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Should we price the house as low as possible?

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  • 16-08-2011 1:08pm
    #1
    Claire NI
    Closed Accounts Posts: 8 ✭


    Hi everyone, new poster looking for some advice if possible.

    We put our house on the market nine months ago and we have had 2 viewings. I know the market is bad but thought that we would be getting a bit more interest to be honest. We are on our second estate agent and told him to price to sell, we were valued by three different agents at 129k, put it up for 120k, reduced to 115k, house over the road (same house) sold a few weeks ago for 145k, basically ours is and always has been the cheapest on the street.

    We have had the garden done, decorated, de cluttered, etc spoke to the estate agent last week who told us there is no interest in our house, and hasnt been since our last viewing in May, and he does not know why.

    He keeps telling us to reduce the price more, but what I dont get is we are already the cheapest house and getting no interest so is putting the price down going to make a difference?

    My boyfriend got offered a new job with better pay, he accepted and starts in october, but it means we have to move 250 miles away in less than two months so we are starting to worry a little now.

    The absolute lowest we could drop to would be 98k, that would clear our mortgage and pay the estate agent fees and solicitor fees, we would then be left with nothing.

    My mum lives near the area where my partners new job is and has told us we can live with her until we get on our feet so somewhere to live isnt a problem.

    If you were in our situation would you just put the price low and cut your losses and make a clean break or just move away and leave it empty until it sells for a better price?


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    #2
    Treehouse72
    Registered Users Posts: 1,003 ✭✭✭Treehouse72


    Claire NI wrote: »
    house over the road (same house) sold a few weeks ago for 145k


    How do you know this?


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    #3
    Claire NI
    Closed Accounts Posts: 8 ✭Claire NI


    We know the people who sold the house, been friends for a few years.


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    #4
    jt69er
    Registered Users Posts: 331 ✭✭jt69er


    why not try and rent it for a while,rental income will help pay mortgage


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    #5
    Monty Burnz
    Closed Accounts Posts: 12,455 ✭✭✭✭Monty Burnz


    Claire NI wrote: »
    We know the people who sold the house, been friends for a few years.

    Hope they were telling the truth - they may have exaggerated a little to save face.

    The fact is that anything will sell if the price is right - as in, low enough. If you list it for 99k, you might get a couple of people bidding on it and get it up a bit higher (say to 110k) whereas if you list it at 110k you might get no bidders at all.

    Good luck!


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    #6
    subway
    Closed Accounts Posts: 6,131 ✭✭✭subway


    Why did the 145k person not view your house?
    Are they similar properties?


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    #7
    john kinsella
    Registered Users Posts: 462 ✭✭john kinsella


    Have you got a link to the ad on daft etc?

    What area are you in?


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    #8
    mikemac
    Closed Accounts Posts: 19,986 ✭✭✭✭mikemac


    The people were your friends but even then, people can and do lie about these things.
    Even with market being tough they might feel bad about admitting their price so it might not be accurate

    The agents, you've had two
    Maybe you might get better results with a local one where the owner has been doing it for decades and it probably runs in the family.
    Instead of a branch of a big chain where the younger staff don't realy know the area and the tactics


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    #9
    Claire NI
    Closed Accounts Posts: 8 ✭Claire NI


    jt69er wrote: »
    why not try and rent it for a while,rental income will help pay mortgage

    Asked the estate agent if we should rent it out he told us there is no market to rent in our area, we live in the country and he said that most people are looking nearer to towns and cities. Not sure if thats true to be honest but its what he says if we ask him.
    subway wrote: »
    Why did the 145k person not view your house?
    Are they similar properties?

    We asked the same question to our estate agent, he said he wasnt sure why they didnt want to view ours, as they could have saved a bit of money.


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    #10
    antiskeptic
    Registered Users Posts: 9,555 ✭✭✭antiskeptic


    Claire NI wrote: »
    We put our house on the market nine months ago and we have had 2 viewings. I know the market is bad but thought that we would be getting a bit more interest to be honest. We are on our second estate agent and told him to price to sell, we were valued by three different agents at 129k, put it up for 120k, reduced to 115k, house over the road (same house) sold a few weeks ago for 145k, basically ours is and always has been the cheapest on the street.

    We have had the garden done, decorated, de cluttered, etc spoke to the estate agent last week who told us there is no interest in our house, and hasnt been since our last viewing in May, and he does not know why.

    He keeps telling us to reduce the price more, but what I dont get is we are already the cheapest house and getting no interest so is putting the price down going to make a difference?

    The absolute lowest we could drop to would be 98k, that would clear our mortgage and pay the estate agent fees and solicitor fees, we would then be left with nothing.

    If you were in our situation would you just put the price low and cut your losses and make a clean break or just move away and leave it empty until it sells for a better price?

    There may be a very limited market for houses up your way. And when someone does come along (as they did to your neighbours), they might want a walk in condition / sunny side of the street / end of terrace / larger back garden or something that your neighbours had that yours hadn't got. And now that that house is gone, there just aren't any other buyers around.

    Lowering the price will always spread the net but if fish are scarce you'll might have to spread the net quite wide to get a bite.

    The issue of wanting to clear your mortgage is an irrelevancy (sorry). The house will go for what someone will pay for it. In a falling market, with no sign of recovery, waiting for a better price will see you worse off in 6 months than you are now. You might have to face the fact that you could be in negative equity. Something folk are up to their necks in to the tune of hundreds of thousands, all over the country.


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    #11
    subway
    Closed Accounts Posts: 6,131 ✭✭✭subway


    Claire NI wrote: »


    We asked the same question to our estate agent, he said he wasnt sure why they didnt want to view ours, as they could have saved a bit of money.

    If you really believe they paid more than your asking without viewing your house then you need to sit down and properly compare the 2 properties. There is no buyer who is that stupid. Even as a negotiation tactic they should have viewed both. If they are similar.

    Secondly, and I might be misreading, but if you have the same ea and he didn't drag them in for a viewing then fire him as he is not acting in your interest


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    #12
    Triangla
    Registered Users Posts: 818 ✭✭✭Triangla


    Maybe they thought 145k house was superior to 129k house.

    Why not try taking it off the market for a while then put it for sale at 145k.

    Maybe people are put off that it's too cheap.

    I could be completely wrong but what have you got to lose?


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    #13
    antiskeptic
    Registered Users Posts: 9,555 ✭✭✭antiskeptic


    Triangla wrote: »
    Maybe they thought 145k house was superior to 129k house.

    Why not try taking it off the market for a while then put it for sale at 145k.

    Maybe people are put off that it's too cheap.

    I could be completely wrong but what have you got to lose?

    The cost of a daft ad? The cost of leaving a house unsold in a falling market?


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    #14
    Claire NI
    Closed Accounts Posts: 8 ✭Claire NI


    Thank you everyone for the replies up to now, its given me a bit to think about.

    Sorry I have only just seen the post asking where the house is, Its in County Down in Northern Ireland, I know this is an Irish board but thought I would try to get some advice anyway.

    Triangla: Taking it off the market isnt really an option right now as we have to move away so the sooner it sells the better, if we didnt have to move away I wouldnt really care how long its taking, I think the time limit is stressing us out more than anything.

    subway: it is the same agent that sold the other house on our steet, when I spoke to them last week they said there was no interest at all, and also that they do not have a crystal ball and cannot tell me when people might become interested etc. I would leave them and go to another agent but they are the only agents in NI that advertise on rightmove, we also managed to get their fees down from 2 per cent to 1 per cent, not that its making any difference now lol..

    thanks again everyone.


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    #15
    subway
    Closed Accounts Posts: 6,131 ✭✭✭subway


    Claire NI wrote: »
    we also managed to get their fees down from 2 per cent to 1 per cent, not that its making any difference now lol..

    thanks again everyone.

    Are you sure they are acting in your interests? Would they be bitter about the commission?


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    #16
    Tigger
    Closed Accounts Posts: 16,705 ✭✭✭✭Tigger


    Claire NI wrote: »
    Thank you everyone for the replies up to now, its given me a bit to think about.

    Sorry I have only just seen the post asking where the house is, Its in County Down in Northern Ireland, I know this is an Irish board but thought I would try to get some advice anyway.
    .

    without getting politial i'm sure people from the north are very welcome here


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    #17
    odds_on
    Closed Accounts Posts: 1,869 ✭✭✭odds_on


    Many people wanting to buy a house (especially at the lower end on the market) have a max price they can afford (or restricted by a mortgage). When they are searching for a house on any of the usual websites they will look at those houses that come within their budget (or a little above, hoping the seller will come down in price).

    If you price your property in such a way that you would be willing to reduce the price by say 15% you may well eliminate a possible purchaser who wouldn't have thought that the price would be reduced by so much.

    I have seen houses advertized at say 115,000 and then the price is reduced to 95,000. Here, the seller would have lost a possible purchaser who had a limit of say 100,000 who might have looked a houses up to 110,000.

    It's a fine balancing act which many sellers and estate agents do not understand. Take it from me, I have a friend wanting to buy and this has been one of his major problems - also, he is not restricted to a particular area but is looking at anywhere in the 26 counties - a big choice and he is not in a hurry to buy - he wants the right property at the right price.


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    #18
    Claire NI
    Closed Accounts Posts: 8 ✭Claire NI


    john kinsella wrote: »
    Have you got a link to the ad on daft etc?

    What area are you in?

    I have the propertynews link, I didnt want to post it yet as the estate agent has just been taking new pictures, we were not happy with these ones as the front garden has been done since so no weeds! or bins! they took the pictures when we were out. They now have pictures of all three bedrooms as well as the downstairs WC etc, but this is how it looked before the new pictures.

    Ours is the one for 115k.

    http://www.propertynews.com/search/151537645/


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    #19
    Monty Burnz
    Closed Accounts Posts: 12,455 ✭✭✭✭Monty Burnz


    I'll say this much - your money goes a lot farther when buying a house in NI compared to here. Goes to show that prices have some way to fall yet in the ROI.


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    #20
    TonyStark
    Registered Users Posts: 851 ✭✭✭TonyStark


    Tigger wrote: »
    Claire NI wrote: »
    Thank you everyone for the replies up to now, its given me a bit to think about.

    Sorry I have only just seen the post asking where the house is, Its in County Down in Northern Ireland, I know this is an Irish board but thought I would try to get some advice anyway.
    .

    without getting politial i'm sure people from the north are very welcome here

    Could be a sectarian thing?! Could it be that your house appeals to 'half' of the Market or less depending where you are from. I find it strange your neighbours one sold and yours hasn't.


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    #21
    Monty Burnz
    Closed Accounts Posts: 12,455 ✭✭✭✭Monty Burnz


    TonyStark wrote: »
    Could be a sectarian thing?! Could it be that your house appeals to 'half' of the Market or less depending where you are from. I find it strange your neighbours one sold and yours hasn't.
    I'm sure if that were the case the OP would know a lot more about it than those of us in the ROI who don't understand how that stuff works.


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    #22
    Claire NI
    Closed Accounts Posts: 8 ✭Claire NI


    Monty Burnz wrote: »
    I'm sure if that were the case the OP would know a lot more about it than those of us in the ROI who don't understand how that stuff works.

    I have no idea how it works either lol Im from England and moved here to be with my boyfriend.


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    #23
    odds_on
    Closed Accounts Posts: 1,869 ✭✭✭odds_on


    Claire NI wrote: »
    I have the propertynews link, I didnt want to post it yet as the estate agent has just been taking new pictures, we were not happy with these ones as the front garden has been done since so no weeds! or bins! they took the pictures when we were out. They now have pictures of all three bedrooms as well as the downstairs WC etc, but this is how it looked before the new pictures.

    Ours is the one for 115k.

    When looking at photos of houses, I think the following are necessary:
    Living-room
    Kitchen or kitchen/diner
    Bathroom
    a bedroom
    and rear garden (if there is one)

    So, five photos minimum - and not close-ups of the furniture, potential purchasers want to see what the house looks like and possibly fill in gaps not included in the description - type of heating, bath or bath with shower, kitchen with fitted appliances etc.

    I note that if the rear garden is well maintained, the house will usually be well maintained as well. A crappy rear garden - house is often in poor decoration.


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    #24
    swirlser
    Registered Users Posts: 289 ✭✭swirlser


    Claire NI wrote: »
    it is the same agent that sold the other house on our street

    Hang on, the houses are much the same, but urs is comfortably cheaper and yet the ea with both of the houses on their books sold the more expensive without even giving a viewing of urs to those buyers? ... Gonna go out on a limb and say the ea recognises the **** Market and when they have 1 biter on the line they shift the prop with the bigger commission.

    Unfortunately this doesn't help u now. Obviously a price drop would get more interest but the question is, does it all come down to price or is there simply very limited demand in your spot. You could hold on at ur price and the next time a potential buyer comes around it may not be the diff between getting the sale or not as to whether ur asking is 100 or 120.

    Having said that, it is a falling Market and u say just under a 100 will clear fees and mortgage away and ur moving with ur bf to what should be a better life, there's many worse scenarios going around these days than the opportunity of a clean break and a better paying job...

    EDIT: I didn't directly answer your question. If it was me I wouldn't drop the price more ATM. Plan to go forward on the assumption your making nothing from the sale, any changes left you can do to keep the prop as neutral and presentable as you can and keep your eye on the neighbouring areas, adjust ur price as appropriate. Is there anywhere else you can advertise the prop?

    Gl with the sale


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    #25
    Idbatterim
    Registered Users Posts: 17,852 ✭✭✭✭Idbatterim


    it seems to look fine, except I think the front garden lets house down a bit! id atleast take out the weeds coming through membrane and the dead tree or whatever it is does not look great! alternatively im sure you could lay down a roll out lawn for very cheap! id be wary of constantly dropping price, you are already the cheapest on the street... first impressions are everything though! just looked at the photo again, at the very least if i were you op, id get rid of the bin and whatever else is standing outside house, take up those weeds, retake photo and email to estate agent and ask him to change main photo. I dont see a for sale sign outside the property, but I take it there is one? maybe even put some flower pots on the windows sills, from the front the house looks grey, tired and dull...


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    #26
    foxy06
    Registered Users Posts: 2,138 ✭✭✭foxy06


    I'd paint the bathroom white/magnolia and get some cream coloured cheap lino to replace whats there. I'm a woman and its the first thing I look at.


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    #27
    catch me if you can
    Closed Accounts Posts: 150 ✭✭catch me if you can


    you should get the property up on daft now as a rental, move and start your new life. but it back up for sale next summer and hopefully the market has picked up a bit.also the house looks lovely. add some flowers out front of the property.


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    #28
    catch me if you can
    Closed Accounts Posts: 150 ✭✭catch me if you can


    Also do not trust the letting agent. bypass him and put an ad on daft yourself for renting it. you will be surprised at the calls you get., the rental market is very good. dont bother at all with the agent. as i said put an ad on tonight . and wait and see . i bet you will rent it.


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    #29
    endabob1
    Registered Users Posts: 911 ✭✭✭endabob1


    +1 for Renting it out.

    We've done the same with a house in the UK, 3 years no shortage of tenants. If you have someone close by who can keep an eye on it for you skip using an agency.

    And +1 for painting the bathroom, neutral is the order of the day when renting


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    #30
    catch me if you can
    Closed Accounts Posts: 150 ✭✭catch me if you can


    the good thing about putting up the ad yourself is that you will get to meet prespective tenants and you can pick who you want in your house.
    im a landlord and i do it all myself and always make sure i get decent people in my property.
    if you put up and ad and you get calls, which i wud bet you will, you should complain to your agent for lying to you.
    also i know letting agents can actually put some tenants off renting a property. they have alot of uneccessary paperwork and are never available at weekends to show the property .
    i would also put the for sale ad up myself and bypass the agent, you would be surprised there may be people calling the agent and the agent doesnt return calls or follow up properly.


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    #31
    shanered
    Registered Users Posts: 1,117 ✭✭✭shanered


    Claire NI wrote: »
    it is the same agent that sold the other house on our steet, when I spoke to them last week they said there was no interest at all, and also that they do not have a crystal ball and cannot tell me when people might become interested etc. I would leave them and go to another agent but they are the only agents in NI that advertise on rightmove, we also managed to get their fees down from 2 per cent to 1 per cent, not that its making any difference now lol..

    thanks again everyone.

    That agent didn'y show your property because the 1% of 145k is tastier then 1% of 110k, not acting in your best interest.


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