Buying a house - How much to offer!

S

Savvy Row

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As most of us already know, house prices are still far too high. Just this week, a lady on Joe Duffy programme told of how she had paid more than 200K too much for her apartment while believing that it had been "reduced to sell". Well it had been reduced alright - but not enough! And now she is devastated!

Houses once asking 1 million are now asking 500K - (reduced to sell!) - but should one offer half that again? Because if you paid 500K and discovered that in 12 months time it is only worth 300K, one will have lost 200K and that, for anyone, would be devastating.

So what kind of reduction should one seek when making an offer?
 
Not true plant 43. Not true at all! Would you equally argue that if you paid 40K for a 25K car, you'd have lost nothing until you sold it?

Using that logic, if you intend to remain in the house forever, it shouldn't matter to you what you paid.

Come on!
 
You're really asking if house prices are still going to fall.

If you believe they are hold off buying however if it's your dream house and you really want it then it's up to you to put in an offer, the vendor can always just say no.
 
Savvy Row said:
As most of us already know, house prices are still far too high. Just this week, a lady on Joe Duffy programme told of how she had paid more than 200K too much for her apartment while believing that it had been "reduced to sell". Well it had been reduced alright - but not enough! And now she is devastated!

Houses once asking 1 million are now asking 500K - (reduced to sell!) - but should one offer half that again? Because if you paid 500K and discovered that in 12 months time it is only worth 300K, one will have lost 200K and that, for anyone, would be devastating.

So what kind of reduction should one seek when making an offer?
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So, you want to offer what you think the value will be in 12 months time then? If you think prices will continue to fall then sit it out. My opinion on it is that if you find the home you really want then go for it. We traded up recently and I don't worry that my house has since dropped in value because its my home and I have no intention of selling it anyway.
 
Savvy Row said:
As most of us already know, house prices are still far too high. Just this week, a lady on Joe Duffy programme told of how she had paid more than 200K too much for her apartment while believing that it had been "reduced to sell". Well it had been reduced alright - but not enough! And now she is devastated!

Houses once asking 1 million are now asking 500K - (reduced to sell!) - but should one offer half that again? Because if you paid 500K and discovered that in 12 months time it is only worth 300K, one will have lost 200K and that, for anyone, would be devastating.

So what kind of reduction should one seek when making an offer?
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Why not sit it out for 12 months and see where the market is? If you predict a 50% drop then you will see if you are right or wrong, you could end up saving or spending more.
You cannot expect vendors to let you have your cake and eat it.
 
Speculation in relation to the future direction of house prices is not permitted on Askaboutmoney.

The sensible approach if you're in the market for a property is to assess each one on its own merits. Some may be overpriced and some may be underpriced. A property may prove to be the bargain of the century or the stitch up of the century. One should try and make any decision based on the best information one has to hand at that time.

Attempting to "call the bottom" in relation to any asset class really is a mugs' game.
 
Very few houses are selling - but it would appear that there have been some sales. One would have to wonder if the people buying are getting the property for a song. Because of the lack of a register, nobody knows what is being paid for property - so offering maybe 20% less than the asking prices could be making a complete fool of oneself if others were offering 45% and getting it for that.

Diffidult to know!
 
Offering 45% below asking would be making a fool of yourself as I doubt you would be entertained as well.
 
Why not have a chat with some local auctioneers - not the one acting for the vendor? Suss out what might be reasonable.
 
Savvy Row said:
Not true plant 43. Not true at all! Would you equally argue that if you paid 40K for a 25K car, you'd have lost nothing until you sold it?

Using that logic, if you intend to remain in the house forever, it shouldn't matter to you what you paid.

Come on!
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Plant is still right you havent proved anything with what you said there to be honest. Its only if you need to move you actually lose anything...tho you could argue you were ripped off originally but not in an illegal way its like you paid 100e for a ralph lauren shirt and in the sale someone bought it for 50e you havent lost anything since...
 
Anybody contemplating buying a house in the current economic conditions would in my honest opinion be completely off their heads! We were told by the expects until recently that falls of between 25 and 30% were realistic now we are witnessing falls of 50 and 60% and prices are continueing to drop, it is truely a horrifying time for those who got lured into buying at the height of the boom and are now saddled with huge negative equity.

100,000 of our brightest and best people have emigrated from these shores in the last 12 months, it is a sad sign of how bad things are in this country.
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The naivety is unreal! It is hard to believe that some people actually believe that if you pay too much for a house, you have not actually lost any money once you don't resell it. Unbelievable! So you pay 200 Euro fo a bar of chocolate - no problem once you don't resell it!

Yeah right!

Don't worry about paying 200K more for a property than what it's worth. No problem, once you don't resell!
 
There's logic on both sides.

There are two key values in relation to a property - what you pay for it and what you sell it for. Anything in between might be good for bluffing down in the golf club but beyond that it doesn't really matter.

A paper loss does not become a real loss until it's crystallised.

If I buy a property for €400,000 in 2003, it's worth €350,000 today and I sell it for €450,000 in 2020, I haven't lost money. Yes there's an opportunity cost, but the same can be said in relation to anything.
 
So Joe Public paid 600K for number 12 and Mike Public paid 300K the following year for exactly the same house next door. Joe's mortgage payments are double Mike's! The interest is twice as much as Mike's. Joe has incurred the "opportunity" cost of not having the 300K at his disposal. But cheer up Joe, if you sell it in 2020 for 601K - you'll have made a profit!

So the good news is, if you pay too much for your house, don't worry!

Smile!
 
That's life. Some people did exactly that spent €600k on a house in the boom years that is selling for €300k.

Maybe you need to review the supply and demand phenomenon.
 
A friend of mine was telling me yestersay that she bought a brand new house for 150.000euros of the the builder, originally the house asking price was 270.000e. She said she went to the BOI for a mortgage and naturally enough she did n't get it. But she got a mortgage from EBS via a mortgage broker, so apparently thats the way to go...via a mortgage broker and directly from the builder.

She also told me the poor bloke next door was trying to quiz her boyfriend about how much he was paying. It turns out he paid 288.000e for the house next door last year!!!
 
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