Are all FTB's waiting for budget?

[JMR]

Currently trying to sell our house, which would be viewed as perfect for a first time buyer.
It has been on the market for 6 weeks now with a flurry of interest initially but nothing for the last 3 weeks approx.

I know, in the current climate properties that would previously have sold well can remain on the market for months or longer.

The house we are looking to purchase has been significantly reduced and is well within our budget but we can't make a move on it until we sell our own (age old problem!)

Question is, are all FTB's now going to hold out until the budget is announced even though the soundings from Government are that no significant measures will be introduced which will make property more affordable?

We are thinking that reducing asking price at this stage will have no effect...

 

[rmelly]

Question is, are all FTB's now going to hold out until the budget is announced even though the soundings from Government are that no significant measures will be introduced which will make property more affordable?

What do you personally think the government could (not should) do for FTB's? To be honest I'd be surprised if any FTB has expectations.

Try a search of this site, or read the papers etc - people are not willing to pay the prices being asked...

 

[Mr DT]

Average time to sell is 211 days at the moment so you are in the early stages.

I think if i was a FTB I would be holding off just in case, but I don't think anything will change in the budget. The goverment have NO money to give away that's for sure.

Eventually it sounds like you will have to reduce your selling price anyway, so does it matter when you do it? Why didn't you put it on at a realistic price in the first place?

 

[rustbucket]

Im a first time buyer and have just sale agreed on a house. The house I have agreed on has been on the market for a year.

To be honest I agree with Mr DT. I think the budget will have relatively little impact on first time buyers especially as the stamp duty issue was wiped out previously.

The governement have relatively little cash to be giving away and I think if they do decide to do anything it will more than likely not be geared towards FTB's.

The issue I had as a FTB was to get value for money in the current market. Worry was that I didnt want to buy a place and have it valued significantly less a couple of months later.

There are plenty of active FTB's out there. It just depends on whether your house os thought to represent value for money.

Im pretty sure a price reduction will have some effect, especially if there has been interested parties

 

[groom]

We are thinking that reducing asking price at this stage will have no effect...

Of course it would. Time on the market is a function of price - If you price your house relatively low compared to your competition then it will sell relatively fast. And vice versa.

As a FTB myself I don't care much about the budget as time is correcting the market nicely. I will buy when renting is not a spectacularly better option to buying.

 

[JMR]

Of course it would. Time on the market is a function of price - If you price your house relatively low compared to your competition then it will sell relatively fast. And vice versa.

We live in as estate of roughly 200 houses where the turnover is quite high, or at least used to be.
There are currently three houses for sale, one of which is ours and is priced in between the other two.
Recent sale agreed properties went for roughly what we are asking for and of course it goes without saying that our house is way nicer than the other two!!

 

[noel_c]

Some FTBs may be waiting for the budget in the hope that it will somehow increase their purchasing power. Whether these people will realistically be in a position to purchase your house is debatable. Some pundits have suggested that we'll see some expansion of the affordable housing scheme in the budget, but that is not going to make life easier vendor like yourself. It really is hard to say at this stage, since the government has such limited resources to play with.

The budget is out of your control, but reducing your price is the most effective thing you can do to sell your house. You said yourself that the house you want to buy is substantially reduced. Did this not influence your choice?

There are currently three houses for sale, one of which is ours and is priced in between the other two.
Recent sale agreed properties went for roughly what we are asking for and of course it goes without saying that our house is way nicer than the other two!!

Firstly sale agreed means very little these days. Secondly they might have been asking roughly what you are asking, but do you know what the actual accepted offers were? They might have been considerably lower. If the two other houses are not getting any interest either, it suggests that you might want to be pitching below either of them to get more interest in your own property. Best of luck with the sale!

 

[oceanclub]

Currently trying to sell our house, which would be viewed as perfect for a first time buyer.
It has been on the market for 6 weeks now with a flurry of interest initially but nothing for the last 3 weeks approx.

I know, in the current climate properties that would previously have sold well can remain on the market for months or longer.

The house we are looking to purchase has been significantly reduced and is well within our budget but we can't make a move on it until we sell our own (age old problem!)

Question is, are all FTB's now going to hold out until the budget is announced even though the soundings from Government are that no significant measures will be introduced which will make property more affordable?

I'm an erstwhile first-time buyer, and unless the government announce a billion-euro extravaganza to make up the shortfall for any house price fall the next five years, the budget will make absolutely no difference to my decision to sit on my hands and wait for the market to bottom out. Buying in a falling market is just crazy - the equivalent of taking your deposit outside and burning it.

P.

 

[Howitzer]

Literally the only thing left that the Govt could give FTBs in the budget would be free cash. FTBs pay no stamp and have very high rates of mortgage interest relief (doubled in the last budget).

 

[JMR]

Literally the only thing left that the Govt could give FTBs in the budget would be free cash. FTBs pay no stamp and have very high rates of mortgage interest relief (doubled in the last budget).

So assuming all FTB's know this, then the impending budget will not influence their decision to enter the market in the slightest?
Price is the only factor??

 

[Thomas22]

So assuming all FTB's know this, then the impending budget will not influence their decision to enter the market in the slightest?
Price is the only factor??

Sounds about right

 

[sman]

as a first time builder.... I am waiting until the budget just in case. Possibly the thinking is that the market for new estate houses, which are priced lower than established estate houses, and therefore are more suited to the first time buyer, will be given some sort of a lift in the form of a grant for first time buyers. If the government can get the construction firms back building these houses, any grant will not cost the government much as they will save on social welfare for the unemployed builders. Also, despite the lack of funds, they might increase mortgage relief to try get some more money into the economy as interest rates have eaten away at disposable income over the past year which will lead to problems in the service and retail sectors. If there is even a 1% chance of the above happening, i figure its worth waiting a month to find out. I accept that this is a very very simplified view of the economy and there are plenty of other factors involved also

 

[budapest]

Literally the only thing left that the Govt could give FTBs in the budget would be free cash.

Not that I think it will or should be re-introduced, but they have done this before with the First Time Buyers grant.

However, I wonder what effect a potentially temporary 8,000-10,000 euro FTB grant would have on the current market?

 

[MrMan]

Why didn't you put it on at a realistic price in the first place?

He doesn't state the asking price so how can you make your assumption?

The budget is out of your control, but reducing your price is the most effective thing you can do to sell your house. You said yourself that the house you want to buy is substantially reduced. Did this not influence your choice?

He is six weeks into the sales process a little early to be cutting prices don't you thik. The initial flurry of interest would not suggest a high price but the lack of follow up may suggest that something can be done to spruce up the presentation maybe?

So assuming all FTB's know this, then the impending budget will not influence their decision to enter the market in the slightest?
Price is the only factor??

The main reason that ftbs are not so active now is that they are finding it difficult to get mortgage approved. Raising 10% is now a real problem when most have car loans, personal loans etc that they need to clear before they can save the deposit.

 

[Howitzer]

Not that I think it will or should be re-introduced, but they have done this before with the First Time Buyers grant.

However, I wonder what effect a potentially temporary 10,000 euro FTB grant would have on the current market?

The grant used to be around 1.5K. Reviving it and bumbing it up to 10K would cost 500 Million Euros (assuming 50K FTBs in a year). That money just doesn't exist.

That said sman's post shows that people will clutch at any straw so I guess in answer to the OPs question some people are indeed waiting for good news in the budget - but then some people are always waiting for something.

My money says more FTBs are waiting for prices to fall to affordable levels, or just to stop falling, than anything else.

 

[oceanclub]

Not that I think it will or should be re-introduced, but they have done this before with the First Time Buyers grant.

However, I wonder what effect a potentially temporary 8,000-10,000 euro FTB grant would have on the current market?

Absolutely none, unless most people think that the average house price drop in the next 5+ years will only be 10 grand - which works out about 3% for a average house (price €272532 as of June 2008).

P.

 

[oceanclub]

as a first time builder.... I am waiting until the budget just in case. Possibly the thinking is that the market for new estate houses, which are priced lower than established estate houses, and therefore are more suited to the first time buyer, will be given some sort of a lift in the form of a grant for first time buyers. If the government can get the construction firms back building these houses

Er yes, that's exactly what the country needs. Yet more houses in remote estates.

Are you serious?

P.

 

[oceanclub]

The initial flurry of interest would not suggest a high price but the lack of follow up may suggest that something can be done to spruce up the presentation maybe?

As a erstwhile first-time buyer, let me advise house owners tempted to spend big money money on "sprucing" up houses in an attempt to sell, please don't. By all means, give it a good clean and a lick of paint and make sure there is no smell of cabbage. But FTBs aren't dumb(#); when we're looking at a house, we're looking at the area, amenities, distance to public transport and size of the house(*).

At one house we viewed several times before passing, one estate agent was simply shaking her head at the antics of the owner, who while refusing to drop the ridiculous price he was looking for, was performing futile tweaking like taking out an old kitchen and putting in a new cheap-looking one which any new owner would just end up ripping out again (when what he should have done was add on an extension like the guy down the road - where the house was almost twice the size but up for a lower asking price).

(#) There's exceptions, admittedly.

(*)If "sprucing up" includes extensions and/or attic conversions, then yes, go for it.

P.

 

[groom]

The main reason that ftbs are not so active now is that they are finding it difficult to get mortgage approved. Raising 10% is now a real problem when most have car loans, personal loans etc that they need to clear before they can save the deposit.

Not from my POV as an FTB. I would say I'm not active because the gaffs are too expensive.

Couple with that that there is no fear of them getting even more expensive

 

[JMR]

As a erstwhile first-time buyer, let me advise house owners tempted to spend big money money on "sprucing" up houses in an attempt to sell, please don't. By all means, give it a good clean and a lick of paint and make sure there is no smell of cabbage. But FTBs aren't dumb(#); when we're looking at a house, we're looking at the area, amenities, distance to public transport and size of the house(*).

We have had one couple come back for a second viewing. They even told the EA that the they had narrowed it down to 2 houses, ours and another one in the same area.
Then, of course they vanished off the radar completely, the other house has not sold either.
There is nothing we can do to the house to 'spruce it up' as it is in very good condition which is why we were wondering is price the only possible factor or is the early budget playing a part in the fall off in interest?