€575 asking price -what 1st bid to offer?
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Re: 575 asking price -what 1st bid to offer?
It's all relative to location really, but going on the facts provided by the OP, I would say c.520/530k. The house has been on the market 6 months, there is local cheaper competition which to me looks like they are asking for a low price to shift their houses. If they don't move its harder for the vendor in question to sell theirs. All three may end up dropping their price again in 2/3 months if they are all still on the market. Alot of ifs and buts and I'm using all negative scenarios.
Is 22% not alot, even in uncertain times especially for a house in this price range?
It's all relative to location really, but going on the facts provided by the OP, I would say c.520/530k. The house has been on the market 6 months, there is local cheaper competition which to me looks like they are asking for a low price to shift their houses. If they don't move its harder for the vendor in question to sell theirs. All three may end up dropping their price again in 2/3 months if they are all still on the market. Alot of ifs and buts and I'm using all negative scenarios.
Is 22% not alot, even in uncertain times especially for a house in this price range?
Re: 575 asking price -what 1st bid to offer?
MrMan,
I assume what Camry meant by a 'normally functioning property market' is one driven by supply and demand and not underpinned by speculation. Jumps of 20+% per annum is not a normally functioning market and was fuelled by speculation. I think that this is accepted. Drops of a similar amount therefore would be tantamount to a return to relative equilibrium.
I've been house hunting over the past few months and I haven't seen any panic. But what I have seen is houses remaining on the market for ages, in fact, most of the places I've looked at over the past 6 months are still for sale. Therefore, over time if vendors need to sell in order to fund a new purchase then they may be willing to accept an unusually low offer. If they bought say 4+ years ago then there a still sitting on a profit of maybe 10+% per year even if they take a hit on the asking price. That's all we're really talking about here.
Time will tell.
MrMan,
I assume what Camry meant by a 'normally functioning property market' is one driven by supply and demand and not underpinned by speculation. Jumps of 20+% per annum is not a normally functioning market and was fuelled by speculation. I think that this is accepted. Drops of a similar amount therefore would be tantamount to a return to relative equilibrium.
I've been house hunting over the past few months and I haven't seen any panic. But what I have seen is houses remaining on the market for ages, in fact, most of the places I've looked at over the past 6 months are still for sale. Therefore, over time if vendors need to sell in order to fund a new purchase then they may be willing to accept an unusually low offer. If they bought say 4+ years ago then there a still sitting on a profit of maybe 10+% per year even if they take a hit on the asking price. That's all we're really talking about here.
Time will tell.
G
Guest121
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Re: 575 asking price -what 1st bid to offer?
What about a place that's just come on the market at 575? If you were to get a quick sale on that do you reckon it would sell for about 530/535 cos of the way the market is going?
What about a place that's just come on the market at 575? If you were to get a quick sale on that do you reckon it would sell for about 530/535 cos of the way the market is going?
Re: 575 asking price -what 1st bid to offer?
Is this not the case for most products whether it be a PS3 or a washing machine? It's all relative
I don't see how your list points towards a normally functioning market, markets are not run by a strict set of rules.
The jumps of 20%+ per annum were not out of speculation, how can that be true? Surely the levels of housing built in the last 10-15 years would indicate that the market was trying to meet demand, so in essence a supply and demand scenario was in play. I don't see how anyone can back up the reason for such a vibrant market in the last decade was based purely on positive speculation.
I don't think anyone believes this, it is there to be seen that prices go both ways its the generalisation that is dangerous.
There is an argument there to support both sides.
I wouldn't recommend that anyone hand over a non-refundable booking deposit and it is the norm IMO.
The estate agent is there to provide a service for their client, the vendor. They should also extend their professionalism to the buyer, but not bend over backwards to please them. The buyer is there to purchase the property and it is the estate agents obligation to negotiate the best possible deal for their client. If purchasers wished to have this service available to them they should also enlist the services of an agent to act on their behalf.
Are you confusing a market with peoples ability to be able to read between the lines?
Is this not the case for most products whether it be a PS3 or a washing machine? It's all relative
I don't see how your list points towards a normally functioning market, markets are not run by a strict set of rules.
Re: 575 asking price -what 1st bid to offer?
I guess it would be a tempting offer, but that would depend on the vendors circumstances. If where offered on the OP's house of choice I would imagine it would just about clinch the deal, but you never can tell, some vendors will not buckle at all.
I guess it would be a tempting offer, but that would depend on the vendors circumstances. If where offered on the OP's house of choice I would imagine it would just about clinch the deal, but you never can tell, some vendors will not buckle at all.
Re: 575 asking price -what 1st bid to offer?
Please tell me you don't believe that over the past 10-15 years everyone who bought houses is the steroetypical 2 parent 2.4 kids family unit who intend to stay in the house for 20+ years.
Specualtion exists in the property market (and exists just as much in a downward trending market as contrarians try for bargains). I'm not saying it's all speculation. The economy has been good, and inflation relatively high, which will of course push prices up. But there is no doubt people have bought properties with little or no attention paid to :
Please tell me you don't believe that over the past 10-15 years everyone who bought houses is the steroetypical 2 parent 2.4 kids family unit who intend to stay in the house for 20+ years.
Specualtion exists in the property market (and exists just as much in a downward trending market as contrarians try for bargains). I'm not saying it's all speculation. The economy has been good, and inflation relatively high, which will of course push prices up. But there is no doubt people have bought properties with little or no attention paid to :
- possibility of price fall
- possibility (due to price fall) of staying in the house for a longer duration than anticipated (particularly commuter towns) as they cannot trade up.
- rental yield
Re: 575 asking price -what 1st bid to offer?
Of course there was speculation and a heavy dose of investment, but there was also a great demand. I don't think that you can generalise the astuteness of amateur investors though as many have proved to be very prudent.
I guess this could be said about any investment that has a feel good factor, be it eircom shares, property etc. There is always a risk in investment, but I feel alot (most) of the posts lately have a very negative twist and it looks like those same fundamentals you speak of are being used now as in 'it's going down'.
Of course there was speculation and a heavy dose of investment, but there was also a great demand. I don't think that you can generalise the astuteness of amateur investors though as many have proved to be very prudent.
I guess this could be said about any investment that has a feel good factor, be it eircom shares, property etc. There is always a risk in investment, but I feel alot (most) of the posts lately have a very negative twist and it looks like those same fundamentals you speak of are being used now as in 'it's going down'.
Re: 575 asking price -what 1st bid to offer?
Of course plenty are prudent investors.
But I firmly believe most of us (including myself) were not prudent at all, but just jumped on the bandwagon and happened to see a price increase.
I have to say, if I was putting 300K into shares I'd do alot more analysis than I did when I bought my house 4 years back
By the way, I'm one of those commuter belt buyers I mentioned earlier. I bought in Meath (because I thought it was the thing to do). The commute was horrendouns (7am -> 8pm) so I rented the house out and rent now myself also in Dublin closer to work. I wasn't financially intelligent then but I'm better now.
What I'm saying is alot of people will have done well from the property boom by default. The fact that it's correcting itself a little is not unexpected. There's also no need to panic, most people, excepting those who bought last year, should be sitting on nice profits.
Of course plenty are prudent investors.
But I firmly believe most of us (including myself) were not prudent at all, but just jumped on the bandwagon and happened to see a price increase.
I have to say, if I was putting 300K into shares I'd do alot more analysis than I did when I bought my house 4 years back
By the way, I'm one of those commuter belt buyers I mentioned earlier. I bought in Meath (because I thought it was the thing to do). The commute was horrendouns (7am -> 8pm) so I rented the house out and rent now myself also in Dublin closer to work. I wasn't financially intelligent then but I'm better now.
What I'm saying is alot of people will have done well from the property boom by default. The fact that it's correcting itself a little is not unexpected. There's also no need to panic, most people, excepting those who bought last year, should be sitting on nice profits.
Brendan Burgess
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Re: 575 asking price -what 1st bid to offer?
Dieter's story was featured in today's Irish Times with mention of askaboutmoney.
Well done.
Brendan
Dieter's story was featured in today's Irish Times with mention of askaboutmoney.
Well done.
Brendan
Re: €575 asking price -what 1st bid to offer?
I read the article yesterday in the Times. I thought it was great! Gave me more confidence too with regard to putting in offers on houses (I'm a FTB) - especially on properties that seem very overvalued in the current market and have not reduced their asking price even though they have been on the market for several months. I think generally that there is much better value for money out there now, although some estate agents are refusing to acknowledge the change and will not budge on price. But it was great to hear Dieterl's sucess story nonetheless. It gave me hope. Well done!
I read the article yesterday in the Times. I thought it was great! Gave me more confidence too with regard to putting in offers on houses (I'm a FTB) - especially on properties that seem very overvalued in the current market and have not reduced their asking price even though they have been on the market for several months. I think generally that there is much better value for money out there now, although some estate agents are refusing to acknowledge the change and will not budge on price. But it was great to hear Dieterl's sucess story nonetheless. It gave me hope. Well done!
Re: €575 asking price -what 1st bid to offer?
Thanks for the advice MrMan - it's greatly appreciated. I need all the help I can get!
It's not that we just assumed that the price should be 100k under given the market and hearing of other people's storys, but there were certain things missing from the property that made the price seem too high - particularly in comparison with similar or bigger sized houses in the general area. Upon commenting about this to the estate agent, they informed us that they had a great reputation of securing high prices for property in that area and that they wanted to ensure the same in this case for their client. So that's why I assume it's the estate agent that is holding up the high price and refusing to budge and not necessarily the seller. It's like they are basing the price on what they got for houses in the same street this time last year and are refusing to take into account the current change in climate. The price has remained the same for several months now and as far as I am aware, no offers have been made and the vendor has now moved out and into their new house.
Thanks for the advice MrMan - it's greatly appreciated. I need all the help I can get!
It's not that we just assumed that the price should be 100k under given the market and hearing of other people's storys, but there were certain things missing from the property that made the price seem too high - particularly in comparison with similar or bigger sized houses in the general area. Upon commenting about this to the estate agent, they informed us that they had a great reputation of securing high prices for property in that area and that they wanted to ensure the same in this case for their client. So that's why I assume it's the estate agent that is holding up the high price and refusing to budge and not necessarily the seller. It's like they are basing the price on what they got for houses in the same street this time last year and are refusing to take into account the current change in climate. The price has remained the same for several months now and as far as I am aware, no offers have been made and the vendor has now moved out and into their new house.
Brendan Burgess
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Re: €575 asking price -what 1st bid to offer?
Pantone said:
I haven't heard anyone suggesting this before. The estate agents are trying to make sales. They are doing their best to encourgage their clients to reduce the price.
Pantone said:
I haven't heard anyone suggesting this before. The estate agents are trying to make sales. They are doing their best to encourgage their clients to reduce the price.
M
mercman
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Re: €575 asking price -what 1st bid to offer?
Estate Agents will not allow their clients to reduce the prices and advertise the fact. We all are dealing with entities that are selling something they don't even own, and they work on Commission - so the higher the price the more they earn. Most resi EAs are not qualified about property. They know more about colour schemes than Planning Permission or Snag Lists.
The newspapers have made a killing over the past 10 years thanks to the property advertisements been directed by the Estate Agents. The EAs charge one price for newspaper advertising and pay a much lesser figure to the papers. It is an industry that stinks. I am in the Property business and detest Residential Agents with a passion. I could write a book on occurences which have happened to me.
Estate Agents will not allow their clients to reduce the prices and advertise the fact. We all are dealing with entities that are selling something they don't even own, and they work on Commission - so the higher the price the more they earn. Most resi EAs are not qualified about property. They know more about colour schemes than Planning Permission or Snag Lists.
The newspapers have made a killing over the past 10 years thanks to the property advertisements been directed by the Estate Agents. The EAs charge one price for newspaper advertising and pay a much lesser figure to the papers. It is an industry that stinks. I am in the Property business and detest Residential Agents with a passion. I could write a book on occurences which have happened to me.
Re: €575 asking price -what 1st bid to offer?
Update: I offerred 60k under asking and after holding out for many, many days, and much brow beating from a senior auctioneer, sale agreed at 50k under asking on Friday, (in October an estate agent sold another property at 50k under asking that I was also interested in - without referring back to me- as he appeared to want to bounce me toward another property on his books....incredible)the houses that reduce price substantially, behind the scenes, are selling
Update: I offerred 60k under asking and after holding out for many, many days, and much brow beating from a senior auctioneer, sale agreed at 50k under asking on Friday, (in October an estate agent sold another property at 50k under asking that I was also interested in - without referring back to me- as he appeared to want to bounce me toward another property on his books....incredible)the houses that reduce price substantially, behind the scenes, are selling
M
mercman
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Re: €575 asking price -what 1st bid to offer?
Congratulations. When the deal is signed you should advise the Agent who wouldn't refer your previous offer that you intend to report him.
Congratulations. When the deal is signed you should advise the Agent who wouldn't refer your previous offer that you intend to report him.
Interesting fact, I didn't realise we wielded such power.
The flipside is also argued, 'why would they look for an extra €10,000 when it only represents an extra €100 to the agent', seems Estate agents are on a hiding to nothing in this argument.
Another interesting fact, backed up by what?, your obviously balanced views on the subject.
Generalised and correct I'm sure in some cases, but not in all.
You'd never have guessed!
For what, appearing to want to 'bounce' him towards another property?