First time selling property in Ireland - need advice

Mary Tuohy

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First time poster so hope this is the correct forum to ask for a bit of advice. I own what was the family home which my mother obtained when my brother lent her the money to buy it. He then wanted to charge her rent and in 2001 my mother asked me to buy him out. I took out a small mortgage and paid him off but not without him putting a stay on the house, which finally got sorted in around 2005. So the deeds are now in my name since then & the house is rented out to tenants who moved in when my Mother went into a nursing home and she passed away in Sept. 2015. I have retired to Ireland since 2014 and kept on the Estate Agent who managed the property for me while I was in the US. (I am an Irish citizen with dual US/Irish citizenship) I live on a Social security pension of 1400 euro pm. No other income or assets. I received the following email from the Estate Agent:

The Tenant has come back to me regarding the proposed purchase & had an engineer survey it and he came up with some issues. The two back windows need replacing and are letting in moisture. The esb meter is the original one and the radiators are of the old variety and no longer energy efficient.Taking all the above into consideration she is making a cash offer of €115,000 for the property.

I still owe ~25,000 on the mortgage & had hoped to obtain around 120 to 125,000 but considering this is a cash deal Im inclined to go with the offer. I have a solicitor who handled the previous issues with the house and will be speaking with him this week, but before doing so I just wanted to check on this forum if there are any other things I need to consider as I have not sold property before in Ireland. I'm not sure of Tax implications etc.

Tx!
Maura
 
Is the purchaser currently renting the property from you.

Those items would not normally affect the price. Certainly if the property is worth €125,000 they would not justify a €10,000 reduction.

Do you have an idea of what the property is worth separately from what the tenant is offering and what you hoped for.
 
"First time poster so hope this is the correct forum to ask for a bit of advice. I own what was the family home which my mother obtained when my brother lent her the money to buy it. He then wanted to charge her rent and in 2001 my mother asked me to buy him out. I took out a small mortgage and paid him off but not without him putting a stay on the house, which finally got sorted in around 2005. So the deeds are now in my name since then & the house is rented out to tenants who moved in when my Mother went into a nursing home and she passed away in Sept. 2015. I have retired to Ireland since 2014 and kept on the Estate Agent who managed the property for me while I was in the US. (I am an Irish citizen with dual US/Irish citizenship) I live on a Social security pension of 1400 euro pm. No other income or assets. I received the following email from the Estate Agent:"

All of this is irrelevant to the value of the property on the open market - the property is only worth what some one on the open market is willing to pay.

All that matters then is whether you want to accept this offer and you should talk to your solicitor and also your accountant about concerns.

Specifically - if you sell, do you have a CGT liability? Is anyone else interested in buying the property?

mf
 
Thank you for your response & yes the tenant has been renting the property for approx 3 yrs & have been excellent tenants. The estate agent advised that 120,000 was a good price based on recent sales in the area. Given the issues that the Engineer identified plus I would need to update kitchen & paint the house inside & out, I figured it would save me a lot of money & hassle to accept their offer.
 
I smell a rat in this whole thing.

You do not have to update the kitchen and paint inside and out to sell a house.

Nor have I ever met an estate agent who recommended spending money on a house prior to selling. The usual advice is that purchasers would rather spend the money on their own style of kitchen etc.

As mf1 says you never know what a house is worth unless you offer it on the open market.

Its a sellers market today especially. if your tenant is willing to match the best offer you can get on the market fine, otherwise i think it would be foolish to sell to them.
 
Tell the EA that you were expecting more so keep it on the open market. Suggest that you wouuld consider a cash offer of 120k and see if that brings it up accordingly. Is the property up on daft ? I too would be wary of the EA in this. The tenant is paying you rent so you're in no hurry to sell.
 
Thank you all for the guidance provided and which I greatly appreciate. It leads me to believe I need to think further on this and will need to obtain an accountant for further advice on CGtax. I live in Co. Clare & would be grateful for any recommendations in how to obtain an accountant in this area.

Tx again!
Maura
 
It sounds like they are simply setting up a negotiating position. Those "issues" have been fine to live with for three years but they probably want to spend as little as possible buying the property and keep as much as possible for their own fit out. Chances are they have more in the pot if you don't fold straight away. I would suggest getting an independent evaluation or two done from different EAs so you get a general view of property prices in the area. I would also suggest looking at the [broken link removed] to get a feel for actual property prices in the area and at myHome and Daft to see what other properties are on the market for.

Yes, they have been good tenants but that doesn't automatically mean you are obliged to them. Remember, you can only sell the house once and whatever price you get for it, that is it. There is no going back.
 
A cash buyer is more desirable, in many more ways than just the highest offer you would receive on the open market. I would spend a few hundred Euros on an independent valuation, (it would be worth the investment, if you are not familiar with the property scene here) and make a judgment call on the €115K offer. Dont try to time the market, if the offer makes sense, get a deposit to test the seriousness of it. CGtax will have to be paid no matter who buys it.
 
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