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

That seems unreasonable as it's very onerous on you to have to do all that. Closing the sale of my own house this week and it's been so hectic trying to pack and clean that I will still be packing the day before so if my purchasers try that one I'll have to tell them where to go! I would say no and see what they say as I've never heard that before - that's putting you under crazy stress and there has to be an element of faith on their part that you will pack up on time just as you have to have faith they will transfer the funds on time. Best of luck with that.

Hi there, would love some advice please.

We spotted a house for sale in the local area (rural) at the end of 2020, 80s bungalow, 3 bed, it was a 30s cottage extended in the 80s. At the time we weren’t in a position to buy. It was on the market then for 250k, and last summer it went to up 285k, and then in Nov just gone back down to 250k.

In generally in this area very little goes up for sale, mainly people build new houses. But during 2021 a number of houses did go up, and sold pretty quickly, 3-4 months average. However, this house remained on the market.

I had originally emailed to EA in Feb-21 to enquire about it. He told me at that point that there was a bid of 235k on the house, and he felt it would likely go for 245k. At the time we weren’t in a position to buy, and assumed the house would be gone.

Since then we have saved our deposit, and before Xmas applied for our mortgage, and as there is so little for sale in the area decided to go and view the house. We were pleasantly surprised. While it is dated, it is in a very liveable condition, and has been well looked after over the years. We requested a second viewing and the EA arranged for the owner to be there, he was very nice, showed us around, explained about the work done to the roof, the new boiler, water and BER tests recently completed etc. He seemed very keen and genuinely wanted to show up the house. He himself is retiring and moving away so seems to be a credible reason for selling.

When we got mortgage approval last week we decided to make an offer. We decided to go in at 225k. The EA has told us he is unlikely to take less that 240k, but for us the house has been on the market for over a year and the EA has told us there hasn’t been any interest. When we asked about the 235k offer he told us about earlier last year he was very vague, and just said “that it ended up that they couldn’t come up with the money”, and that “we stuck with them for too long”. He has now come back to say that he wont take anything less than 240k.

We just have this niggling worry about the house, is there something wrong with it? It is on the market 14 months, and while properties don’t move as quickly as in some areas of the country, we still find this really suspicious. 2 houses were sold mid last year, for similar amounts, and neither were a lot better, and were in much more remote locations. 2 other houses sold that were major doer-uppers and we were shocked they went so quickly and for full asking price. There is a small cottage for sale nearby now, and speaking to the EA there have been 3 bids already. We asked the EA why it hadn’t sold and he was vague and said “well its in a remote area and its not everyone’s cup of tea”. Our big worry is that something will come up in the survey and that is why the other buyers pulled out.

For us there are literally no other properties for sale in this area, we are really keen to buy something as we are currently staying with family. We really like the house, can see huge potential down the line, its close to family, childminder, school, and has a big lawn, and we can move straight in. Is it just a case that there hasn’t been any interest and the fact that the owner will not budge much on the asking price, or should be worried about a house that has been on the market for such an extended period of time which looks like a great buy on the outside?

Would love to hear your thoughts! Sorry its so longwinded! 

In your circumstances, I would probably go lower than €225k and allow yourself to be bid up to that level, perhaps. If they couldn’t get an offer of more than €235k and then from a sketchy buyer, I would not rush to pay that level. Did you get the BER cert? I assume that it is at best a D and that may be from a new boiler and similar changes rather than a retrofit. €235k is probably less than the cost of a new build anywhere in the county but that would be a more highly rated house with lower running costs.

Thanks for your response. We went in at €225k, and EA was back in a day to say the buyer would only take €250k, but he would go down to €240k, but that is as low as he will go. I guess fair enough, we had hoped for a bit less seen as there isn’t another other bidders and the length of time on the market.

Yes BER is D2 so pretty low, and will mean we will have to do some retrofits. There was a new boiler fitted in 2021 which in fairness is great, and insulation fitted at attic level, so in the short term the house is very liveable, but longer term we would like to upgrade.

You are right €235-240k is far less than the cost of a new build anywhere in the county, while we would have a site available to us, I know we wouldn’t build anything for €240k with the cost of materials soaring at the moment. Mortgage Broker had said he was telling people to have €70-80k in reserve for new builds at the moment, it is just insane. And to buy a new build in the nearest town you are talking at least €320k ++

Been there for the last 18 months, but in an urban area so had some houses in the estate we ended up in the end - to go and compare by in the property register. But the variations in prices were substantial even at that.

Even though houses were all similar size - you do see that some people's needs are different. An extra room, bigger garden, garage converted or not, condition of the interior finish were all factors why some people would bid higher on house. So as long as your needs are met - then that's really all that matters.

Get your survey - once you see the work that goes into a BER assessment - you realise it is really a VERY rough guidance. Anyhow D2 for a bungalow is not so bad as cost of retrofit will be on the cheaper end of scale for sure. Replacing Windows and Doors alone (no need for scaffolding) will probably get ya to C1/B3.

Is the asking price the same as last summer or is the new asking at the price they had got to last summer? Seems mad they would accept offer 110k less than last summer. Like even if it was 550k house thats like 20%

It's up for 50k more than in summer. The EA has said they don't expect to achieve such significant bids over asking. They are still showing it so it could well go for above asking but with no bids in 2 months I'm wondering is this a reflection of a slower January and people awaiting approval etc.

The current asking is inflated imo and wonder is that impacting bids etc.

I can't see how you would be liable to tax. You came under the 335k limit. The reason the solicitor recommended that the EA overvalue it, I would imagine, is so that the sale wouldn't trigger any CGT liability if it gained in value between the date the property was bequeathed and the date of sale.

double post

There are a couple of taxes at play. Total inheritance is below the tax threshold so no tax there.

However if the house you inherited was sold and you made a profit you would be liable for CGT on any profit. Profit on the sale of your Principe primary residence is tax free. Hence why you've been asked if you every lived there - if you had you reduce your tax liability in line with the proportion of time you were living in the house. The relevant time frame is when you inherited the house to when you sold it I.e., the period you owned it. What you did 20 years ago is irrelevant as you didn't own it then.

So..

You inherited a house worth 225 and then disposed of it for 195. That's a paper loss of 30k. No paper gain so no CGT liability.

Yes I can stay living in it and it can be revalued again. The problem with holding off for any length of time is that house prices are soaring and between our demand/supply issue in Dublin and our incompetent government I'd likely find myself in a worse position in six months time. However I'd still have the discount which is a major blessing no matter what the house is valued at. Thank you for your response.

Looking for information on a survey on a secondhand house. We've just gone sale agreed. Valuation is being organised by our broker and everything else I'm aware of is in hand ,I think. My question is, what should a survey include? I was onto what seems like a large reputable surveyor and they note that things like electrics, rads and boiler/burner aren't checked. Is that standard?

If so I should just go to the property myself and check all outlets, rads, etc are working?