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Confused About Purchasing a Property

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    #32
    cordy1969
    Closed Accounts Posts: 129 ✭✭cordy1969


    CruelCoin wrote: »
    If that's your view, then you've made the right decision.

    Some people will have more than you to play with. Life's just like that.

    It's well within my budget and I am a cash buyer, I can be an arsehole and bid up to my budget but would I over pay for a property no. Its not a matter of running out of funds its a matter of overpaying for something I have an issue with.


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    #33
    davo10
    Closed Accounts Posts: 6,926 ✭✭✭davo10


    cordy1969 wrote: »
    I am almost certain but happy to be corrected banks will only lend up to 80% of the value of the home. And by value I mean what the bank values it at not what the vendor, agent or bidder values it at.

    And that has been my point all along. Over bids that are not sustainable under the banks requirements.

    I think posters point is that your valuation will not necessarily correspond with the banks valuation. And of course, you cannot know how the sale will be financed, the other bidders may have cash deposits.


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    #34
    davo10
    Closed Accounts Posts: 6,926 ✭✭✭davo10


    cordy1969 wrote: »
    It's well within my budget and I am a cash buyer, I can be an arsehole and bid up to my budget but would I over pay for a property no. Its not a matter of running out of funds its a matter of overpaying for something I have an issue with.

    Therein lies the issue, your valuation is subjective. The other bidder may not feel they are overpaying, they may just be paying what it is worth to them, not you. There is no fixed price/value for a property, it is worth what the highest bidder will pay.


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    #35
    cordy1969
    Closed Accounts Posts: 129 ✭✭cordy1969


    davo10 wrote: »
    Therein lies the issue, your valuation is subjective. The other bidder may not feel they are overpaying, they may just be paying what it is worth to them, not you. There is no fixed price/value for a property, it is worth what the highest bidder will pay.

    The valuation of 210k was a valuation of a professional who specialises in house appraisals this was also confirmed with 2 other industry sources. And it was inline with my own valuation based on industry experience.
    And yes people will pay what they consider a property worth and thats fine also. But yes I do know the other bidder circumstances and they are not a cash buyer. So my whole question was initially how will they convince a bank to complete their mortgage when they have overpaid for a property. Unless the have secret funds or a friend/family member is lending them the difference it doesn't make sense and hence my whole argument about false bidding or atleast bidding that is not sustainable

    I was happy to bid up to 15% over valuation which takes into consideration future growth prospects. Anymore than that becomes a very bad purchase/investment in a volatile market isn't it?


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    #36
    rovertom
    Banned (with Prison Access) Posts: 150 ✭✭rovertom


    It's simple. If you think the estate agent is messing re ghost bids, dont play ball. Put your bid of 210 on the table for 2 days then pull it and walk.

    Edit. I see you are now happy to pay over 240k. Thread about nothing.


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    #37
    cordy1969
    Closed Accounts Posts: 129 ✭✭cordy1969


    rovertom wrote: »
    It's simple. If you think the estate agent is messing re ghost bids, dont play ball. Put your bid of 210 on the table for 2 days then pull it and walk.

    The current bid is already 245k. I have been bidding since 215k which was my initial bid raising it by 5k each time. Once my bid of 240k was trumped again that's why I have now decided to walk away.


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    #38
    CruelCoin
    Registered Users Posts: 4,468 ✭✭✭CruelCoin


    cordy1969 wrote: »
    I am almost certain but happy to be corrected banks will only lend up to 80% of the value of the home. And by value I mean what the bank values it at not what the vendor, agent or bidder values it at.

    And that has been my point all along. Over bids that are not sustainable under the banks requirements.

    Money that you pay over and beyond what the bank will lend you is not their concern if the sale of a repossessed home will clear the mortgage.

    They wouldn't give a fiddlers if you paid 400k on a house worth 200k, once the house could fetch 200k on the market to pay them back.

    To be honest here, you're just bitching that someone has more money than you.
    Move on the ****.


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    #39
    CruelCoin
    Registered Users Posts: 4,468 ✭✭✭CruelCoin


    cordy1969 wrote: »
    I was happy to bid up to 15% over valuation which takes into consideration future growth prospects. Anymore than that becomes a very bad purchase/investment in a volatile market isn't it?

    People pay over the odds all the time.

    Companies for example routinely pay premiums on shares they want to buy, as they reckon they'll recoup in the long run.

    The way house prices have been going, overpayment isn't such a bad thing (right now).


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