What are we doing wrong

Marchbride

Would love to know your house hunting experience. We've been looking since October, bid on 20 houses now and nothing. Now we are bidding the asking price and up to 55k over asking on the houses. The one we're presently bidding on wouldn't be in the most desirable area of Dublin but we're 56k over asking. I've bid soft and aggressively on them but can't get anywhere. One of the houses we did go sale agreed but owned by bank who pulled out of sale.. A whole different story! But I'm beyond stressed over the whole thing! I thought the mortgage application would be the stressful part but this has brought it to another level!
Has anyone had similar experience? Any advice?

4umbrellas

Are the houses you're bidding on being sold to someone else, or are they still on the market?

Marchbride

4umbrellas wrote: »

Are the houses you're bidding on being sold to someone else, or are they still on the market?

Sorry just seen your response :-/ some have been sold, others taken down for some reason? We don't generally follow up on the house when we've lost out

cossiem0d0

We just bought our house in December after viewing loads and bidding on a few others (although not 20!). One bit of advice would be to follow up once a house has gone sale agreed - we kept finding that houses we lost out on were coming back on the market. With our house - it went sale agreed really quickly, we found out what the agreed price was (it was 10% below asking), and then when it came back on the market we offered the same.

It's such a stressful time and I wanted to give up so many times but keep with it and it'll be worth it in the end!

Good Luck

Marchbride

cossiem0d0 wrote: »

We just bought our house in December after viewing loads and bidding on a few others (although not 20!). One bit of advice would be to follow up once a house has gone sale agreed - we kept finding that houses we lost out on were coming back on the market. With our house - it went sale agreed really quickly, we found out what the agreed price was (it was 10% below asking), and then when it came back on the market we offered the same.

It's such a stressful time and I wanted to give up so many times but keep with it and it'll be worth it in the end!

Good Luck

Thank you cossie
I don't think anything has come back on the market, everything is being snapped up so quick and at 30-50k over asking so even if it did come back on the market I'm sure someone will swoop in with a mad price. Our approval is up for renewal tomorrow and that has me stressed. I just can't believe how difficult it has been to get a house. The one were bidding on at present has had 10 different bidders!!! We don't know wether to leave it and wait until next yr but we don't want to miss the boat either

gmisk

Marchbride wrote: »

Would love to know your house hunting experience. We've been looking since October, bid on 20 houses now and nothing. Now we are bidding the asking price and up to 55k over asking on the houses. The one we're presently bidding on wouldn't be in the most desirable area of Dublin but we're 56k over asking. I've bid soft and aggressively on them but can't get anywhere. One of the houses we did go sale agreed but owned by bank who pulled out of sale.. A whole different story! But I'm beyond stressed over the whole thing! I thought the mortgage application would be the stressful part but this has brought it to another level!
Has anyone had similar experience? Any advice?

I wouldnt consider since october to be a long time tbh...
Believe me its a lot tougher looking and bidding on houses by yourself.
I have been looking for 2 years pretty solidly.
Sale agreed 3 times, twice vendor pulled out....and once I pulled out.
One of which I was sale agreed for 11 months! and the vendor pulled out!

One of the houses we did go sale agreed but owned by bank who pulled out of sale
(That seems to be happening an awful awful lot, just look at the number of houses sale agreed for long periods of time on myhome etc).

Put in a bid what you think the house is worth to you.

I recently put a bid on a house which was on at 175k....I put in offer of 165k....I understand there is now an offer of 180k.
I had a limit set in my head of 170, so am no longer bidding.

Make sure you are signed up for the myhome.ie property alerts they are very handy and saves a lot of searching about.

I think things will have to level off soon, as do some other folks on here.
The huge percentage of cash buyers has to dry up eventually......surely?

runawaybishop

Marchbride wrote: »

but we don't want to miss the boat either

Its not a boat, its a massive investment where you may spend the rest of your life. Don't be in a hurry to buy something that will stretch you financially or will not be suitable for you. If the properties you are bidding on seem to be going out of your range you may need to do more homework on areas that match your requirements.

Zamboni

gmisk wrote: »

I think things will have to level off soon, as do some other folks on here.
The huge percentage of cash buyers has to dry up eventually......surely?

Unstable banks
Low interest rates on deposits
CGT exemption expires 31/12/2014
We're only at the start of Q2
Plenty more cash rich lemmings to fuel the asset bubble imo.

mathie

Zamboni wrote: »

Unstable banks
Low interest rates on deposits
CGT exemption expires 31/12/2014
We're only at the start of Q2
Plenty more cash rich lemmings to fuel the asset bubble imo.

What did you make of David McWilliams saying (last week on Prime Time I think) that the current outlook only points to prices going up in the foreseeable future?

Marchbride

gmisk wrote: »

I wouldnt consider since october to be a long time tbh...
Believe me its a lot tougher looking and bidding on houses by yourself.
I have been looking for 2 years pretty solidly.
Sale agreed 3 times, twice vendor pulled out....and once I pulled out.
One of which I was sale agreed for 11 months! and the vendor pulled out!

One of the houses we did go sale agreed but owned by bank who pulled out of sale
(That seems to be happening an awful awful lot, just look at the number of houses sale agreed for long periods of time on myhome etc).

Put in a bid what you think the house is worth to you.

I recently put a bid on a house which was on at 175k....I put in offer of 165k....I understand there is now an offer of 180k.
I had a limit set in my head of 170, so am no longer bidding.

Make sure you are signed up for the myhome.ie property alerts they are very handy and saves a lot of searching about.

I think things will have to level off soon, as do some other folks on here.
The huge percentage of cash buyers has to dry up eventually......surely?

Gmisk that is horrible you've been out through the ringer!! 11 mths sale agreed how people can get away with pulling out like that and not get a penalty of some kind is shocking.
I know everyone's experiences are different and I don't mean for mine to sound any worse or better than yours. It's just very very stressful.. We've two young children, my husband will be 42 on next birthday so mortgage term will be less again if we don't get one soon.. That one yr makes a difference. I'm due back in work after having my last child (9mths old) but my occuptional health dept and GP want me to go back part time and build up to full time for xmas due to PND & PTSD but not an option as bank won't approve us for the present sum if this happens. So this is another stress if we don't draw down mortgage before then. BUT I know this is not a 'boat' and it is the biggest investment of your life hence why we haven't gone sale agreed as the houses are going for what we believe to be too high and would put a financial strain on us.

Zamboni

mathie wrote: »

What did you make of David McWilliams saying (last week on Prime Time I think) that the current outlook only points to prices going up in the foreseeable future?

I think "forseeable" is a very subjective word. :pac:

Marchbride

runawaybishop wrote: »

Its not a boat, its a massive investment where you may spend the rest of your life. Don't be in a hurry to buy something that will stretch you financially or will not be suitable for you. If the properties you are bidding on seem to be going out of your range you may need to do more homework on areas that match your requirements.

Runaway bishop, thanks for reply.. Yes absolutely I know that it is the biggest investment of your life and we are not rushing anything. We have stretched ourselves on two or three of the houses when we bid.. One was 249k we went to 282, another was 275 we went to 291. The one we are bidding on now is out of our preferred area it was priced 195 we are now at 251 on that one! So unless we moved to the country, which we won't, everywhere seems to be experiencing the increases.

runawaybishop

Marchbride wrote: »

Runaway bishop, thanks for reply.. Yes absolutely I know that it is the biggest investment of your life and we are not rushing anything. We have stretched ourselves on two or three of the houses when we bid.. One was 249k we went to 282, another was 275 we went to 291. The one we are bidding on now is out of our preferred area it was priced 195 we are now at 251 on that one! So unless we moved to the country, which we won't, everywhere seems to be experiencing the increases.

That is possible, based on the area you are in. Just be aware that the city is full of people that bought something unsuitable or over their budget because they felt under time pressure to do so and now wish they could turn back the clock. You may need to do more work checking out market prices and alternative locations.

Ray Palmer

Worrying about prices over the asking price is pointless. Assume all asking prices in Dublin are at least 10% below what they expect or will accept.

Starter homes in Dublin will sky rocket by all expectations. There is a shortage, if you don't want an apartment and many don't due to the way prices went you have a very limited selection of properties at entry level.

I am not saying you need to jump on a ladder just the lower priced houses are limited. The main hope is people will move out of these houses and move to a better property. Negative equity is a stumbling block here so many can't move. This stifles the market movement.

Building prices are going to go up due to the tax incentives and people building extensions as they can do this rather than move and it is cheaper.

I don't envy anybody trying to get a place now as it is very complex and difficult to gauge.

LG1234

Marchbride wrote: »

Thank you cossie
I don't think anything has come back on the market, everything is being snapped up so quick and at 30-50k over asking so even if it did come back on the market I'm sure someone will swoop in with a mad price. Our approval is up for renewal tomorrow and that has me stressed. I just can't believe how difficult it has been to get a house. The one were bidding on at present has had 10 different bidders!!! We don't know wether to leave it and wait until next yr but we don't want to miss the boat either

Miss the boat? Sure this country is a sinking ship. Massive, massive, massive debt which means the long term prospects are more cuts in spending and tax hikes. The banks aernt lending and I can't see that changing for a long time. No foregin banks will come in due to the fact its so difficult to resposses houses and the governement are quite happy with that. Its not 2006 again, despite what the media and government want us to believe. Things will level out as soon as the cash rich panicked buyers are gone and the investors stop investing at the end of the year.

ted1

Marchbride wrote: »

Would love to know your house hunting experience. We've been looking since October, bid on 20 houses now and nothing. Now we are bidding the asking price and up to 55k over asking on the houses. The one we're presently bidding on wouldn't be in the most desirable area of Dublin but we're 56k over asking. I've bid soft and aggressively on them but can't get anywhere. One of the houses we did go sale agreed but owned by bank who pulled out of sale.. A whole different story! But I'm beyond stressed over the whole thing! I thought the mortgage application would be the stressful part but this has brought it to another level!
Has anyone had similar experience? Any advice?

think of a house as a long term investment and a home. i find it hard to believe that you have found 20 of such.

I think that your rushing and are in a panic, bid on a home not a house. don't get caught up, be more selective.

who_ru

There are 2 problems, well 2 obvious ones anyway in the Dublin market.

1) no supply, and no prospect of a significant increase in supply.

2) cash buyers see big returns on rental properties in Dublin, banks not offering any decent returns on deposits, making cash go looking for better returns (property particularly in Dublin). And as mention capital gains tax relief is due to end this year, further fuelling the desire of cash buyers to invest.

The FTB in the greater Dublin area, requiring finance to buy, is at a major disadvantage now. The sole aim of the Govt is higher house prices for a number of reasons, inflate negative equity from current mortgage holders, improve loan books of nationalised banks, give the impression of 'recovery' to outside investors.

The prospect of price increases levelling off, or supply increasing are remote. It's a serious trap now in Dublin I believe.

I wish the OP all the best but if I were in your position I'd begin to look outside of your preferred areas as competition is just too severe in the areas you desire.

As it stands Govt policy is to keep non paying mortgage holders in their homes (votes) and increase the cost of property to new buyers so as to pay for poor lending practices in the past.

Peter File

who_ru wrote: »

There are 2 problems, well 2 obvious ones anyway in the Dublin market.

1) no supply, and no prospect of a significant increase in supply.

2) cash buyers see big returns on rental properties in Dublin, banks not offering any decent returns on deposits, making cash go looking for better returns (property particularly in Dublin). And as mention capital gains tax relief is due to end this year, further fuelling the desire of cash buyers to invest.

The FTB in the greater Dublin area, requiring finance to buy, is at a major disadvantage now. The sole aim of the Govt is higher house prices for a number of reasons, inflate negative equity from current mortgage holders, improve loan books of nationalised banks, give the impression of 'recovery' to outside investors.

The prospect of price increases levelling off, or supply increasing are remote. It's a serious trap now in Dublin I believe.

I wish the OP all the best but if I were in your position I'd begin to look outside of your preferred areas as competition is just too severe in the areas you desire.

As it stands Govt policy is to keep non paying mortgage holders in their homes (votes) and increase the cost of property to new buyers so as to pay for poor lending practices in the past.

Why would you advise the op to look further afield. This is what happened during the last bubble, you had people ending up in Wexford, cavan etc commuting huge distances becuae they were priced out of Dublin. The current problems are being caused by supply being held off the market and the stupid decisions not to reposssess properties where mortgages are not being paid.

who_ru

Peter File wrote: »

Why would you advise the op to look further afield. This is what happened during the last bubble, you had people ending up in Wexford, cavan etc commuting huge distances becuae they were priced out of Dublin. The current problems are being caused by supply being held off the market and the stupid decisions not to reposssess properties where mortgages are not being paid.

I agree with you about repos, but all political parties are on the side of the non paying mortgage holder because there's votes in it for them by saying 'we need to do all we can to keep people in their homes'.

With regard to living in your desired area, there comes a point when it isn't affordable, and getting yourself into financial trouble and stress by doing so isn't worth it.

I have nothing but sympathy for the OP's predicament, but if people are bidding 50k or more over the asking price for homes in her preferred area, is it really worth it to try and extend yourself to such an extent that repayments become a nightmare.

PixelTrawler

Looking back we got lucky. We looked from about July to September and got the house we put our one and only offer on.

Sale Agreed in September and closed just before christmas (few issues with a boundary delayed things).