Still unable to sell house - should I take it off the market for another year

Discussion in 'Mortgages and buying and selling homes' started by elainem, Jan 9, 2008.

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  1. elainem

    elainem Frequent Poster

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    Two offers on the house, but no formal move in last three months. Considering taking the house off the market again. House is currently up for E1.7 million. Period property 3/4 bed, Donnybrook area. Excellent condition. Currently rented out. No mortgage. Just want to sell 'cause I really hate the hassle and stress of being a landlord. Have posted here before, but would be interested in further update now. Thanks.
     
  2. Lulu123

    Lulu123 Frequent Poster

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    My advice would be to reduce the price by 10% for every 4 weeks the house is on the market and you will definitely find a buyer.
     
  3. mercman

    mercman Frequent Poster

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    The way the property market is at the moment, I wouldn't be saying definite to anything. If you don't need to sell, what's the point. Being a landlord is a pain sometimes, but in a property like the one described it shouldn't be that difficult. Either take a major knock on the price no or wait a year or so -- and there is no definite in anything to do with property.
     
  4. Mo Sizlak

    Mo Sizlak Guest

    Elaine,

    If the housing market goes into a long slump like the British market did between 1989-1994, you'd be better off doing as an earlier poster suggested and knocking a good percentage off the price early on, as it may take bigger and bigger drops to sell the property in the months and years ahead.

    If you could sell now at say a 10-15% lower price than it is currently being marketed at, you could stick the cash in the bank and let it earn a LOT more more in interest than you are currently receiving in rent, minus all the landlord hassles!

    Best of luck,
    Mo.
     
  5. Simeon

    Simeon Guest

    If you hate the whole landlord thing why not let a management company do the running of the house. In most cases this is a satisfactory route. You only have the stress of seeing your bank balance grow each month ..... minus 13% for fees!
     
  6. MrMan

    MrMan Frequent Poster

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    Sounds like the great giveaway. I don't think you can approach things in quite such a simple manner.

    If you can afford to rent it the best solution is to hold onto it and you will see for yourself how the markets goes in the next few years, and the option that Simeon put re: using a letting agent might just solve your problem without needlessly cutting chunks out of your very valuable asset. You should also try get less than 13% fees
     
  7. aircobra19

    aircobra19 Frequent Poster

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    Everything will sell at a price. I guess you have to decide which will cost you the least. Selling it now, or going through a letting agency and offset the (likely) drop in value, with rental income less management fees and tax.

    We've just started using a friends letting agency for the same reason. At the moment (for us) its more useful to have an income from it, than selling. I think we'd have to sell it at a very low price to move it. When you've no mortgage you don't have to worry about covering a mortgage when theres no body renting. We're hoping using a agency will remove us from most of the hassle. I think you'll get it for less than 13% though.
     
  8. ClubMan

    ClubMan Frequent Poster

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    Even if the property is lying idle costs will arise that need to be met - e.g. utility bill fixed costs/rental charges if not also usage, vacant property insurance, maintenance, management charges if applicable, LA charges if applicable etc.
     
  9. Steve D

    Steve D Frequent Poster

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    There is also the strong probability that if you take this advice that you will see the value of your house plummet by much more than the bank balance increases. Property prices are dropping rapidly and the longer that you leave it, the more the price is likely to fall.

    If I was in your position I would reduce the asking price by about 15 or 20% and see if it sells at that price because it is obvious that the price that you are currently asking is too high because you are getting no punters. If I managed to sell it I would then put the money in the bank because the interest that you would earn is very likely to be more than the income from renting the property and at least your capital will be safe, provided you pick a good bank.
     
  10. aircobra19

    aircobra19 Frequent Poster

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    What LA charge? What rental charges?
     
  11. Steve D

    Steve D Frequent Poster

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    There is also the opportunity cost. By not selling the property you are preventing yourself from investing the money in something else that is likely to be more profitable, if you choose wisely. What is the point in keeping a property that is depreciating in value?
     
  12. Simeon

    Simeon Guest

    Most investments are a gamble. Decisions have to be made. Cash in and go elsewhere or sit on it, do the best you can and wait for the upturn. If you compare the vagaries of stocks/shares to those of bricks/mortar ..... the long term would be interesting.
     
  13. aircobra19

    aircobra19 Frequent Poster

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    Having looked at your previous threads I'd keep trying to sell it. It makes no sense to rent it. You'll just have to do a lot of homework on comparing it with similar properties in th same area and what they are selling for. Not that they are being advertised at, and undercut them to sell..
     
  14. demoivre

    demoivre Frequent Poster

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    Worst advice I have ever seen on a bb.
     
  15. demoivre

    demoivre Frequent Poster

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    How ?
     
  16. demoivre

    demoivre Frequent Poster

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    How do you know property prices won't start rising again in the future?
     
  17. demoivre

    demoivre Frequent Poster

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    What's the op's rental income? How do you know this property wont be selling for 3 million in 10 or 15 years time? The supply of this type of house is limited - is rent likely to rise or fall over the next 10 to 15 years?
     
  18. outspann

    outspann Registered User

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    In this case, the property rising or falling in value isn't the issue. The OP has said they don't want to be a landlord and want to sell the house - they want advice on how best to do that. Reducing the price is one way that will help it sell.
     
  19. MrMan

    MrMan Frequent Poster

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    Yes but it is prudent to examine all of the options carefully. The option of using an agent to manage the property takes the landlord element out of it as effectively the tenant will only be dealing with the landlord. I do think given the type of property it is worth considering that it could be worth more over the next few years, i would imagine in time that type will be at a premium.
     
  20. outspann

    outspann Registered User

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    True, as you "imagined", it "could" be worth more. But to balance that out, I'm imagining that it could also be worth less. And given that we are now at the tail end of the largest property boom that this country has ever had, would you not agree that the highest premium this type of property will reach is to be found at the moment (and that's even if I imagine that it's price hasn't dropped in the last 12 months)?
     
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