Making an Offer

B

Bmerlin

Guest
Hi,
Recently saw a 2 bed townhouse in Co. Kerry that would suit me down to the ground. Guide Price: 145000. Estate Agent informs me that the present owner would be happy with 135000.
Some points:
Street parking
Relatively busy road outside property
Solid fuel range which heats radiators
The house is approx 100 years old, and although has been renovated, requires some moderinisation. It's been on the market since Jan 2009 and I'm aware that the owner has sold similiar properties on the same terrace.They were used as rental properties.
I was thinking of offering 115000. Just want to know what peoples thoughts are. This would be my first step on the property ladder and I just want to be cautious.
Also, as regards structural survey, what's the general opinion. I lack experience in this field so any advice would be much appreciated
 
Very interesting discussion on last nights Late Late Show between an estate agent and some other quy can't remember his name or professionas I wasn't giving it my full attention. The non estate agent guy thinks property will be even cheaper next year. Listening to him I think you should either wait or make your offer. Think the programme will be available on the RTE web site in the coming week. Worth watching.
 
While I'm not a great fan of estate agents I thought that guy (the one that was flogging his book) was a complete idiot. His role was that of a rabble rouser and he was very liberal with his "wait till next year and get it at half the price". Never heard of him before so where was he even 12 months ago when prices had already dropped by 20%? think he was sayng they are down by 40% already so his analysis would suggested a 70% drop from the dizzy heights........ he could be right but I wouldn't place any faith in his populist rantings.

Roger
 
Thanks guys,
Ya, I saw that particular piece on the late late show last night. I think you have a point Roger, the thought did cross my mind as well. He did claim to have have vast experience as he said he worked for Savills. Nontheless, I think he was trying to make a name for himself and his book. I'm not going to base my decision on the mere speculation of one individual, whether he has vast experience in the business or not. A lot of EA's are saying now is the time, although they would say that! I'm sure they have mouths to feed as well. I don't think anybody knows for certain.
I've more or less made up my mind to act now, so that's not really the issue. My real query is based on my offer, is it a little too much or too little.
Also, any information on structural surveys would be much appreciated.
Thanks guys.
 
Would recommend a survey and you will probably need it for a mortgage.
Nothing wrong with the low offer. They can only say no.
 
Structural survey will cost 400 to 600 euro. Maybe cheaper nowadays in rural areas. You get engineer/architects office to do it. However they are very basic, they won't tell you for instance if you need to replace the heating system, or won't advise on planning permission issues. So if the house needs modernisation, I'd advise bringing a builder in to view it to give you a ballpark figure regarding replacing the heating etc. Chances are you will need to install a modern heating system for starters.
However, if you don't need to buy now I'd suggest keeping your options open by renting and waiting a bit longer. Come September you might get a similar place not needing work, and on a quieter street for the same money.
 
Bmerlin,

I was in a similar situation recently when making offers on houses and was wary of offering too little - foolishly.

Dont be afraid to offer at least 30% below asking price, if not more. I wouldnt be one bit bothered based on my recent experience to offer as low as 80 to 90 K
 
Hi Callisto,
Thanks for the advice, I'll consider doing that. Unfortunately,
 
Hi Callisto,
Sure....I can let you know what happens. I'm going back to have a second look at the place today, this time with a builder.
I was going to ask you...what was your experience with offering 30% below?
 
Wasnt accepted but a little bit more on top of it was.

As a guide....and I quote 2 different auctioneers....Houses are selling at 25% below asking price
 
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