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How to approach this situation?

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  • 17-02-2013 8:54pm
    #1
    Devi
    Closed Accounts Posts: 446 ✭✭


    I'm interested in buying a particular house with cash, the problem is I don't have anywere near the asking price (about 75%), the asking price is on the low end anyway as the house needs some work done to it and not in the position to get a mortgage right now. Do I level with the ea at the start and say, look the most I could offer is 75%, is there any point in going further? Or do I do the whole viewing thing then just put the offer in and hope for the best? The other thing is I've heard it was a repossession it's probably a bank that's selling.


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    #2
    Scortho
    Closed Accounts Posts: 3,876 ✭✭✭Scortho


    Devi wrote: »
    I'm interested in buying a particular house with cash, the problem is I don't have anywere near the asking price (about 75%), the asking price is on the low end anyway as the house needs some work done to it and not in the position to get a mortgage right now. Do I level with the ea at the start and say, look the most I could offer is 75%, is there any point in going further? Or do I do the whole viewing thing then just put the offer in and hope for the best? The other thing is I've heard it was a repossession it's probably a bank that's selling.

    Don't bid on it until you've viewed it. It could be a kip inside and therefore worth less than 75%.
    I'd put in an offer of what I'm willing to pay subject to a structural survey and that everything checks out legality wise.
    Don't mention that all you can afford is 75%.
    Do mention that you're a cash buyer when putting in bid.
    Remember the asking price is just that: an asking price.
    Being a cash buyer significantly increases your chances if having your bid accepted.


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    #3
    Devi
    Closed Accounts Posts: 446 ✭✭Devi


    Viewed it this morning, after the view I put a bid in for the 75%, let them know I was a cash buyer and not in the postion to get a loan, didnt call me back all day so I rang 10 min before they were closing this evening. Offer rejected, thats fair enough but they could have rang me back sooner. Acting like its 2005 ffs!


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    #4
    clint_silver
    Registered Users Posts: 2,899 ✭✭✭clint_silver


    Devi wrote: »
    Viewed it this morning, after the view I put a bid in for the 75%, let them know I was a cash buyer and not in the postion to get a loan, didnt call me back all day so I rang 10 min before they were closing this evening. Offer rejected, thats fair enough but they could have rang me back sooner. Acting like its 2005 ffs!
    Chance you could find out who the owner is and put the offer to them? Ive got first hand experience of not having an offer put to me by an ea when I was selling cos he thought it was too low but I would have accepted at the time.


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    #5
    Devi
    Closed Accounts Posts: 446 ✭✭Devi


    clint_silver wrote: »
    Chance you could find out who the owner is and put the offer to them? Ive got first hand experience of not having an offer put to me by an ea when I was selling cos he thought it was too low but I would have accepted at the time.
    As far as I know it's a repossession, so a bank probably. I have a suspicion it wasn't put to them either but how would I go about buying direct?


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    #6
    clint_silver
    Registered Users Posts: 2,899 ✭✭✭clint_silver


    Devi wrote: »
    As far as I know it's a repossession, so a bank probably. I have a suspicion it wasn't put to them either but how would I go about buying direct?

    need some way to find out who the owner is. bit of digging Im afraid and youd need a bit of luck and intiative. try www.valoff.ie , local councils,

    could pay a private detective to find out. theyve got contacts in the service providors like ESB, eircom that they drop a few quid to get the info out of who paid last rates paid on a property, **allegedly**.


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    #7
    Devi
    Closed Accounts Posts: 446 ✭✭Devi


    clint_silver wrote: »

    need some way to find out who the owner is. bit of digging Im afraid and youd need a bit of luck and intiative. try www.valoff.ie , local councils,

    could pay a private detective to find out. theyve got contacts in the service providors like ESB, eircom that they drop a few quid to get the info out of who paid last rates paid on a property, **allegedly**.
    Well I know who the ex owner is, although I don't know where they live now but as far as I know they have surrendered the house so wwould it not be a bank that owns it now?


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    #8
    Scortho
    Closed Accounts Posts: 3,876 ✭✭✭Scortho


    Would the bank have had time to consider the offer in one day? I thought they only discussed them at board meetings.
    If its a repossession, it's possible that there was a court case. You could find out who the bank are from that.
    It sounds too fast for a bank decision.


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    #9
    Devi
    Closed Accounts Posts: 446 ✭✭Devi


    Scortho wrote: »
    Would the bank have had time to consider the offer in one day? I thought they only discussed them at board meetings.
    If its a repossession, it's possible that there was a court case. You could find out who the bank are from that.
    It sounds too fast for a bank decision.

    I don’t think it’s even getting to the sellers. Some EA’s think it’s still 2005. I rang back to see what the absolute bottom price they would accept and the girl on the phone said they were looking for 100% of asking price because they dropped the price before(overpriced), which was silly because if they had of met me in the middle I would have taken it and they would have got their cut. She then proceeded to say ah sure maybe you’ll win the lotto tonight (as if I’d pay the full asking price even if I had it), lol very professional!


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    #10
    the_syco
    Registered Users Posts: 37,300 ✭✭✭✭the_syco


    Find the bank, and ask to buy the house for 70% due to work needing to be done. Bring it up to 75% if asked, but leave them in on the 75% if they ask.


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    #11
    Scortho
    Closed Accounts Posts: 3,876 ✭✭✭Scortho


    Devi wrote: »

    I don’t think it’s even getting to the sellers. Some EA’s think it’s still 2005. I rang back to see what the absolute bottom price they would accept and the girl on the phone said they were looking for 100% of asking price because they dropped the price before(overpriced), which was silly because if they had of met me in the middle I would have taken it and they would have got their cut. She then proceeded to say ah sure maybe you’ll win the lotto tonight (as if I’d pay the full asking price even if I had it), lol very professional!
    Which means that it's been sitting on the market for a while. Take a look at what happened to some if the houses on the property pin. Houses with falls of 50% from original asking but had they put it on at 80% of the asking then they'd have sold it fairly fast.
    I'd skip the auctioneer and take syco's advice and contact the bank. They'd be more likely to consider your offer especially as yourea cash buyer.


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    #12
    RainyDay
    Closed Accounts Posts: 6,925 ✭✭✭RainyDay


    The EA gets paid when it is sold. His fee is something like 1% of the sale price, so it doesn't make a huge difference to him what the sale price is - he just wants a sale.

    By all means, try and find the real owner, but the most likely scenario is that the seller has given the EA guidance on what offers to reject.


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    #13
    Ray Palmer
    Registered Users Posts: 8,394 ✭✭✭Ray Palmer


    The letting agent can't be cut out of the process as you went to view it through him. Him not responding to you is more to do with a low ball offer and not being taken seriously. Any EA has more experience than you when it comes to negosiation and accepting offers.

    Sounds simply like you can't afford the house and won't do well talking to the bank. Given your reaction about the EA sounds like you will try to talk the bank into what you think it is worth, they won't entertain you.

    As stated the EA doesn't exactly gain much on the higher price.


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    #14
    djimi
    Registered Users Posts: 13,237 ✭✭✭✭djimi


    Its always worth a punt to offer below asking price, but offering 75% there was always a big chance that it was going to be ignored (either by the estate agent or the seller). The estate agent is probably being entirely unrealistic when they say they are holding out for 100%, but its possible they are just not taking you serious with such a low offer. Perhaps if you were to offer 85%-ish of the asking price they would be more prepared to enter negotiations?

    Either that or the house really is priced low enough that they are confident of getting near enough their asking price.


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    #15
    Devi
    Closed Accounts Posts: 446 ✭✭Devi


    Ray Palmer wrote: »
    The letting agent can't be cut out of the process as you went to view it through him. Him not responding to you is more to do with a low ball offer and not being taken seriously.

    But would you consider 75% low ball in this market, with cash and a quick sale? I would consider it a very serious offer.
    Ray Palmer wrote: »
    Sounds simply like you can't afford the house and won't do well talking to the bank. Given your reaction about the EA sounds like you will try to talk the bank into what you think it is worth, they won't entertain you.

    Well your right I cant afford the full asking price, but thats not the point, the value of somthing is somewhere between what a buyer is prepared to pay and what the seller thinks they should get but they just said 100% or nothing which seems odd in this climate.

    There has been a couple of things Ive left out in this thread which would explain my reaction to the EA.

    1. The house isnt in a sought after location, so will probably stay unsold for a long time, then go to auction were they will probably get the same or less than I offered.

    2. The value of the house is pretty small so the sum between my offer and asking is less than 15k, not exactly in need of a lotto win to afford which is why I found it kind of cheeky tbh.

    Ray Palmer wrote: »
    As stated the EA doesn't exactly gain much on the higher price.

    Well they wont gain much either way, as I said the value of the house being small, maybe the real reason for their disinterest in selling the house, anyway im not interested in buying it anymore.


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    #16
    Devi
    Closed Accounts Posts: 446 ✭✭Devi


    djimi wrote: »
    Its always worth a punt to offer below asking price, but offering 75% there was always a big chance that it was going to be ignored (either by the estate agent or the seller). The estate agent is probably being entirely unrealistic when they say they are holding out for 100%, but its possible they are just not taking you serious with such a low offer. Perhaps if you were to offer 85%-ish of the asking price they would be more prepared to enter negotiations?

    Either that or the house really is priced low enough that they are confident of getting near enough their asking price.

    But if I was to offer 85% then the agreed price would probably be 90%ish which I dont belive its worth.


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    #17
    djimi
    Registered Users Posts: 13,237 ✭✭✭✭djimi


    Devi wrote: »
    But if I was to offer 85% then the agreed price would probably be 90%ish which I dont belive its worth.

    Well then you walk away. The ball is in the sellers court; if they feel they want more than you have offered and can get I then more power to them. You have offered what you can afford and think it's worth; if they don't accept then there is not much more that you can do.


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