House Offers

[dahamsta]

I know there's no standards in property, but there's always averages. What would ye estimate is the average percentage people are going under asking these days on houses? 15%? 20%? Or, how much of a markup are EA's recommending?

Educated, reasonable guesses, not "Eff EA's, they're a shower of b'stards, offer 1% of asking!"

adam

[Paddyfield]

I have a good mate who works for Anglo Irish Bank. He said the current selling price of any property is 40% off the 2008 asking price.

[sligobhoy67]

I know there's no standards in property, but there's always averages. What would ye estimate is the average percentage people are going under asking these days on houses? 15%? 20%? Or, how much of a markup are EA's recommending?

Educated, reasonable guesses, not "Eff EA's, they're a shower of b'stards, offer 1% of asking!"

adam

According to stats in the UK the selling price is on averages 8.5% less than the asking price.

[John83]

I have a good mate who works for Anglo Irish Bank. He said the current selling price of any property is 40% off the 2008 asking price.

That's consistent with what I've heard too.

[BigfeetBigsocks]

I would say todays prices are around the same as they were in 2002-2003 before all hell broke loose on pricing

[Poor Student]

Adam, are you taking the plunge in the near future? I'd have thought you of all people would know it's worth holding off for at least 2 years if not more.

[Lionel Ritchie]

Just sold and bought. Current house went on the market in May 08 with an asking price we of 165K. We closed at 134K and have to be out next week.

We actually had an offer of 165K in summer last year just before the whole property scam went tits up but the prospective buyers own sale fell through.

House we've bought went on the market in summer 07 with an asking price of 360K. we've closed at 270K.

[dahamsta]

I'd have thought you of all people would know it's worth holding off for at least 2 years if not more.

I don't agree with your outlook PS, but it's neither here nor there: I've already held off more than 15 years, I'm buying to live, and the house I'm considering is with a liquidator. All I need it to do is hold or not lose too much value in 3-5 years, when I'll buy to build using an investment I made a few years ago. It's a largeish A3 rated house in a nice estate that the liquidator is desperate to shift, so I'll probably take the punt on it if the bank'll give me the money.

The bank is of course my biggest problem, as I'm self-employed and my wife does contract work. So wish me luck, I need it!

adam

[Poor Student]

I don't agree with your outlook PS, but it's neither here nor there: I've already held off more than 15 years, I'm buying to live, and the house I'm considering is with a liquidator. All I need it to do is hold or not lose too much value in 3-5 years, when I'll buy to build using an investment I made a few years ago.

That's fair enough. In that case 30-40% is what I hear anecdotally. You should certainly lowball.

The bank is of course my biggest problem, as I'm self-employed and my wife does contract work. So wish me luck, I need it!

adam

Good luck.

[Paddyfield]

Here is a simple rule of thumb which I have always applied to property prices. Use this for any other property to see if it stacks up.

Property doubles in value every 6 to 8 years so for arguments sake, we will take it as 7 years.

MY Dad sold a house in 1970 for slightly over IR£10,000 which is approx EUR13,000 (just to make calculations easy.


1970- EUR 13,000

1977 - EUR 26,000

1984 - EUR 52,000

1991 - EUR 104,000

1998 - EUR 208,000

2005 - EUR 516,000

2012 - EUR ONE MILLION??????????

It was sold in 2006 for bang on 800,000 which was the going rate at the time albeit crazy.

That same house wouldn't fetch 400,000 today.

Food for thought.

[dahamsta]

That's fair enough. In that case 30-40% is what I hear anecdotally. You should certainly lowball.

30-40% under asking? The backreference figure is no good to me and the UK 8.5% sligobhoy mentioned seems very low for Ireland. The UK property market isn't even close to the mess we have here, plus they're already in recovery.

Good luck.

Thanks! And of course thanks to everyone else that responded, but keep it coming! I'd also be interested in thoughts on mortgage providers - we're currently targetting AIB, BOI, EBS and INBS - and insurance and other things I should know about.

adam

[Poor Student]

30-40% under asking?

It's hard to say. Some recent pricing coming onto the market has been a little more realistic. Pricing on the market varies wildly from near boom level pricing to 30% and more off the previous peak. The market is currently declining and will continue to do so, so what prices should be at and what you should offer is constantly dropping.

Thanks! And of course thanks to everyone else that responded, but keep it coming! I'd also be interested in thoughts on mortgage providers - we're currently targetting AIB, BOI, EBS and INBS - and insurance and other things I should know about.

adam

You'll be obliged to take out home insurance and life assurance in order to be allowed get a mortgage. In the case of AIB and BOI you can arrange both of those with them as well as the mortgage if you aren't too bothered in shopping around.

[dahamsta]

I'd be surprised if the liquidator would take less than 15% below asking tbh, although I will of course start at at least 20%. The asking price is nearly half what it was originally. Although I did catch the EA in a lie, when he tacked another 100k onto it. Didn't bring him up on it though, no point in making enemies from the off!

I'd forgotten about life assurance, the person in AIB confused me with talk of payment protection, which isn't required. You can be sure I'll be shopping around though!

Thanks!
adam

[Poor Student]

I'd forgotten about life assurance, the person in AIB confused me with talk of payment protection, which isn't required. You can be sure I'll be shopping around though!

Thanks!
adam

Payment protection may be a good idea as you're self employed (self employed PRSI class don't get social welfare while out ill, right?). On the life assurance, I think it's cheaper to go with the bank's group protection scheme but if you were to sell the property and pay off the mortgage then the policy ends there whereas a policy taken out independently can be maintained and used on other mortgages.

[paul_oshea]

30-40% under asking? The backreference figure is no good to me and the UK 8.5% sligobhoy mentioned seems very low for Ireland. The UK property market isn't even close to the mess we have here, plus they're already in recovery.

Thanks! And of course thanks to everyone else that responded, but keep it coming! I'd also be interested in thoughts on mortgage providers - we're currently targetting AIB, BOI, EBS and INBS - and insurance and other things I should know about.

adam

They aren't already in recovery, the UK economy is still shrinking. They are saying house prices are stagnating in London as opposed to the rest of the country but this isn't what ive experienced or friends have either recently.

When i got my mortgage they said i need assurance and insurance, I got neither, I still got the flat.

Don't get Payment protection its a racket, it really is, at the end of the day if you need to use the payment protection it would be the same as getting a 3 month holiday in terms of credit history. Plus it takes about 6 months for it to kick, which at that stage you will have found yourself in a situation whereby you will already have acquired a big black mark on your credit history, and most are limited to 6 months max payment cover, there might be better offers out now, but im talking about 2 years ago and more.

[Poor Student]

When i got my mortgage they said i need assurance and insurance, I got neither, I still got the flat.

Both are obligatory to take out a mortgage. The bank wants its money if you croak and it doesn't want the collateral for a mortgage going uninsured.

[dahamsta]

They aren't already in recovery, the UK economy is still shrinking.

My mistake, sorry.

When i got my mortgage they said i need assurance and insurance, I got neither, I still got the flat.

I've only talked directly to AIB and BOI so far, but neither would give us a mortgage without both, either with them or with someone else.

Don't get Payment protection its a racket

I take your point and on smaller borrowings I always tell them to stuff it, but as PS has outlined, I'm not your normal case, and neither is my wife. I'm at more risk than most, although of course the insurer will weight the policy with that in mind and quite possibly make it unfeasible anyway.

adam

[paul_oshea]

Ya, fair point adam, someone like a teacher for example is well covered on any type of sick leave etc. Just be sure that there is no period of unemployment/non payment like 3 months etc, i.e. make sure that the policy you get kicks in straight away ( ive not seen one by the way, but that doesn't mean they dont exist).

If your wife is contracting, and i know you dont need to hear it from me, but she will obviouslly have money mounting up in her business account that even if she were off for 3 months she would still have enough to live off and pay the mortgage for that time, especially if it kicks into the new financial year....

I take the point too on the assurance etc, two friends who are teachers are in the process of buying new builds over here in London, and they were told the same. I'm not lying though I don't have it and I was told you needed it Others who have previouslly bought have told me the same thing...Im not really sure how i got away with it then?!

[dahamsta]

Ya, fair point adam, someone like a teacher for example is well covered on any type of sick leave etc. Just be sure that there is no period of unemployment/non payment like 3 months etc, i.e. make sure that the policy you get kicks in straight away ( ive not seen one by the way, but that doesn't mean they dont exist).

Duly noted, thanks!

adam