How much to offer for Site??

C

Cyrstal

Registered User
Messages
166
Hi All,

We have found a site that we are going to make an offer on....

The site is being asked 150K, the auctioneer said that this would be negotiable...

A family member that works in the construction business has said to offer 75K - but I think that they wouldn't take us seriously at all if we offered that??

Anyone any advise? The site sale is subject to planning permission.

Thanks,
C
 
The way the market is at present, any offer will be taken seriously. The EA has advised you that the price is negotiable. For all you know the vendor might have to sell. How long is it on the market ?? Maybe even start at €60 k to go to €75 k. It is a buyer's market.
 
What size is site? Do you think you will get planning permission? Have to satisfy a lot of criteria if site in rural area. 150k sounds expensive for a small rural site. Which local council will be dealing with application?
 
Hi there,

I don't think the value of land is dropping as low as the value of houses. By all means don't offer the full price but I doubt very much that half the price will be accepted. For example sites local to me are looking at price of E100,000 but selling for E80,000.

Angela59
 
angela, set your alarm clock early for tomorrow and the day after. In fact better still check what the BoI chief said concerning residential development land this morning. IMO, the site is worth 60% of the asking price unless it is in an incredibly scenic location or on top of a gold mine.
 
Hi All,

Thanks for the replies.

Mercman, do you have the link for the details on what BOI chief said, googled it and came up blank.....could be a good bargaining chip?

(Also - why should Angela set her alarm clock early Is it like wake up call to smell the coffee??)

WJC - the site is 0.5 acre, but we could buy more if we wanted? It's in South Roscommon. Not sure if we'll get planning permission, but Mr. Cyrstal has a brother and two sisters and their families living in the area, and he also works five mins from the site....

Thanks

C
 
Hi Mercman,

Well I can report that land values and it is rural land haven't dropped as much as 60% - I'm in South East of the country. Land banks that developers have built up - sure they're going to sell cheaply to repay back loans. But unless a farmer or land owner is desperate for money why would they sell for less. Land can sit there unlike residential property. Any of the sites that have sold within a 5 mile radius have sold for 20% of the original price.

To original poster - try your offer - see who'll be waking up and smelling coffee. By the way land in Roscommon E150,000 for 0.5 acres seems to be exhorbitant.
 
So you are saying the only people up to their necks in it or developers. I don't think so. We have just come from a situation when Banks were shovelling money at everybody. Farmers especially are finding it tough going at the moment and they need money.
 
If the BOI chief feels that land is only going to be worth 40% of its pre boom price I think that is what you need to be comparing against.

I won't have been that aggressive with my own bids but after today's announcement from BOI if I was bidding for land I think 50% of boom prices is the absolute maximum I would pay.
 
Angela, I wasn't saying to you to wake up and smell the coffee, I was just asking is that what mercman meant by his alarm clock comment.

The site is actually just outside Athlone, and to be honest the site probably would have had an asking price of 180K in the boom...

Mercman thanks for link.

We're going to have a think about it - to be honest we'd be thrilled if we got if for 100K, anything less would be a major bonus!!
 
start low and work upwards. Wouldn't you kick yourself if your first offer was accepted.
 
Hi,

If someone needs the money desperately enough they will sell for a massive reduction - everyone's situation is different - I don't think you can talk for the whole of Ireland and any landowner is suddenly going to knock between 40% and 60% of the price of land unless that land was like many houses way overpriced to begin with. Certainly E150,000 for 0.5 of an acre seems to me to be very excessive and around here would cost in the region of E75,000 and that is without a price reduction. I know land in around the greater Dublin area was very inflated in price and I feel that areas like that and prices like what the OP was bandying about will certainly have to come down - the OP didn't mention originally it was only for 0.5 acres. If the price for the land was realistic in the first place. Some rural areas land has not increased in price to begin with.
 
angela, i really don't want to doubt you but the entire property market for the past 3 years was an accident waiting to happen. And that's not just Dublin, or cities or South etc. I'm living in Connemara and land prices are been hammered and I work in Dublin and prices are hammered even further.
 
i think if you have a look on "daft" you will see houses sitting on half an acre or more,for less than 150k in roscommon.
personally i think you are being robbed at that price....but at the end of the day its your call!
 
Single site Houses that are for sale in the area that we are looking at are going from 350K-400K upwards(or should I say asking for!) - in the boom they were asking for over 500K for them and upwards! Mr. Cyrstals brother's house sits on half an acre about a mile from this site - their house was valued at 650K at height of boom. It's in a really nice area outside Athlone(but not near the lakes or anything and wouldn't have a view) We're meeting auctioneer tomorrow, heart is in mouth as we've been looking for a nice site for so long, but don't want to be 'ripped off'. Thanks for replies, myself and Mr. Cyrstal going to sit down tonight and discuss it.
 
Offer 70k and say you would be willing to give up to 100k for full acre site. If offering around 100k make sure you look for bigger site. Tell them you are looking at another site in area and you are keen to get a deal done quickly.150k for half acre rural site in Roscommon is ridiculous. Also say that you have spoken to council and they reckon you would qualify for planning in area. The sooner planning permission is granted the sooner vendor will get paid. Tell him someone with no chance of getting planning could offer more and waste a year being refused by council. Check with council if planning has been refused on this particular site in past.
 
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Intersting to note that some people are saying listen to the BOI for property advice when the advice is to cut prices dramatically, could it be a case of hearing what you want to hear?

Regards OP there's no danger in starting low and if your first offer is accepted don't look at it as 'damn I could have saved more' there are not definites so chance your arm and see what happens.
 
Mr.Man, No it's not a case of hearing what one wants to hear. It is a case of reality.
 
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