House Sale

D

daithi 1971

Guest
Hi,
our house has been on sale since 02.01.05. We have had a number of interested parties but only one bid above asking price (€5K above). We are not in a rush to sell but our estate agent is telling us interest has dried up in the house and we should seriously consider this offer. We are a bit disappointed with this offer as the asking price was advertised a bit below the house valuation (about 10K) "to get the bids in". I have heard that Feb/March/April is the best time to sell a house so was wondering if we should hang on. The guy who has bid will probably retract it next week. Any advice??
Thanks
 
Look at it from the offeror's point of view.

They've seen a house and are prepared to buy it at the asking price. They've found themselves, probably as a result of being scmoozed by some oily estate agent, bidding over that price.

Now the bloody vendor won't sell - at a price higher than they were looking for originally.

No wonder they're likely to withdraw their offer.

You've been bustled by your estate agent, who wants an easy sale and doesn't care about the marginal commission on 5 or 10 grand, into setting an asking price below what you want. This is an asking, not a guide, price. Buyers know the difference between the two and, while they don't expect to land a house at the guide price in the current market, they do feel that offering the asking price should get them the house.

If you have a higher price than your asking price in mind (and evidently you do) then raise the asking price. Don't get caught up in playing games with househunters with your estate agent.

Otherwise, do what your agent probably wanted you to do in the first place - take the quick sale.
 
Thanks for the reply but I have thought about it from the purchaser's p.o.v. as I have obviously been a purchaser myself and I would have expected a house to sell for above the "asking price". In fairness to our estate agent our house was offered at "bids in excess of €XXX". My question is whether spring is the busiest time in the house market or not.
 
...

Whether spring is the best time to sell a house is a moot point. Even if this is generally true, it is out the window this year due to the impact on the market of the stamp duty changes in the December budget. There are way more buyers out there right now then there generally would be at this stage of the year.

Based on my own experience of viewing many many houses in D12, and my sisters similar experience in north Dublin, the ratio of buyers to sellers is pretty high at the moment. (An average of 15 groups of people are viewing each house I see in D12). Couple this with what various estate agents have told me - that fewer houses have come to market in the area than normal, and this explains the soaring prices in the area.

My point is, then - if your house is not selling for above the asking price now, then don't be expecting it to suddenly shoot up in a few month's time. Houses that are on the market for a long time tend to go down in value, not up, as buyers realise they are in the position of strength. Only one person has bid on your house. The many bidding wars I have been involved with so far have involved at least 3 bidders. Your bidder has placed a decent bid 5k above the asking price so it meets the 'in excess of' stipulation so ask yourself is this actually a fair price. Also consider the possible rise in value of houses you might be looking to buy were you to wait for a better offer.
 
Re: ...

when i see a price that says in excess of xxx I am immediately wary as it appears the esate agent wants a bidding war so I usaully offer less than the excess of. Why not compromise and say u will accept a bit more but not 5k more. To buy a house expecting to have to pay more is a risky buisness.

good luck

ps all the houses that i viewed since last september with an excess of are still on the market! I wonder why?

ebmitie
 
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