now. Most times, I don't even bother to make an offer cause the seller is probably delusional to let it be over priced by that much.

Zamboni

Callan57 wrote: »

Surely it's only gone down in price if he is trying to sell .. if he likes his home & intends to continu living in it then it hasn't gone down in value to him

Look at from a balance sheet perspective.
His assets have devalued so his financial position has changed, negatively in this case.

Godge

Zamboni wrote: »

Look at from a balance sheet perspective.
His assets have devalued so his financial position has changed, negatively in this case.

Unlike a company, he does not have to produce a balance sheet and even if he draws up, he doesn't have to get an independent valuation and can rely on his own best guess.

Yes, there are many deluded people out there. Was talking to a neighbour who is considering selling and their estimate of value of their house was about 70K more than mine, and I was basing my estimate on asking prices in the area on daft and myhome (which are more than you will get).

D1stant

Callan57 wrote: »

Surely it's only gone down in price if he is trying to sell .. if he likes his home & intends to continu living in it then it hasn't gone down in value to him

Eh no. If you had 100k in the bank and someone 'misplaced' 50k of it. Would that be an issue if you didnt plan to withdraw any money?

Zamboni

Godge wrote: »

Unlike a company, he does not have to produce a balance sheet and even if he draws up, he doesn't have to get an independent valuation and can rely on his own best guess.

Of course not, I was simply providing a different perspective.

Bobeagleburger

Tell your neighbour to read this :pac:

House prices in Dublin have fallen nearly 50 per cent since their peak in 2007, the Central Statistics Office has said.
According to the CSO’s Residential Property Price Index, house prices in the capital are 46 per cent lower than 2007, while apartment prices have fallen 53 per cent since their high in February 2007.
Nationally, residential property prices fell by 1 per cent in the month of April. This compares with a decline of 1.7 per cent recorded in March.
The index, which looks at property on a national level, shows residential property prices throughout the rest of the country are 36 per cent lower than their highest level in 2007. Overall, the national index is 40 per cent lower than its highest level in 2007.
Dublin apartment prices fell by 1.8 per cent in the month of April and were 14.1 per cent lower when compared with the same month of 2010, while house prices fell 0.7 per cent and were 12.6 per cent lower compared to a year earlier.
Property prices throughout the rest of the country fell by 36 per cent in the first three months of 2011, and were 11.7 per cent lower than in April 2010.
Dermot O'Leary, economist at Goodbody Stockbrokers, said the national average price for a house was €180,000, back to levels seen in early 2002.

"It is clear that an unprecedented correction has taken place, but until the banking sector shows real signs of rehabilitation, facilitated by the restructuring efforts currently ongoing, there is little reason to believe that prices will rise," he said.

Snakeblood

Callan57 wrote: »

Surely it's only gone down in price if he is trying to sell .. if he likes his home & intends to continu living in it then it hasn't gone down in value to him

If he's talking about how much he can sell it for, then it's gone down in value to him. If he's talking about the awesome view, then yeah, that's the same.

John Mason

mikemac wrote: »

I remember gazumping, we had lots of threads on it

Will we see gazundering in Ireland?
Seller desperate to sell, maybe in a chain with a bridging loan and right before the contracts are signed the buyer demands a lower price or they walk. The seller knows it might be months to get another buyer in place
High pressure tactics

Well it was done the other way around not so long ago

Not condoning it now, just interested

this happened to my friend, the day before the handover was due to happen they told her that they are reducing the price by 25k, as the prices had come down.

she told them to feck off and is now renting the house out - suits her tbh she doesnt live in the country

johndaman66

Property prices throughout the rest of the country fell by 36 per cent in the first three months of 2011

Surely a misprint?

Mr. Loverman

johndaman66 wrote: »

Surely a misprint?

3.6% I would think.

dabestman1

irishbird wrote: »

this happened to my friend, the day before the handover was due to happen they told her that they are reducing the price by 25k, as the prices had come down.

she told them to feck off and is now renting the house out - suits her tbh she doesnt live in the country

thats lousy, im glad she told them to feck off

Freddie59

lainey316 wrote: »

hundreds of identical little boxy houses. practically every estate in ireland tbh

You're obviously not a city dweller then.:rolleyes:

smelltheglove

This post reminds me of an old neighbour, I sold in 2006, height of the boom. I remember after the sign went up neighbour says to me 'are ya mad selling now?' I said eh why he says 'sure the prices are only going to go up, Im waiting another year or two until it goes up to around 450k and then Ill get somewhere bigger'. I had only bought a year before, he had bought 8 or 9 years before, when the estate was first built, list prices on building were only 70k punts, still he thought he would get a 300k or more profit....

We sold end of 06, a few months later, another neighbour sale agreed for 20k less than our sale price, only our house was basic, theirs was extended to the back and attic, new windows and doors, tiled throughout downstairs with paved driveway and gates etc etc... They decided to stay put, didnt think they were getting a good price, most recent house to sell there was almost half their sale agreed price!

When I drive by my old estate I often wonder does my neighbour ever think of that conversation.... I have no negative equity, happily renting, hoping to stay like that for the forseeable, and they all said I was mad when I said I was selling before the prices started to drop! I would have been in huge trouble if I didnt sell when I did.

lainey316

lainey316 wrote: »

hundreds of identical little boxy houses. practically every estate in ireland tbh

Freddie59 wrote: »

You're obviously not a city dweller then.:rolleyes:

Um, I am actually. Sorry, not a clue what point you're trying to get at there :rolleyes: