House hunting / selling price v asking price

CorkonianBoy

Lirw, so you think underpricing and hoping for a bidding war is the preferred strategy?

LirW

Possibly if you want a quick sale.
But it all comes down to the vendor.

LincolnHawk

A lot of the underpricing I think is to do with appearing in query results on daft/myhome.
The amount of properties listed at 395k to appear in results of 400k bracket for example.
...i have no evidence, just a theory

kippy

LincolnHawk wrote: »

A lot of the underpricing I think is to do with appearing in query results on daft/myhome.
The amount of properties listed at 395k to appear in results of 400k bracket for example.
...i have no evidence, just a theory

There is something to this.
If potential buyers have an alert set up on daft or search based on a price you end up getting the house shown in more searches/alerts the lower you price the house.
Generally you will find that people who want a quicker sale will end up pricing the house lower than the expected sale price to generate more interest in the house. More interest is generated by ensuring the add doe the house gets to as wide an audience as possible.

fg1406

I've been monitoring asking price v sales where I live for the past 10 months. Now one EA locally has a huge section of the market sown up. I only looked at a small sample-residential properties in the town itself. So this EA who is not tied with a franchise has over 30% of the market. My personal dealings with him were he would facilitate a viewing anytime of day or night whereas it could take me up to a week to try get other EAs to even return my calls let alone get a viewing. Anyway, in a town with approximately 20 EA businesses this guy is doing very well. His strategy seems to be to price high and bargain down from there. Out of the 30 properties that he sold in the town this year, only 4 sold for asking price or higher. All of the rest sold for lower. His strategy seems to be to be working since he is getting a huge chunk of the business in the town.

stargazer 68

Went to an open viewing last week. Property was on at 295 with a current offer of 280. Rang EA today - current offer is 320 and going up!

Gorgeous house - location not so sure of. It's at the end of an estate which goes into an industrial estate so the dividing wall has barbed wire and corrugated iron all along it. Bit of an eyesore imo.

LirW

fg1406 wrote: »

I've been monitoring asking price v sales where I live for the past 10 months. Now one EA locally has a huge section of the market sown up. I only looked at a small sample-residential properties in the town itself. So this EA who is not tied with a franchise has over 30% of the market. My personal dealings with him were he would facilitate a viewing anytime of day or night whereas it could take me up to a week to try get other EAs to even return my calls let alone get a viewing. Anyway, in a town with approximately 20 EA businesses this guy is doing very well. His strategy seems to be to price high and bargain down from there. Out of the 30 properties that he sold in the town this year, only 4 sold for asking price or higher. All of the rest sold for lower. His strategy seems to be to be working since he is getting a huge chunk of the business in the town.

Are you in Dublin or another big town? Because that changes everything significantly.

fg1406

LirW wrote: »

Are you in Dublin or another big town? Because that changes everything significantly.

Town in the south east. Different market altogether than Dublin

Cuddlesworth

fg1406 wrote: »

Town in the south east. Different market altogether than Dublin

Which means even if you price "low", you won't exactly generate a bidding war. Not to say there won't be interested bidders, its just that in that case of that agent, they feel like they are getting a good deal. You can't create a air of competition in a small market.

fg1406

Cuddlesworth wrote: »

Which means even if you price "low", you won't exactly generate a bidding war. Not to say there won't be interested bidders, its just that in that case of that agent, they feel like they are getting a good deal. You can't create a air of competition in a small market.

Exactly. Some other EAs refuse to engage with anyone who will bid below asking price and leave the house sitting on the market for months. I bid on a property back in march/April and bid below asking (about 5% below) taking into account the prices of similar properties in the estate and the fact that the kitchen was a wreck and would need to be replaced. EA/vendor wouldn't accept so we withdrew. House sat on the market for 7 months and a sale agreed sign only on it now.

Other EAs in the town will generate a bidding war by pricing reasonably and I've been involved in one myself. There is a massive lack of supply of 3-4 bed semi d's in good knick. There are a lot of probate sales at the moment which means a lot of the properties currently for sale are reasonable in price but need a huge amount of work to them. There are also a lot of houses at the upper end (which means €400k-€500k in a medium sized regions town) which don't see any bidding wars. They languish on the market for however long it takes to get a buyer.

fg1406

Also as an addendum see this from the Indo:

https://www.independent.ie/business/personal-finance/property-mortgages/90pc-of-properties-are-selling-for-different-sum-to-the-asking-price-36028572.html

I'm on mobile so can't do quotes properly but there is an interesting line in it whereby it states that the EA must ascertain to the best of their ability the AMV and is the property sells for 10% more or less, the PSRA can take action against the agent. Now that must be happening wholesale in the Dublin market. Here, in my town, it's usually 5-6% either side of the asking price.

Cash_Q

I originally started this thread and was posting as ninja go but lost my password and login details hence the new account.

So, having got mortgage approval at the tail end of October, we had an offer of 2,000euro below asking accepted within 3 days of mortgage approval. Signed contracts in January with the prospect of delays to get tenants out, but luckily they've now vacated and we are closing in 10 days. Thanks for all the helpful advice and for those who said to come back in 12 months..Well by then we'll be well settled into our under budget home

Heres Johnny

Cash_Q wrote: »

I originally started this thread and was posting as ninja go but lost my password and login details hence the new account.

So, having got mortgage approval at the tail end of October, we had an offer of 2,000euro below asking accepted within 3 days of mortgage approval. Signed contracts in January with the prospect of delays to get tenants out, but luckily they've now vacated and we are closing in 10 days. Thanks for all the helpful advice and for those who said to come back in 12 months..Well by then we'll be well settled into our under budget home

Well done did you get a location you were happy with?

Cash_Q

Heres Johnny wrote:

Well done did you get a location you were happy with?

Yes in the exact location we wanted, 5 mins from m50, 5 mins from my parents and 5 mins from my brother. And for less than a lot of the houses now asking in less desirable parts of Tallaght. Delighted!