Currently buying/selling a house? How is it going? READ MOD NOTE POST #1

ArphaRima

Housebuying wrote: »

Did you think about negotiating with them? Offering them a 15% discount on price?

Offered 15% less. They offered 30k(4%). They thought it was too soon for 15% but were very understanding.

I should add that 15% is my offer for today. Like I said I think it is going to drop 30% over 2 years and 15% down is where I think the value is today, and the point I'd be happy to execute..

But to anyone buying or thinking to buy: the world that existed 6 weeks ago is not the world we reside in today. This is a major event unparalleled in global economic history.
Caveat emptor.

davedub2015

ArphaRima wrote: »

Offered 15% less. They offered 30k(4%). They thought it was too soon for 15% but were very understanding.

I should add that 15% is my offer for today. Like I said I think it is going to drop 30% over 2 years and 15% down is where I think the value is today, and the point I'd be happy to execute..

But to anyone buying or thinking to buy: the world that existed 6 weeks ago is not the world we reside in today. This is a major event unparalleled in global economic history.
Caveat emptor.

Where is this in Dublin? Whats price?

ZX7R

ArphaRima wrote: »

Offered 15% less. They offered 30k(4%). They thought it was too soon for 15% but were very understanding.

I should add that 15% is my offer for today. Like I said I think it is going to drop 30% over 2 years and 15% down is where I think the value is today, and the point I'd be happy to execute..

But to anyone buying or thinking to buy: the world that existed 6 weeks ago is not the world we reside in today. This is a major event unparalleled in global economic history.
Caveat emptor.

4% is a fair reduction to be honest .
It a big ask for 15% especially when people think they feel that is how much a price reduction is currently happening.
Just to bear in mind people were predicting house prices to plummet here as a direct result of American economy crashing and the housing sector there plummeting .
Quite the opposite is actually happening house prices have started to rise as a direct result due to inflation in America,
If you have any interest in the markets have a look at small construction companies in the American market especially localised one's quite a bit of investment going into them since Monday.
Another housing market to look at with interest is the Chinese market, since the relaxing of restrictions apartment sales have jumped nearly 50%

Mixmistro

tomister wrote: »

Just a heads up to everyone trying to close at the moment... after a lot of back and forth with the bank over one piece of paper (that was submitted four times) I've finally gotten to draw down.
Speaking to the builder yesterday they were keen to organise key handover, even with the restrictions, as I need to be out of the apartment by next weekend.
My solicitor requested the closing documents from the developer's solicitor only to be told they're not closing any sales until the restrictions are lifted, whenever that will be.
Just ask your solicitor to check in with the vendor's solicitor. In my case they're a large firm and are open but not working on closing house sales.
Developer has been great and is working to still release keys but its an unnecessary headache

What bank did you deal with if you don't mind me asking?

FutureGuy

scarepanda wrote: »

For anyone that have recently received keys, are you planning on moving now or waiting until the restrictions are lifted?

We will probably prepare to move for the first half of the month and see where we land regarding restrictions by then.

Experience_day

Apparently some bank (gf works there) is going to be following UK model shortly and will be drying up their mortgages on offer without insane LTV.

Logan Roy

Experience_day wrote: »

Apparently some bank (gf works there) is going to be following UK model shortly and will be drying up their mortgages on offer without insane LTV.

Define insane LTV

Zenify

Logan Roy wrote: »

Define insane LTV

UK were looking for 40percent

Maitguel

Experience_day wrote: »

Apparently some bank (gf works there) is going to be following UK model shortly and will be drying up their mortgages on offer without insane LTV.

Surely you can name the bank here if this is remotely true...

Anybody who wants to close their sale should have their solicitor issue a completion notice, purchasers shouldn't be carrying all the risk at this time, especially if the closing date has passed. It should be close or renegotiate for delay and inconvenience. If the developer/vendor wants to close the sale they have to get their solicitors working also. Closings happen by post in any event and with registered title, is a mere formality these days.

jrosen

Can anyone advise?
We purchased a new build. All going well house ready. Roughly 4 weeks ago we discovered we were still waiting on one document from he builder. Its a compliance letter from the local authority stating the builder has satisfied their financial responsibility. We have been told that the letter is pretty standard? But that usually the council issue a generic letter for the whole development where as for some reason our development requires individual ones. EA said he has never seen this before and that it must be something the builder themselves has arranged.
3 weeks went by and nothing. We are chasing from all sides. Then last week the builder said that the council were due on site for an inspection and once that was all done we would have the letter. Another week has passed and still nothing.

The road has 5 detached houses and 3 have people moved in.

This morning our bank reached out to say the valuation we have will expired in May and we will be required to re do the valuation.

Feeling a little trapped. Do we push to close or hold off? I cant see the bank giving the same valuation they did in January but I also cant see the builder accepting a lower offer.
He has 4 houses not sold and he is also working on another smaller development about 30 mins away.
any advice?

busylady

It's not at all unusual for developers to obtain individual letters of compliance for financial conditions from the council - I'm surprised that the EA would never have heard of this. Many developers will pay the financials in instalments , and pay a specific amount per house. The builder may also be waiting for to validate the final certificate of compliance on completion, and this process has slowed up in the last few weeks.

lomb

jrosen wrote: »

Can anyone advise?
We purchased a new build. All going well house ready. Roughly 4 weeks ago we discovered we were still waiting on one document from he builder. Its a compliance letter from the local authority stating the builder has satisfied their financial responsibility. We have been told that the letter is pretty standard? But that usually the council issue a generic letter for the whole development where as for some reason our development requires individual ones. EA said he has never seen this before and that it must be something the builder themselves has arranged.
3 weeks went by and nothing. We are chasing from all sides. Then last week the builder said that the council were due on site for an inspection and once that was all done we would have the letter. Another week has passed and still nothing.

The road has 5 detached houses and 3 have people moved in.

This morning our bank reached out to say the valuation we have will expired in May and we will be required to re do the valuation.

Feeling a little trapped. Do we push to close or hold off? I cant see the bank giving the same valuation they did in January but I also cant see the builder accepting a lower offer.
He has 4 houses not sold and he is also working on another smaller development about 30 mins away.
any advice?

I reached out to valuars last week as my 4 mo is up soon and they were prepared to value at same rate. A court sitting this week also said future property values are impossible to predict so also used a previous valuation as this weeks value. Also your solicitor can draw the loan down before the 4 months but before completion.

lomb

Experience_day wrote: »

Apparently some bank (gf works there) is going to be following UK model shortly and will be drying up their mortgages on offer without insane LTV.

most of those aren't banks though afaik. eg virgin money claim to be a bank but likely aren't. Any high street bank worth its salt will lend at 90ltv for ftb and 80 for seconds .

awec

jrosen wrote: »

Can anyone advise?
We purchased a new build. All going well house ready. Roughly 4 weeks ago we discovered we were still waiting on one document from he builder. Its a compliance letter from the local authority stating the builder has satisfied their financial responsibility. We have been told that the letter is pretty standard? But that usually the council issue a generic letter for the whole development where as for some reason our development requires individual ones. EA said he has never seen this before and that it must be something the builder themselves has arranged.
3 weeks went by and nothing. We are chasing from all sides. Then last week the builder said that the council were due on site for an inspection and once that was all done we would have the letter. Another week has passed and still nothing.

The road has 5 detached houses and 3 have people moved in.

This morning our bank reached out to say the valuation we have will expired in May and we will be required to re do the valuation.

Feeling a little trapped. Do we push to close or hold off? I cant see the bank giving the same valuation they did in January but I also cant see the builder accepting a lower offer.
He has 4 houses not sold and he is also working on another smaller development about 30 mins away.
any advice?

EA is the wrong person to be talking to at this stage of the process. Once you've bought the house they are of no real use any more.

The builder and your solicitor are the only people who can give you useful information at this stage.

Roberto_gas

ZX7R wrote: »

4% is a fair reduction to be honest .
It a big ask for 15% especially when people think they feel that is how much a price reduction is currently happening.
Just to bear in mind people were predicting house prices to plummet here as a direct result of American economy crashing and the housing sector there plummeting .
Quite the opposite is actually happening house prices have started to rise as a direct result due to inflation in America,
If you have any interest in the markets have a look at small construction companies in the American market especially localised one's quite a bit of investment going into them since Monday.
Another housing market to look at with interest is the Chinese market, since the relaxing of restrictions apartment sales have jumped nearly 50%

Quite the opposite is actually happening house prices have started to rise as a direct result due to inflation in America, :eek::eek::eek:

Bobeagleburger

Financial advisory firm EY predicting the economy could contract by as much as 13%. That qualifies as a depression so hopefully that's the worst case prediction.

I'd be wary of getting tied up with a big mortgage if recession is around the corner. So many people got burned in 2006/07.

House market will nosedive if we go into recession. Careful of vested interest opinions.

zuhuraswa

I'm just amazed at people who keep saying house prices are increasing. I am an active buyer in Galway and while I was ready to buy despite the current climate as I have a secure guaranteed job, I am more amazed at how many estate agents are coming back to me from a few house viewing I would have done in the past and the EAs out-rightly rejected my offer back then, and have all in the last week rang me to ask if I am still interested as the previous sale agreed have fallen through and they will be putting those houses back in the market. My offers would have been way lower than the top bidders. A couple have even suggested that the seller wouldn't be offended with another 'slightly lower' offer given the current climate.
Due to the mere shock of the callbacks I'm getting (including from some EAs who were were extremely snobbish and rude with my 'low' offers just a couple of months back), this has been enough shock for me to put a break to the buying process and see what all these other buyers who puled out are seeing that I am not seeing (as finance with current process wouldn't be the issue in my case as I will live here long term whether prices decrease in future or not).


Also for those asking about banks, not sure if this is of any help to you but my best friend just completed her drawdown with Ulster Bank last week with only 10% deposit (she would also be in a secured guaranteed job too though).

Experience_day

lomb wrote: »

most of those aren't banks though afaik. eg virgin money claim to be a bank but likely aren't. Any high street bank worth its salt will lend at 90ltv for ftb and 80 for seconds .

She works in a major one here not in UK


Obviously take with a big dose of salt, but they definitely are in the process of closing ranks according to her.



Kind of makes sense. If people are talking ~20% drops then it makes the house overvalued which would mean that the bank would be reluctant to lend more.



I'm pretty cool myself, I've already got a house that I bought a few years ago now. I would just be concerned that people think they are going to buy at the low if the banks will not be lending. Though if it goes t1ts up again, would you really want to be owning a house?

beauf

TheSheriff wrote: »

I couldn't imagine even proceeding that far without my other half viewing the property.

Seems like maddness to be honest

People are often working abroad, and one person has to set up their home without the other person. Or one person emigrates and their partner or family follow.

Must be very common for Irish families (indeed not just Irish) over many generations including the current generations.

beauf

zuhuraswa wrote: »

I'm just amazed at people who keep saying house prices are increasing......I am more amazed at how many estate agents are coming back to me from a few house viewing ....

There's a few things at play here. It maybe EAs want to get as much business completed as soon as possible before business dries up due to whatever reason. Even if a drop and market contract doesn't happen.

Logan Roy

Experience_day wrote: »

She works in a major one here not in UK


Obviously take with a big dose of salt, but they definitely are in the process of closing ranks according to her.



Kind of makes sense. If people are talking ~20% drops then it makes the house overvalued which would mean that the bank would be reluctant to lend more.



I'm pretty cool myself, I've already got a house that I bought a few years ago now. I would just be concerned that people think they are going to buy at the low if the banks will not be lending. Though if it goes t1ts up again, would you really want to be owning a house?

Those drops aren't going to happen overnight... and 20% is probably the absolute maximum. I wouldn't want to be looking for an exemption but i'd imagine people in stable jobs looking for a mortgage that they can comfortably afford to pay will be fine. Personally I wouldn't take out a mortgage that we couldn't afford to pay if one of us lost our job.

ZX7R

Experience_day wrote: »

Apparently some bank (gf works there) is going to be following UK model shortly and will be drying up their mortgages on offer without insane LTV.

Irish central bank dictates the rules in regards to mortgage lending , not individual banks.
If there are to be any changes if the future it will be made by the Irish central bank
And it will blanket changes to all banks

awec

ZX7R wrote: »

Irish central bank dictates the rules in regards to mortgage lending , not individual banks.
If there are to be any changes if the future it will be made by the Irish central bank
And it will blanket changes to all banks

The central bank just dictates the upper limits.

Each individual bank can impose whatever lending restrictions it wants on top of this.

Roberto_gas

Lending is what runs most of the Irish banks.....they will indeed put more controls....but if someone qualifies for a mortgage they ain't gonna reject it.

Experience_day

Roberto_gas wrote: »

Lending is what runs most of the Irish banks.....they will indeed put more controls....but if someone qualifies for a mortgage they ain't gonna reject it.

I'd guess it would more be based on valuations? E.g valuing an asset at 500k vs 400k is a 25% difference...just like the stock market if the banks feel assets are shaky they'll be reluctant to finance current prices.



Not to mention tail risks such as debt servicing levels if there are predicted job losses.

ZX7R

awec wrote: »

The central bank just dictates the upper limits.

Each individual bank can impose whatever lending restrictions it wants on top of this.

According to the Irish central bank home page they set the measures for mortgages and also set the limit to the percentage of waivers giving for individual banks and the number of wavers issue per year.
Individual banks don't have as much freedom as you might imagine

Zenify

ZX7R wrote: »

According to the Irish central bank home page they set the measures for mortgages and also set the limit to the percentage of waivers giving for individual banks and the number of wavers issue per year.
Individual banks don't have as much freedom as you might imagine

So if you get a mortgage offer from one bank they should all give you an offer?

Wasnt my experience anyway. For example KBC said one of the earners had to be above 30k. Never heard the central bank saying that...

Experience_day

ZX7R wrote: »

According to the Irish central bank home page they set the measures for mortgages and also set the limit to the percentage of waivers giving for individual banks and the number of wavers issue per year.
Individual banks don't have as much freedom as you might imagine

Think he was referring to the upper end, their loan books can only be a certain proportion of exemptions.....the argument is on the other side e.g not sure they can be forced to give out business! And the Central Bank certainly would not want risk(ier) portfolios to develop...

awec

ZX7R wrote: »

According to the Irish central bank home page they set the measures for mortgages and also set the limit to the percentage of waivers giving for individual banks and the number of wavers issue per year.
Individual banks don't have as much freedom as you might imagine

Yes, they set the upper limits to prevent over-lending. They tell banks that 90% is the maximum LTV permitted, and how many exemptions on LTI they are allowed.

Banks are free to introduce their own measures on top of this. BOI could decide they won't lend more than 50% LTV. AIB could decide to pause all mortgage approvals until 2021. They could decide that exemptions won't be given any longer.

Banks can't be forced to lend money. Especially if they don't have enough to lend!

tomister

Mixmistro wrote: »

What bank did you deal with if you don't mind me asking?

Was dealing with Bank of Ireland. They've been split across multiple sites so if you are missing paperwork the guys out in Tallaght can't help you (but will say they can)