Apartment won't sell

Discussion in 'Mortgages and buying and selling homes' started by gortbeg, Jan 15, 2007.

  1. gortbeg

    gortbeg Registered User

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    I have my apartment on the market with a top auctioneer since last September and it still hasn't sold. I am moving into my new house in two weeks and am already paying for two mortgages. The apartment was valued at 280k and I put it on the market for 270k. It is a two bed apartment and is only a year old. What else can I do. I suggested dropping the price again but the auctioneer said I'm mad to do this. I'm seriously getting worried about it. Is anyone else in the same position as me?
     
  2. Guest118

    Guest118 Guest

    How much did you buy the apt. for?
     
  3. ryan-neil

    ryan-neil Frequent Poster

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    Last edited: Jan 15, 2007
    Where is the apartment located. Is there much for sale in the area?
     
    Last edited: Jan 15, 2007
  4. beattie

    beattie Frequent Poster

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    It looks like you will have to reduce the price as you don't want to be in the situation of where you have to service 2 mortgages. There is a large supply out there so to get a quick sale you have little option IMO.
     
  5. bobbles

    bobbles Registered User

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    14
    I also have my duplex on the emarket since October, no offers as yet and we have put 2nd depoit on new house. We are now trying to get back deposit as we cannot sell our own, but its really up to the buliders if they will or not.
    The market sems to be so quiet and I hoped it would pick up but is hasnt so far and its unlikely it will before March maybe even April.
    Maybe you should drop the price although if there isnt much interest anyway then its unlikely that will do any good.
    Could you not rent out your apt??
     
  6. hmmm

    hmmm Frequent Poster

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    deleted by poster
     
  7. plaudit

    plaudit Guest

    Property prices are falling, you need to reduce your asking price to reflect this, its much the same principle as people increasing asking price as the market was rising.
     
  8. Tarquin

    Tarquin Frequent Poster

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    I was
     
  9. andagda

    andagda Guest

    Gortbeg, there are two competing interests at play here:

    - Your interest: As you and others have mentioned, the market is 'quiet', to say the least. There's a lot of anecdotal evidence that properties just aren't shifting - I know someone else with an nearly-new apartment on the market since last September. You can hold out at the price you're at while those around you reduce theirs, but then you might have to reduce yours even further to get below the new asking price for similar properties.

    - The auctioneer's interest: The auctioneer is interested in more than just the money they make from the sale on your own individual property. They're more interested in the overall market - and of course the last thing they want happening is for you to reduce the price, putting downward pressure on their market. And the auctioneer is desperately hoping that other auctioneers are telling their clients the exact same thing, in order to keep the house of cards standing up.

    It's a tough one - I hope it works out for you.
     
  10. Becca

    Becca Frequent Poster

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    This is a direct copy & paste from an e-mail I received from an auctioneer. I won't mention where it is in Ireland and I have x'd out the low rental values.
     
  11. phoenix_n

    phoenix_n Guest

    If you are bullish on the Irish Property market and think that the current slowdown will pick up in Spring then hold out on your asking price and suffer two mortgages until the place is sold. Be mindful of the extra pressure the next rate rise in Feb will bring.

    If you are bearish on the market lower you price by 10-15% to attract attention and hope for a couple of interested parties to bring the price up again.
     
  12. Sunny

    Sunny Frequent Poster

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    Good news is that the rate rise won't happen till March instead of Feb but doubt that is of much consolation! It is very hard to advise you what to do without knowing more. Have you had many viewings, what is happening with general real estate in your area, is the estate agent up to the task, how much equity do you have in the house etc etc..I certainly wouldn't suggest droping the price by 10-20k without knowing more.
     
  13. demoivre

    demoivre Frequent Poster

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    Really? How do you know that for certain? To the op - can you avail of an interest only option on one or both properties until you sell the apartment?
     
  14. Sunny

    Sunny Frequent Poster

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    I know with as much certainty as people saying it will happen in Febuary
    Unless they do a Bank Of England surprise job on us, they have already signaled to the market that it will be March. Doesn't help the OP though.
     
  15. DirtyH2O

    DirtyH2O Frequent Poster

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    I don't agree with this point of view - I believe that sellers want high prices, auctioneers want high volumes. It seems like a popular misconception to blame the auctioneers for our own greed. If all property trades were done online with no auctioneer would we blame the computer?
     
  16. demoivre

    demoivre Frequent Poster

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    On the contrary Trichet's comments on Jan 11 gave no concrete support to that view.
     
  17. Sunny

    Sunny Frequent Poster

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  18. DirtyH2O

    DirtyH2O Frequent Poster

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    I used the estate agent who had sold the most properties in the development and it was gone in a week. There wasn't a glut at the time though. Would you rent it out for a few months to reduce the burden until the buyers return to the market?
     
  19. gortbeg

    gortbeg Registered User

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    Thanks for all replys. I have gone intrest only on the apartment but repayments are still high. Mortgage left on apartment is 200k and I'm selling for 270k. The apartment is in Oranmore in Galway - all other apartments in this area are priced at 280k-300k. They are still selling brand new ones for 270k and there are a few of these left so maybe that is where I'm going wrong.
     
  20. hmmm

    hmmm Frequent Poster

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    You're saying that second hand apartments are priced at more than new ones?! The builders probably have a better handle on where the market is at than the individual punters trying to sell, I'd pace my price off of them.